🕐22.02.12 - 08:27 Uhr

PAN AFRICAN ANNOUNCES INTERIM RESULTS FOR SIX MONTHS ENDED 31 DEC 2011



Pan African announces Interim Results for the six months ended 31 December 2011 (This is a duplicate of the SENS)
1.

Highlights for the 6 months ended 31 December 2011
Corporate - Revenue increased by 33.7% to �51.23 million (2010: �38.33 million). - Earnings and Headline earnings per share increased by 88.7% to 1.00 pence (2010: 0.53 pence). - Earnings before interest, taxes, depreciation and amortisation (�EBITDA�) increased by 86.6% to �24.17 million (2010: �12.95 million). - Attributable profit increased by 90.5% to �14.44 million (2010: �7.58 million). - Cash on hand �4.9 million (2012: � 10.6 million) * - Unhedged and debt-free.
Mining Operations
Barberton Gold Mining Operations (�BGMO�)
- Gold sold increased 0.6% to 46,927oz (2010: 46,655oz). - Tons milled increased by 3.6% to 154,643t (2010: 149,231t) - Head grade increased 0.9% to 10.65g/t (2010: 10.55g/t). - Total cash cost of ZAR192,397/kg (2010: ZAR176,199/kg) for the period under review but improved to ZAR158,925/kg for the quarter ended 31 December 2011.
Phoenix Platinum Group Metals (�PGM�) Retreatment Plant (from Chrome tailings)
- Plant commissioned two months ahead of schedule and on budget during October 2011.

- 438oz of PGM contained in concentrate was produced and despatched by the end of December 2011.


Near-Term Mining Projects � Barberton Gold Tailings Retreatment Project (�BTRP�)
- Commenced with a Definitive Feasibility Study (�DFS�) - Acquired the Harper Gold Tailings dumps representing over 3Mt of material at a grade of 1.3g/t for total consideration of �830,000.
Development projects � Manica Gold Project
- Established a separate management team with the aim of listing the Manica Gold project as a separate exploration company on an international exchange in April 2012. Significant post period acquisition � Evander Gold Mines (Pty) Ltd - Pan African Resources and Witwatersrand Consolidated Mines entered into a 50:50 joint venture on 30 January 2012 to acquire 100% of the Evander Gold Mines from Harmony Gold Mining Company for a total conditional consideration of up to ZAR 1.7 billion (�139 million). * Cash on hand as at 17 February 2012 at the closing rate of 12.24 was �16.0 million.
Please note that there will be a results presentation today at 11.00am South African time at Macquarie First South Capital At: Macquarie First South Capital The Place, 1 Sandton Drive, South Wing, Sandown
A LIVE audio cast will be available to:
UK listeners: 0800 917 7042 SA listeners Johannesburg: 011 535 3600 Cape Town: 021 819 0900 Durban: 031 812 7600 South African toll free: 0 800 200 648 Other countries: +27 11 535 3600
Financial Summary:
Six months ended 31 December 2011 Six months ended 31 December 2010
(Unaudited) (Unaudited)
Revenue (�) 51,229,660 38,326,410
EBITDA (�) 24,166,658 12,947,012
Attributable profit (�) 14,437,217 7,584,317
EPS (pence) 1.00 0.53
HEPS (pence) 1.00 0.53
Weighted average number of shares in issue 1,444,225,674 1,421,399,407
2.

Nature of Business Pan African is a South African based precious metals mining group that produces approximately 95,000oz of gold and 12,000oz* of Platinum Group Metals (�PGM�) per annum.

The company�s strategic focus is on delivering attractive shareholder returns by exploiting ore-bodies that yield high margins through a highly skilled and experienced management team.

The company recently commissioned the Phoenix chrome tailings retreatment plant that extracts PGM�s from chrome tailings and is planning to build a 1.2Mt per annum gold tailings retreatment plant at BGMO.

This plant could increase gold production from BGMO by a further 25,000oz per annum from August 2013. The group is debt free, unhedged and is able to fund all current capital expenditure from internal cash flows.

The Group is generating significant cash from operations and as at 31 December 2011 had � 4.9 million cash on hand.
* Full production build-up is expected from May 2012
3.

Financial Performance Pan African is incorporated in England and Wales, its reporting currency is pound sterling (`�) and its functional currency is South African Rand (�ZAR�).

Barberton Mines (Pty) Ltd (`Barberton Mines) is a South African Company and its financial statements are prepared in South African Rand (`ZAR).

When Barberton Mines financial statements are translated into pound sterling for the purpose of Group consolidation and reporting, the average and closing ZAR:� exchange rates for the period affect the Group consolidated financial results.


During the current period, the average ZAR: � exchange rate was ZAR12.06 (2010: ZAR11.18) and the closing ZAR: � exchange rate was ZAR12.54 (2010: ZAR10.28).

The period-on-period change in the average and closing exchange rates of 7.9% and 22.0% respectively should be taken into account when comparing the period-on-period results.


Gross revenue from gold sales increased by 33.7% to �51.23 million (2010: �38.33 million).

The increase in revenue was mainly attributed to a 34.9% period-on-period increase in the average gold spot price received of US$1,736/oz (2010: US$1,286/oz) however the appreciation of the pound sterling against the ZAR had a negative impact on the Pound revenue.

The average �:ZAR exchange rate strengthened by 7.9% to ZAR12.06 (2010: ZAR11.18).

Revenue expressed in ZAR terms increased by 44.2% to ZAR 617.

80 million (2010: ZAR 428.49 million).

Although the average spot gold price in the period under review increased by 34.9% to US$ 1,736 (2010: US$ 1,286), the average US$: ZAR exchange rate strengthened by 6.2% to ZAR7.58 (2010: ZAR 7.14) which had a negative impact on the ZAR revenue.

The effective ZAR gold price per kilogram achieved increased by 43.3% to ZAR 423, 276/kg (2010: ZAR 295, 281/kg).

Mining profit at BGMO increased by 113.4% to �28.6 million (2010: �13.4 million).


Other expenses were �1.76 million (2010: �1.35 million), and there were no impairments in the current or prior reporting period.


Cost of production increased by 1.1% to �23.20 million (2010: �22.95 million).

In ZAR terms the cost of production increased by 9.0% to ZAR279.79 million (2010: ZAR256.58 million).

The increase was primarily due to a hike in electricity rates by 29.6% to ZAR32.06 million, engineering and technical services up 14.8% to ZAR25.64 million and salaries and wages up 11.1% to ZAR131.43 million.

The Royalty tax charge increased 99.0% to �2.01 million (2010: �1.01 million).

Income tax increased by 123.7% to �8.39 million (2010: �3.75 million) as a result of the increase in profit before tax.

The effective tax rate increased by 3.1% to 36.8%.
EBITDA increased by 86.6% to �24.17 million (2010: �12.95 million) and attributable profit increased by 90.5% to �14.44 million (2010: �7.58 million).

Cash on hand decreased to �4.9 million (2010: �10.6 million) mainly due to capital expenditure of �4.57 million associated with the Phoenix Platinum Group Metals Retreatment Plant and the dividend payment of �7.42 million made during the period under review.
The increase in attributable profit is primarily due to the favourable gold price.

The profit margin in ZAR terms increased by 93.9% to ZAR230,879/kg (2010: ZAR119,082/kg).The total unit production cash cost increased by 9.2% to ZAR192,397/kg (2009: ZAR 176,199/kg), but improved to ZAR 158,925/kg for the quarter ended 31 December 2011.
Basic earnings per share increased by 88.7% to 1.00 pence (2010: 0.53 pence) and basic headline earnings per share increased by 88.7% to 1.00 pence (2010: 0.53 pence).

In ZAR terms the basic earnings per share increased by 102.0% to 12.06 cents (2010: 5.97 cents), and basic headline earnings per share increased by 102.0% to 12.06 cents (2010: 5.97 cents).


4.

Review of Barberton Mines a.

Safety & Training We are pleased to report no fatalities occurred for the period under review. To date fatality free shifts totalled 1,329,723 and the safety performance at BGMO for the first six months of the 2012 financial year as measured by the All Injury Frequency rate (�AIFR�) at 21.25 (2011: 24.82) indicates that the total number of incidents decreased during this period.

However, in the period under review, the Lost Time Injury Frequency rate (�LTIFR�) deteriorated to 3.09 vs.

2.61 in 2011 and Reportable Injury Frequency Rate (�RIFR�) to 1.03 vs.

0.33 in 2011.

In order to address these slight increases a Mining Qualification Authority accredited training program for supervisors is being implemented in order to identify and correct safety hazards.


b.

Operating Performance A total of 46,927oz (2010: 46,655oz) of gold was sold from BGMO (which comprises the Fairview, Sheba and New Consort sections), a slight increase of 0.6% from the previous year.

Total underground production remained consistent at 45,209oz (2010: 45,385oz).

Tons milled increased by 3.6% to 154,643t (2010: 149,231t).

The tonnage increase was mainly due to the additional surface dump material planned during the period under review to make up for the BIOX� problems.

Head grade remained constant at 10.65g/t (2010: 10.55g/t). Operating problems were experienced in the BIOX� plant during July and August 2011 which negatively affected gold production, when the cumulative effect of breakdowns to the old high pressure blowers in the process and excess oil from a collapsed crusher bearing.

These breakdowns created a lack of oxygen supply to the reactors and resulted in poor recoveries. To ameliorate the above, electronic oil pressure controls were installed in the crusher and the outdated blowers were replaced with more efficient low pressure blowers at a capital cost of ZAR2.4 million (�0.199 million).
Production Summary
6 months ended 6 months ended 6 months ended 6 months ended 6 months ended
31 Dec 11 31 Dec 10 31 Dec 09 31 Dec 08 31 Dec 07
Tons Milled (t) 154,643 149,231 152,584 159,919 161,455
Head grade (g/t) 10.65 10.55 10.11 11.40 9.05
Overall Recovery (%) 89 91 91 91 92
Production: Underground * (oz) 43,355 45,209 45,385 47,634 43,145
Production: Calcine Dumps / Surface Ops (oz)
264 - - 3 545 3 601
Gold Sold * (oz) 46,927 46,655 45,971 51,186 47,486
Average price: spot (US$/oz) 1,736 1,286 1,032 824 721
Average price: hedge (US$/oz) - - - - 460
Average price: spot (ZAR/KG) 423,276 295,281 253,510 235,338 165,782
Total cash cost (US$/oz) 786 767 670 451 521
Total cash cost (ZAR/KG) 192,397 176,199 164,697 134,581 114,640
EBITDA � 000 24,167 12,947 8,598 8,552 4,001
Depreciation � 000 1,536 1,909 1,375 1,066 806
Capital Expenditure � 000 4,567 4,076 2,199 2,282 1,532
Exchange rate � average ZAR/� 12.06 11.18 12.48 15.13 14.05
Exchange rate � closing ZAR/� 12.54 10.28 11.94 13.78 13.77
Exchange rate � average (ZAR/US$) 7.58 7.14 7.64 8.88 6.94
Exchange rate � closing (ZAR/US$) 8.12 6.65 7.39 9.55 6.86
* The variance between gold produced and sold is higher than the historical figure of between 1% to 3% and is due to the dumping of the high grade contents of the BIOX� reactors during June 2011, which was then fed back into the system during the period under review.
c.

Capital Expenditure � Growth Projects
Project Metres/ % Equipping completed % Complete of budget (Progressive to YTD) Potential Resource Comments
36 ZK Sheba 197.4 101.23% 5,000 The footwall drive will reach the target area in June 2012 and development along the cross fractures.


Edwin Bray 190.7 105.94% 15,000 Targets exceeded and continuing development towards the Thomas ore body.
Exploration drilling to commence in February 2012 to determine mining plan and layouts.
Pillar Development Sheba 75.3 82% In reserve � 25 - 560 Main Fracture area � 1,960t @ 24,71g/t has been established.


� 27-360 Stoping area � 6,860t @ 21,14g/t exposed with 90m of re-equipping remaining to gain access for stoping.
� 35 - 10 - 382 Prospect - 40m of development completed and a structure carrying a value of 9,94g/t has been intersected.
40 Level Development Consort 126.1 110.61% 8,500 � Development has progressed through the pegmatite and subsequent cover drilling indicates a second splay of pegmatite (+/- 30m thick), which still has to be traversed.
� The target zone is virgin area with very good potential to pick up the upward extension of the ore body.
SI 22 50W1 Decline Consort 88.0 99.32% 30,000 � 50 W1 decline is to be sunk for one level. � The opening up of 53 level has exposed potential high grade reserves that have potential for mining and are currently being evaluated.
Pillar Development Consort 58%
80% 0.00% In reserve 52 Level at 49 Sub-Vertical Shaft: � Re-equipment from 50 to 52 level is completed. � Secondary support in the form of sets has been completed. � Decline development to commence in February 2012.
33 Level � Ventilation doors and access services from station to ventilation door completed. � 80m of service piping required prior to de-watering. � Sampling to be carried out once this is completed.
SI 14 Equipping Consort 55.9 147.11% In reserve The decline shaft rope raise and box hole are 95% complete.
Shaft equipping down to 40 level is to be completed in the 3rd quarter of the 2012 financial year.

Mineable reserves on 38 level has been identified for the 2013 financial year.
Project Metres/ % Equipping completed % Complete of budget (Progressive to YTD) Potential Resource Comments
3# Deepening Fairview 89.3 119.07% 350,000 The development of the 64 to 62 level return airways is on-going with, 55m remaining. Shaft sinking to commence in the new financial year, with the opening up of the downward extension of the Hope reef.
58 Hope Reef Equipping 85% 80.00% In reserve Equipping is progressing well and should be completed by April 2012.
54 Rositer Reef 122.9 122.90% 11,000 The Rositer reef has been intersected and reef development is under way.
16 Level Opening Up Fairview 100% 100.00% In reserve Re-equipping on 16 level is complete and new blocks for stoping are being evaluated and brought into the mining plan.
d.

Maintenance Capital
� Metallurgy Plants
Metallurgical Plants Cost Category Impact on production
Sheba � Concentrate truck ZAR1,300,000 Replacement Safety and maintenance improvement.
Sheba � Pump replacements ZAR200,000 Replacement To improve mine water run off control.
BIOX � - Air equipment machinery ZAR2,250,000 Replacement To improve Biox recoveries.
BIOX � Instrumentation equipment ZAR500,000 Replacement To improve Biox recoveries.
� Engineering
Engineering Cost Category Impact on production
Winder ropes ZAR1,190,000 Replacement Legal and safety requirement.
Compactors and utility vehicles ZAR1,070,000 Replacement Safety and grade control in 11 block.
12 Ton tipper truck ZAR1,101,000 Replacement Safety and maintenance improvement.
Fairview 2# refurbishment ZAR2,004,000 Maintenance Safety and legal requirement.
Load haul dumpers ZAR2,426,000 Maintenance Safety and production requirement.
e.

Mineral Resources Management Exploration Drilling During the period under review a total of 7,740m (2010: 7,604.5m) of exploration drilling was completed underground at Barberton Mines and the following significant intersections are reported:
Section Borehole Number Drill width (cm) Grade (g/t) Description
Fairview Bh 5849 1,626 50.22 MRC ore body down-dip extension
Bh 5864 1,383 43.82 MRC ore body down-dip extension
Bh 5861 77 21.20 Rositer down-dip extension
Sheba 24-460 - 01 104 13.45 Stope prospect drilling
29 ST 20 764 15.70 Stock work extension
29Stock23 63 30.08 Stock work extension
29Stock24 113 34.14 Stock work extension
33 MRC W37 86 10.30 MRC footwall structure
3340-W42 100 14.80 Prospect drilling for Birthday Northern Limb
3340-W42 91 15.13 Prospect drilling for Birthday Northern Limb
3340-W42 73 10.82 Prospect drilling for Birthday Northern Limb
36 ZK W01 82 42.71 ZK ore body below 35 level
36 ZK W02 74 35.20 ZK ore body below 35 level
36 ZK W02 34 15.98 ZK ore body below 35 level
36 ZK W02 40 10.04 ZK ore body below 35 level
36ZK 02 75 11.32 ZK ore body below 35 level
EB 09 64 13.64 Mineralised structure in the Moodies quartzite
New Consort 20IV-4 188 21.45 Ivora mineralisation below 20 level
3#7-1 64 25.20 3 Shaft resource extension
3#7-1 64 88.90 3 Shaft resource extension
3#7-1 64 72.70 3 Shaft resource extension
3#7-2 256 33.78 3 Shaft resource extension
3#7-3 256 19.93 3 Shaft resource extension
3#7-3 64 44.70 3 Shaft resource extension
3#7-5 87 23.20 3 Shaft resource extension
3#7-6 246 19.71 3 Shaft resource extension
3#7-6 87 14.40 3 Shaft resource extension
3#7-7 97 69.15 3 Shaft resource extension
3#7-8 82 21.80 3 Shaft resource extension
3#7-9 164 26.45 3 Shaft resource extension
3#CT-6 192 55.77 3 Shaft resource extension
3#CT-8 64 10.50 3 Shaft resource extension
37NE-2 97 30.30 37 Level new ore body exploration
37NE-3 97 17.50 37 Level new ore body exploration
37NE-3 97 32.40 37 Level new ore body exploration
37NE-4 97 29.50 37 Level new ore body exploration
37NE-5 100 111.00 37 Level new ore body exploration
37XC-16 87 11.00 37 Level new ore body exploration
37XC-18 91 23.80 37 Level new ore body exploration
Development results A total of 1,617.6 m (2010: 1,636.7m) of development was completed on working cost.

Capital development totalled 1,095.8 m (2010: 429.6m) of which the majority, 481.9m (44%) was done at Sheba with 348.8m (32%) at Fairview and 265.1m (24%) at Consort.

The capital development at Fairview was focussed at deepening of the number 3 sub-vertical shaft, the Hope and Rositer reefs.
New Consort Fairview Sheba
Metres g/t Metres g/t Metres g/t
Reef 241.4 6.15 198.0 2.89 531.8 3.71
Stope Development 187.7 6.76 176.4 5.5 31.1 8.49
Capital 265.1 - 348.8 - 481.9 -
Waste working cost 441 - 434 - 742.6 -
Waste Total 706.1 - 782.8 - 1,224.5 -
5.

Review of Phoenix Platinum Construction of the Phoenix Plant by Basil Read Matomo Projects exceeded expectations when cold commissioning commenced in October 2011.

First concentrates were produced on 29 November 2011 two months ahead of schedule. Frazer Alexander carried out the construction of the Tailings Storage Facility Extension and the completion thereof dovetailed with the early commencement of tailings treatment by the plant.

Some 150,000 man hours where expended during the construction phase without a time lost accident.

A five year Sale of Concentrate Agreement was concluded with Western Platinum Limited (a subsidiary of Lonmin Plc) in November 2011. The plant is in the process of progressing towards full production.

During this period various practical feedstock blends will be bulk treated and conditions examined for optimisation and enhancements tested to maximise the process.

Full production is expected from May 2012.


6.

Near-Term Mining projects � BTRP
During the period under review, Basil Read � Matomo commenced with a DFS on the final design for the BTRP.

The detailed design for the new tailings storage facility has also commenced, while the Environmental Impact Assessment study is progressing on schedule. The Harper Gold Tailings dumps which are situated within close proximity to the Bramber Tailings dump, and representing over 3Mt of material at a grade of 1.3g/t, was acquired for total consideration of �830,000.
7.

Development Projects � Manica Gold Project During the period under review a separate management team was established to list the Manica Gold project as a separate exploration company on an international exchange.

Good progress has been made to achieve a separate listing in April 2012.
8.

Capital Expenditure and Commitments Capital expenditure at Barberton totalled �4.57 million of which Development Capital was �2.47 million and Maintenance Capital was �2.10 million.
Capital expenditure on Phoenix Platinum totalled �4.57 million.
There were �0.57 million outstanding orders contracted for capital commitments at the end of the period at Barberton and �0.5 million outstanding at Phoenix.
Operating lease commitments, which fall due within the next year, amounted to � 0.147 million (2010: �0.179 million)
9.

Directorship Change
The Following changes took place in December 2011:
Non-Executive Directors: � Mr.

Cyril Ramaphosa resigned as chairman of the board. � Mr.

Keith Spencer replaced Mr.

Cyril Ramaphosa as chairman of the board. � Ms.

Phuti Malabi replaced Mr.

Keith Spencer as Deputy Chairman of the board.
Executive Directors: � Mr.

Cobus Loots resigned as Financial Director but will remain as a non-executive director. � Ms.

Busi Sitole has been appointed as Financial Director.
10.

Shares Issued
During the period under review the company announced the issue and allotment of 923,650 new ordinary shares in respect of share options exercised:
� On 28 October 2011, 200,000 shares issued to Mr.

F.

Chadwick at 6 pence per share.

� On 24 November 2011, 723,650 shares issued to Mr.

D.

Negri at 6 pence per share.
11.

Dividend
The Company has adopted a policy whereby dividends are considered and, deemed appropriate by the Board, declared on an annual basis.

Pan African will consider a final dividend subsequent to the finalisation of financial year-end results.

The consideration of any dividend will take account of cash flow requirements and growth plans, whilst recognising that where possible, the payment of a dividend on a consistent basis increases shareholder value.
During the period under review the company declared and paid a final dividend for 2011 of 0.5135 pence per share totalling �7.42 million.
12.

Going Concern
The board is satisfied that the Group is a going concern for the foreseeable future, and have adopted the going-concern basis in preparing these interim results.
13.

Accounting Policies
The financial information set out in this announcement does not constitute the Company�s statutory accounts for the half year ended 31 December 2011.
The interim results have been prepared and presented in accordance with, and containing the information required by IFRS on Interim Financial Reporting, IAS 34.

The financial information included in the interim results has been prepared in accordance with the recognition and measurement criteria of IFRS.

This announcement does not itself contain sufficient disclosure information to comply fully with IFRS.
The interim results have not been reviewed or reported on by the Company�s external auditors.
Johannesburg Stock Exchange (JSE) Limited listing
The Company has a dual primary listing on JSE Limited ("JSE") and the Alternative Investment Market ("AIM") of the London Stock Exchange.


The preliminary announcement has been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS, the AC 500 standards as issued by the Accounting Practices Board ("APB") and the information as required by International Accounting Standards ("IAS") 34: Interim Financial Reporting.


AIM Listing
The financial information for the period ended 31 December 2011 does not constitute statutory accounts as defined in sections 435 (1) and (2) of the United Kingdom ("UK") Companies Act 2006.


The Group announcement (the Groups financial statements) has been prepared in accordance with IFRS and International Financial Reporting Interpretation Committee ("IFRIC") interpretations adopted for use by the European Union, with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
Segmental Reporting
A segment is a distinguishable component of the Group that is engaged in providing products or services in a particular business sector (operating segment), which is subject to risk and rewards that are different to those of other segments.

The segments which the Group reviews the business activities of are: Mining Operations, Near-Term Mining Operations and Development Projects.
14.

Directors� Dealings
The Company was notified on Tuesday 18 October 2011 that Pangea Exploration (Pty) Ltd ("Pangea"), a private company of which Mr Rob Still is a director, had declared a dividend in specie (the "Dividend") to its shareholders on 1 October 2011.


Mr Still is also a trustee of the Alexandra Trust a major shareholder of Pangea.

The Alexandra Trust received 12,430,900 ordinary shares of 1 pence each in the Company ("Shares") at a price of ZAR1.46 per Share, with a total value of ZAR18,149,114 as a consequence of the Dividend.
Following this off-market transaction Mr Stills total direct, beneficial interest in Pan African remains unchanged at 2,000,000 Shares, representing 0.14% of the issued share capital of the Company as well as his total indirect, non-beneficial interest of 16,755,308 Shares representing 1.16% of the issued share capital of the Company.

Mr Still did not receive any direct or indirect benefit from this off-market transaction.
The Company was notified between Friday 28 October and Tuesday 1 November 2011 that Pangea Exploration (Pty) Ltd ("Pangea"), a private company of which Mr Rob Still is a director, had sold the following Shares at the following prices:
277,863 Shares at R1.7056 per share 322,137 Shares at R1.7131 per share 45,708 Shares at R1.72 per share 54,292 Shares at R1.70 per share 300,000 Shares at R1.70 per share
The above shares were sold by Pangea in order to provide funding for other potential projects.

Following the above on market transactions Pangea holds 3,324,408 Shares, representing 0.23% of the issued capital of the Company. Mr Stills total direct, beneficial interest in Pan African remains unchanged at 2,000,000 Shares, representing 0.14% of the issued share capital of the Company as well as his total indirect, non-beneficial interest of 15,755,308 Shares representing 1.09% of the issued share capital of the Company.


Mr Still did not receive any direct or indirect benefit from the above transactions.
15.

Significant events post the reporting period
Acquisition of Evander Gold Mines On 30 January 2012 Pan African and Witwatersrand Consolidated Mines (�Wits Gold�) announced that the parties had entered into a 50:50 joint venture to acquire 100% of the Evander Gold Mines from Harmony Gold Mining Company for a total conditional consideration of up to ZAR 1.7 billion (approximately �139 million).

The transaction represents an opportunity for Pan African to materially increase its gold production profile by 50,000 ounces as well as adding a significant project pipeline for future growth.

The implementation of the Transaction is subject to the fulfilment of a number of conditions as set out in the transaction announcement of 30 January 2012.
Barberton Gold Tailings Retreatment Project (�BTRP�)
On 1 February 2012 the Company announced that the Board had approved Phase One of the BTRP, which will recover gold from the retreatment of the gold tailings situated close to BGMO.

It is anticipated that the BTRP will increase the production profile at Barberton by 25,000 ounces per annum.
16.

The Future Despite falling short on planned gold production, due to operating problems experienced in the BIOX� plant during the start of the reporting period, a high gold price and significant effort by the Barberton team to increase production and manage cash cost allowed us to report record earnings for the Group.

Barberton remains one of the lowest cash cost producers in the South African Mining industry.

Despite significant inflationary pressures the cash cost reported for the second quarter of the reporting period fell to ZAR158, 000/kg.

This once again highlights that our focus on mining and developing quality ore-bodies with experienced management teams and a skilled workforce remains a competitive advantage that will allow us to continue to grow our profit margin and dividend.


The commissioning of the Phoenix CTRP ahead of schedule and on budget further demonstrates the Group�s ability to develop projects in addition to managing mining operations.

The Group now produces both gold and PGM�s and offers investors this unique investment exposure.

At an expected operating cash cost of US$466/oz of 4E this project will be one of the lowest cash cost producers of PGM�s in the South African industry � again highlighting our competitive advantage in terms margin delivery. The BTRP is the next organic growth project to be developed and once commissioned should increase Barberton�s annual production by 25,000oz from August 2013.

Although the project will recover gold, it is similar to Phoenix in that it will reclaim surface tailings that requires no underground mining and as a result places it on the lower end of the cost curve.

This project will allow us to grow our profit margin once again.
The announcement post the reporting period of the acquisition of Evander Gold Mines from Harmony in a 50:50 Joint Venture with Wits Gold, gives the Group; - Access to 50,000oz of attributable production at a cash cost of less than ZAR215,000/kg - Additional attributable profits - Newly upgraded underground infrastructure (ZAR256 million invested by Harmony on Evander 8 Shaft over the last year) - An attributable underground reserve of 3.8Moz at a recovered grade of 8.02g/t - An attributable underground resource of 16.26Moz at a grade of 6.88g/t in situ - Two shallow development projects at depths of between 225m and 1000m below surface - A significant surface tailings resource � 100Mt grading 0.29g.t on an attributable basis - A further highly experienced management team and skilled workforce This acquisition of the asset removes the concentrated asset risk of the Group and the partnership with Wits Gold and payment structure will allow the Group to acquire a sizeable, quality asset without: - Negatively impacting any potential dividend - Requiring any issuing of equity subject to cash flow from Evander and the quantum of debt funding secured. The group believes that managements proven track record for extracting value at BGMO can be duplicated at Evander. Our objective for the remainder of the financial year is to improve on the reported results for the period under review.


17.

Consolidated Statement of Comprehensive Income for the period ended 31 December 2011
Group
31 December 2011 31 December 2010
(Unaudited) (Unaudited)
� �
Revenue
Gold sales 51,229,660 38,326,410
Realisation costs (84,965) (75,604)
On - mine revenue 51,144,695 38,250,806
Cost of production - Gold (23,201,120) (22,949,762)
Depreciation (1,536,448) (1,908,836)
Mining Profit 26,407,127 13,392,208
Other expenses (1,762,357) (1,346,045)
Royalty costs (2,014,560) (1,007,987)
Net income before finance income and finance costs 22,630,210 11,038,176
Finance income 223,324 414,657
Finance costs (26,069) (19,868)
Profit before taxation 22,827,465 11,432,965
Taxation (8,390,248) (3,848,648)
Profit after taxation 14,437,217 7,584,317
Other comprehensive income:
Foreign currency translation differences (8,533,732) 4,676,586
Total comprehensive income for the year 5,903,485 12,260,903
Profit attributable to:
Owners of the parent 14,437,217 7,584,317
Non-controlling interest - -
14,437,217 7,584,317
Earnings per share 1.00 0.53
Diluted earnings per share 0.99 0.53
Weighted average number of shares in issue 1,444,225,674 1,421,399,407
Diluted number of shares in issue 1,452,808,064 1,426,159,912
Headline earnings per share is calculated :
Basic earnings 14,437,217 7,584,317
Adjustments: Impairment - -
Headline earnings 14,437,217 7,584,317
Headline earnings per share 1.00 0.53
Diluted headline earnings per share 0.99 0.53
18.

Consolidated Statement of Financial Position as at 31 December 2011
Group
31 December 2011
31 December 2010 30 June 2011
(Unaudited) (Unaudited) (Audited)
� � �
ASSETS
Non-current assets
Property, plant and equipment and mineral rights 59,516,827 44,422,134 59,052,015
Other intangible assets 13,332,945 17,247,371 14,214,426
Goodwill 21,000,714 21,000,714 21,000,714
Rehabilitation trust fund 2,669,022 3,073,793 3,013,385
96,519,508 85,744,012 97,280,540
Current assets
Inventories 1,487,066 1,740,777 1,457,202
Trade and other receivables 7,000,352 4,886,229 4,254,401
Cash and cash equivalents 4,994,854 10,630,963 10,123,822
13,482,272 17,257,969 15,835,425
TOTAL ASSETS 110,001,780 103,001,981 113,115,965
EQUITY AND LIABILITIES
Capital and reserves
Share capital 14,449,643 14,440,406 14,440,406
Share premium 50,982,790 50,752,830 50,932,830
Translation reserve (223,190) 9,172,451 8,310,542
Share option reserve 799,227 807,924 861,450
Retained income 44,628,324 28,022,935 37,607,283
Realisation of equity reserve (10,701,093) (10,701,093) (10,701,093)
Merger reserve (10,705,308) (10,705,308) (10,705,308)
Equity attributable to owners of the parent 89,230,393 81,790,145 90,746,110
Total equity 89,230,393 81,790,145 90,746,110
Group
31 December 2011 31 December 2010 30 June 2011
(Unaudited) (Unaudited) (Unaudited)
� � �
Non - Current liabilities
Long term provisions ** 2,994,493 3,735,682 3,386,591
Long term liabilities ** 237,357 - 181,285
Deferred taxation 9,320,441 9,717,443 9,841,695
12,552,291 13,453,125 13,409,571
Current liabilities -
Trade and other payables * 6,947,074 5,437,913 8,193,750
Short term provisions - 1,689,122 -
Current tax liability 1,272,022 631,676 766,534
8,219,096 7,758,711 8,960,284
TOTAL EQUITY AND LIABILITIES 110,001,780 103,001,981 113,115,965
* Trade and other payables at 30June 2011 includes an amount of �1,465,299 (�41,411 for the Company) relating to the leave pay accrual which was classified as a short term provision in the prior year.

This is in accordance with IAS: 19 Employee Benefits.

The leave pay accrual balance as at 30 June 2010 was �1,151,895.
** Long term liabilities at 30June 2011 include an amount of �115,418 relating to the post-retirement benefits which was classified as a long term provision in the prior year.

This is in accordance with IAS: 19 Employee Benefits.

The post-retirement benefits balance as at 30 June 2010 was �136,602.
19.

Consolidated Cash flow Statement for the period ended 31 December 2011
Six months ended Six months ended
31 December 2011 31 December 2010
(Unaudited) (Unaudited)
� �
Cash Generated by operations 23,585,992 15,928,379
Taxation paid (6,824,551) (3,587,061)
Royalty paid (1,724,084) (1,065,267)
Dividends paid (7,416,175) (5,376,165)
Net Finance Income 197,255 394,789
Cash inflow from operating activities 7,818,437 6,294,675
Cash outflow from investing activities (9,140,205) (8,500,858)
Cash inflow from finance activities 59,197 1,365,000
Net decrease in cash equivalents (1,262,571) (841,183)
Cash at the beginning of period 10,123,822 12,756,262
Effect of foreign currency rate changes (3,866,396) (1,284,116)
Cash at end of year 4,994,855 10,630,963
20.

Consolidated Statement of Changes in Equity for the period ended 31 December 2011
31 December 2011 (Unaudited) 31 December 2010 (Unaudited)
Shareholders equity at start of period 90,746,110 73,486,877
Share Issue 59,197 1,365,000
Share Option Reserve (62,223) 53,530
Other Comprehensive Income (8,533,732) 4,676,586
Profit for the period 14,437,217 7,584,317
Dividend (7,416,176) (5,376,165)
Total Equity 89,230,393 81,790,145
21.

Consolidated Segment Report for the period ended 31 December 2011
31 December 2011
Barberton Mines
Phoenix Platinum
Corporate and Growth Projects
Group
� � � �
Revenue
Gold sales 51,229,660 - - 51,229,660
Realisation costs (84,965) - - (84,965)
On - mine revenue 51,144,695 - - 51,144,695
Cost of production (23,201,120) - - (23,201,120)
Depreciation (1,536,448) - - (1,536,448)
Mining Profit 26,407,127 - - 26,407,127
Other expenses (1,203,656) (131,801) (426,900) (1,762,357)
Royalty costs (2,014,560) - - (2,014,560)
Net income/(loss) before finance income and finance costs 23,188,911 (131,801) (426,900) 22,630,210
Finance income 29,227 4,998 189,099 223,324
Finance costs (26,069) - - (26,069)
Profit/(loss) before taxation 23,192,069 (126,803) (237,801) 22,827,465
Taxation (8,392,325) 2,077 - (8,390,248)
Profit/(loss) after taxation 14,799,744 (124,726) (237,801) 14,437,217
31 December 2011
Segmental Assets 55,310,901 18,656,764 15,033,401 89,001,066
Segmental Liabilities 20,344,317 89,565 337,505 20,771,387
Goodwill - - - 21,000,714
Net Assets (excluding goodwill) 34,966,584 18,567,199 14,695,896 68,229,679
Capital Expenditure 4,566,352 4,566,448 7,405 9,140,205
31 December 2010
Barberton Mines
Phoenix Platinum
Corporate and Growth Projects
Group
� � � �
Revenue
Gold sales 38,326,410 - - 38,326,410
Realisation costs (75,604) - - (75,604)
On - mine revenue 38,250,806 - - 38,250,806
Cost of production (22,949,762) - - (22,949,762)
Depreciation (1,908,836) - - (1,908,836)
Mining Profit 13,392,208 - - 13,392,208
Other expenses (772,076) - (573,969) (1,346,045)
Royalty costs (1,007,987) - - (1,007,987)
Net income/(loss) before finance income and finance costs 11,612,145
- (573,969) 11,038,176
Finance income 10,252 - 404,405 414,657
Finance costs (19,868) - - (19,868)
Profit/(loss) before taxation 11,602,529 - (169,564) 11,432,965
Taxation (3,848,648) - - (3,848,648)
Profit/(loss) after taxation 7,753,881 - (169,564) 7,584,317
30 June 2011
Segmental Assets 43,333,140 16,990,521 31,791,590 92,115,251
Segmental Liabilities 20,212,973 1,556,006 600,876 22,369,855
Goodwill - - - 21,000,714
Net Assets (excluding goodwill) 23,120,167 15,434,515 31,190,714 69,745,396
Capital Expenditure 6,773,729 14,079,722 180,540 21,033,991
*All assets are held within South Africa, with the exception of assets relating to Manica (31 December 2011 � 9,983,544 and 30 June 2011 � 10,865,478) which are held in Mozambique.
ENDS Contacts: Pan African CEO, Jan Nelson 011 243 2900
Logo_sharper02 media & investor relations
louise brugman managing director Tel: +27 (0) 11 787 3015 Cell: +27 (0) 83 504 1186 skype louise.brugman Email: Web: www.vestor.co.za



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