Finishing unfinished business

Pan African Resources 16 May 2018 Update
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Pan African Resources

Finishing unfinished business

Evander underground closure

Metals & mining

16 May 2018

Price

6.97p

Market cap

£156m

ZAR16.8674/£, ZAR12.2049/US$, US$1.3794/£

Net debt (£m) at end December 2017*

42.2

*Excludes ZAR73.6m (£4.4m) of MC Mining shares (formerly Coal of Africa)

Shares in issue**

2,234.7m

**Effective 1,798.3m post-consolidation

Free float

81%

Code

PAF

Primary exchange

AIM/JSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(2.9)

(27.7)

(55.0)

Rel (local)

(8.4)

(32.2)

(56.8)

52-week high/low

16.8p

6.7p

Business description

Pan African Resources has four major producing or near-producing precious metals assets in South Africa: Barberton (target output 95koz Au pa), the Barberton Tailings Retreatment Project (20koz), the Evander Tailings Retreatment Project (10koz) and Elikhulu (53koz).

Next events

FY18 results

September 2018

Analyst

Charles Gibson

+44 (0)20 3077 5724

Pan African Resources is a research client of Edison Investment Research Limited

On 2 May Pan African (PAF) announced that, after both internal and external reviews had concluded there was “no realistic prospect of mining [Evander 8 Shaft underground] on a sustainable and profitable basis”, the decision had been taken to shut the operation by the end of May, with the loss of 1,700 jobs and at a cost of c ZAR160m (US$13.1m, or £9.5m). As a result, Evander’s (EGM’s) gold production for FY18 is now expected to be c 46koz vs a prior expectation of 67-69koz, while group production is expected to be 156-158koz vs a prior expectation of 177-181koz.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

06/16

168.4

45.9

2.08

0.88

3.4

12.6

06/17

167.8

19.4

1.22

0.45

5.7

6.5

06/18e

149.4

0.2

0.03

0.00

232.3

0.0

06/19e

131.0

28.8

0.92

0.38

7.6

5.5

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items.

More a liability than an asset as it was structured

Owing to its relatively high cost structure, Evander underground was (and was expected to remain) the lowest margin of Pan African’s contributing operations. In the short term, however, we estimate that a 19koz production shortfall in H2, combined with the effects of an additional ZAR160m in immediate redundancy costs will effectively negate H118 underlying earnings as well as causing PAF to pass its final dividend. Otherwise, the Evander rehabilitation provision is fully funded by means of a ZAR311.0m (£18.4m) rehabilitation trust. In the meantime, the group is reviewing the merits of mining 8 Shaft’s pillar. Note that management had already announced it would reassess its feasibility study on Egoli as a standalone project (which is expected to be completed imminently).

Valuation: Approximately 100% upside potential

Updating our long-term forecasts, our headline absolute valuation of PAF has fallen by 3.15p to 12.59p as a consequence of the decision to close EGM plus its H218 performance (vs a 5.37p share price decline since the possibility was first mooted in early February). Including new projects and other assets, however, our all-in valuation is 16.57p plus the value of c 20.1m underground Witwatersrand ounces, which could lie anywhere in the range 0.18-4.27p/share, depending on market conditions. More immediately, while PAF’s FY18e price to normalised headline EPS ratio is above the top end of the historic range, its multiple in FY19 is below the average for the period FY10-17, while FY20’s multiple will represent an historic low as Elikhulu contributes its first full year of production. Stated alternatively, if PAF’s average price to normalised EPS ratio of 9.7x in the period FY10-17 is applied to our forecasts, then PAF’s share price should be 8.9p in FY19 and 21.3p in FY20. In addition, it remains cheaper than its South African and London-listed gold mining peers on at least 44% of valuation measures on the basis of Edison’s forecasts, or 80% on the basis of consensus forecasts. It also has the sixth highest forecast dividend yield of the 62 ostensibly precious metals’ companies paying dividends (FY19 forecasts) and is trading below its interim book value of 11.8p/sh (H118).

Updated guidance, forecasts, valuation and financials

On 27 February, PAF confirmed that Evander (EGM) is in a consultation process with its labour in terms of section 189 of the South African Labour Relations Act, which provides that, before retrenching, employers must consult any person whom they are required to in terms of the collective agreement. On 2 May it announced that, after both internal and external reviews had concluded there was “no realistic prospect of mining on a sustainable and profitable basis from [Evander 8 Shaft underground] in the current weak rand gold price environment”, the decision had been taken to shut the operation by the end of May, with the loss of 1,700 jobs and at a cost of c ZAR160m (US$13.1m, or £9.5m; which includes redundancies). In consequence, Evander Mines’ gold production for FY18 is now expected to be c 46koz compared to a prior expectation of 67-69koz. A table of Evander’s performance by half-year period is provided below, including our updated and prior forecasts in the light of PAF’s updated guidance:

Exhibit 1: EGM operational results, H116-H218e, actual, forecast and contingencies

H116

H216

H117

H217

H118

H218e

(previous)

FY18e

(previous)

H218e

(current)

FY18e

(current)

Tonnes milled underground (t)

200,942

207,339

161,872

98,912

174,233

169,000

343,233

69,022

243,255

Head grade underground (g/t)

5.80

5.60

5.40

6.19

6.10

6.10

6.10

6.10

6.10

Underground gold contained (oz)

37,471

37,351

28,103

19,688

34,171

33,144

67,315

13,537

47,708

Tonnes milled surface (t)

0

0

0

0

0

0

0

0

0

Head grade surface (g/t)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Surface gold contained (oz)

0

0

0

0

0

0

0

0

0

Tonnes milled (t)

200,942

207,339

161,872

98,912

174,233

169,000

343,233

69,022

243,255

Head grade (g/t)

5.80

5.60

5.40

6.19

6.10

6.10

6.10

6.10

6.10

Contained gold (oz)

37,471

37,351

28,103

19,688

34,171

33,144

67,315

13,537

47,708

Recovery (%)

97

99

94

96

96

98

96.9

98

96.4

Production underground (oz)

36,370

37,126

26,477

18,827

32,734

32,482

65,216

13,266

46,000

Production surface (oz)

0

0

0

0

0

0

0

0

0

Total production (oz)

36,370

37,126

26,477

18,827

32,734

32,482

65,216

13,266

46,000

Recovered grade (g/t)

5.63

5.57

5.09

5.92

5.84

5.98

5.91

5.98

5.88

Gold sold (oz)

36,370

37,126

26,477

18,827

32,734

32,482

65,216

13,266

46,000

Average spot price (US$/oz)

1,105

1,221

1,256

1239

1,368

1,320

1,344

1,320

1,354

Average spot price (ZAR/kg)

483,309

605,265

565,009

526,341

588,723

503,603

546,328

517,968

568,318

Total cash cost (US$/oz)

995

918

1,457

1,986

1,306

1,382

1,344

2,743

1,721

Total cash cost (ZAR/kg)

435,190

454,756

655,304

843,821

562,407

527,442

544,955

1,076,194

710,526

Total cash cost (US$/t)

180.15

163.58

238.34

378.96

245.44

265.71

255.42

527.12

325.37

Total cash cost (ZAR/t)

2,450.00

2,532.68

3,334.00

4,995.61

3,286.00

3,153.05

3,220.54

6,433.49

4,179.08

Implied revenue (US$000s)

40,189

44,773

33,255

22,288

44,780

42,876

87,656

17,511

62,291

Revenue (ZAR000s)

546,731

685,865

465,296

289,601

599,398

508,781

1,108,180

213,721

813,120

Implied revenue (£000s)

26,219

31,052

26,025

17,754

33,971

30,901

64,871

12,620

46,591

Implied cash costs (US$000s)

36,199

33,916

38,581

37,484

42,764

44,905

87,669

36,383

79,147

Cash costs (ZAR000s)

492,308

525,124

539,681

494,125

572,530

532,865

1,105,395

444,054

1,016,584

Implied cash costs (£000s)

23,635

23,754

30,188

29,701

32,401

32,359

64,760

26,326

58,727

0.00

0.00

Forex (ZAR/£)

20.8300

22.0942

17.8771

16.6418

17.6703

16.4673

17.0688

16.8674

17.2689

Forex (ZAR/US$)

13.6000

15.4132

13.9875

13.2130

13.3900

11.8664

12.6282

12.2049

12.7975

Forex (US$/£)

1.5328

1.4335

1.2778

1.2596

1.3182

1.3875

1.3529

1.3875

1.3529

Capex (US$ 000's)

5,287

5,313

8,000

8,350

7,916

3,576

11,492

2,897

10,814

Capex (ZAR 000's)

71,900

81,900

111,900

110,300

106,000

42,436

148,436

35,363

141,363

Capex (GBP 000's)

3,452

3,712

6,259

6,613

5,999

2,577

8,576

2,097

8,095

Source: Edison Investment Research, Pan African Resources

Note that, owing to Evander’s predominantly fixed cost base, aggregate costs in rand terms have been left unchanged (pro-rata for five months, instead of six), and that otherwise plant throughput is presumed to have declined markedly. Foreign exchanged rates have been honed to reflect a recent, very minor weakening of the rand against both the US dollar and sterling. Nevertheless, even prior to the decision to shut the 8 Shaft underground operation it was notable that, while EGM was expected to account for c 36.7% of PAF’s group-wide gold output in FY18, it was expected to account for only c 0.6% of gross profits. Moreover, even if costs were to return to our forecast, long-term steady-state level of ZAR2,671/t, it would have resulted in an average EBITDA margin only 14.7% over the life of operations, ie EGM underground would still have been the lowest margin of PAF’s operations.

The Evander rehabilitation provision is fully funded by means of a ZAR311.0m (£18.4m at prevailing forex rates) rehabilitation trust and these funds will be used to finance Evander’s underground closure costs and associated rehabilitation. In the meantime, the group is reviewing the merits of mining the Evander 8 Shaft pillar, which may extend the final closure date of the shaft, generate positive cash flows and assist with further employment opportunities for those affected by the Section 189 process. Moreover, in recognition of the possibility that operations at Evander’s existing infrastructure could cease in the foreseeable future, on 28 March, PAF announced it would reassess the feasibility study on the Egoli project (see our note entitled, Pan African Resources: A second glance at the first half, published in April 2018) as a standalone project. This is expected to be completed by the end of the current financial year.

Evander Tailings Retreatment Project (ETRP)

At the same time, Edison has reduced its production forecasts for the ETRP by 891oz to bring them exactly into line with the upper end of management’s guidance range for the full year. In this case, tonnes processed from surface feedstocks is presumed to have settled at approximately the level as in H118, but at a fractionally lower grade (see Exhibit 2, below). Nevertheless, the plant will still achieve a high level of capacity utilisation (91.0% vs a management target of 150-160ktpm, or 75-80%, on a sustainable, long-term basis). Metallurgical recoveries are similarly expected to moderate to their long-term, sustainable target level of 45% (vs 56% in H118).

Exhibit 2: ETRP operational results, H216-H218e

H117

H217

H118

H218e (previous)

FY18e (previous)

H218 (current)

FY18 (current)

Tonnes processed from surface feedstocks (t)

240,495

227,115

184,161

200,000

384,161

185,000

369,161

Head grade surface feedstocks (g/t)

1.80

2.01

2.00

2.00

2.00

1.93

1.96

Surface feedstocks gold contained (oz)

13,918

14,647

11,842

12,860

24,702

11,460

23,302

Tonnes processed tailings (t)

940,489

913,624

907,969

900,000

1,807,969

900,000

1,807,969

Head grade tailings (g/t)

0.30

0.30

0.30

0.32

0.31

0.30

0.30

Tailings gold contained (oz)

9,071

8,812

8,758

9,259

18,017

8,681

17,438

Total tonnes processed (t)

1,180,984

1,140,739

1,092,130

1,100,000

2,192,130

1,085,000

2,177,130

Head grade (g/t)

0.61

0.64

0.59

0.63

0.61

0.58

0.58

Contained gold (oz)

22,989

23,459

20,600

22,120

42,719

20,140

40,740

Recovery (%)

65.0

57.8

56.0

45.0

51.2

45.0

51.5

Production tailings (oz)

4,444

3,669

3,248

5,787

Production surface (oz)

11,480

9,880

8,689

4,167

Total production (oz)

15,924

13,549

11,937

9,954

21,891

9,063

21,000

Recovered grade (g/t)

0.42

0.37

0.34

0.28

0.31

0.26

0.30

Gold sold (oz)

15,924

13,549

11,937

9,954

21,891

9,063

21,000

Average spot price (US$/oz)

1,224

1,239

1,021

1,320

1,157

1,320

1,150

Average spot price (ZAR/kg)

550,380

526,341

439,542

503,603

469,254

517,968

473,977

Total cash cost (US$/oz)

545

561

723

842

778

855

782

Total cash cost (ZAR/kg)

245,178

238,372

311,075

321,403

315,771

335,606

321,662

Total cash cost (US$/t)

7.35

6.70

7.90

7.62

7.76

7.14

7.52

Total cash cost (ZAR/t)

103.00

88.06

106.00

60.19

98.07799

60.19

96.50283

Implied revenue (US$000s)

19,491

16,672

12,188

13,139

25,327

11,963

24,151

Revenue (ZAR000s)

272,597

218,706

163,193

155,912

319,105

146,009

309,202

Implied revenue (£000s)

15,254

13,251

9,246

9,469

18,715

8,622

17,868

Implied cash costs (US$000s)

8,682

7,646

8,626

8,385

17,011

7,751

16,377

Cash costs (ZAR000s)

121,434

100,454

115,496

99,504

215,000

94,604

210,099

Implied cash costs (£000s)

6,793

6,062

6,536

6,043

12,579

5,609

12,145

0.00

0.00

0.00

0.00

Forex (ZAR/£)

17.8771

16.6418

17.6703

16.4673

17.07

16.8674

17.27

Forex (ZAR/US$)

13.9875

13.2130

13.3900

11.8664

12.63

12.2049

12.80

Forex (US$/£)

1.2778

1.2596

1.3182

1.3875

1.35

1.3875

1.35

Capex (US$000s)

0

0

97

0

97

0

97

Capex (ZAR000s)

0

0

1,300

0

1,300

0

1,300

Capex (£000s)

0

0

74

0

74

0

74

Source: Edison Investment Research, Pan African Resources

Effectively, the ETRP represents a substantial pilot plant, designed to prove recovery and cost parameters, before the development of the much larger Elikhulu project (as before, see Pan African Resources: A second glance at the first half, published in April 2018). To benefit from Elikhulu’s economies of scale however, management has stated that Elikulu’s capacity will be increased by 200ktpm from December 2018 to incorporate the existing ETRP throughput. The additional construction associated with this initiative will increase capex by c ZAR65m (US$5.3m, or £3.9m), but is not expected to alter the timeline at Elikhulu, with first gold still expected in August 2018 and full commissioning at the end of September 2018. However, management will continue to source toll-treatment material with higher grades than the ETRP’s reserve and resource grades, thereby taking commercial advantage of the fact that it is the only retreatment operator in the area and is therefore (effectively) the buyer of choice – or even the buyer of last resort – for tailings assets in the region.

Short-term forecasts

After producing 85koz of gold in H118, our updated group-wide production estimate (as per Exhibits 1 and 2) in FY18 is 157.6koz, which correlates closely to management’s updated guidance of 156-158koz (thereby implying production of 92-96koz in H218):

Exhibit 3: PAF group-wide production, actual and forecast, FY14-FY18e

Operation

FY14

FY15

FY16

FY17

H118

H218e

(previous)

FY18e
(previous)

H218e (current)

FY18e (current)

FY19e (previous)

FY19e (current)

Barberton

88,738

81,493

84,690

71,763

32,159

40,885

73,044

40,885

73,044

94,641

94,641

Evander

76,556

63,558

73,496

43,304

32,734

32,482

65,216

13,266

46,000

67,645

0

BTRP

22,885

24,283

28,591

26,745

8,452

9,115

17,567

9,115

17,567

20,000

20,000

ETRP

0

6,523

18,151

29,473

11,937

9,954

21,891

9,063

21,000

10,000

10,000

Elikhulu

0

0

0

0

0

0

0

0

0

15,700

15,700

Total

188,179

175,857

204,928

173,285

85,282

92,436

177,717

72,329

157,611

207,985

140,341

Source: Edison Investment Research, Pan African Resources. Note: Numbers may not add up owing to rounding.

Note that our forecast of group-wide production of 140.3koz in FY19 is exactly in line with that set out in the Sensitivities section of our note Pan African Resources: A second glance at the first half, published in April 2018, in which we considered the possibility of the Evander 8 Shaft underground operation being closed. Within the historical context, a degree of risk is probably attached to our production forecasts at Barberton in FY19, but that this is offset (in roughly equal degree in our opinion) by the upside risk to Edison’s production forecast at Elikhulu and the ETRP. Inasmuch as Elikhulu and the ETRP are (and are expected to be) higher-margin operations than Barberton, the financial consequences of this aggregate risk may be regarded as ‘conservative’.

As a result of the considerations outlined above, our detailed financial forecasts for PAF for H218 and FY18 are therefore now as shown in Exhibit 4. Note however that, when Pan African does report its FY18 results in September, it may well opt to disclose them with Evander 8 Shaft underground reflected as a discontinued operation (which will be the subject of a separate note towards the end of the financial year).

Exhibit 4: PAF underlying P&L statement by half-year (H115-H218e) actual and expected

£000s (unless otherwise indicated)

H115

H215

H116

H216

H117

H217

H118

H218

(previous)

FY18e (previous)

H218 (current)

FY18e (current)

Mineral sales

68,126

72,951

75,632

93,728

105,046

101,256

82,900

87,936

170,836

68,809

151,709

Realisation costs

(295)

(396)

(269)

(687)

(1,548)

(1,346)

(1,500)

(978)

(2,478)

(765)

(2,265)

Realisation costs (%)

0.43

0.54

0.36

0.73

1.47

1.47

1.81

1.11

1.45

1.11

1.49

On-mine revenue

67,831

72,555

75,363

93,041

103,498

99,911

81,400

86,958

168,358

68,043

149,443

Gold cost of production

(52,727)

(48,935)

(51,102)

(65,188)

(68,933)

(69,600)

(70,803)

(63,568)

Pt cost of production

(1,797)

(1,651)

(1,796)

(2,300)

(2,529)

0

Coal cost of production

(10,568)

(5,972)

0

Cost of production

(54,524)

(55,889)

(50,586)

(57,637)

(78,056)

(77,435)

(69,600)

(70,803)

(140,403)

(63,568)

(133,168)

Depreciation

(4,676)

(5,661)

(5,277)

(5,180)

(6,450)

(8,032)

(5,900)

(9,238)

(15,138)

(9,309)

(15,209)

Mining profit

8,631

11,005

19,500

30,225

18,992

14,444

5,900

6,918

12,818

(4,833)

1,067

Other income/(expenses)

523

(273)

(3,486)

(8,697)

2,175

(2,302)

(800)

(800)

(9,486)

(10,286)

Loss in associate etc

(128)

0

0

0

256

0

(400)

(400)

(400)

Loss on associate disposal

(140)

0

0

0

0

0

0

0

Impairment costs

(56)

(2)

0

0

0

0

0

0

Royalty costs

(795)

(852)

(1,194)

(1,606)

(968)

(1,764)

(300)

(982)

(1,282)

42

(258)

Net income before finance items

8,034

9,878

14,819

19,923

20,455

10,377

4,400

5,936

10,336

(14,277)

(9,877)

Finances income

321

28

144

299

70

700

 

 

Finance costs

(498)

(1,960)

(558)

(891)

(1,079)

(800)

 

 

Net finance income

(177)

(1,932)

(414)

(592)

(1,009)

(1,025)

(100)

(529)

(629)

(529)

(629)

Profit before taxation

7,857

7,946

14,405

19,331

19,446

9,352

4,300

5,407

9,707

(14,806)

(10,506)

Taxation

(2,310)

(1,823)

(3,480)

(4,754)

(5,475)

(2,871)

(1,000)

(1,689)

(2,689)

1,386

386

Marginal tax rate (%)

29

23

24

26

28

31

23.3

31.2

27.7

9.4

3.7

Deferred tax

Profit after taxation

5,548

6,122

10,925

14,577

13,970

6,482

3,300

3,718

7,018

(13,420)

(10,120)

EPS (p)

0.30

0.33

0.60

0.82

0.93

0.43

0.18

0.21

0.39

(0.75)

(0.56)

HEPS* (p)

0.31

0.33

0.60

0.82

0.91

0.43

0.20

0.21

0.39

(0.75)

(0.56)

Diluted EPS (p)

0.30

0.33

0.60

0.80

0.93

0.43

0.18

0.20

0.38

(0.73)

(0.55)

Diluted HEPS* (p)

0.31

0.33

0.60

0.80

0.91

0.43

0.20

0.20

0.38

(0.73)

(0.55)

Source: Pan African Resources, Edison Investment Research. Note: As reported basis; *HEPS = headline earnings per share (company adjusted basis).

Note that management’s anticipated cost of ZAR160m (£9.5m, US$13.1m) relating to the closure of the Evander 8 Shaft underground operation has been included under ‘Other income/(expenses)’. As such, it is included in our forecast of EPS and HEPS, but not in our forecast of Normalised EPS in Exhibit 16 on page 12. In the meantime, our FY18 EPS forecast of a loss of 0.56p per share (above) compares with a mean consensus estimate of 0.886p, within the range (0.10)-2.40p (source: Bloomberg, 3 May 2018, excluding Edison). Our (normalised) forecast of 0.92p for FY19 compares with our previous forecast of 1.22p (including a full contribution from Evander) or 0.99p/share (excluding Evander) and with a mean consensus of 1.392p/share, within a range of 0.669-2.90p/share. Note that our gold price forecast for FY19 remains unchanged at US$1,291/oz.

Long-term forecasts and absolute valuation

More significant to PAF in the medium to long term, the development of Elikhulu (which is now underway and fully funded) should increase output to c 181koz (cf 250koz including Evander previously) over the next two financial years. As such, Elikhulu will largely replace production lost from Evander underground – albeit at a much higher margin – which underpins our longer-term earnings and cash-flow expectations:

Exhibit 5: Edison estimate of PAF production, FY17-FY20e (oz)

Source: Edison Investment Research

As a result of Evander’s relatively high-cost and low-margin profile however, the effect of its closure on earnings and our valuation is much more muted than the effect on production. Updating our long-term forecasts to reflect the closure of Evander’s underground operations, our average EPS forecast during the period FY20-31 (based on PAF’s existing three producing assets only) reduces by 12.1%, from 2.48p/share (including Evander, previously) to 2.18p/sh excluding Evander (vs 2.20p/share excluding Evander previously). Our absolute value of PAF decreases from 15.74p/share (including Evander underground) to 12.59p/sh excluding Evander underground (vs estimate of 13.20p/share excluding Evander previously, but also excluding exceptional closure costs), based on the present value of our estimated maximum potential stream of dividends payable to shareholders over the life of its mining operations (applying a 10% discount rate).

Exhibit 6: PAF estimated life of operations diluted EPS and (maximum potential) DPS

Source: Edison Investment Research, Pan African Resources

In partial recompense, PAF could continue to count the Evander underground resources as one of its assets, albeit one that would be valued as an in-situ resource, rather than on the basis of future earnings, cash-flows, dividends etc. At the current time, we estimate the underground resource at Evander (including 7 Shaft vamping, Rolspruit, Poplar and Evander South, but excluding 8 Shaft and Egoli, which is valued separately – see Exhibit 9) to be 20.1Moz, categorised as follows:

Exhibit 7: Evander underground resource estimate

Resources

Tonnes (kt)

Grade (g/t)

Moz

Measured

0

0.00

0.000

Indicated

48,297

10.24

15.896

Inferred

18,350

7.18

4.236

Total

66,647

9.40

20.131

Source: Pan African Resources, Edison Investment Research

The value of Witwatersrand resources has proved persistently difficult to place within a global context – a problem exacerbated by an absence, currently, of pure Wits basin exploration companies. PAF bought Evander from Harmony in mid-2012 at a price equivalent to US$5.26 per resource ounce (albeit the gold price was then materially higher, averaging US$1,668/oz during the year). Since then, we estimate that PAF will have mined 411,841oz from Evander excluding the ETRP (385,230oz from underground sources), ie implying only 1.2% depletion relative to the acquired resource, on a contemporary basis). More recently, Sibanye acquired Wits Gold (although then not a pure exploration company) at a price equivalent to US$0.22/oz, at a time when the gold price was c US$1,225/oz. Otherwise, a value for in-situ Witwatersrand gold ounces may be imputed from the US$2.78/oz value calculated by us for Bushveld platinum equivalent ounces (there still being pure platinum explorers in South Africa) in our report, Mining overview: Unlocking the price to NPV discount, published in November 2017 – contingent on investors accepting the similarities between Bushveld and Witwatersrand geology in terms of depth, reef width and continuity, mining methods etc. On the basis of these three valuation points, the in-situ value of the Evander underground assets could range from 0.25-5.89 US cents per PAF share, as shown below:

Exhibit 8: EGM underground

Valuation basis

Wits Gold acquisition in December 2012

Bushveld PtE exploration oz (Edison November 2017)

PAF acquisition of EGM in 2012

In-situ value (US$/oz)

0.22

2.78

5.26

Implied EGM underground valuation (US$m)

4.4

56.0

105.9

Ditto (US cents per share)

0.25

3.11

5.89

Source: Edison Investment Research

Including its growth projects, as discussed in our note Pan African Resources: A second glance at the first half, published in April 2018, a summary of our overall valuation of PAF is therefore as follows:

Exhibit 9: PAF absolute valuation summary

Project

Current valuation excl EGM (pence/sh)

Previous valuation excl EGM (pence/sh)

Previous valuation incl EGM (pence/sh)

Existing three producing assets plus Elikhulu

12.59

13.20

15.74

Egoli

3.31

3.18

3.18

Fairview Sub-Vertical Shaft Project

0.43

0.42

0.42

MC Mining shares*

0.24

0.25

0.25

Sub-total

16.57

17.05

19.59

EGM underground resource

0.18-4.27

0.18-4.27

-

Total

16.75-20.84

17.23-21.32

19.59

Source: Edison Investment Research. Note: *See our note, Pan African Resources: Canning coal, 17 May 2017.

Note that the valuation changes to Egoli and the Fairview Sub-Vertical Shaft project reflect changes to prevailing foreign exchange rates only.

Historic and relative valuation

Historic

Notwithstanding the fact that PAF’s price to normalised HEPS ratio is above the top of its recent historical range (based on our forecasts), it falls to well within the range (and below the average) in FY19 and to well below the minimum of the recent historical range assuming the recovery anticipated in FY20, by which time we expect Elikhulu to be operating at full capacity.

Exhibit 10: PAF historical price to normalised HEPS ratio, FY10-FY20e

Source: Edison Investment Research, Bloomberg. Note: *Completed historic years calculated with respect to average share price within the year shown and normalised HEPS; zero normalisation assumed before 2016.

Stated alternatively, if PAF’s average contemporary price to normalised EPS ratio of 9.7x in the period FY10-17 is deemed to be ‘correct’, then its share price should be 8.9p in FY19 and 21.3p in FY20.

Relative

In the meantime, over the next two years PAF remains cheaper than its South African and London-listed gold mining peers on at least 44% of valuation measures (ie 16 out of 36 measures in the table below on an individual company basis) using Edison’s forecasts or 80% of measures (ie 29 out of 36 measures) using consensus forecasts:

Exhibit 11: Comparative valuation of PAF with respect to South African peers

EV/EBITDA (x)

P/E (x)

Yield (%)

 

Year 1

Year 2

Year 1

Year 2

Year 1

Year 2

AngloGold Ashanti

4.0

3.9

12.3

10.8

1.2

1.5

Gold Fields

3.8

3.4

21.2

15.9

2.9

4.1

Sibanye

4.9

4.0

14.9

9.3

2.0

2.9

Harmony

3.2

2.7

8.9

10.0

0.9

1.4

Randgold Resources

10.8

10.2

22.9

21.0

3.9

4.7

Centamin

5.0

4.9

14.9

15.9

4.2

5.1

Average (excluding PAF)

5.3

4.8

15.8

13.8

2.5

3.3

PAF (Edison)

10.9

3.5

234.8

8.0

0.0

5.2

PAF (consensus)

4.7

2.9

8.0

5.2

2.8

8.3

Source: Edison Investment Research, Bloomberg. Note: Peers priced at 3 May 2018.

Dividend

PAF has a target dividend pay-out ratio of 40% of net cash generated by operating activities, after allowing for the cash flow effect of sustaining capital, contractual debt repayments and one-off items. In addition, in FY17, the board took the view that the proceeds from the sale of Uitkomst were eligible to contribute to the dividend payout on the grounds that they constituted a viable return to shareholders relative to the original price paid for the investment.

Despite our assumption that PAF is now likely to pass its FY18 dividend, within the global context and on the basis of our FY19 expectations, PAF continues to have the sixth highest dividend yield of the 62 ostensibly precious metals’ companies paying dividends to shareholders:

Exhibit 12: Global gold mining companies ranked by forecast dividend yield (%)

Source: Bloomberg (BEst Div Yld BF12M) for peers, Edison Investment Research for PAF FY19. Note: Consensus data for peers priced 3 May 2018.

Financials

PAF had £42.2m of net debt on its balance sheet as at 31 December 2017 after the payment of a net £8.1m final dividend in late December (cf £7.0m as at June 2017, £33.2m as at December 2016, £22.8m as at 30 June 2016, £16.2m as at 31 December 2015 and £18.0m as at 30 June 2015). As such, at the interim stage, net debt equated to a gearing (net debt/equity) ratio of 19.9% and a leverage (net debt/[net debt + equity]) ratio of 16.6%.

PAF’s major immediate capital requirement relates to the development of the Elikhulu project. As at end-December 2017, ZAR511.7m in capex had been expended on the project and ZAR671.4m by mid-February 2018 (excluding capitalised borrowing costs). Including the project to expand Elikulu’s throughput capacity by 200ktpm from December 2018 to incorporate the existing ETRP feed (see page 4), Edison’s forecasts for PAF’s immediate future capital expenditure commitments on the project are shown in Exhbit 13:

Exhibit 13: Estimated Elikhulu capex requirements by financial year

£000s

H218

FY19

FY20

FY21

FY22

Total capex*

23,735

34,487

9,067

18,366

18,366

Source: Pan African Resources, Edison Investment Research. Note: *Includes sustaining capex, but excludes phase 3 capex, which commences in FY26.

As a result, after investing activities, we estimate that PAF will experience net negative cash flow in FY18 and FY19, before a positive trend sets in once again from FY20 onwards. Maintaining a dividend policy of 40% of free cash flows less sustaining capital, debt repayments and exceptional items, PAF’s funding requirement, on our estimates, will evolve as follows in the period from FY16 to FY23e:

Exhibit 14: PAF estimated funding requirement, FY16 to FY23e

Source: Edison Investment Research, Pan African Resources

Note that PAF’s maximum funding requirement of £90.3m in FY19, as estimated by Edison, equates to ZAR1,524m at prevailing forex rates, or contemporary gearing (debt/equity) of 42.0% and leverage (debt/[debt+equity]) of 29.6%.

Debt is financed via a ZAR1bn revolving credit facility (£59.3m at current exchange rates), of which ZAR676.6m (£31.8m) was drawn down as at end-H118, plus a banking facility. To ensure the group has adequate working capital and continuation of funding for operations and growth projects, in the light of the closure of the Evander 8 Shaft underground operations, Pan African is in the process of finalising an additional standby facility of approximately ZAR100m. Also, in the past, Rand Merchant Bank (a division of First Rand) has provided PAF with all the necessary approvals for a ZAR1bn underwritten five-year debt facility for Elikhulu.

The group’s revolving credit facility (RCF) debt covenants and their actual recorded levels within recent history are as follows:

Exhibit 15: PAF group debt covenants

Measurement

Constraint

H118
(actual)

FY17
(actual)

H117
(actual)

FY16*
(actual)

HY16
(actual)

Net debt:equity

Must be less than 1:1

0.19:1

0.01:1

0.17:1

0.35:1

0.50:1

Net debt:EBITDA

Must be less than 2.5:1

2.25:1

0.05:1

0.48:1

0.12:1

0.13:1

Interest cover ratio

Must be greater than four times

4.62:1

10.00

21.99

23.98

18.08

Debt service cover ratio

Must be greater than 1.3:1

1.85:1

N/A

N/A

N/A

N/A

Source: Pan African Resources. Note: *Subsequently restated for disposals.

Note that, on our current FY18 forecasts, we predict that PAF will ‘break’ its net debt:EBITDA and interest cover covenants. However, this contingency has already been partially pre-empted by management and the providers of the RCF, which have agreed to temporarily waive the net debt:EBITDA condition during the period in which capex relating to Elikhulu is at its most intense.

Exhibit 16: Financial summary

£'000s

2010

2011

2012

2013

2014

2015

2016

2017

2018e

2019e

Year end 30 June

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

68,344

79,051

100,905

133,308

154,202

140,386

168,404

167,759

149,443

130,994

Cost of sales

(40,554)

(45,345)

(46,123)

(71,181)

(106,394)

(110,413)

(108,223)

(134,007)

(133,168)

(78,066)

Gross profit

27,790

33,705

54,783

62,127

47,808

29,973

60,181

33,752

16,276

52,928

EBITDA

 

 

25,023

28,540

45,018

53,276

44,165

28,448

57,381

32,417

16,018

50,288

Operating profit (before GW and except.)

21,897

25,655

41,759

47,278

34,142

18,110

46,925

21,924

809

35,358

Intangible amortisation

0

0

0

0

0

0

0

0

0

0

Exceptionals

(335)

0

(48)

7,232

(12)

(198)

(12,183)

(1,248)

(10,686)

(1,252)

Other

0

0

0

0

0

0

0

0

0

0

Operating profit

21,562

25,655

41,711

54,510

34,130

17,912

34,742

20,676

(9,877)

34,107

Net interest

594

762

516

197

(191)

(2,109)

(1,006)

(2,523)

(629)

(6,579)

Profit before tax (norm)

 

 

22,491

26,417

42,274

47,475

33,951

16,001

45,919

19,401

180

28,779

Profit before tax (FRS 3)

 

 

22,156

26,417

42,226

54,707

33,939

15,803

33,736

18,153

(10,506)

27,527

Tax

(7,656)

(9,248)

(12,985)

(12,133)

(7,155)

(4,133)

(8,234)

(243)

386

(12,246)

Profit after tax (norm)

14,835

17,169

29,290

35,342

26,796

11,868

37,685

19,158

566

16,533

Profit after tax (FRS 3)

14,500

17,169

29,242

42,574

26,785

11,670

25,502

17,910

(10,120)

15,282

Average number of shares outstanding (m)

1,366.3

1,432.7

1,445.2

1,619.8

1,827.2

1,830.4

1,811.4

1,564.3

1,798.3

1,798.3

EPS - normalised (p)

 

 

1.07

1.20

2.03

2.18

1.46

0.64

2.08

1.22

0.03

0.92

EPS - FRS 3 (p)

 

 

1.04

1.20

2.02

2.63

1.47

0.64

1.41

1.14

(0.56)

0.85

Dividend per share (p)

0.37

0.51

0.00

0.83

0.82

0.54

0.88

0.45

0.00

0.38

Gross margin (%)

40.7

42.6

54.3

46.6

31.0

21.4

35.7

20.1

10.9

40.4

EBITDA margin (%)

36.6

36.1

44.6

40.0

28.6

20.3

34.1

19.3

10.7

38.4

Operating margin (before GW and except.) (%)

32.0

32.5

41.4

35.5

22.1

12.9

27.9

13.1

0.5

27.0

BALANCE SHEET

Fixed assets

 

 

74,324

97,281

86,075

249,316

223,425

220,150

230,676

273,635

328,762

353,387

Intangible assets

36,829

38,229

23,664

38,628

37,040

37,713

38,682

41,425

43,161

44,897

Tangible assets

37,495

59,052

62,412

209,490

185,376

181,533

190,725

224,687

278,078

300,967

Investments

0

0

0

1,199

1,010

905

1,269

7,523

7,523

7,523

Current assets

 

 

17,677

15,835

41,614

26,962

23,510

17,218

22,016

37,090

21,527

19,328

Stocks

1,126

1,457

1,869

6,596

5,341

3,503

4,399

7,583

5,057

4,374

Debtors

3,795

4,254

6,828

15,384

12,551

10,386

14,891

14,813

11,222

9,706

Cash

12,756

10,124

19,782

4,769

5,618

3,329

2,659

9,447

0

0

Current liabilities

 

 

(7,084)

(8,960)

(11,062)

(24,066)

(24,012)

(22,350)

(32,211)

(31,251)

(79,889)

(92,845)

Creditors

(7,084)

(8,960)

(11,062)

(23,202)

(19,257)

(17,301)

(25,230)

(27,105)

(19,075)

(14,810)

Short-term borrowings

0

0

0

(864)

(4,755)

(5,049)

(6,981)

(4,146)

(60,814)

(78,036)

Long-term liabilities

 

 

(11,431)

(13,410)

(14,001)

(80,004)

(63,528)

(67,850)

(69,506)

(62,893)

(63,939)

(65,032)

Long-term borrowings

0

(181)

(869)

(11,133)

(8,141)

(16,313)

(18,456)

(12,290)

(12,290)

(12,290)

Other long-term liabilities

(11,431)

(13,228)

(13,132)

(68,871)

(55,387)

(51,537)

(51,049)

(50,603)

(51,648)

(52,741)

Net assets

 

 

73,487

90,746

102,626

172,208

159,396

147,167

150,975

216,581

206,461

214,837

CASH FLOW

Operating cash flow

 

 

25,207

31,968

49,092

61,618

45,996

26,423

47,130

29,945

5,799

40,064

Net Interest

594

762

516

314

(606)

(2,109)

(1,006)

(2,141)

(629)

(6,579)

Tax

(7,476)

(10,743)

(11,616)

(13,666)

(8,536)

(3,943)

(7,777)

(8,003)

1,432

(11,153)

Capex

(6,764)

(21,712)

(17,814)

(27,197)

(21,355)

(19,554)

(14,097)

(36,748)

(69,914)

(39,554)

Acquisitions/disposals

0

0

(1,549)

(96,006)

0

(760)

(30,999)

8,364

5,210

0

Financing

48

1,545

259

47,112

349

(235)

15,207

34,638

0

0

Dividends

0

(5,376)

(7,416)

0

(14,684)

(15,006)

(9,882)

(13,290)

(8,014)

0

Net cash flow

11,609

(3,557)

11,471

(27,826)

1,164

(15,184)

(1,425)

12,764

(66,115)

(17,222)

Opening net debt/(cash)

 

 

(2,369)

(12,756)

(9,943)

(18,913)

7,228

7,278

18,033

22,778

6,989

73,104

Exchange rate movements

(281)

925

(1,813)

594

(839)

(276)

812

238

0

0

Other

(940)

(181)

(688)

1,090

(375)

4,705

(4,131)

2,787

0

0

Closing net debt/(cash)

 

 

(12,756)

(9,943)

(18,913)

7,228

7,278

18,033

22,778

6,989

73,104

90,326

Source: Company sources, Edison Investment Research

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Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Pan African Resources and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Pan African Resources and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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