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Analysis of Pan African Resources PLC

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Pan African Resources PLC, a mid-level Gold manufacturer, quoted on Johannesburg Stock Exchange (JSE) and London Stock Exchange (LSE). The following report analyze the Pan African Resources PLC performance and aim to give a proper report, from the investor’s point of view, by evaluating their co...

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  • August 10, 2021
  • 27
  • 2021/2022
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Course Name: Financial Management for Managers




Name:



Student ID Number:



Title: Assessment Point 1



Analysis of Pan African Resources PLC




Tutor’s Name: Dr. Mary Mandiringana




Date: June 20, 2021




1

, Table of Contents


1.Introduction………………………………………..………….……………………………….4
2.Company Profile.……………………………………………………………………………...4
3.Corporate Governance …………………………..…………………………………………..5
3.1The board ……………………………………………..……………………………..5
3.2Board Composition ………………………………………………………………....6
3.3Board Committees ………………………………………………………………….6
3.4Director Independence ……………………………………………………………..6
4.Current Sources of Finance …………………………………………………………………6
5.Existing & Projected investments …………………………………………………………..7
5.1The Elikhulu Project ………………………………………………………………...7
5.2The 2010 Pay Channel Project at Evander mines ………………………………8
5.3Barberton mines sub-vertical shaft project at Fairview.…………………………8
6.Business Performance ………………………………………………………………………8
6.1Profitability …………………………………………………………………………..9
6.2Efficiency …………………………………………………………………………...12
6.3Liquidity …………………………………………………………………………….14
6.4Leverage/ Gearing………………………………………………………………....15
6.5Investors Ratio’s …..………………………………………………………………17
7.Looking Forward ……………………………………………………………………………19
8.Conclusion ………………………………………………………………………………….20
References ……………………………………………………………………………………21
Appendices ……………………………………………………………………………………23


I.Organizational Structure …………………………………………………………………...23
II.Business Model ……………………………………………………………………………..24
III.Strategic pillars……………………………………………………………………….……26
IV.Consolidated Income Statement and Balance Sheet (2013-2017) .…………………27
V.Ratios- Based on IFRS …………………………………………………………………….29



2

, Content of Figures




Figure 1: Company Information ………………………………………………………………4
Figure 2: Corporate Governance Framework ………………………………………………5
Figure 3: Return on Capital Equity …………………………………………………………..9
Figure 4: Return on Equity …………………………………………………………………..10
Figure 5: Gross Profit Margin ………………………………………………………………..11
Figure 6: Net Margin ………………………………………………………………………….12
Figure 7: Return on Assets …………………………………………………………………..13
Figure 8: Debtors Collection Period …………………………………………………………13
Figure 9: Current Ratio Vs. Quick Test Ratio ………………………………………………15
Figure 10: Equity Ratio and Debt Ratio …………………………………………………….16
Figure 11: Earning Per Share ………………………………………………………………..17
Figure 12: Trend P/E Ratio, Dividend Cover Ratio and Dividend Yield ………………...19




3

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