Financial Analysis of Pan African Resources Plc.

Running head: FINANCE AND STRATEGIC DEVELOPMENT
Finance
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1FINANCE AND STRATEGIC DEVELOPMENT
Executive Summary
The aim of the assignment is to conduct a financial analysis on the Pan African Resources Plc.
Company covering the operational and financial performance of the company in the year 2016-
2018. The corporate governance status and challenges faced by the Pan African Resources Plc.
Company and the relevant analysis of the company in the form of financial performance of the
company was taken into for the company.

2FINANCE AND STRATEGIC DEVELOPMENT
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Corporate Governance Status and Challenges.............................................................................4
Capital Investment.......................................................................................................................7
Sources of Finance.......................................................................................................................8
Financial Performance.................................................................................................................9
Share Price Performance............................................................................................................11
Conclusion.....................................................................................................................................12
Recommendations..........................................................................................................................13
References......................................................................................................................................15
Appendix........................................................................................................................................18

3FINANCE AND STRATEGIC DEVELOPMENT
Introduction
Pan African Resources is a Mid-Tier gold producing company focused in the Africa
having a production capacity of about 170,000 Oz amount of gold produced annually by the
company. The company is listed in the London and Johannesburg and is having majority of its
operation in the Southern African. The strategy applied by the company for conducting the
operations of the company is mining and exploring high yielding ore, which are relatively
cheaper to produce and gives high yield return to the company. The company presents its
corporate governance report, which covers the policies and the regulations of the company
(Neingo & Tholana, 2016). The financial performance of the company was analysed by
conducting ratio analysis for the company in the trend period 2017-18 and the financial analysis
of the company was done thereby analysing the financial performance of the company. The
important ratio’s that were analysed in the report were the profitability ratio, liquidity ratio,
activity ratio and gearing ratio for the company. The share price movement of the company was
also analysed for the five-year trend period were monthly data of the share price of the company
was taken down and the relevant analysis in the context of movement of the share price was
analysed (Krzemień et al. 2016). The company has planned various strategic reforms and ideas
that enables the company in better planning and managing the resources of the company.
Profitability and return generated ion the capital employed are some of the crucial aspects that
should be taken into analysis for the long-term growth of the company. The share price
performance for the company was assessed for the trend period of five year where monthly data
of the Pan African Resources Plc was taken into account for the analysis of the movement in the
share price of the company. The four strategic pillars identified on which the operations of the
company is based is the growth, profitability, sustainability and stakeholders of the company