Finance and Strategic Management

Running head: FINANCE AND STRATEGIC MANAGEMENT
Finance and strategic management
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1FINANCE AND STRATEGIC MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
1.4.1 Status of corporate governance and challenges......................................................................2
1.4.2 Existing or projected capital investment of the entity............................................................5
1.4.3 Sources of finance...................................................................................................................5
1.4.4 Financial information and measurement of business performance........................................7
1.4.5 Share performance of the entity............................................................................................12
Conclusion and recommendation..................................................................................................15
Reference.......................................................................................................................................16

2FINANCE AND STRATEGIC MANAGEMENT
Introduction
Pan African Resources PLC is the producer of precious metals and is engaged into
mining business. It operates the business through various segments namely Barberton Mines,
Evander Gold Mines and Evander Gold Mining Proprietary Limited, Phoenix Platinum,
Uitkomst Colliery and KwaZulu-natal. It is mid-tier African entity that is focused in producing
gold and listed under Johannesburg as well as London. Strategically the entity is focused in
exploitation of the ore-bodies of high grade that is capable of yielding high margins with base of
comparatively lost cost (Panafricanresources.com, 2019). Objective of the report is to
concentrate on different financial as well as non-financial aspects of Pan African Resources PLC.
The report will highlight the corporate governance complied by the entity and different
challenges faced by it in context of its operation. It will further focus into the financial
performance as well as stock performance of the entity over the past 2 years.
1.4.1 Status of corporate governance and challenges
Board of the entity is committed towards accountability, responsibility, transparency,
fairness through application of ethical leadership. Further, the board integrates the responsible
corporate citizenship into business strategies of the entity, assessments and audits and the same
embeds the sound practice of corporate governance into day-to-day operation as well as
procedures for entire group (Chan, Watson & Woodliff, 2014).
Board of the entity is accountable for framework and governance structure and the same
is supported by 4 sub-committees. The framework covers the delegation process of authority
where daily management of the entity is delegated to CEO. Companies Act 2006 regulates the

3FINANCE AND STRATEGIC MANAGEMENT
disclosure of the standards related to the entity’s corporate governance. Apart from theta the
board also takes into account the corporate governance stated under UK Corporate Governance
Code as well as the guidance issued by FRC. Considering the ethical behaviour, the entity is
committed towards highest level in context of professional as well as personal ethical behaviour
and the leadership endeavours to implement the ethical behaviour culture
(Panafricanresources.com, 2019). Further, it has zero-tolerance approach towards corruption and
bribery. Apart from that, it complies with UK Bribery Act. In context of accountability the Board
of the entity is responsible for overall success of the entity’s resources and its major role is
exercising leadership as well as sound judgements while directing the entity for achieving
sustainable growth along with working for shareholder’s best interest. Major responsibilities of
the board consists – setting up of ethical code for board as well as the entity, formulation of
annual agenda of board along with CEO to be in line with the strategic objective of the entity,
monitoring effectiveness of board and evaluating individual performance of directors, engaging
with the CEO on continuous basis and presiding over AGM (Panafricanresources.com, 2019).
Board is further accountable for managing risk as well as the formal procedures for governing
risk and assuring that the board carries out its responsibilities adequately. It reviews the
operational risk reports on regular basis that ensure required level of risk management and
monitors the progress as compared to indicators of key risks. In addition, the board conform to
all the applicable regulations and legal acts. Monitoring as well as compliance management takes
place at different levels of the entity that includes operational level for assuring safety and health
compliance as well as external audits (Revelli & Viviani, 2015).