Pan African Resources, an South Africa-focused gold miner,
reported a steep drop in full-year profit because of lower gold
production at a time when the rand price for the metal was flat.
Nonetheless, it declared a dividend and outlined improved expectations for the year ahead.
Pan African, which is traded on the JSE and London’s Alternative Investment Market (AIM), reported a 43% drop in post-tax profit to R310m for the year to end-June. It declared a R185m dividend for the year, translating to 8.279c per share.
Pan African’s gold output fell to 173,285oz, a 15% decline, because of difficulties at its Evander gold mine in Mpumalanga.
The gold price was flat year on year at R542,773/kg, while the all-in sustaining cost rose to R514,435/kg from R405,847/kg.
Evander was suspended for 55 days during the year to refurbish a shaft, while the Barberton mines near the Swaziland border were disrupted by community unrest.
Both mines were issued temporary safety stoppage notices by the Department of Mineral Resources.
Pan African’s net debt fell to R67m by the end of June from R340m the year before, as cash holdings more than tripled to R160m. The company issued shares for nearly R700m during April.
Cash from operations fell by R453m to R339m.
Looking ahead, Pan African pegged its full-year production at 190,000oz.
Pan African has started its R1.74bn Elikhulu tailings retreatment project at Evander, which will add 56,000oz of gold from the end of 2018.
The company will complete a drilling programme at an undeveloped area that can be accessed from its 7 Shaft, a project previous owner Harmony Gold had wanted to advance but did not.
Pan African will wrap up an R89m sale of its Phoenix Platinum subsidiary to Sylvania, a tailings retreatment specialist. This marks the second major disposal by the company, which sold its Uitkomst Colliery to Coal of Africa for a profit of R91m during the 2017 financial year.
BDLIVE SA
Nonetheless, it declared a dividend and outlined improved expectations for the year ahead.
Pan African, which is traded on the JSE and London’s Alternative Investment Market (AIM), reported a 43% drop in post-tax profit to R310m for the year to end-June. It declared a R185m dividend for the year, translating to 8.279c per share.
Pan African’s gold output fell to 173,285oz, a 15% decline, because of difficulties at its Evander gold mine in Mpumalanga.
The gold price was flat year on year at R542,773/kg, while the all-in sustaining cost rose to R514,435/kg from R405,847/kg.
Evander was suspended for 55 days during the year to refurbish a shaft, while the Barberton mines near the Swaziland border were disrupted by community unrest.
Both mines were issued temporary safety stoppage notices by the Department of Mineral Resources.
Pan African’s net debt fell to R67m by the end of June from R340m the year before, as cash holdings more than tripled to R160m. The company issued shares for nearly R700m during April.
Cash from operations fell by R453m to R339m.
Looking ahead, Pan African pegged its full-year production at 190,000oz.
Pan African has started its R1.74bn Elikhulu tailings retreatment project at Evander, which will add 56,000oz of gold from the end of 2018.
The company will complete a drilling programme at an undeveloped area that can be accessed from its 7 Shaft, a project previous owner Harmony Gold had wanted to advance but did not.
Pan African will wrap up an R89m sale of its Phoenix Platinum subsidiary to Sylvania, a tailings retreatment specialist. This marks the second major disposal by the company, which sold its Uitkomst Colliery to Coal of Africa for a profit of R91m during the 2017 financial year.
BDLIVE SA
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