Pan African interim profit jumps over 50% as gold price shines

Wed, 14th Feb 2024 07:52

(Alliance News) - Pan African Resources PLC on Wednesday described its interim performance as "excellent", with its profit and top-line growing, while costs ebbed.

For the first half that ended December 31, the Rosebank-headquartered gold producer reported a 53% surge in pretax profit to USD59.6 million from USD38.9 million a year earlier.

Revenue in the first six months rose 24% to USD193.9 million from USD156.5 million, thanks in part to a 14% increase in the gold price received to USD1,961 an ounce from USD1,725 an ounce.

There was also higher gold production, which was climbed 6.7% to 98,458 ounces from 92,307 ounces.

All-in sustaining costs declined marginally to USD1,287 an ounce from USD1,291 an ounce.

Earnings per share and headline EPS soared 46% to 2.22 US cents from 1.52 cents.

"Pan African delivered an excellent safety, production and financial performance for the reporting period, which positions the group well to deliver on our production and cost guidance for the full financial year," Pan African Resources Chief Executive Officer Cobus Loots said.

It said it was executing capital projects designed to sustain and increase its future gold production profile to about 250,000 ounces per year.

These include the Mogale tailings retreatment project, which will add about 50,000 ounces per year. The construction of the processing plant is on track to be commissioned in the latter half of the 2024 calendar year and steady state production expected by December.

In Johannesburg, Pan African shares eased 0.5% to ZAR4.12 on Wednesday morning. The company is also listed in London.

By Artwell Dlamini, Alliance News reporter

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Pan African Resources