(Alliance News) - Pan African Resources PLC on Tuesday reported a strong rise in profit and revenue for the first half of its financial year, driven by a higher average gold price for the period.
For the six months ended December 31, the gold producer posted a pretax profit of USD60.0 million, more than doubled from USD27.2 million in the same period a year before, on revenue that rose 38% year-on-year to USD183.5 million from USD132.7 million.
Operationally, gold production increased by 5.9% to 98,386 ounces from 92,941 ounces the year before, driven by a strong performance from Pan African's Barberton Mines, with the continued extraction of the high-grade section at the New Consort operation's Prince Consort Shaft level 42.
Gold sales rose 8.6% year-on-year to 98,386 ounces, while the average gold price increased 27% to USD1,865 per ounce from USD1,464 the prior year. Meanwhile, the all-in sustaining cost rose 13% to USD1,252 per ounce from USD1,113.
Looking ahead, Pan African Resources said it is on-track to deliver its annual production guidance of 190,000 ounces.
"Pan African's improved operational and financial performance for the six months ended 31 December 2020 continues to demonstrate the resilience and operational flexibility of our multiple producing assets, despite the challenges of the ongoing Covid-19 pandemic," said Chief Executive Officer Cobus Loots.
Shares in Pan African Resources were down 0.5% at 22.00 pence on Tuesday in London, while its Johannesburg shares were 2.7% lower at ZAR4.35.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Pan African (PAF)