(Alliance News) - Pan African Resources PLC on Tuesday reported improved performance in the first half of its current financial year despite challenges.
The gold producer said its pretax profit more than doubled to USD27.2 million in the six months to the end of 2019 from USD12.0 million reported a year earlier, as revenue rose to USD132.7 million from USD97.5 million.
The company highlighted that South Africa's operating environment remains "challenging", with key issues being electricity availability, illegal mining, community protests and disruptions, escalating costs and regulatory uncertainty.
Gold produced by Pan African during the first half increased by 15% to 92,941 ounces from 81,014 ounces a year ago, taking total gold sales for the period up 14% to 90,602 ounces from 79,765 ounces.
The average gold price received for the period increased by 20% to USD1,464 per ounce from USD1,222 per ounce a year earlier.
"Our business strategy of delivering safe, sustainable and high-margin gold production has yielded improved operational, financial and safety results for the six months ended December 2019," said Chief Executive Cobus Loots.
He added: "Management's key focus for the remainder of the 2020 financial year includes further improving the safety performance, delivering on production guidance, reducing operational costs, managing cash flow generation and strengthening the group's financial position by reducing senior debt."
Pan African shares were trading 3.3% higher in London on Tuesday at 12.64 pence each, while in Johannesburg, the stock was up 2.5% at ZAR2.46 a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Pan African Resources (PAF)