(Alliance News) - Pan African Resources PLC on Wednesday declared a record final dividend after revenue and profit were given impetus by elevated gold prices.
Pan African shares were up 4.8% to 17.02 pence each in London on Wednesday morning. In Johannesburg, where it is also listed, the stock was up 4.0% at ZAR3.36.
For the 12 months that ended June 30, pretax profit doubled to USD104.8 million from USD52.2 million, on the back of a 35% rise in revenue to USD368.9 million from USD274.1 million.
Gold production rose 12% to 201,777 ounces from 179,457, with sales up 16% to 201,777 ounces from 173,864.
The company booked an average gold price of USD1,826 per ounce for the year, jumping 16% from USD1,574, offsetting a 14% rise in cash costs to USD1,035 per ounce from USD911.
Chief Executive Cobus Loots said: "We are, once again, pleased to report major positive strides in Pan African's operational and financial performance, despite the challenges of the ongoing Covid-19 pandemic. The operational flexibility afforded by our multiple producing assets has enabled the group to improve margins, achieve record profits and realise our second-highest annual gold production. We are also proposing our highest-ever dividend for approval at the upcoming annual general meeting."
A final dividend of 18 rand cents per share was declared, up 29% from 14 cents last year. The miner also said it has approved a share buyback programme, but more information on this will be release later this year.
Pan African Resources remains on track to produce a minimum of 195,000 ounces of gold for financial 2022, which is in line with its planned production profiles.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Pan African (PAF)