London Alliance PAF news 2nd Aug11 Sep 2016 20:35
[ 02 Aug 2016 11:17 ]
LONDON (Alliance News) Pan African Resources PLC Tuesday said earnings in the recently
ended financial year are expected to be substantially higher following robust operating
performances from its Barberton Mines and Evander Mines and a boost in gold prices.
The South Africanbased precious metals mining group said earnings per share in the financial
year to the end of June should be in the region of 29.47 cents to 31.77 cents, a huge lift from the
11.48 cents reported in the previous year.
Headline earnings per share should be between 29.45 to 31.79 cents per share, also a large
increase from 11.67 cents last year.
In sterling, EPS and HEPS will both be within a range of 1.37 to 1.50 pence per share in the
recentlyended financial year, compared to 0.65 pence last year.
Excluding exceptional items, EPS is expected to have risen to a range of 43.10 to 45.50 cents
from the 11.48 cents last year and HEPS will have increased to 43.08 to 45.42 cents from 11.67
cents the previous year.
In sterling, EPS and HEPS before exceptional items will be between 2.0 to 2.13 pence compared
to 0.65 pence last year.
The significant improvement in earnings during the year are a result of improved performances
from Baberton Mines and Evander Mines, both subsidiaries of the company producing gold in
South Africa.
Gold prices were also considerably higher in the period, with Rand prices averaging 22% higher
yearonyear. The spot gold price on Tuesday in dollar terms was USD1,359 per ounce, 28%
higher than the start of 2016 as prices have particularly rallied since the start of the year.
Gold production from Baberton Mines was up 7.0% in the year to 113,281 ounces from 105,776
ounces and production from Evander Mines was up 31% to 91,647 ounces from 70,081 ounces.
Pan African Resources said it also benefited by consolidating the Uitkomst Colliery's results in
the last quarter of the financial year that started in April. That contributed production of 136,102
tonnes of coal in the financial year.
However, the company's platinum production declined in the year because it was adversely
impacted by a lack of feedstock to its operation after Londonlisted International Ferro Metals
Proprietary Ltd entered into a business rescue plan.
Pan African's platinum operation is situated on the same property that was owned by
International Ferro Metals, which recently sold its troubled South African subsidiary that held the
asset after entering into business rescue proceedings.
International Ferro Metals' distressed subsidiary was hit by a wave of factors last year that led
ultimately led to its demise, but that left Pan African's operations without the feedstock that it was
being supplied by International Ferro's processing operations. Pan African was not reliant on the
feedstock, but it also sourced electricity, water and "certain other services" from the nearby
operation.
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