Pan African Resources sees strong cashflows as gold price surges
- Pan African Resources raises dividend after posting record profits
- Pan African Resources doubles production, reporting record profit with a proposal to raise dividend
Quick facts: Pan African Resources PLC
Price: 15.76 GBX
Market Cap: £303.9 m
About the company
Pan African Resources is a mid-tier African-focused gold producer.
It is dual-listed on the London AIM market and the Johannesburg Stock Exchange, and it has a Level 1 ADR programme sponsored by the Bank of New York Mellon.
The company owns and operate a portfolio of high-quality, high-margin South African operations with a production capacity of approximately 200,000oz of gold per annum, and an unrelenting commitment to zero harm.
How it is doing
The miner produced a total of 201,777 ounces of gold in the twelve months ended June 30, up 12.4% and posted a net profit after tax of US$74.7mln, a company record. Earnings per share grew 68.3% to 3.87 American cents and operating profit was up 36% to US$128mln. The company lifted its final dividend 28.5%, to a total pay-out of US$28.3mln.
“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,” said chief executive Cobus Loots.
“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.
EPS will be between 3.76 and 4.10 US cents, compared with 2.30 US cents for the year-earlier period, representing an increase of between 63% and 78% respectively, it said in a trading statement.
The AIM-listed miner reached a three-year wage agreement with the National Union of Mineworkers and a five-year wage agreement with the United Association of South Africa. The two unions represent the majority of employees at the Barberton mines.
What management says
Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, FRA:RTZ, OTCQX:PAFRF) (AIM:PAF, OTCQX:PAFRY, JSE:PAN, FRA:RTZ, OTCQX:PAFRF) chief executive Cobus Loots joins Proactive London after reporting record profit due to higher gold production.
The miner produced a total of 201,777 ounces of gold in the twelve months ended June 30, up 12.4% and posted a net profit after tax of US$74.7mln, a company record.
Earnings per share grew 68.3% to 3.87 American cents and operating profit was up 36% to US$128mln.
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