11th Sep 2024 08:45
(Alliance News) - Pan African Resources PLC on Wednesday reported robust profit for the 2024 financial year, crediting a "very favourable gold price".
The Rosebank-headquartered gold producer said pretax profit was USD109.4 million for the financial year that ended June 30, up 29% from USD85.1 million the year before.
Revenue grew 17% to USD373.8 million from USD319.9 million, driven by a strong gold price. The price received for gold by Pan African was up 11% to USD2,015 an ounce from a restated USD1,811.
Gold prices have continued to climb since. Spot gold was quoted about USD2,525 an ounce on Wednesday.
"We find ourselves in a very favourable gold price environment, with the metal appreciating by more than 20% in dollar terms in the past year, and generally positive sentiment on its near-term prospects," Pan African said.
Gold production was 6.2% higher at 186,039 ounces from 175,209 ounces, in line with guidance.
Operational enhancements and optimisation efforts had resulted in "significant" improvements at Barberton Mines' underground and Elikhulu tailings retreatment plant's surface operations. Gold output from Barberton's Fairview and Sheba mines rose 14% to 65,580 ounces from 57,778. Elikhulu's gold production was up 8.4% to 54,812 ounces from 50,573.
All-in sustaining costs increased by 3.4% to USD1,354 an ounce from restated USD1,309, marginally above guidance of between USD1,325 and USD1,350, with the delay in commissioning Evander Mines' subvertical hoisting shaft.
Pan African declared a final dividend of 22.00 rand cents, up 22% from 18.00 cents a year before.
Earnings per share jumped 32% to USD4.14 in the recent financial year from a restated 3.18 cents in financial 2023. Jeadline EPS grew by the same percentage to 4.15 cents from a restated 3.14 cents.
The gold junior said it is poised to deliver on its next phase of "value-accretive production growth" at the Mogale tailings retreatment project. It said it had made "exceptional" progress with this project's construction, which is nearing its final stages.
Plant commissioning and first gold production are anticipated ahead of schedule next month.
Pan African guided for gold production of between 215,000 ounces and 225,000 ounces in financial 2025.
In Johannesburg, Pan African shares were up 0.1% at ZAR6.93 on Wednesday morning. They were down 1.9% at 29.10 pence each in London.
By Artwell Dlamini, Alliance News reporter
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