29th Aug 2014 10:52
LONDON (Alliance News) - Shares in Pan African Resources PLC were down on Friday after it said it expects its full-year earnings to be substantially lower year-on-year due to exceptional gains made last year, a fall in the gold price, and the current low grade mining cycle at Evander Mines, though the company said it still would maintain its dividend payment.
Shares were down 6.8% to 13.75 pence in early trade, putting it among the biggest fallers in the AIM All-Share.
The company said its full-year earnings to June 30 will be 42% to 47% lower than the year before. Adjusted for the exceptional gains which contributed to its 2013 results, earnings for the full year 2014 are expected to be 30% to 35% lower.
In 2014, the group said its earnings were given a GBP7.4 million boost from the acquisition of Evander Mines Ltd and impairment charges on disposals related to Phoenix Platinum Ltd and Auroch Minerals NL.
The group said a key factor also harming its earnings for this year is the low-grade mining cycle at Evander Mines, which is expected to continue to February 2015 and will impact earnings in the first half of the 2015 financial year. The company said it is working on a number of measures to mitigate the impact of the weak performance at Evander.
Pan African said its dividend for the full year will be no lower than that paid last year, which was 0.8033 pence per share. It said it would provide full guidance on its dividend payment plans when it publishes its full-year results on September 16.
By Sam Unsted; [email protected]; @SamUAtAlliance
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