17th Sep 2013 07:18
LONDON (Alliance News) - Pan African Resources PLC Tuesday said its pretax profits increased 23% in its full year as more production from the newly acquired Evander Gold Mines helped company finances.
The African-focused precious metals and mining company with operations in South Africa said its pretax profit rose to GBP54.7 million from GBP42.2 million for the 12 months ended June 30.
Pan African Resources managed to increase the amount of gold sold by 38% to 130,493 ounces from 94,449 ounces as the Evander Mines added production to the company over four months. The company expects that the acquisition of Evander Mines in February will eventually double its gold production to 200,000 ounces per year.
The company said sales increased across its mining activities, gold sales increased 22%, to GBP129.3 million from GBP101.1 million, and the company posted its first platinum sales of GBP4.3 million.
Much of the company gains were offset by impairments of GBP16.1 million across its mines towards the end of the period, as lower commodity prices affected the level of profitability at the company's operations.
The company said that in the first three quarters higher gold prices were achieved for sales but in the last quarter gold prices retreated significantly, and the group received an average of USD1,553 per ounce for the year, down 8.3% for the previous year.
The company gave its condolences to two employees who died in its Barberton Mines, one in a truck crash and another who was fatally electrocuted, and assured shareholders that it is improving safety across its operations.
"Pan African Resources exceeded most of its targets for the financial year ended June 30, delivering growth with pleasing operational and financial performances," Chief Executive Ron Holding said in a statement.
Pan African Resources shares were quoted at 14.35 pence early Tuesday, up 0.60p or 4.4%.
By Tom McIvor; [email protected]; @TomMcIvor1
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