18th Sep 2019 07:51
(Alliance News) - London and Johannesburg-listed miner Pan African Resources PLC on Wednesday reinstated its dividend after annual profit rose on strong revenue and gold production growth.
For the year to the end of June, pretax profit was USD46.2 million, more than triple USD12.8 million the year before. This was on revenue that grew by 48% to USD217.4 million from USD146.0 million.
Headline earnings for the year rose by 27% to USD22.8 million from USD17.9 million the prior year.
Revenue benefited from higher production, with gold output increasing by 7.5% to 172,442 ounces from 160,444 ounces the year before, leading to a 7.0% increase in gold sales to 171,706 ounces, despite a lower average gold price at USD1,266 per ounce, compared to USD1,301.
Operationally, the Barberton gold mine in Mpumalanga, South Africa saw an increase in gold production, as well as remnant mining and surface sources from the Evander mine, also in South Africa.
Pan African Resources has reinstated the payment of dividends, starting with a final dividend of ZAR50 million, or USD3.4 million, equating to 2.24 rand cents per share, or 0.15 US cents.
Looking ahead, Pan African Resources said it remains focused on delivering its gold production guidance of 185,000 ounces for the 2020 financial year.
"These results reflect the efforts of the team to implement our strategy, as we capitalise on the opportunities in our portfolio and invest in future growth. Our production guidance of 185,000 ounces for the 2020 financial year is a substantial increase on the year past," said Chief Executive Officer Cobus Loots.
"We enter the new financial year with confidence, a firm grasp on our cost base, and in a good position to benefit from the current gold price environment. In the year ahead, we will focus on debt reduction, while also continuing to invest in our business," Loots added.
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