Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Pan African posts jump in first-half earnings

(Sharecast News) - Pan African Resources reported a significant increase in net cash from operating activities in its interim results on Wednesday, soaring 134.5% to $27.2m year-on-year.

The AIM-traded firm said profits for the six months ended 31 December surged 46.7% to $42.4m, with headline earnings increasing 46.4% to $42.6m.

Earnings per share and headline earnings per share rose by 46.1% to 2.22 cents per share.

Despite a slight decrease in net dividend payments from $20m in 2022 to $18.3m in December, the dividend yield increased to 5.9% from 4.6% at the last traded price on 30 June.

The company said it maintained a healthy financial position, with net debt reaching $64.3m compared to $53.7m in the prior year period.

Gold production showed a commendable increase, reaching 98,458 ounces, a 6.7% rise compared to the previous reporting period.

Safety metrics also improved, with a notable decrease in the total recordable injury frequency rate to 6.13 per million man-hours.

Barberton Mines achieved a significant safety milestone, with four million fatality-free shifts in November.

The group said its surface operations reported no recordable injuries during the reporting period.

Despite inflationary pressures, production costs were effectively managed, leading to a reduction in all-in sustaining costs (AISC) per ounce to $1,287.

The group said its operations produced at an AISC per ounce of $1,149 per ounce, while tailings retreatment operations achieved an AISC of $894 per ounce.

Pan African said it anticipated further improvement in future AISC through renewable energy generation, water recycling, and other efficiency initiatives, as it reduced the AISC per ounce guidance range for the 2024 financial year to between $1,325 and $1,350 per ounce.

Pan African said it was committed to its growth projects, including the Mogale tailings retreatment (MTR) project, where steady-state production was expected by December to contribute 50,000 ounces annually over a 20-year life-of-mine.

Furthermore, environmental, social, and governance initiatives continued to be a priority for the company.

Construction of the Fairview Mine's 8.75MW solar plant was progressing, with commissioning expected in June.

"Pan African delivered an excellent safety, production and financial performance for the reporting period, which positions the group well to deliver on our production and cost guidance for the full financial year," said chief executive officer Cobus Loots.

"We are deeply saddened by the fatality that occurred at Elikhulu after the reporting period, as outlined in the subsequent events section further in the announcement.

"We are well positioned to deliver on our operational and strategic objectives for the 2024 financial year, and if the current gold price tailwinds persist, shareholders can look forward to a continuation of the reporting period's excellent financial performance for the full financial year."

At 1040 GMT, shares in Pan African Resources were down 2.37% at 16.93p.

Reporting by Josh White for

Share this article

Related Sharecast Articles

Easyjet suspends flights to Israel until October
(Sharecast News) - Budget carrier easyJet on Tuesday said it had suspended flights to Tel Aviv until October 27 after Iran's missile and drone attack against Israel on Saturday night.
Berenberg stays at 'buy' on Yellow Cake on tight supplies and supply risk
(Sharecast News) - Analysts at Berenberg stood by their 'buy' recommendation for shares of Yellow Cake, the uranium oxide concentrate holding company, following a fireside chat with its boss, Andre Liebenberg.
Bank of America upbeat despite profits slide
(Sharecast News) - Bank of America said it had seen a "strong" first quarter on Tuesday, despite posting a sharp fall in profits.
Berenberg lowers target price on Kainos
(Sharecast News) - Analysts at Berenberg lowered their target price on software company Kainos from 1,315.0p to 1,260.0p on Tuesday following the group's full-year trading update on 15 April.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.