Record dividend as Pan African cashes in on higher gold price

print

Record dividend as Pan African cashes in on higher gold price

Published Date: 2020-09-17 | Source: Stephen Gunnion | Author: Stephen Gunnion

Record dividend as Pan African cashes in on higher gold price

The mining company has beaten full-year production guidance despite the impact of Covid-19 on its operations.

Pan African Resources plans to pay a record final dividend after it beat production targets in a period that saw a significant improvement in the gold price. And it says it is already on track to deliver even higher output next year.

The gold miner said increased earnings for the year to end-June were achieved despite the impact of Covid-19. Production from its low-cost surface retreatment operations, Elikhulu and Barberton Tailings Retreatment Plant, contributed significantly to profitability, demonstrating the benefit of multiple producing operations.

Gold production increased by 4.1% to 179,457 ounces, beating its guidance. Revenue rose by 26% to $274 million and profit after tax came in 17% higher at $44.3 million. Headline earnings per share ended 92% higher at 2.29 US cents while earnings per share were up 17% to 2.3c.

Net cash generated by operating activities rose 43% to $53.8 million and it reduced net debt by 41% to $75.4 million. It's proposed a final dividend of R313 million, or about $18.7 million. That works out at 14c per share in rand terms and about 0.84 US cents.

Pan African said following the successful completion of the feasibility study, it was proceeding with its long-life Egoli project, which would capitalise on the substantial existing shaft and plant infrastructure and was fully licensed and 'shovel-ready'. RMB had already granted credit approval for the full debt funding of the project's capital expenditure.

The company has guided for gold production of 190,000 for the year ahead. Its shares closed 3.1% higher at R5.40 yesterday.





Similar Stories