Pan African Resources reports decrease in gold sold of 18%
Pan African advises in its trading statement for the six months ended 31 December 2024 that its earnings are increased between 5% and 15%. Headline earnings for the current reporting period are expected to be a decrease of between 38% and 49%.
The decrease in headline earnings for the current reporting period, relative to the corresponding reporting period, is attributable to the following:
- Decrease in gold sold of 18% to 79,926oz (2023: 97,290 (restated)); and
- The opportunity cost associated with the synthetic forward transaction of US$17.4 million (2023: US$1.7 million). The final settlement in terms of this agreement will be at the end of February 2025, after which the Group will fully benefit from the prevailing spot gold price of approximately US$ 2,860/oz (ZAR1,690,000/kg) which is 21% (24% in ZAR terms) higher compared to the average price of US$2,359/oz (ZAR1,361,202/kg) received in the current reporting period.
Included in EPS in the current reporting period is a gain on acquisition relating to the Tennant Consolidated Mining Group (TCMG) transaction (as announced on 5 November 2024).
The Group is also well positioned for much improved production in H2FY25, with a further significant increase in production expected for FY2026.
HIGHLIGHTS
- The sub-vertical shaft at Evander underground was fully commissioned during January 2025
- Mogale Tailings Retreatment (MTR) production is now fully ramped-up, ahead of schedule and with final project capital below budget
- Full year production (48,000oz to 60,000oz) from TCMG in Australia is expected in FY2026
