Pan African: Record profits and second-highest gold production

Pan African Resources say that its excellent financial performance has improved profitability by 69.0% and enabled a 45.6% reduction in Group net senior debt. The company remains on track with its forecast degearing, while continuing to invest in its assets and increasing dividends to shareholders.

Above-inflation increases in electricity tariffs and the marginal strengthening of the South African rand have resulted in Group AISC increasing by 9.9% to US$1,261/oz (2020: US$1,147). Included in the current financial year, AISC is a realised hedge loss of US$7.2 million which, if excluded, reduces the Group’s AISC to US$1,226/oz.

The Group’s low-cost operations (Barberton Mines’ underground, Elikhulu and the Barberton Tailings Retreatment Plant), which account for more than 75% of the Group’s total production, achieved an AISC of US$1,151/oz, resulting in an AISC margin of 37.0% on the average gold price of US$1,826/oz earned by the Group from these operations.

The Group remains on track to produce a minimum of 195,000oz of gold for the financial year ending 30 June 2022,which is in line with existing planned production profiles, until the growth  projects currently being progressed are brought into production.

Provisional summarised audited results for the year ended 30 June 2021”

  • 12.4% increase in Group gold production to 201,777oz
  • 36.0% increase in operating profit to US$128.0 million
  • 14% improvement in all-in sustaining cost (AISC) margin to 30.9%
  • Record profit after tax of US$74.7 million
  • 68.3% increase in earnings per share (EPS) to US 3.87 cents per share and 69.0% increase in headline earnings per share (HEPS)
  • 28.5% increase in final proposed dividend of ZAR402.2 million (or US$28.3million at the prevailing exchange rate)
  • 45.6% decrease in net senior debt to US$33.7 million (2020: US$62.0 million)

CHIEF EXECUTIVE OFFICER’S STATEMENT

“We are, once again, pleased to report major positive strides in Pan African’s operational and financial performance, despite the challenges of the ongoing COVID-19 pandemic. The operational flexibility afforded by our multiple producing assets has enabled the Group to improve margins, achieve record profits and realise our second-highest annual gold production. We are also proposing our highest-ever dividend for approval at the upcoming annual general meeting (AGM).”

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