Pan African Resources, which mines gold in South Africa, increased interim earnings in 2015 by 98% over 2014, to £10.9 million (GBP0.60 per share).
Revenue increased by 11% to £75.6 million on the back of gold sales of 101.8 koz (up 17%) and a 11.7% increase in the gold price received, as a fall of 9.8% in the international gold price received to US$1,110/oz was more than compensated by a depreciation of the South African Rand against the US dollar of 23.9%.
All-in sustaining costs fell from US$1,165/oz to US$980/oz as a result of the higher ounces of gold produced and sold.
The main reason for the improvement in operational performance was the increase in underground head grade at Evander, to 5.8 g/t from 4.3 g/t a year earlier, principally due to mining at 8 Shaft’s newly-established 25 level. Underground gold production at Evander rose from 26.0 koz to 36.3 koz and the Tailing Retreatment Plant contributed a maiden 3.7 koz of gold.
As at 31 December 2015, the company had decreased its net debt to £15.0 million (31 December 2014: £25.4 million), although it had no cash on the balance sheet.
For the 2015 financial year, Pan African Resources paid a dividend of GBP0.53 per share (2014: GBP0.82 per share).
In other news, the company has agreed to acquire a 16.9% interest in Shanduka Gold, its primary black economic empowerment shareholder (with a 23.8% interest in Pan African Resources).
Pan African Resources’ interim earnings increase by 98%: PAF