Pan African Resources (PAF:AIM)
The company issued a trading statement today as their financial results will differ by at least 20% from those of the previous corresponding period.
The company estimates that EPS for H2 2016 will be 0.87p to 0.99p which is 45% to 65% higher then the 0.60p EPS for the prior reporting period. HEPS is expected to be 0.85p to 0.97p which is 42% to 62% higher than the 0.60p for the prior reporting period.
The Utikomst Colliery acquired on 31 March 2016, contributed approximately 8.5% of the Group’s EPS and HEPS. The current favourable coal price environment could reduce the payback period for this project to less than the four years previously forecast.
The “Cost Collar”hedge on Barbeton Mines has resulted in a a pre-tax mark-to-market fair value gain of ZAR 90m.
The weighted average number of shares on issue were reduced by 17.7% period-on-period due to the PAR Gold transaction. Gold production for 2017 financial year is expected to be 195k oz Au.