LONDON (ShareCast) - Gold miner Pan African Resources (PAF) blamed low-grade gold ore and a one-off gain on an acquisition last year for a profit warning.

PAF said 2014 full year earnings per share (EPS) in both South African rand and sterling would be more than a fifth lower than the EPS for the year to 30 June
2013.

The group said the 2013 financial year EPS included an exceptional gain related to the acquisition of Evander Mines in South Africa from Harmony Gold and impairment charges and losses on a disposal related to Phoenix Platinum and Auroch Minerals.

It also said headline EPS was likely to be up to 21% lower than a year ago due to falling gold prices and the low grade of gold currently being mined at Evander.

The company said gold grades at Evander were unlikely to improve until February next year and would therefore also hit results and earnings for the first half of 2014/15.

PAF is taking measures to improve production of higher-grade gold including building a new tailing re-treatment plant and increasing tonnage from surface sources.

The group said it would only propose a final dividend when it releases results for the year to 30 June 2014, but pledged that it would not propose a final dividend lower than that paid in 2013 in ZAR terms.

Shares in PAF fell 1p or 6.8% to 13.75p at 13:01 in London.

PW

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