Pan African Resources (PAF)

Sector:

Mining

Index:

FTSE AIM 100

22.50p
   
  • Change Today:
      0.60p
  • 52 Week High: 22.60
  • 52 Week Low: 12.02
  • Currency: UK Pounds
  • Shares Issued: 2,222.86m
  • Volume: 4,140,484
  • Market Cap: £500.14m
  • RiskGrade: 255

Pan African predicts rebound from 'operationally challenging' year

By Iain Gilbert

Date: Wednesday 20 Sep 2017

LONDON (ShareCast) - (ShareCast News) - London-based precious metals firm Pan African Resources said on Wednesday that it had seen profits fall over the last financial year as a result of an "operationally challenging" year.
Pan African posted a pre-tax profit of £23m for the year ending 30 June; down from the £33.9m it posted at the same time a year earlier.

The group did grow revenue 5.1% to £169.6m over the period but profits suffered as a result of significantly increased gold production costs that jumped from £100.5m in 2016 to £134m twelve months later, as salaries and wages rose along with electricity and production costs.

The overall production cost per kilogram jumped up 27% to roughly ZAR 430,863, as the average price of gold slipped marginally lower to ZAR 542,773.

Pan African also said that production of the yellow metal had suffered at a number of its mines over the period. Evander was suspended for 55 days in order to carry out refurbishments to its critical shaft infrastructure, and Barberton saw reduced production as a result of "frequent instances of community unrest."

Overall the group produces 173,285 ounces of gold over the period, a 15% decrease on the prior year, but anticipated it would bounce back to around 190,000 for its 2018 financial year.

However, despite the challenges presented, the South African-focused explorer decreased its net debt an impressive 76.8% to $4m while raising cash and equivalents on hand from £2.65m at 30 June 2016 to £9.44m a year later.

EBITDA dropped 32.3% to £30.4m and earnings per share dropped 19.1% to 1.14p each.

Cobus Loots, chief executive of Pan African Resources said, "We have appropriately addressed critical shaft infrastructure repairs at Evander Mines, and the operation's cost base is now leaner, without compromising the safety or sustainability of the business. Pan African Resources looks forward to a much-improved performance from Evander Mines in the 2018 financial year, with a substantial increase in expected gold production. Despite mining flexibility challenges, Barberton Mines, our flagship long-life cash flow producer, is currently mining high-grade panels in its Fairview 11-block and is poised to contribute substantially to our production guidance of 190,000oz for the 2018 financial year. The Elikhulu Project is on schedule, with environmental approvals now in place, and is expected to produce first gold in the final quarter of the 2018 calendar year."

As of 1115 BST, shares had grown just 0.53% to 13.24p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PAF Market Data

Currency UK Pounds
Share Price 22.50p
Change Today 0.60p
% Change 2.74 %
52 Week High 22.60
52 Week Low 12.02
Volume 4,140,484
Shares Issued 2,222.86m
Market Cap £500.14m
RiskGrade 255

PAF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.46% above the market average76.46% above the market average76.46% above the market average76.46% above the market average76.46% above the market average
38.93% above the sector average38.93% above the sector average38.93% above the sector average38.93% above the sector average38.93% above the sector average
Price Trend
88.80% above the market average88.80% above the market average88.80% above the market average88.80% above the market average88.80% above the market average
88.81% above the sector average88.81% above the sector average88.81% above the sector average88.81% above the sector average88.81% above the sector average
Income
61.92% above the market average61.92% above the market average61.92% above the market average61.92% above the market average61.92% above the market average
4.35% above the sector average4.35% above the sector average4.35% above the sector average4.35% above the sector average4.35% above the sector average
Growth
81.29% below the market average81.29% below the market average81.29% below the market average81.29% below the market average81.29% below the market average
56.25% below the sector average56.25% below the sector average56.25% below the sector average56.25% below the sector average56.25% below the sector average

What The Brokers Say

Strong Buy 2
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PAF Dividends

  Latest Previous
  Final Final
Ex-Div 30-Nov-23 01-Dec-22
Paid 12-Dec-23 13-Dec-22
Amount 0.75p 0.91p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 655,022 @ 22.50p
16:35 2,296 @ 22.50p
16:35 6,422 @ 22.50p
16:35 3,640 @ 22.50p
16:35 20,447 @ 22.50p

PAF Key Personnel

CEO Cobus Loots
Finance Director Deon Louw

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