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 Resources on track after decent first half

By Josh White

Date: Tuesday 16 Feb 2021

LONDON (ShareCast) - (Sharecast News) - Pan African Resources reported a 5.9% increase in group gold production in its first half on Tuesday, to 98,386 ounces.
The AIM-traded firm described operational performance at Barberton Mines as "robust", with the complex achieving production output of 52,354 ounces in the six months ended 31 December, up from 47,356 year-on-year.

It said it was on track to deliver on its full-year production guidance of around 190,000 ounces of gold.

Net cash generated from operating activities was ahead 178.2% at $28.1m, as the company reduced its net debt by 47.3%, implying a net debt-to-net adjusted EBITDA ratio of 0.5x.

Profit after tax and headline earnings totalled $40.8m, rising from $21.7m a year earlier, as its adjusted EBITDA increased by 72.9% to $76.4m.

Earnings per share increased 85.1% to 2.11 US cents, and headline earnings per share rose 86.7% to 2.11 cents.

Pan African made a record rand dividend payment to shareholders in December of $17.8m.

On the operational front, the board said the agreement for the evaluation of the proposed Mintails transaction had been extended to 31 January 2022.

Environmental, social and governance projects, including the 9,975MW solar photovoltaic plant at Evander Mines and large-scale agriculture projects at Barberton Mines, were on track for commissioning in the third quarter of the 2021 calendar year.

The group said it remained "vigilant" in monitoring and implementing operating procedures for the prevention and mitigation of Covid-19 among its workforce.

"Pan African's improved operational and financial performance for the six months ended 31 December continues to demonstrate the resilience and operational flexibility of our multiple producing assets, despite the challenges of the ongoing Covid-19 pandemic," said chief executive officer Cobus Loots.

Loots said that group all-in sustaining costs increased marginally to $1,252 per ounce, including realised hedge losses of $6.7m, which, if excluded, reduced the group's all-in sustaining cost to $1,182 per ounce.

The group's low-cost operations, being the Barberton Mines underground operation, Elikhulu and BTRP, which account for more than 80% of its total production, achieved an all-in sustaining cost of $1,030 per ounce, which Loots said was in line with its target of below $1,000 per ounce.

"The group remains on track to produce its guided 190,000 ounces of gold for the financial year ending 30 June, which is a substantial increase compared to actual production of 179,457 ounces for the 2020 financial year."

At 0928 GMT, shares in Pan African Resources were down 1.29% at 21.82p.

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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
78.12% above the market average78.12% above the market average78.12% above the market average78.12% above the market average78.12% above the market average
40.46% above the sector average40.46% above the sector average40.46% above the sector average40.46% above the sector average40.46% above the sector average
Price Trend
86.63% above the market average86.63% above the market average86.63% above the market average86.63% above the market average86.63% 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
62.63% above the market average62.63% above the market average62.63% above the market average62.63% above the market average62.63% above the market average
4.35% below the sector average4.35% below the sector average4.35% below the sector average4.35% below the sector average4.35% below the sector average
Growth
81.42% below the market average81.42% below the market average81.42% below the market average81.42% below the market average81.42% below the market average
59.38% below the sector average59.38% below the sector average59.38% below the sector average59.38% below the sector average59.38% 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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