Pan African Resources (PAF)

Sector:

Mining

Index:

FTSE AIM 100

24.35p
   
  • Change Today:
    -0.25p
  • 52 Week High: 25.00
  • 52 Week Low: 12.02
  • Currency: UK Pounds
  • Shares Issued: 2,222.86m
  • Volume: 942,161
  • Market Cap: £541.27m
  • RiskGrade: 255

Pan African posts jump in first-half earnings

By Josh White

Date: Wednesday 14 Feb 2024

LONDON (ShareCast) - (Sharecast News) - Pan African Resources reported a significant increase in net cash from operating activities in its interim results on Wednesday, soaring 134.5% to $27.2m year-on-year.

The AIM-traded firm said profits for the six months ended 31 December surged 46.7% to $42.4m, with headline earnings increasing 46.4% to $42.6m.

Earnings per share and headline earnings per share rose by 46.1% to 2.22 cents per share.

Despite a slight decrease in net dividend payments from $20m in 2022 to $18.3m in December, the dividend yield increased to 5.9% from 4.6% at the last traded price on 30 June.

The company said it maintained a healthy financial position, with net debt reaching $64.3m compared to $53.7m in the prior year period.

Gold production showed a commendable increase, reaching 98,458 ounces, a 6.7% rise compared to the previous reporting period.

Safety metrics also improved, with a notable decrease in the total recordable injury frequency rate to 6.13 per million man-hours.

Barberton Mines achieved a significant safety milestone, with four million fatality-free shifts in November.

The group said its surface operations reported no recordable injuries during the reporting period.

Despite inflationary pressures, production costs were effectively managed, leading to a reduction in all-in sustaining costs (AISC) per ounce to $1,287.

The group said its operations produced at an AISC per ounce of $1,149 per ounce, while tailings retreatment operations achieved an AISC of $894 per ounce.

Pan African said it anticipated further improvement in future AISC through renewable energy generation, water recycling, and other efficiency initiatives, as it reduced the AISC per ounce guidance range for the 2024 financial year to between $1,325 and $1,350 per ounce.

Pan African said it was committed to its growth projects, including the Mogale tailings retreatment (MTR) project, where steady-state production was expected by December to contribute 50,000 ounces annually over a 20-year life-of-mine.

Furthermore, environmental, social, and governance initiatives continued to be a priority for the company.

Construction of the Fairview Mine's 8.75MW solar plant was progressing, with commissioning expected in June.

"Pan African delivered an excellent safety, production and financial performance for the reporting period, which positions the group well to deliver on our production and cost guidance for the full financial year," said chief executive officer Cobus Loots.

"We are deeply saddened by the fatality that occurred at Elikhulu after the reporting period, as outlined in the subsequent events section further in the announcement.

"We are well positioned to deliver on our operational and strategic objectives for the 2024 financial year, and if the current gold price tailwinds persist, shareholders can look forward to a continuation of the reporting period's excellent financial performance for the full financial year."

At 1040 GMT, shares in Pan African Resources were down 2.37% at 16.93p.

Reporting by Josh White for Sharecast.com.

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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 24.35p
Change Today -0.25p
% Change -1.02 %
52 Week High 25.00
52 Week Low 12.02
Volume 942,161
Shares Issued 2,222.86m
Market Cap £541.27m
RiskGrade 255

PAF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
69.91% above the market average69.91% above the market average69.91% above the market average69.91% above the market average69.91% 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
88.43% above the market average88.43% above the market average88.43% above the market average88.43% above the market average88.43% above the market average
86.01% above the sector average86.01% above the sector average86.01% above the sector average86.01% above the sector average86.01% above the sector average
Income
50.44% above the market average50.44% above the market average50.44% above the market average50.44% above the market average50.44% above the market average
Sector averageSector averageSector averageSector averageSector average
Growth
81.77% below the market average81.77% below the market average81.77% below the market average81.77% below the market average81.77% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% 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 15-Apr-2024

Time Volume / Share Price
10:59 18 @ 24.20p
10:56 9,872 @ 24.35p
10:56 2,375 @ 24.35p
10:51 10,000 @ 24.25p
10:48 5,994 @ 24.35p

PAF Key Personnel

CEO Cobus Loots
Finance Director Deon Louw

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