LONDON (ShareCast) - (Sharecast News) - Pan African Resources said in an update on Thursday that its full-year earnings were expected to rise sharply, boosted by higher gold prices and increased production, though its results were partially offset by losses on hedging contracts.
For the year ended 30 June, earnings per share were forecast to come in between 6.95 US cents and 7.37 cents, up 68% to 78% from 4.14 cents a year earlier.

Headline earnings per share were expected between 5.68 cents and 6.10 cents, an increase of 37% to 47% on the prior year's 4.15 cents.

The AIM-traded firm said the difference between the two reflected a gain on the Tennant Consolidated Mining Group acquisition, which was excluded from headline earnings.

Pan African reported a 44.5% increase in revenue, driven by a 35.7% rise in the average gold price received to $2,735 per ounce from $2,015, alongside a 6.5% increase in gold sales to 196,926 ounces.

However, profits were held back by hedging transactions on 105,004 ounces of gold sales, which reduced earnings by around 23%.

A synthetic forward transaction cost $26.2m in opportunity losses, while zero-cost collars added a further $5.8m in losses.

Pan African said it was now fully unhedged from 1 July, and would benefit from prevailing record gold prices.

Looking ahead, the group said it expected production for the year to June 2026 to rise to between 275,000 and 292,000 ounces, reflecting additional output from its new MTR operation and Tennant Mines.

Its full audited results were due to be published on 10 September.

At 1254 BST, shares in Pan African Resources were down 3.27% at 68p.

Reporting by Josh White for Sharecast.com.

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