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Pan African Resources expects varied half-year earnings

Published 10/02/2025, 10:34
Pan African Resources expects varied half-year earnings
PANJ
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JOHANNESBURG - Pan African Resources PLC (AIM: PAF, JSE: PAN), a mid-tier African-focused precious metals producer, has provided a trading update for the six months ending December 31, 2024. The company has announced that its earnings per share (EPS) are expected to increase by 5% to 15% compared to the same period last year, translating to an EPS of between US 2.24 cents and US 2.46 cents. This contrasts with a decrease in headline earnings per share (HEPS), anticipated to fall by 38% to 49% to between US 1.09 cents and US 1.31 cents.

The variation in EPS and HEPS is attributed to several factors, including an 18% decrease in gold sold, totaling 79,926 ounces, and the impact of a synthetic forward transaction costing the group $17.4 million. The latter is set to be settled at the end of February 2025, after which the company expects to benefit from the current higher spot gold price.

The financial figures for the corresponding period in the previous year have been restated due to prior period errors involving timing of revenue recognition and the initial measurement of an environmental rehabilitation obligation.

Pan African Resources also highlighted operational achievements, including the full commissioning of the sub-vertical shaft at the Evander underground mine in January 2025 and the successful ramp-up of the Mogale Tailings Retreatment production. Additionally, the company anticipates full-year production from the Tennant Consolidated Mining Group (TCMG) in Australia to be in the range of 48,000 to 60,000 ounces in the fiscal year 2026.

The trading statement indicates that the company is well-positioned for improved production in the second half of the fiscal year 2025 and an even more significant increase in production in fiscal year 2026. The interim results for the six months ended December 31, 2024, are scheduled to be released on February 12, 2025.

The financial information in this announcement has not been reviewed or audited by the company’s auditors. This news is based on a press release statement from Pan African Resources.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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