Pan African Resources forecasts up to 78% EPS increase on gold prices

Published 04/09/2025, 08:08
Pan African Resources forecasts up to 78% EPS increase on gold prices

JOHANNESBURG - Pan African Resources PLC expects earnings per share to rise between 68% and 78% for the fiscal year ended June 30, 2025, primarily driven by higher gold prices and increased production, according to a trading statement released Thursday.

The gold mining company forecasts EPS between 6.95 and 7.37 U.S. cents per share, compared to 4.14 cents in the previous year. Headline earnings per share are expected to increase between 37% and 47%, reaching between 5.68 and 6.10 cents.

The company reported a 44.5% revenue increase, attributable to a 35.7% rise in average gold prices to $2,735 per ounce and a 6.5% increase in gold sold to 196,926 ounces.

Pan African’s results include gains from its acquisition of Tennant Consolidated Mining Group, completed during the current reporting period, which contributes to the difference between EPS and HEPS figures.

The company noted that hedging transactions limited its ability to fully capitalize on record gold prices. Approximately 105,004 ounces of gold sales were subject to hedging, resulting in an opportunity cost of $26.2 million and losses of $5.8 million from zero-cost collars, negatively impacting profits by about 23%.

Looking ahead, Pan African announced it will be fully unhedged from July 1, 2025, allowing it to benefit from prevailing gold prices. The company expects production to increase to between 275,000 and 292,000 ounces for the year ending June 30, 2026, primarily due to contributions from its new MTR operation and Tennant Mines.

The company will release its full financial results for the year on September 10, 2025, according to the trading statement.

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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