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Pan African Resources exceeded 2020 gold production guidance, on-track to grow again in 2021

Chief executive Cobus Loots said the company showed resilience over the past year

Pan African Resources plc - Pan African Resources exceeded 2020 gold production guidance, on-track to grow again in 2021

Pan African Resources plc (LON:PAF) has confirmed that 2020 gold production exceeded guidance, and said it is firmly on track to hit its 2021 target of 190,000 ounces.

The group's results for the year ended June 30, 2020, confirmed a production tally of 179,457 ounces, marking a 4.1% improvement. It drove a 25.9% rise in revenue to US$273.7mln for the year, up from US$217.4mln for 2019.

Profit improved by 16.6% to US$44.3mln, from US$38mln, while headline earnings increased 93% to US$44.2mln.

READ: Pan African sees sales and earnings soar

Net cash generation from operating activity amounted to US$53.8mln, up 42.7%, and net senior debt decreased by 51.9% to US$62mln.

Pan African's chief executive Cobus Loots said the company showed resilience over the past year, and, the board has recommended a record dividend of ZAR312.9mln (which equates to 0.83582 US cents per share).

“This operational performance was achieved despite the impact of the COVID-19 pandemic and the resultant restrictions imposed to curb the spread of the virus - a testament to the robustness and operational flexibility of our diversified portfolio of assets,” Loots added in the results statement.

“Gold production from Elikhulu and the Barberton Tailings Retreatment Plant (BTRP), our low-cost surface retreatment operations, have contributed significantly to the profitability of the Group and demonstrated the benefit of multiple producing operations.

“We successfully levered the group's operational execution capability to bring Evander Mines' 8 Shaft (8 Shaft) pillar project and the Prince Consort (PC) Shaft's Level 42 development at Barberton Mines’ New Consort Mine into steady-state production, and these operations are now an integral part of our strategy to further reduce costs and increase margins at our underground mines.

"In the year ahead, aligned to our strategy of delivering safe, sustainable and high-margin gold production, we will continue to direct our focus on creating shareholder value by optimising our operations, further de-gearing our balance sheet and increasing dividend distributions,” Loots concluded.

Quick facts: Pan African Resources plc

Price: 24.8 GBX

AIM:PAF
Market: AIM
Market Cap: £478.23 m
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Pan African should be debt-free this year and hopes to increase dividends as...

Pan African Resources plc's (LON:PAF) Cobus Loots tells Proactive its gold production increased by 4.1% in the year ended June 2020. Loots says the strategic focus for the year ahead remains on optimising operations and de-gearing the balance sheet with the intention of increasing dividends in...

on 17/7/20

2 min read