Pan African Resources Share Discussion Threads

[risa5] 16/2/2021 15:04

Director at Edison Group comments on Pan African Resources results

Global Mining Review, Tuesday, 16 February 2021 11:50


Charles Gibson, Director at Edison Group, has released the following comments on Pan African Resource’s half year results.

"Pan African’s financial results for 1H21 were made within the context of production already known to be 5.9% higher than the prior year period (from its operational update of 22 January) at 98 386 oz – and well on the way to achieving its full-year target of 190 000 oz. Financially, headline earnings almost doubled to US$40.8 million, while adjusted EBITDA rose 72.9% and cash flow from operations rose 178.2%.


With more improvements expected from Evander’s 8 Shaft Pillar Project in 2H21 and starting from a higher gold price, we expect 2H21 to demonstrate an improvement on 1H21, all other things being equal, with only the extraordinary strength of the Rand since last April likely to prove a slight brake on the company’s performance."

[thekobbler] 16/2/2021 13:29

In the article referenced by risa5 - - it does clarify the hedge book situation...

"The hedge book was now worked out, said Loots who also clarified a comment he made during his presentation in which he alluded to possibly exceeding the firm’s 190,000 ounces production guidance for the year."

[risa5] 16/2/2021 12:43

Pan African Resources' on production boost, ESG targets, strong gold price and eradicating debt

[risa5] 16/2/2021 12:42

(Alliance News) - Pan African Resources PLC on Tuesday reported a strong rise in profit and revenue for the first half of its financial year, driven by a higher average gold price for the period.

For the six months ended December 31, the gold producer posted a pretax profit of USD60.0 million, more than doubled from USD27.2 million in the same period a year before, on revenue that rose 38% year-on-year to USD183.5 million from USD132.7 million.

Operationally, gold production increased by 5.9% to 98,386 ounces from 92,941 ounces the year before, driven by a strong performance from Pan African's Barberton Mines, with the continued extraction of the high-grade section at the New Consort operation's Prince Consort Shaft level 42.

Gold sales rose 8.6% year-on-year to 98,386 ounces, while the average gold price increased 27% to USD1,865 per ounce from USD1,464 the prior year. Meanwhile, the all-in sustaining cost rose 13% to USD1,252 per ounce from USD1,113.

Looking ahead, Pan African Resources said it is on-track to deliver its annual production guidance of 190,000 ounces.

[risa5] 16/2/2021 08:29

Pan African passes up chance of interim dividend, but hopes high for record year-end payout

PAN African Resources intended to pay an improved year-end dividend in lieu of having passed up the chance to sanction an interim payout – a development that had disappointed some people, said Cobus Loots, CEO of the gold producer.

“There was a discussion about an interim dividend but the board just decided it was better to continue deleveraging; get it [debt] down to almost nothing, and then pay an interim dividend the year after,” he said.

Loots was commenting after the firm’s half-year results presentation in which it reported an 81.5% lift in share earnings of $2.11 cents per share (2019: $1.13c/share). This was owing to the vastly improved rand gold price which helped offset losses from having sold gold in a hedging contract below the spot price.


The hedge book was now worked out, said Loots who also clarified a comment he made during his presentation in which he alluded to possibly exceeding the firm’s 190,000 ounces production guidance for the year.

“I can’t be definitive because that would be updating guidance, but you can do the numbers. If we bring an improvement at Evander 8 Shaft, and have another six months like the previous …,” he said.

That would take production comfortably over 200,000 oz given that Pan African produced 98,386 oz in the first half of its year.

Evander 8 Shaft is an underground project at its Mpumalanga province Evander Gold Mines. It ran into technical difficulties during the six months ended December, but an improvement is now a major thrust in the second half of the financial year.

One of the main features of Pan African’s half-year numbers was the reduction in net debt which was reduced 47.3% to $65.2m.

Realised hedge losses totalled $6.7m in the period which contributed towards an increase in all-in sustaining costs (AISC) for the period of $1,252 per ounce. Pan African is aiming for an AISC of less than $1,000/oz.

Pan African has plans to take production to beyond 250,000 oz/year once it has commissioned Egoli, an R1.2bn brownfield underground development project, scoped to produce 70,000 ounces annually.

The company is also considering the R2bn to R3bn development of Mintails, a gold waste deposition site west of Johannesburg. It has an R50m option over the properties which it said today would be subject to a due diligence that has been extended to January 2022.

“It was extended because the provisional liquidator, with whom we’ve got a good relationship, ran into regulatory delays,” said Loots. “It is an option but it’s also an asset with a chequered history, to be kind.”

The company paid the full-year dividend, announced in September, of $17.8m in December – a record level as seen in rands – compared to $2.9m in 2019.

[astjgroom] 16/2/2021 08:17

Yep, heavy selling as I expected. It was a cracking 6 months with GP and FX rate n the results are uninspiring, debt didn't move, cash had disappeared(not literally)

[astjgroom] 16/2/2021 07:24

So the AISC after hedging loss was $1182, but the mine AISC was $1030, so the $150 difference is $13.5m what is that $150? Is it overheads?

[18bt] 16/2/2021 07:18

Almost everything pre-announced.

[astjgroom] 16/2/2021 07:14

Hmmm, nothing to rave about. Quite uninspiring. Don't know where all the cash is! AISC creeping up though. Given ekukilu is 650 AISC the others must be very high

[hjs] 15/2/2021 23:04

Results day tomorrow.
SP should move up from here. Imo, guidance for next year will be good and if they increase dividend expect this share to go much higher.

[hjs] 15/2/2021 23:04

Results day tomorrow.
SP should move up from here. Imo, guidance for next year will be good and if they increase dividend expect this share to go much higher.

[stonedyou] 15/2/2021 21:46

Investors continue to have the gold bug as everyday sales platform BullionVault sees 'unprecedented' levels of interest.


Although recently overshadowed by the soaring price of Bitcoin, gold continues to attract strong interest from investors looking to protect their assets from inflation and paltry savings rates.

Adrian Ash, director at online precious metals trading platform BullionVault, says his company is 'seeing unprecedented levels of new interest' from investors who increasingly see gold as a 'safe haven' and an alternative to cash.

The price of gold finished last year at £1,382 a troy ounce, a 19 per cent increase over the calendar year. Despite the price treading water since the new year – currently trading at £1,315 – most experts believe it will rise over the coming months.

A survey by investment specialist Global Palladium Fund shows that more than two thirds of professional investors believe gold will increase in price this year between three and ten per cent.

Only five per cent believe it will fall in value. These same investors believe a combination of rising inflation – globally, not just in the UK – and continued 'geopolitical risks' will put upward pressure on the gold price.

[astjgroom] 08/2/2021 21:50

Ok, I won't post anymore brexit posts! Time will tell, onwards n upwards Paf, good update today