Cobus Loots
Photo by: Creamer Media
JOHANNESBURG (miningweekly.com) – Gold mining company Pan African, which beat production guidance in the 12 months to June 30, on Wednesday proposed a final dividend of R50-million.
The gold production of the London Aim- and JSE-listed company rose by 54.1% to 172 442 oz, exceeding full-year production guidance of 170 000 oz.
The company's all-in sustaining cost per ounce fell by 27.2% to $988/oz.
Group revenue rose by 49.1% to $217.4-million on increased production at the Barberton Tailings Retreatment Plant, the newly commissioned Elikhulu tailings retreatment project in Evander and Barberton Mines’ underground mining operations.
Group after-tax profit was $38-million, compared with last year’s after-tax loss of $122.8-million and earnings of 1.97c a share compared with last year’s 6.79c loss a share.
“This was a pivotal year for the group as we successfully repositioned our operations as one of South Africa’s lowest cost gold producers,” Pan African CEO Cobus Loots said in a release to Creamer Media’s Mining Weekly Online.
Headline earnings per share rose by 20.2% to 1.19c a share, despite the weighted average number of shares in issue increasing 6.6% year-on-year.
Production of 185 000 oz is forecast for the 2020 financial year as the Egoli project and new optimisation projects at Evander and Barberton present near- and mid-term growth opportunities.
“We enter the new financial year with confidence, a firm grasp on our cost base, and in a good position to benefit from the current gold price environment,” said Loots, who is targeting debt reduction accompanied by continued investment.
The dividend is subject to approval by shareholders at the company’s annual general meeting on November 28.
Loots committed the company to the ongoing delivery of safe and profitable ounces from its Evander and Barberton operations.
Reinforcing its commitment to environmental, social and corporate governance (ESG) management, the company reported progress on “broader societal initiatives” at a time when emphasis on ESG throughout the mining industry is intensifying.