Pan African Resources PLC (LON:PAFR) (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) reported an increase in full-year pretax profit on record gold production.
Pretax profit for the year to end-June rose 2% to US$106.9mln as gold output grew to 205,688 ounces, exceeding its revised guidance of 200,000 ounces as well as the previous year’s production of 201,777 ounces.
The group said it expects its production for the 2023 financial year to be in line with 2022’s level.
“We are positioned for further growth as we move closer to commissioning our organic projects and seek to imminently conclude the Mintails transaction,” said chief executive Cobus Loots.
He said that the organic growth projects at the Evander Mines’ underground operations are on schedule to start delivering within their anticipated production timeframes.
The company’s all-in sustaining costs (AISC) rose 1.8% to US$1,284 an ounce.
Pan African has embarked on a number of initiatives to reduce its cost of production in real terms, with future cost savings expected from solar PV renewable energy projects. The group plans to generate 30MW of solar PV renewable energy by 2024.
Net cash from operating activities jumped 45.1% to US$110.0mln, while net debt shrank 66.7% to US$13.0mln.
It plans to pay a final dividend of 18.00 rand (1.04 US cents), unchanged from the previous year.