Pan African Resources (PAF) resumed dividend payments at the full-year mark, while a four-month contribution from the £83m Evander Mines acquisition boosted earnings for the Aim-traded precious metals producer.
Sales from Pan African's existing Barberton mines ticked up by 2 per cent to 96,296 ounces (oz), while head grades at Barberton remained high at 10.6 grams per tonne. Cash costs for the Barberton and Evander mines came in at $780 per oz (£491 per oz) and $915 per oz, respectively. Costs at Barberton were up by 14.5 per cent in the local currency, but broadly static in US dollar terms reflecting the weakness of the rand. The net result was that cash profits were up by 18 per cent year-on-year to £53.1m, even though Pan African received an average of $1,553 per oz through the year, an 8.3 per cent decline on 2012.
That largely reflected the integration of Evander, which contributed 34,197 oz in gold sales volumes and pushed up group sales by 38.2 per cent to 130,493 oz. The acquisition, together with the commissioning of the Barberton tailings retreatment plant, could conceivably push total gold production well beyond 200,000 oz in the current financial year.
Broker FinnCap anticipates current year adjusted EPS of 1.8p, down from 2.2p in 2012-13.
| PAN AFRICAN RESOURCES (PAF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 15.5p | MARKET VALUE: | £283m | |
| TOUCH: | 15-15.5p | 12-MONTH HIGH: | 21p | LOW: 11.75p |
| DIVIDEND YIELD: | 5.4% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 9.5p | NET DEBT: | 4% | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 69 | 22.2 | 1.04 | 0.37 |
| 2011 | 79 | 26.4 | 1.20 | 0.51 |
| 2012 | 101 | 42.2 | 2.02 | nil |
| 2013 | 134 | 54.7 | 2.63 | 0.83* |
| % change | +32 | +30 | +30 | - |
Ex-div: tba Payment: tba "*Estimate: precise GBP dividend will be confirmed prior to the AGM, based on prevailing ZAR:GBP exchange rate." | ||||
