www.panafricanresources.com
Pan African is a South African based precious metals mining company producing approximately 95,000 ozs of gold and, when in full production in May 2012, 12,000 ozs pgm per annum.
In January, the company announced a joint venture with Wits Gold to acquire the Evander Gold Mines from Harmony for a consideration of up to R1.7 billion, providing an attributable 50,000 ozs of gold production and a project pipeline for future growth.
Additionally, the company has approved phase 1 of a gold tailings retreatment project which could further increase gold production by 25,000 ozs per annum from August 2013.
The company is unhedged, debt free and dividend paying.
Pan African first half earnings to double - UPDATE
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Pan African Resources (LON:PAF) shares gained almost 10 per cent in early deals after it revealed strong figures for the six months just ended.
The South African precious metals producer told investors that it expects earnings to double.
Earnings per share and headline earnings per share for the half year to 31 December 2011 are expected to be between 83 per cent and 93 per cent higher than the 0.53p per share in the previous first half, Pan African said.
In rand terms, earnings will be between 97 per cent and 107 per cent higher.
“With a weakening rand the company is well positioned for further strength in 2012,” Collins Stewart’s mining analyst John Mcgloin said in a note to clients today.
“The company is the highest yielding gold play in the gold sector currently yielding 5.2%. We expect to see the shares up in London today.”
The improvement comes ahead of an expected boost from its first major capital project, Phoenix, which will kick in the second half of the year.
Phoenix, a chrome tailings treatment plant, came on stream in November and will contribute to revenues in the third quarter of the current financial year.
Planned production for the third and fourth quarters taking into consideration a build-up phase, is estimated to be 4,500 ounces of PGM's (platinum group metals). Phoenix is located on the site of International Ferro Metals’ (LON:IFL) Lesedi mine in South Africa.
In November, Pan African also revealed it had entered discussions on a deal that would have a material effect on the share price if successful, though there has been no further developments on this.
Pan African is a gold mining company focused on projects in South Africa and Mozambique and produces around 100,000 ounces per year.
Its strategy is to develop low cost, high margin production or near-production projects.
At 10:30 on AIM Pan African Resources shares were up 0.75p, or 5 per cent, trading at 16.25p.
