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The Markets
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Gold & silver

Gold miner Pan African slashes debts as earnings recover

Barberton and Evander mines performed better while the gold price in rand terms also increased.

Pan African Resources (LON:PAF) will post higher earnings and sharply lower debt at its half year as the performance of its two South African deep gold mines picked up markedly.

The continued depreciation of the rand against most other major currencies also helped the numbers, said the gold miner.

Earnings for the half year to December will be at least 10.37c or 0.51p.

In sterling terms that will represent an increase of 65% over the comparable period and by 91% in rand.

Pan African said both the Barberton and Evander mines did better while gold price in rand also increased.

Strong cash flows had also slashed debt, it added, to R70mln (£3.5mln), relative to net debt of R321mln (£16mln) in June.

Pan African has a R800mln loan facility, which it said adequately cover the proposed dividend payment of R210mln (£10.5mln) in December.

Shares rose 7% to 7.5p.

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