South African miner Pan African Resources plc (LON:PAF) saw earnings rocket as higher production, favourable currencies and lower costs all combined in its latest trading year.
Underlying earnings jumped by between 275-295% in rand terms in the year to June compared to 11.48c a year ago, while in sterling terms earnings will be 114% to 134% higher.
The earnings estimates included the elimination of shares held by black empowerment partner Shanduka after the stakes held by Jadeite and Standard Bank were bought out by Pan African.
Gold production at the Evander and Barberton mines both increased over the year. Evander’s output rose by 31% to 91.650oz, while Barberton's production was 7% higher at 113,300oz.
The gold price in rand terms also rose by 21.6% over the year and as a consequence cash generation was very strong.
After spending R182mln (£10mln) on the Shanduka buyback, the acquisition of the Ultkomst colliery for R148mln and a R210mln dividend in December, net debt was R347mln (R321mln).
Net debt has since reduced to R255mln.