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The Markets
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Gold & silver

Pan African Resources predicts recovery in current year after challenges at key mines

Shaft repairs have been completed at Evander Mines with a substantial increase in gold production expected to be the result.

South African gold miner Pan African Resources plc (LON:PAF) saw its shares rise today after it said it expects a better twelve months ahead after a number of operational challenges cut profits in the year just ended.

In late afternoon trading, Pan African Resources shares were nearly 2%, or 0.25p higher at 13.00p.

WATCH:Pan African's Cobus Loots confident after overcoming setbacks at key mines

READ: Pan African in demand as it secures final regulatory approvals for construction of Elikhulu

In a statement, chief executive Cobus Loots said: “Remedial actions successfully implemented by management are delivering the expected results.”

Shaft repairs have been completed at Evander Mines with a substantial increase in gold production expected to be the result.

The other core mine, Barberton, meanwhile is currently mining high-grade panels in its Fairview 11-block and is "poised to contribute substantially to our production guidance of 190,000oz for the 2018 financial year," Loots added.

READ: Pan African Resources lowers earnings guidance for 2017 due to strong Rand

The Elikhulu Project is also on schedule and expected to produce first gold in the final quarter of the 2018 calendar year.

Gold ounces sold in the year to June 2017 fell 15% to 173,000, which cut revenues in rand terms by a similar amount to 2.93bn though currency movements meant sterling income rose 5% to £169.6mln.

Net earnings fell 43% in rand terms to 310mln and by 30% to £17.9mln. The final dividend for the year was reduced to 0.487p from 0.88p.

-- Adds share price --

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