How it's doing
Gold production increased by 4.1% in the year ended June 30 2020 to 179,575 ounces of gold up from 172,442 ounces in 2019.
Pan African also raised its production guidance for the 2021 financial year to approximately 190,000oz.
This increase is attributable to operational optimisation initiatives and resumption of full-scale mining activities following the lifting of COVID-19 restrictions.
In July, the miner published details of the feasibility study for its Egoli underground mine on the site of its existing Evander operation.
Based on a gold price of US$1,650 per oz, the project can generate US$131mln from a nine-year life, an independent study concluded.
Using Evander’s existing infrastructure will bring the cost of the project down to US$66mln, said Pan African.
In September Pan African said Headline earnings for the year will be between 2.23 US cents and 2.35 US cents, against 1.19 US cents in 2019.
Reported earnings will rise to between 2.20 US cents and 2.40 US cents compared to 1.97 US cents per share for the previous year.
What the boss says: Cobus Loots
“Pan African has demonstrated the resilience of its operations with an improved performance for the year, especially when taking into account the challenges posed by the COVID-19 pandemic,” the group's chief executive Cobus Loots said in a statement.
“The flexibility inherent in our operations confirms the quality of these mines and their ability to withstand short term disruptions and still deliver on our targets. We expect that we still have a long battle ahead against COVID-19 and will do our part to mitigate the impact as far as possible.”
- Production hits its target of 190,000oz in 2020/21
- Gold price remains high
- Dividend rises as debt is paid down