The group's results for the year ended June 30, 2020, confirmed a production tally of 179,457 ounces, marking a 4.1% improvement. It drove a 25.9% rise in revenue to US$273.7mln for the year, up from US$217.4mln for 2019.
Profit improved by 16.6% to US$44.3mln, from US$38mln, while headline earnings increased 93% to US$44.2mln.
Net cash generation from operating activity amounted to US$53.8mln, up 42.7%, and net senior debt decreased by 51.9% to US$62mln.
Pan African's chief executive Cobus Loots said the company showed resilience over the past year, and, the board has recommended a record dividend of ZAR312.9mln (which equates to 0.83582 US cents per share).
“This operational performance was achieved despite the impact of the COVID-19 pandemic and the resultant restrictions imposed to curb the spread of the virus - a testament to the robustness and operational flexibility of our diversified portfolio of assets,” Loots added in the results statement.
“Gold production from Elikhulu and the Barberton Tailings Retreatment Plant (BTRP), our low-cost surface retreatment operations, have contributed significantly to the profitability of the Group and demonstrated the benefit of multiple producing operations.
“We successfully levered the group's operational execution capability to bring Evander Mines' 8 Shaft (8 Shaft) pillar project and the Prince Consort (PC) Shaft's Level 42 development at Barberton Mines’ New Consort Mine into steady-state production, and these operations are now an integral part of our strategy to further reduce costs and increase margins at our underground mines.
"In the year ahead, aligned to our strategy of delivering safe, sustainable and high-margin gold production, we will continue to direct our focus on creating shareholder value by optimising our operations, further de-gearing our balance sheet and increasing dividend distributions,” Loots concluded.