KEY POINTS
- Gold production rose by 6.2% to 186,039 ounces
- Revenue increased by 16.8%, reaching $373.8 million
- Profit surged by 30.2%, supported by higher sales and prices
Pan African Resources, led by Jacobus Albertus Johannes Loots, announced a huge profit increase for the financial year that ended on the 30th of June 2024. The increase was a result of higher production, sales and prices of gold. The company reported a 6.2%Â increase in overall gold production, attaining 186,039 ounces. The growth is in alignment with the company’s guidance and attributed to its operational efficiencies at its major mining sites.
The company also recorded an impressive 16.8% increase in revenue making total earning to be $373.8 million. This was supported by a 4.9% increase in gold sales.
Expansion and Production Increases Continue
The CEO, Cobus Loots disclosed that the company has made significant progress in the development of the growth projects, particularly the Mogale Tailings Retreatment (MTR) project and the Evander Mines’ 24 to 25 Level project. The MTR project is currently in the process of being commissioned. It is expected to achieve steady production by December.
Production from Barberton Mines also grew by 13’5%, with output from Fairview and Sheba mines. The Elikhulu Tailings Retreatment Plant also experienced an 8. 4% increase in production, generating 54,812 ounces.
Dividend and Outlook for 2025
According to a report by Mining Weekly, Pan African Resources has recommended a dividend of 22 cents per share. This is subject to approval at the upcoming Annual General Meeting. The total capital expenditure for the year also increased to $172. 4 million mainly because of the construction of the MTR project; total net debt has also risen to $106.4 million from $22 million in 2023.
Looking ahead, Pan African Resources has set production goals for 2025. It aims to produce between 215,000 to 225,000 ounces by also getting contributions from the MTR project.
