Higher sales, gold price to give Pan African’s earnings a boost
JSE-listed Pan African Resources has advised shareholders in a group trading statement that its earnings per share (EPS) for the financial year ended June 30 are expected to be between $0.07 a share and $0.074 a share, compared with the EPS of $0.04 a share for the year ended June 30, 2024 – a year-on-year increase of between 68% and 78%, respectively.
Headline earnings per share (HEPS), meanwhile, are expected to be between $0.057 and $0.061 a share, compared with the HEPS of $0.042 a share reported for the prior comparable period – an increase of between 37% and 47%, respectively.
The company attributes the increase in EPS and HEPS for the current reporting period primarily to a 44.5% year-on-year increase in revenue.
Revenue benefited from a 35.7% year-on-year increase in the average gold price received to $2 735/oz and a 6.5% increase in gold sold to 196 926 oz.
In the current reporting period, 105 004 oz of gold sales were subject to hedging transactions and did not benefit fully from prevailing gold prices.
The synthetic forward transaction, entered into to fund a portion of the Mogale Tailings Retreatment operation’s construction, in Gauteng, resulted in an opportunity cost of $26.2-million, and the zero cost collars resulted in losses of $5.8-million, negatively impacting profits by about 23%.
Pan African says the group is fully unhedged from July 1 and, as a result, will benefit from prevailing record gold prices.
The gold miner will publish its financial results for the 2025 financial year on September 10.
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