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Pan African Resources PLC on Monday said it was well-placed for future production as the firm noted the opportunity cost associated with its synthetic forward transaction. The Rosebank-headquartered gold producer said it expects earnings per share to increase to between 2.24 US cents per share and 2.46 US cents per share in the six months to December 31, from a restated 2.13 US cents per share the prior year. Headline earnings per share, said the firm, is anticipated to be between 1.09 US cents per share and 1.31 US cents per share, falling between 38% and 49% from the restated 2.13 US cents. Pan African Resources said it attributes the decrease in headline EPS to a reduction in gold sold over the period, down 18% to 79,926 ounces from 97,290oz the year before. In Johannesburg, Pan African shares were down 6.8% at R 9.06 on Monday afternoon. In London, they fell 5.6% to 39.80 pence on Monday morning. It also noted the impact of the opportunity cost associated with the synthetic forward transaction of $17.4 million, up significantly from $1.7 million in 2023. It added that the final settlement for this agreement is at the end of February, after which it will be able to benefit from the prevailing spot gold price of around $2,860/oz, which it noted is 21% higher than the average price of $2,359/oz received in the reporting period. Looking ahead, Pan African Resources said it is well positioned for improved production in the second half of its financial year, with it anticipating a ‘further significant increase’ in production for financial 2026. The firm will report its interim results on Wednesday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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