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Pan African Resources PLC on Wednesday posted record annual profit on the back of robust gold price, which helped offset ballooning costs. For the 12 months that ended June 30, pretax profit for the Rosebank-headquartered gold producer was $196.6 million, up 80% from $109.4 million a year earlier. Profit, after tax, hit a record $140.6 million, up 78% from $78.8 million. Revenue rose 44% to $540.0 million from $373.8 million, after an average gold price climbed 36% to $2,735 an ounce from $2,015. Group gold production was up 5.6% to 196,527 ounces from 186,039 ounces. Early in June, the company lowered its annual gold output estimate to 197,000 ounces from between 205,000 ounces and 215,000 ounces previously guided. All-in sustaining cost rose 18% to $1,600 an ounce from $1,354, which was above guidance of between $1,525 and $1,575 due to the negative impact on the unit cost of production at the underground operations, coupled with above inflationary increases in electricity and reagents. Pan African hiked its final dividend to 37.00 rand cents from 22.00 cents. No interim dividend was declared. Earnings per share surged 73% to 7.16 US cents from 4.14 cents, while headline EPS rose 42% to 5.89 cents from 4.15 cents. Net debt was $150.5 million as at June 30, up 41% from $106.4 million at June 30, 2024, but was down sharply from $228.5 million at December 31, 2024. Pan African expects to be ‘fully degeared’ during the 2026 financial year, at prevailing gold prices. Going forward, the company expects production for financial 2026 to range from 275,000 ounces to 292,000 ounces, largely due to the contribution from its new Mogale Tailings Retreatment operation and Tennant Consolidated Mining Group Pty Ltd. In London, shares in Pan African were flat at 76.90 pence on Wednesday, but rose 0.2% to R 18.01 in Johannesburg. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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