For the first time, AIM- and JSE-listed Pan African Resources’ Phoenix Platinum operation was both cash generative and profitable in the 2014 financial year, with headline earnings increased to R3.7 million from the R6.4 million headline loss reported last year.
Furthermore, the group’s gold sold increased by 44.2% to 188 179 oz from 130 493 oz in 2013. Pan African’s gold mineral reserve inventory increased by 9.8% to 10.1 Moz from 9.2 Moz in 2013, while its gold mineral resource inventory decreased by 4.6% to 33.5Moz.
Nevertheless, the group’s headline earnings decreased by 7.2% to R452 million from R487 million in the previous year, impacted by the low grade mining cycle at Evander Gold Mining and lower average gold price received.
The group has proposed a final dividend of R0.1410 or R258 million for approval by shareholders at the annual general meeting in November 2014. A dividend of R0.1314 per share or R240 million was paid during December 2013 in relation to the 2013 financial years results.
Net debt for the group has increased marginally to R101 million from R93.6 million in 2013.
“Pan African Resources is pleased with another satisfactory performance from Barberton Mines, whilst Evander Mines results were impacted negatively by the low grade mining cycle,” said Ron Holding, CEO of Pan African Resources.
“Increased dividends and a new progressive dividend policy demonstrates the board and management’s confidence in the quality of our assets and Evander Mine’s future performance. Our statement of financial position remains strong, whilst cash generative assets and internal projects will provide the platform for further profitable growth.”