Pan African Resources forecasts significant earnings growth driven by rising gold prices

Pan African Resources’ earnings per share (EPS) is expected to increase between 68% and 78% for the year to June 30 due to a higher gold price and increased sales.

The share price on the JSE slipped slightly by 0.6% to R16.24 on Thursday afternoon, but the price has rallied steadily over 12 months from R6.02.

The company, which owns tailings retreatment operations and the underground Evander and Barberton mines, said Thursday in a trading statement that it expects earnings per share to be between 6.95 US cents and 7.37 US cents, compared to 4.14 US cents per share for the previous year.

Headline earnings per share (HEPS) is expected to be between 5.68 US cents and 6.10 US cents, compared to HEPS of 4.15 US cents for the corresponding reporting period, an increase of between 37% and 47%.

The average exchange rate was 1$/R18.17 (2024:$1:18.71) during the period. The closing exchange rate as at June 30 was 1$/R17.75 ($1:18.19).

The increase in EPS and HEPS was ascribed primarily to an increase in revenue of 44.5%, as a result of an increase of 35.7% in the average dollar gold price received to $2 735/ounce and a 6.5% increase in gold sold to 196 926 ounces.

In the current reporting period, 105 004 ounces of gold sales were subject to hedging transactions and did not benefit fully from prevailing gold prices.

The Group will be fully unhedged from July 1, 2025, and as a result, will benefit from prevailing record gold prices.

Group production is further expected to increase for the year ending June 30, 2026, to between 275 000 ounces and 292 000 ounces, largely attributable to the contribution from the group's new MTR operation and Tennant Mines. Tennant Consolidated Mining Group was acquired in November last year.

The group's results for the year ended June 30, 2025, are expected to be released on September 10, 2025.

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