Pan African Resources CEO Cobus Loots. Picture: MARTIN RHODES
Pan African Resources CEO Cobus Loots. Picture: MARTIN RHODES

Pan African Resources shares shot up 14% on Wednesday after advising the market to expect its interim profit to more than double.

Pan African, which operates underground mines in Barberton as well as tailings retreatment operations there and at Evander, said it expected its earnings per share for the six months to end-December to be up to 126% higher than the 3.23c per share it posted a year earlier.

Pan African, which is traded in London and Johannesburg, said its earnings per share would range between 6.98c and 7.3c when it reported results on February 20.

Pan African share price rose as much as 14.4% to R2.15 after the update.

Image: Iress

Pan African has classified its underground Evander mine as a discontinued operation. The earnings forecast is based on combined operations, including Evander’s mine where limited work is continuing to clear out high-grade areas.

Pan African under the leadership of CEO Cobus Loots has built and commissioned on time and budget the Elikhulu tailings project at Evander for R1.7bn, treating 1-million tonnes of material a month.

It has incorporated a smaller tailings retreatment plant into the circuit, lifting capacity to 1.2-million tonnes a month to produce low-cost, low-risk gold.

Headline earnings per share will range between 6.98c and 7.34c for the period, compared to 3.51c a year ago.

Pan African noted a 6% depreciation in the rand during the interim period to R14.91 to the dollar, the currency in which it sells its gold.