Picture: REUTERS/RICK WILKING/FILE PHOTO
Picture: REUTERS/RICK WILKING/FILE PHOTO

Gold miner Pan African Resources, which is listed in Johannesburg and London, says profit more than doubled in its half year to end-December, as a weaker rand and geopolitical tension boosted its revenue from gold sales.

Profit after tax rose 125% to $21.9m (R328m), with total gold sold increasing 13.6% to 90,602 ounces, with the group reporting an increased contribution from its Elikhulu tailings retreatment plant.

The rand price of gold rose 24.1% during the period, with the rand on average about 3.6% weaker when compared to the previous reporting period.

The price of gold had reached a record high in rand terms during 2019, as investors sought safety in safe-haven assets due to numerous global central banks cutting interest rates, even as trade tension between the US and China cast doubt on the global economy.

Pan African said on Tuesday it was keeping its full-year guidance of 185,000 ounces unchanged, which would represent a 8.8% increase from the previous financial year.

“Management’s key focus for the remainder of the 2020 financial year includes further improving the safety performance, delivering on production guidance, reducing operational costs, managing cash-flow generation and strengthening the group’s financial position by reducing senior debt,” said CEO Cobus Loots.

In morning trade on Tuesday, Pan African’s share price was up 3.33% to R2.48, having risen 14.81% in the year to date.

gernetzkyk@businesslive.co.za

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