JOHANNESBURG (miningweekly.com) – Africa-focused precious metals producer Pan African expects to report earnings per share (EPS) and headline earnings per share (HEPS) of at least 10.37c apiece for the six months to December 31.
This would represent an increase of at least 85% relative to the HEPS of 5.61c reported for the six months to December 2014 and 91% relative to the EPS of 5.42c reported for the same period.
The dual-listed company noted that the increases could be attributed to an improved operating performance from its Barberton and Evander operations, in Mpumalanga, as well as an increase in the rand gold price received by the operations during the first five months of the current interim reporting period.
Using the average rand:pound exchange rate of 20.26:1 that prevailed for the first four months of the current interim reporting period, the group’s EPS and HEPS for the current interim reporting period were also expected to be a minimum of 0.51p, representing an increase of at least 65% relative to the HEPS and 70% relative to the EPS for the six months to December 2014.
The group’s cash flows also remained robust and “excellent progress” had been made in redeeming debt, with a net debt position of R70-million, compared with R321-million in June.
Pan African was also able to draw on its revolving credit facility to the tune of R800-million, which adequately provided for the payment of the proposed dividend of R210-million in December.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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