Pan African Resources PLC on Wednesday reported a solid interim performance with both profit and revenue increasing as costs fell, while the company makes progress on various solar energy plants for its operations.

The gold producer saw interim pretax profit rise 2.7% to $61.6 million from $60.0 million a year before.

Revenue increased 5.3% to $193.6 million from $183.8 million.

All-in sustaining costs fell 4.3% to $1,320 per ounce from $1,379 an ounce. The average gold price received decreased 3.3% to $1,804 an ounce from $1,865.

The company produced 108,085 ounces of gold in the half, up 9.9% from 98,386 ounces. Gold sold rose 8.9% to 107,142 ounces from 98,386 ounces.

‘The group is on track to produce approximately 200,000 ounces of gold for the financial year ending June 30, 2022, in line with our increased production guidance,’ the company said.

Production guidance was increased from 195,000 ounces in January, while the gold production in financial 2021 coming in at 201,777 ounces.

Pan African Resources’ 10 megawatt solar energy plant at Evander mines in South Africa is on track to be commissioned in March after minor delays due to port disruptions and poor weather, the company said. A feasibility study to expand the solar plant to 22 megawatts is also underway, with the additional capacity designated for Evander mines’ underground growth projects.

Meanwhile, a feasibility study for a similar-size solar plant at Barberton mines has been completed, with environmental permitting and detailed engineering design work progressing to plan, the company added.

Pan African Resources shares were up 3.0% to R 4.06 each in Johannesburg on Wednesday morning. The stock was up 3.8% to 20.00 pence each in London.

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