Pan African Resources PLC said on Friday it expects its annual earnings to fall as revenue declined due to lower production.
The Rosebank-based gold producer guides for a decrease of at least 13% in earnings per share to a range of between 3.00 US cents and 3.39 cents for the financial year that ended June 30, from 3.90 cents a year earlier.
Headline EPS is estimated to fall within a range of between 2.95 US cents and 3.35 cents from 3.93 cents.
The gold producer said weaker earnings are largely a result of a 17% depreciation of the rand against the dollar. It said earnings in rand terms remained fairly consistent with that of the previous financial year.
In rand terms, revenue was slightly down by 0.2%, as the 15% decrease in gold volumes was offset by an 18% increase in the average rand gold price. Gross profit in rand terms decreased by 3.2%.
Early last month, Pan African said its annual gold production was 15% lower at 175,209 ounces for the financial year that ended June 30, down from 205,459 ounces previously.
‘Despite the previously flagged challenges experienced at our underground operations, the group delivered a robust financial performance for the reporting period,’ Pan African Chief Executive Cobus Loots said back then.
The company is scheduled to release its financial results on September 13.
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