Pan African Resources PLC on Wednesday left its dividend unchanged after delivering sharply lower annual profit, and indicated it expects its Mintails tailings retreatment plant to start production in December next year.

For the financial year that ended June 30, the Rosebank-based gold producer reported a 20% drop in pretax profit to $85.6 million from $106.9 million in the same period last year.

Revenue declined to $321.6 million, down 15% from $376.4 million, on the back of lower output.

Gold production fell by 15% to 175,209 ounces from 205,688 ounces, in line with its revised guidance. All-in sustaining costs rose by 3.3% to $1,327 an ounce, from $1,284 an ounce.

Pan African said its surface operations, the Elikhulu Tailings Retreatment Plant and the Barberton Tailings Retreatment Plant, performed in line with expectations during the past financial year, contributing significantly to the group’s production, cash flows and profits.

The junior gold producer kept final dividend at 18.00 rand cents

Earnings per share were 18% lower at 3.19 US cents from 3.90 cents, while headline EPS fell by 20% to 3.15 cents from 3.93 cents.

The company started the construction of its Mintails tailings retreatment plant in July after raising R 2.5 billion in debt funding for the project.

In October last year, it acquired Mogale Gold Pty Ltd and Mintails’ SA Soweto Cluster Pty Ltd for R 50.0 million. Mintails Mining SA, which owns two mines, was placed in provisional liquidation in 2018.

‘Pan African delivered a resilient financial performance for the current financial year, with a much-

improved rand gold price compensating for lower production from our underground operations,’ Pan African Chief Executive Cobus Loots said.

‘We are confident that the measures we are implementing, specifically at Barberton Mines’ underground operations, will result in higher production in the future, with production guidance increased for the 2024 financial year,’ Loots said.

On Wednesday, Pan Africa said it expects steady-state production at Mintails at by December 2024.

For its 2024 guidance, Pan African projects production of between 178,000 ounces and 190,000 ounces.

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