South African-based precious metals mining company Pan African Resources has posted a pre-tax profit for the year to the end of June – with gross revenue increasing by 49 percent.
Shares in the company jumped nearly 11 percent on the JSE after it released its results and declared a dividend of 13.1c a share.
The Evander gold mine in South Africa, which Pan African recently acquired, contributed to the good performance, with the Mpumalanga province mine contributing a fifth of R735 million in pre-tax earnings, a 33 percent increase year-on-year.
Evander has only been on the books at Pan African for four months.
"Pan African Resources delivered a good operational performance with all operations being cash generative. It has a strong statement of financial position which enables it to fund all on-mine capital expenditure requirements from internally generated funds," the company said in a statement.
Following the acquisition of Evander and completion of the Barberton tailings re-treatment plant, Pan African said it was in a position to produce 200,000oz of gold a year.
Pan African recently appointed a new CEO, Ron Holding.
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