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Pan African Resources logs profit of $60.7M in FY23, expects higher gold output in FY24

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(Kitco News) - South African gold miner Pan African Resources (AIM: PAF) (JSE: PAN) announced Wednesday that its profit for the financial year ended 30 June 2023 (FY23) was $60.7 million, down 19% compared to FY22 (profit of $75.0 million).

Pan African said the decrease in USD profit is largely the result of a depreciation in the average USD/ZAR exchange rate, while earnings in ZAR terms remained “fairly consistent” with that of the previous financial year.

The company also reported that its gold production in FY23 was 175,209oz, down 15% from FY22 (205,688oz) and within the revised guidance range.

Pan African said the decrease in gold production was primarily due to slower than anticipated ramp-up of continuous operations at Barberton Mines, lower than expected production from Evander Mines' underground operations, as well as challenges related to Eskom generated electricity supply.

The company's all-in sustaining costs (AISC) were $1,327/oz in FY23, up by only 3.3% over FY22 and in line with revised guidance for 2023 of between $1,325/oz to $1,350/oz.

Importantly, the company's board has proposed a final dividend of ZAR400.1 million for the 2023 financial year (approximately $21.2 million), equal to ZA 18 cents per share or approximately US 0.96 cents per share. A dividend of ZA 18 cents per share or approximately US 1.06 cents per share was paid for the 2022 financial year.

In terms of the outlook for the year ahead, the company said it is “well positioned” to exceed the production achieved in the current financial year, with estimated production of between 178,000oz and 190,000oz forecast for the 2024 financial year.

Pan African Resources is a mid-tier African-focused gold producer that owns and operates a portfolio of South African operations with a production capacity of more than 200,000oz of gold per annum.

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