Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) CEO Cobus Loots talked with Proactive's Stephen Gunnion about the company’s record first-half performance, reporting profits of US$147.8 million alongside a 51% increase in gold production.
Loots said the gold price provided support, though the company achieved strong results even while receiving an average gold price below spot. He highlighted that production growth was the major catalyst, driven by a full period of output from MTR and contributions from Tennant. The company now expects full-year production guidance of 275,000oz to 292,000oz, implying around a 10% stronger second half.
Pan African Resources also reduced net debt by nearly 70% and expects to be net cash by the end of February. Loots emphasised that this financial strength will not alter the company’s disciplined capital allocation strategy, stating the focus remains on “the right projects, focusing on cost control and generating excellent returns for our shareholders.”
On growth projects, Loots pointed to Royal Sheba, Soweto Cluster, and particularly the Poplar project. He described Poplar as “a world-class ore body… more than 6,000,000oz at seven grams per tonne,” adding that it represents “100,000oz plus of annual production.” In Australia, the company aims to grow production from 50,000oz to 100,000oz over the next three years.
Despite higher first-half all-in sustaining costs, management expects unit costs to fall in H2 as production increases and renewable energy initiatives support longer-term efficiencies.
For more interviews like this, visit Proactive’s YouTube channel, give this video a like, subscribe to the channel and enable notifications so you never miss future updates.
#PanAfricanResources #GoldMining #GoldStocks #MiningNews #GoldPrice #ASXStocks #JSE #FTSE #DividendStocks #MiningInvesting #CobusLoots #GoldProduction
