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Pan African warns exchange rate hampered its full-year earnings

Pan African's Barberton mine

Pan African's Barberton mine

1st September 2023

By: Marleny Arnoldi

Online News Editor

     

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JSE- and Aim-listed gold miner Pan African Resources expects to report a 15% to 30% year-on-year decrease in headline earnings per share (HEPS) for the financial year ended June 30.

The company advises shareholders in a trading statement issued on September 1 that HEPS will likely be between $0.0295 and $0.0335, compared with HEPS of $0.0339 posted in the prior year.

Pan African cites the 16.8% depreciation in the average rand:dollar exchange rate in the year as the main reason for its earnings decline.

The average rand:dollar exchange rate was R17.77/$1 for the year under review, compared with an average exchange rate of R15.22/$1 in the prior year.

The closing exchange rate as at June 30 was R18.83 to the dollar.

Pan African highlights the average and closing exchange rates, which were 16.8% and 15.7% higher, respectively, year-on-year, should be considered when comparing the two latest financial years.

The company’s gross profit, in rand terms, will only decrease by about 3.2% compared with the prior year.

Pan African owns and operates the Barberton Underground, Barberton Tailings Retreatment, Evander Underground and Elikhulu Tailings Retreatment projects in South Africa.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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