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Pan African Resources expects first-half EPS to climb 45-50%

Pan African Resources (AIM: PAF) today updated the market on its first half results, expecting a 45% to 50% increase in earnings per share from 0.23 pence a year earlier, while headline earnings per share are set to be 1 to 6% higher than 0.36 pence in the half to 31 December 2008.

If denominated in South African Rand, earnings per share are expected to climb 17-22%, while headline earnings per share will likely be down 13-18%.

Interim results for the six months to 31 December 2009 will be released on 10 February.

Earlier this month, the company said it was still in talks over a previously flagged possible transaction after reporting that it had entered into discussions over a transaction that could have a material effect on the share price back in November.

Pan African produces approximately 100,000 oz (ounces) per year from the Barberton mine in South Africa. With effect from May 2009, it acquired 100% of the Phoenix platinum project in the country and also has a gold project in Mozambique, called Manica, with a resource of 33.8 Mt (million tonnes) grading 2.36 g/t (grams per tonne) gold for 2.57 Moz (million ounces).

Its focus is on developing low cost, high margin production or near production projects. The company has no debt, is unhedged and is able to fund all of its current on-mine capital from current cashflows.

Shares in the company rose nearly 3% on the news.



Disclosure: The author holds no positions in the company