Update: Firing on four cylinders
Pan African’s interim figurers were better than Edison’s expectations, despite a 9.8% year-on-year decline in the average price of gold. Compared to the prior year period (ie H115) gold produced and sold increased 17.4% (or 15,122oz), while cash costs of production fell by 25.7%, to US$740/oz, aided by, among other things, a 23.9% decline in the rand exchange rate. In generaltherefore, not only were costs lower than our expectations, but depreciation, royalties and net finance costs were also lower, albeit these were partly offset by £1.8m of hedging losses at Barberton (see Hedge position on page 13). Of particular note was the fact that the actual head grade mined at Evander exceeded management’s expectations (September 2015 guidance) in two of the final three months of the year.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
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