Pan African Resources - A second glance at the first half

Pan African’s (PAF’s) shares have fallen by 41% since its operational update on 1 February, which revealed a 6.9% decline in gold production vs H117. This was reflected in a 78% decline in pre-tax profitability when interim results were announced in February. Notwithstanding the year-on-year comparison however, H118 results were, in fact, better than H217, with the exception of a large effective tax credit in the prior period (see overleaf). While PAF’s share price therefore reflects the difficulties being experienced at Evander Gold Mines (EGM) (pro-rata to production), it takes little or no account of likely recovery in H218, the start of production at Elikhulu in H119 or any of PAF’s three other immediate growth projects.