This comes after the group cut almost half of its net debt during the year ended June 2020.
Pan African Resources expects to be debt-free within the next 12 months after cutting almost half of its net debt during the year ended June 2020 on “better-than-expected” output.
Pan African Resources CEO Cobus Loots told investors that the group’s strategic focus for the year ahead remained on de-gearing the balance sheet, with the intent of increasing dividends in the years ahead.
“We are especially pleased to report that the rate of de-gearing has exceeded previous guidance and, at prevailing rand gold prices and guided production levels, we expect to be debt-free within the next twelve months,” Cobus said.
He added that the group’s net debt was slashed by 49 percent to $62.5 million during the year from $123.7 million in December 2019. Net debt at the 2020 year-end was lower than the previously guided $70 million as a result of better than anticipated production, the depreciation of the rand against the US dollar and disciplined working capital management.