Pan African Resources expects to be debt-free within the next 12 months
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.