Pan African Resources shares dip in spite of profit boost

Pan African Resources shares dip in spite of profit boost

Gold ore mining firm Pan African Resources Plc (LON:PAF) have seen their share price dip in morning trading on Wednesday, despite the firm posting a 30% spike in first half profits.

The positive results have been attributed to an increase in gold production at its existing mining operations. Production rose at continuing sites to 81,014 ounces, up 54% on-year.

Pan African Resources booked a total pre-tax profit of £9.3 million for the six month period through December 2018, which it owed to a 47% on-year spike in revenue to £75.3 million.

Chief Executive Cobus Loots, “Pan African Resources is pleased to report a robust operational, financial and safety performance for the six months ended 31 December 2018,”

“The group is now positioned as a low cost and long-life gold producer, in line with our stated strategy and our shareholders’ expectations.”

Pan African Resources as a portfolio candidate

The company’s chief executive then went on to add that the firm were on track to fulfil its full-year production guidance for 2019, which currently stands at approximately 170,000 ounces.

PAR shares are trading down 0.26p or 2.43% at 10.44p per share 20/02/19 11:46 GMT. This month and as recently as Wednesday, Peel Hunt¬†analysts reiterated their ‘Buy’ stance on Pan African stock.