Pan African Resources pays first dividend after strong gold production

Stephen Grootes speaks to Pan African’s CEO Cobus Loots, about Pan African Resources’ first-ever interim dividend and the surge in gold demand.

Listen to the interview in the audio player below.

Pan African Resources will pay its first-ever interim dividend to shareholders after a strong performance over the past six months.

The Rosebank-headquartered gold producer will pay shareholders 12 cents per share as a dividend, after cutting its debt down by about two-thirds.

The company now expects to be debt-free by the end of February.

While the cost of producing gold has gone up compared to last year, Pan African is producing more gold and owing much less money, and is now confident enough to start paying dividends to investors.

The company's increased production by 50% over the last six months.

Several of the company's operations performed better during this period, which includes it's Barbeton Mines, as well as its Tennant Mines in Australia.

Speaking to Stephen Grootes on The Money Show, Pan African’s CEO Cobus Loots says they are certainly benefiting from the surge in the gold price. 

"We're certainly not banking on these prices, and that's why we're taking the windfalls and we're reinvesting in the business, we're growing the business and managed to increase production by 50% over the last six months."

- Cobus Loots, CEO - Pan African Resources

"Being a smaller producer, we can do what the majors can't. The majors can't increase their production by 50%. It's difficult to find large-scale deposits. 200,000-250,000 ounces of production. But for us, if we grow our production by 50,000 to 100,000 ounces a year, that's incredibly meaningful."

- Cobus Loots, CEO - Pan African Resources

"We're quite conservative when we do our planning. We wouldn't generally embark on a new project if we couldn't see a return on our capital in three or four years, so that's really the way we model."

- Cobus Loots, CEO - Pan African Resources

Scroll to the top of the article to listen to the full interview.