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Mid-tier gold producer Pan African Resources said on Friday its headline earnings per share could fall by a quarter in its year to end-June, having previously flagged pressure as a results from challenges with Eskom's supply of electricity.
Headline earnings per share are expected to fall by between 15% and 25%, the group said in a brief trading update, though a 16.8% average depreciation in the rand versus the dollar has helped offset its production fall.
The miner, valued at R6.5 billion on the JSE, generated about $75.6 million (about R1.4 billion) in this profit measure in its 2022. In May, however, it announced a cut to its 2023 guidance to 175 000 ounces, an almost 15% fall from the upper end of its previous range of between 195 000 and 205 000 ounces.
The group said challenges related to "Eskom-generated electricity supply" hit all of its operations, resulting in a production loss of about 10 000 ounces - worth about R350 million at prices at the time. There was also a slower than anticipated ramp-up of continuous operations at Barberton as well as lower than expected production from Evander's underground operations.
The company also experienced a fatality at Evander at as a result of a fall of ground in March, which brought an end to a period of one million fatality-free shifts.
The group's shares were down more than 3% in morning trade on Friday, and have lost a similar amount for the year to date.
READ | Pan African crashes more than 20% as it cuts guidance amid Eskom's failures
