Pan African Resources counts on a multi-year gold boom

South African gold mining company Pan African Resources could maintain its strong earnings growth rate and dividend payout in the current financial year if Gold Prices stay at current levels, its boss Cobus Loots said on Wednesday. Pan African, which produced around 180,000 ounces of gold metal last year to beat its own forecast, posted a 92.4% increase in total earnings per share (HEPS) - South Africa's most important profit measure - to 2.29 US cents for the year ending in June 2020, it said in a statement. The profit growth was due to the much lower gold prices, which were recorded for most of the past year. If gold prices are resilient, then all of this bodes well, "Loots said in an interview with Reuters. He did not want to comment on specific numbers but said the momentum could continue. Pan African will pay a final dividend for the year of Rand 312.9 million ($ 19.21 million), more than six times the payout made last year. Record gold prices, which exceeded the $ 2,000 an ounce milestone in early August, have given South African gold mines a lifeline and have been aided by a weak currency. Gold prices rose up to 28% in the last fiscal year, while the rand depreciated against the dollar by about 18%. As a result, the cost of producing the metal in local currency was cheaper, while the selling price in dollars was higher. The company aims to be net debt free by June 2021, said the mining company's 41-year-old chief executive officer.