WEAK COMMODITIES HIT PANAUST PROFIT

Written on the 21 August 2014

WEAK COMMODITIES HIT PANAUST PROFIT

WEAKER commodity prices have hurt PanAust’s (ASX:PNA) half year profit, falling 28 per cent compared to the previous year.

The gold, silver and copper miner recorded attributable profit after tax of $28.1 million in the six months to June 30, down from $38.9 million in the previous period.

An increase in copper and silver sales offset the decline in gold, with revenue up four per cent to US$338.5 million.

Managing director Gary Stafford says PanAust’s Phu Kham project remains competitive in the face of the downturn.

“The company’s operations delivered strong cash flow despite the lower average prices for all metals and the outlook is for improved operating performance in the second half of 2014,” Stafford says.

“PanAust has invested significant capital at the Phu Kham operations over the past two years and is starting to reap the benefits through higher processing rates and improving metallurgical recovery rates which, together with lower sustaining capital, are resulting in improving cash flow.

“The inclusion of ore sourced from the KTL satellite deposit would further enhance production and cash flow.”

Copper production at Phu Kham is expected to increase to 90,000 tonnes and gold to 80,000 ounces, by 2018 and 2019 respectively.

Stafford says operating performance is expected to improve in the second half of 2014, delivering higher grades and recoveries of copper and gold.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is tracking above guidance at US$124.4 million.

The full year EBITDA guidance is between US$200 million and US$225 million.

The company is set to acquire an 80 per cent stake in the Frieda River Copper-Gold project in Papua New Guinea on August 25.

PNA will pay an interim dividend of $0.03 per share in October.


Latest News

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter