Pan African Resources

HOLD

25/01/2012 Ben Jaglom

Precious metals producer Pan African Resources (PAF) says first-half earnings should be 83% to 95% up on last year.

The AIM-quoted company, which increased pre-tax profits nearly 20% to £26.4m in the year to June and raised earnings 12.5% to 1.19p a share on turnover up 15% to £79.2m, has issued a trading statement suggesting that earnings for the six months to December could be between four-fifths higher and nearly double the 0.53p a share achieved a year earlier.

Steered by chief executive officer Jan Nelson, Pan African, whose South African projects include the Barberton gold mine and Phoenix Platinum, has as one of its key shareholders Shanduka Group, a black economic empowerment concern founded and headed by Cyril Ramaphosa, the anti-apartheid activist and trade union leader-turned-capitalist, who resigned from Pan African's board before Christmas.

Highlighted by Growth Company Investor at 10.75p in July, the shares have traded between 9.51p and 17p over the past year and now stand at 16.5p.

Hold on.

Tags: Black economic empowerment, Business in South Africa, Commodities business, Gold mine

Sector: Mining

Companies: Pan African Resources

Market cap: £238.4m

PE Forecast: 5/6

Share price: 16.5p