(NewsDirect)
Pan African Resources PLC (AIM:PAF,OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) CEO Cobus Loots tellsProactive's Stephen Gunnion the company is experiencing a positiveimpact from the current high gold price, which recently crossed $2,400an ounce.
Loots pointed out therobust gold price has been supported by significant purchases fromcentral banks and changes in US interest rates. Pan African Resources,a South African company, benefits further due to its costs being inRand, enhancing profits when converted from the strong dollar-basedgold prices.
Loots refrained frompredicting future gold prices but acknowledged the beneficial effectof the current high prices, which could attract new investors andpotentially lead to a revaluation of companies in thesector.
Despite the high gold prices, he noted that PanAfrican's projects are profitable even at lower prices. Hespecifically mentioned the Mentails tailings retreatment project,which is under construction with capital costs largely fixed, expectedto reach completion by the end of the year. The current gold pricescould allow for the project's capital to be recouped in underthree years. Other projects like Barberton and Evander are alsoperforming well due to the favourable gold priceenvironment.
Contact Details
Proactive UKLtd
+44 20 7989 0813
Copyright (c) 2024 TheNewswire - All rights reserved.