Pan African Resources, a South Africa-focused mining company, has announced a decrease in both pretax profit and revenue for fiscal year 2023. Despite these declines, the company remains optimistic about its outlook for 2024.

According to the company's report on Wednesday, pretax profit fell from $106.9 million in fiscal 2022 to $85.55 million in the year ended June 30. This decline can be attributed to weaker revenue caused by a decrease in gold sold.

Revenue for the year decreased from $376.4 million to $321.6 million, primarily due to a 15% decline in gold sales, totaling 174,760 ounces. The average gold price remained relatively stable at $1,836 per ounce, compared to $1,824 in the previous year.

Pan African Resources also reported a 3.3% increase in all-in sustaining costs, which reached $1,327 per ounce. This is in line with the company's guidance of $1,325 to $1,350.

Despite these challenges, Chief Executive Cobus Loots expressed satisfaction with the company's performance, stating, "Pan African delivered a resilient financial performance for the current financial year, with a much-improved rand gold price compensating for lower production from our underground operations."

In terms of gold production, fiscal year 2023 saw a decline to 175,209 ounces from 205,688 ounces. However, Pan African Resources has set a target range of 178,000 to 190,000 ounces for fiscal year 2024.

The company has declared a final dividend of 0.96 cents.

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