PANAUST FORECAST SUFFERS FROM FALLING COMMODITY PRICES

PANAUST FORECAST SUFFERS FROM FALLING COMMODITY PRICES

 PANAUST (ASX: PNA) has wound back its annual profit guidance with falling commodity prices and high costs dragging on the group.

The Brisbane-based copper and gold miner today reported a profit after income tax of US $43.4 million for the six months to June.

According to a statement released today, lower copper sales and commodity prices have offset sales revenue of US $326.1 million, which was boosted by gold and silver from the Ban Houayxai mine in Laos.

The company now expects earnings before interest, tax, depreciation and amortization for the year to fall between US $260 million and US $300 million.

PNA managing director Gary Stafford continues to project confidence, saying the company has recovered from setbacks at the beginning of the year.

“PanAust remains well positioned to achieve full year production guidance for copper and gold,” he says.

“We expect to see an extra 10,000oz of gold produced at Ban Houayxai for a total of 110,000oz for the year, which should mean gold output will be at the top end of the guidance range.”

He says cash flow from the business is expected to benefit during the December half due to a scheduled increase in copper and precious metal production, and a reduction in sustaining and discretionary capital.

The company has declared an interim dividend of three cents per share.

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