Pan African Misses Out on $32m Profit After Hedging Mishap

Pan African misses out on $32m profit after hedging mishap

Attempts to protect its ounces cost the group millions in profit this year

Gold hedging losses to knock Pan African profits 23%

PAN African Resources was on the wrong end of its hedging contract in the 12 months ended June booking a $5.8m loss on one aspect of its forward sales. Including a $26,2m opportunity cost – gold sold at an agreed level below the average spot price – the impact on Pan African’s profits for the year was 23%. The gold miner disclosed this on Thursday in a trading statement in which it said earnings for the 12 month period were forecast to be betwee…