PanAust cuts earnings forecast

Lower precious metals prices weigh on junior miner's result.

PanAust (PNA) says increased production will boost its cash flow in the second half but has reduced its pre-tax earnings guidance for the year.

PanAust now anticipates earnings before interest, tax, depreciation and amortisation to be between $260-$300 million for the 2013 calendar year, below its earlier guidance for between $320 million-$350 million.

For the six months to June 30, the precious metals miner booked a net profit after tax of $US43.4 million, a 38% from its $US69.66 million profit in the previous corresponding period, as lower prices for gold, copper and silver dragged on the group.

First-half net income beat estimates, however, coming in at $38.9 million compared to analyst forecasts for $28.7 million.

Revenue for the half was $US130.48 million, 5% lower than the $US136.93 million booked in the first half of 2012.

The miner will pay an interim dividend of three cents per share, unfranked. 

The company's share price fell 2.2% to $2.19 at 1022 AEST.

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