$JSEPAN - Pan African Resources: Stuck In A Contracting Triangle
PAN released a trading statement today for the six months ended 31 December 2022.
HEPS and EPS are expected to decrease between 31% and 41%.
The decreases in EPS and HEPS for the Current Reporting Period, relative to the Corresponding Reporting Period, are largely as a result of an 19.2% decrease in gold revenue to US$156.5 million (2021: US$193.6 million), attributable to the following:
1-gold sold decreased by 15.6% to 90,439oz (2021: 107,142oz), following record production achieved in the comparative period.
2-the average US$ gold price received decreased by 4.4% to US$1,725/oz (2021: US$1,804/oz).
From an Elliott Wave perspective, the market structure from the February 2018 low appears to be forming an impulse pattern.
Wave (2) was the March 2020 bottom and wave (3) is a strong move to an all time high driven by the commodity boom just after the covid-19 sell-off.
In textbook fashion, after a strong wave (3), the stock is consolidating in a wave (4) triangle pattern.
The expectation is a breakout to the upside to complete wave (5) but this will require patience and monitoring the share price towards the apex of the triangle.
HEPS and EPS are expected to decrease between 31% and 41%.
The decreases in EPS and HEPS for the Current Reporting Period, relative to the Corresponding Reporting Period, are largely as a result of an 19.2% decrease in gold revenue to US$156.5 million (2021: US$193.6 million), attributable to the following:
1-gold sold decreased by 15.6% to 90,439oz (2021: 107,142oz), following record production achieved in the comparative period.
2-the average US$ gold price received decreased by 4.4% to US$1,725/oz (2021: US$1,804/oz).
From an Elliott Wave perspective, the market structure from the February 2018 low appears to be forming an impulse pattern.
Wave (2) was the March 2020 bottom and wave (3) is a strong move to an all time high driven by the commodity boom just after the covid-19 sell-off.
In textbook fashion, after a strong wave (3), the stock is consolidating in a wave (4) triangle pattern.
The expectation is a breakout to the upside to complete wave (5) but this will require patience and monitoring the share price towards the apex of the triangle.
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