Pan African Resources

Last week’s departure of its chief executive was a surprise, but Pan African Resources’ management insists plans for the recently acquired Evander gold mine will be unaffected

Pan African's bid to buy the Evander gold mine from the third largest miner in South Africa is a "game changer" for the group, its chief executive Jan Nelson told Proactive Investors.

Pan African Resources posted what it called "excellent" results for the year, adding it was excited about its prospects for 2013.

Pan African Gold offers investors an attractive mix of cash flow, production growth and a historically strong dividend yield, according to City broker Canaccord Genuity.

Pan African Resources' chief executive Jan Nelson described the new deal to buy 100 per cent of  Harmony Gold’s Evander gold mine in South Africa as "much improved".

The deal follows months of negotiations and will double the company's annual gold production to 200,000 ounces. It will pay just under £115 million and plans to finance the acquisition mainly with a mix of debt finance and cash.

Pan African Resources has a good chance to make the proposed acquisition of the Evander gold mine in South Africa  work, according to broker Collins Stewart.

From zero revenues just four years ago, Pan African Resources turned in gross revenue of almost £80 million in the year ending June 2011, giving them attributable earnings of over £17 million.

Security costs are set to fall significantly at Pan African in the coming year, according to chief executive Jan Nelson who also revealed the Fairview Tailings Project could add a further 25,000 low cost ounces of gold to the production. He was speaking after a set of solid interim results, which showed the group had been tenacious in tackling costs.

The company's interims today are the culmination of a number of years of hard work that have seen Pan African transformed from promising gold explorer to cash generating miner. It has managed to withstand cost pressures to post a solid set of earnings.

Pan African Resources will treat chrome tailings from IFM's Lesedi mine to produce 211,000 ounces of platinum group metals, with a current basket price of around US$1,250 per ounce. With the agreement now reached with IFM, the company can now crack on with the construction of the plant and first production is expected in 2011.

As you will see from our coverage earlier, Pan African is offloading a fringe asset in Ghana. Here we look at the company's transformation from promising junior to cash generating gold producer, which has seen it step up in class.

Evidence of Pan African's hard work was revealed this morning, with confirmation that two years of drilling had upgraded the total resource by 18%, and more importantly, the measured and indicated resources by 30%

The massive drive launched in December to remove illegal miners from the South African gold mine is expected to significantly increase output and profit from Barberton going forward.

Jan Nelson, CEO of Pan African Resources, talks about a planned platinum group metals project that can reach payback within three years, acquiring the Barberton gold mines outright, increasing earnings per share by 30%, increased liquidity and institutional support, and the strategic advantage in having Shanduka Resources as a major shareholder.