Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) boss Cobus Loots said the business is in ‘compelling’ shape as he celebrated ten years in charge of the South African gold miner.
“The group’s unique value proposition of surface and underground mining, high-margin long-life production, blend of financial strength, growth potential, gold resource base, dividend track record and unwavering dedication to ESG principles, makes it a compelling choice for investors," he said.
Loots comments came alongside annual results that showed revenues in the year to June 2024 rising by 17% to US$374 million, with profits up by 30% to US$78.8 million.
Production for the year rose by 6% to 186,000 with an 11% rise in the gold price received.
This year, to June 2025, gold production is forecast to rise to 215,000- 225,000oz as the new MTR tailings project comes on stream.
Costs are expected to be in the region of US$1,350-1,400 an ounce on a sustaining basis.
Loots added that he believes gold equities are underperforming the gold price due to worries over capital allocation and sustainable value creation in the sector,
He added, however, that the record-high gold price trend is expected to continue in the foreseeable future while Pan African “has over 30Moz of SAMREC-compliant gold resources within its mining rights, secured in Barberton and Evander to 2051 and 2038, respectively”.
In addition, “With the additional production from the MTR project, our group will be firmly positioned as a mid-tier producer, with production growing by approximately 25% and a commensurate reduction in the group’s unit costs of production," he noted.
The dividend for the year is R22c (US1.2c) with debt at the year end of US$106 million reflecting the cost of the MTR investment.