Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) has finalised the acquisition of Tennant Consolidated Mining Group (TCMG), making the Northern Territory gold producer a fully owned subsidiary.
The transaction marks a key milestone for the company as it focuses on enhancing its production capabilities.
In an operational update, Pan African raised production guidance for fiscal year 2025 to approximately 215,000 ounces, a 16% increase compared to the previous year.
For financial 2026, the company projects production growth of between 235,000 and 250,000 ounces.
Early contributions from the Mogale Tailings Retreatment (MTR) operation and improved infrastructure at Evander Mines are expected to support these targets.
In financial 2025, the MTR facility is expected to produce approximately 33,000 ounces at an all-in sustaining cost below $1,000 per ounce.
Cobus Loots, Pan African’s chief executive, stated: “We are poised to deliver a significant increase in gold production for the full financial year, and then again in FY2026.
“By March 2025 Pan African will also be largely unhedged, and at prevailing gold prices, the cashflow generation from our long-life portfolio of quality assets should allow for rapid de-gearing and flexibility in deploying capital on value-accretive growth and further sector-leading dividends to shareholders.”
At prevailing spot gold prices, it is anticipated that the group will be fully de-geared in the next 12 to 18 months.
Pan African’s share price added 2% to 39.2p in opening Thursday exchanges.