Pan African Resources plc’s continuing production growth, and its opportunity to outperform forecasts, make it a ‘buy’ amidst record-breaking gold prices – that’s the view of analysts at Berenberg.
Analysts at the European bank have run the rule over several London-listed gold stocks, as part of a ‘sensitivity analysis’ in the sector as gold and silver prices have soared - due to continued geopolitical volatility, concerns about global growth rates, and worries over the impact of international trade tariffs.
Gold’s so-called safe haven value against the sharp recent sell-off in the tech sector was another reason cited as being a factor in gold prices running up above $2,900 per ounce (and silver going to $32 an ounce).
“Pan African offers material upside to spot gold prices, given the growth of its high-margin, low-cost assets both in South Africa and Australia,” Berenberg analyst Richard Hatch said in a note.
“It has a June year-end but still offers 10% upside to consensus EBITDA for 2025; for 2026, our spot Pan African EBITDA sits 56% above consensus. At 0.99x NAV and 2.1x EBITDA.”
Hatch added: “we continue to see upside in this stock, which offers ongoing volume growth and further production upside to our current numbers, we think.”
Berenberg’s ‘buy’ rating comes with a price target of 42p (current price: c.35p).