Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN) has posted a strong set of annual numbers and raised the stakes for the year ahead, helped by a buoyant gold price and new ounces coming on stream.
Group gold production rose 5.6% to 196,527oz in the year to 30 June, with second-half output a record as the Mogale Tailings Retreatment (MTR) plant ramped up and the newly acquired Tennant Mines in Australia delivered its first pour in May.
Revenue climbed 44.5% to $540.0 million, while profit jumped 78.4% to a record $140.6 million. Earnings per share rose 72.9% to 7.16 US cents. Cash from operations increased to $154.9 million.
Costs did rise. All-in sustaining cost (AISC), a sector measure that captures the ongoing cost of keeping the mines running, increased to $1,600/oz from $1,354/oz, reflecting lower underground volumes and higher electricity and reagent prices, plus a $30/oz hedge loss.
The group is now fully unhedged, giving full exposure to spot prices in FY26.
Net debt ended the year at $150.5 million after funding MTR and consolidating Tennant Mines’ borrowings, but management expects to be “fully degeared” during FY26 at current gold prices, in other words, to eliminate net debt.
A share buy-back of up to ZAR200 million has been approved and a record final dividend of 37.00 South African cents per share has been proposed, up 68%.
Guidance is punchy: FY26 production is seen at 275,000oz to 292,000oz, with AISC of $1,525/oz to $1,575/oz.
The uplift is slated to come from MTR at steady state and a bigger contribution from Tennant Mines, plus underground improvements at Evander.
Pan African is also expanding MTR’s plant to 1mtpm and evaluating a new Soweto Cluster project, each targeted at 50,000oz to 60,000oz per year. Elikhulu is guided to 49,000oz to 51,000oz in FY26.
There are corporate tidbits, too. The company is weighing a move from AIM to the London Stock Exchange’s Main Market to broaden its investor base. Net asset value per share rose 41.6% to 26.9 US cents.
For context, Pan African’s results reflect two tailwinds: higher realised gold prices ($2,735/oz average) and a shift toward lower-cost, surface ounces.
If the FY26 ramp-up lands as planned, the portfolio should tilt further in that direction and the balance sheet could follow.