Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) delivered a record first-half profit of US$147.8 million as a sharp rise in output and a higher realised gold price pushed revenue up 157.3% to US$487.1 million for the six months to December 2025.
Chief executive Cobus Loots told investors that Pan African's operational and financial performance, together with the boon of record gold prices, has positioned the miner "deliver outstanding results for the full year" - and, that it had allowed it to "degrease" the balance sheet and boost returns to shareholders.
Gold production climbed 51.5% to 128,296oz, keeping the group on track for its full-year guidance of 275,000oz to 292,000oz. The company reported adjusted EBITDA of US$245.2 million and said the uplift in operating cash flow helped it cut leverage quickly over the period.
That cash generation fed through to the balance sheet, with net debt reduced 69.3% to US$46.2 million and cash and cash equivalents of US$90.1 million at 31 December. Pan African said it expects to be net cash by the end of February 2026 at prevailing gold prices, and declared an interim dividend of 12.00000 ZAR cents per share (around 0.54745p), payable 17 March 2026.
Costs were the main offset: FY26H1 AISC was US$1,874/oz, prompting the group to revise FY26 full-year AISC guidance to US$1,820–1,870/oz. Separately, Pan African disclosed that certain Australian debt covenants were breached at period end, with the relevant loans therefore classified as current liabilities.
"The half-year results demonstrate the success of our strategy of focusing on high-margin, long-life tailings retreatment operations and also the acquisition of the very prospective Tenant Mines in Australia," Loots said.
He added: "Pan African has the ability to continue to deliver very attractive production growth over the next years, specifically internal expansions in Australia and around our MTR operation, which will not only add mine life but also significant additional production ounces.
"[We] will continue to capitalise on the very favourable current environment to position the Group to keep on 'Mining for a Future' for many more years."