RBC Capital Markets has started its coverage of Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) with an Outperform rating and a 155p price target that implies upside of 55%.
The broker expects production to rise about 30% to 350,000 ounces annually by FY30, led by Tennant Creek in Australia, which it sees reaching around 100,000 ounces. EBITDA is forecast to climb to $1.2 billion by FY29.
London-based analysts for the Canadian bank, in a note, highlighted that Pan African has been transformed into a diversified mid-cap producer with a path to 350,000 ounces of annual production by FY30, while EBITDA is forecast to rise to around $1.2 billion by FY29.
Australia is central to that growth story. RBC expects Tennant Creek to ramp from roughly 34,000 ounces currently to around 100,000 ounces annually by FY29/30, ultimately contributing about 27% of group production and EBITDA.
RBC forecasts roughly $0.8 billion of ordinary dividends over FY26-30, with scope for additional returns as cash builds.
Despite that growth, Pan African trades at 0.7 times NAV and 3.2 times 2026-27 EV/EBITDA, below peer valuations.
“Current share price implies exposure to a solid South African gold business with a free option on Australia growth,” RBC said.
