What it does
Pan African Resources plc (LON:PAF) is a mid-tier African-focused gold producer, dual-listed on the London AIM market and the Johannesburg Stock Exchange, and with a Level 1 ADR programme sponsored by the Bank of New York Mellon. It owns and operates a portfolio of high-quality, high-margin South African operations with a production capacity of approximately 200,000 ounces of gold per annum.
How it is doing
In November, the firm agreed to acquire tailings retreatment projects Mogale Gold and Mintails for a maximum cash consideration of £2.42mln. They are based in South Africa and comprise historic tailings storage facilities that contain an estimated 243mln tonnes of tailings.
In October, its American depositary receipts were approved to trade on the OTCQX Best Market, the highest tier of the over-the-counter (OTC) market operated by OTC Markets Group, from the Pink OTC Market.
In the year to June 30, production rose 4% to 179,457 ounces, driving revenue up 26% to US$273.7mln. Profit improved by 16.6% to US$44.3mln, from US$38mln, while headline earnings increased 93% to US$44.2mln.
What the boss says: Cobus Loots, chief executive
“The opportunity to acquire these surface resources complements our strategy of focusing on safe, low cost gold mining opportunities, with the potential to further grow our business by developing projects that meet our stringent investment criteria."
- Production hits its target of 190,000oz in 2020/21
- Gold price remains high
- Dividend rises as debt is paid down