Pan African Resources’ first-half production estimate of 105,000 oz gold was some 6% ahead of Peel Hunt’s 99,000 oz forecast, said the broker.
Evander production has been strongest while Elikhulu is slightly below forecast and Barberton in line.
Management commented that it feels it is in a strong position to meet or exceed its 195,000 oz guidance much like last year.
PAF has also entered an agreement to acquire Blyvoor Gold's surface operations for up to US$7m.
Blyvoor is at the PFS stage right now, but PAF needs to conduct both due diligence and a definitive feasibility study by December 2022, at which point it can elect to acquire and pay the US$7mln from cash resources.
Blyvoor has an estimated gold content of 1.4m oz (at 0.31g/t gold).
PAF also plans to reengage with the liquidator of the Mintails operations, which it still plans to acquire after a DFS is complete. Mintails has 2.4m oz of gold resources.
Buy is Peel Hunt’s view with a 28p target price.