Pan African Resources PLC
LSE:PAF
Pan African Resources PLC
Pan African Resources Plc engages in the exploration, mining and production of precious metals. The firm's segments include Barberton Mines (including the Barberton Tailings Retreatment Plant (BTRP)) located in Barberton; Evander Mines (the Elikhulu Tailings Retreatment Plant (Elikhulu), eight Shaft pillar and surface sources) located in Evander; Agricultural environmental, social and governance (ESG) projects comprises of Barberton Blueberries project (Barberton Blue Proprietary Limited (Barberton Blue)) as well as other small-scale agricultural projects in the Barberton Mines host community area; Solar projects consist of the solar photovoltaic renewable energy plant located at Evander Mines; Funding Company, which provides treasury function activities, and Corporate consists of the holding companies and management services which render services to the Company and is located in Johannesburg.
Pan African Resources Plc engages in the exploration, mining and production of precious metals. The firm's segments include Barberton Mines (including the Barberton Tailings Retreatment Plant (BTRP)) located in Barberton; Evander Mines (the Elikhulu Tailings Retreatment Plant (Elikhulu), eight Shaft pillar and surface sources) located in Evander; Agricultural environmental, social and governance (ESG) projects comprises of Barberton Blueberries project (Barberton Blue Proprietary Limited (Barberton Blue)) as well as other small-scale agricultural projects in the Barberton Mines host community area; Solar projects consist of the solar photovoltaic renewable energy plant located at Evander Mines; Funding Company, which provides treasury function activities, and Corporate consists of the holding companies and management services which render services to the Company and is located in Johannesburg.
Record Results: Pan African delivered record interim results, with revenue up 157%, headline earnings up 541%, and record cash flows.
Gold Production: Gold production increased by more than 50%, reaching record levels and positioning the company for further growth.
Cost Guidance: All-in sustaining cost for the half was $1,874 per ounce, above prior guidance, but expected to decline to $1,820–$1,870 for the full year as production rises.
Dividends: A record dividend was paid in December, with a new interim dividend initiated. The company plans to remain cash generative and debt free.
Growth Pipeline: Multiple expansion projects are underway, including at MTR and Tennant Mines, with production forecast to approach 300,000 ounces next year and potentially higher in subsequent years.
Strong Balance Sheet: Net debt reduced by 80% to $46 million, with the group expected to be net debt free by month-end.
Shareholder Returns: Management emphasized continued high dividends and prudent capital allocation, with share buybacks considered alongside growth.
