Pan African Resources Plc - Operational Update, Record Half-Year Gold Production, Substantial Decrease in Group Gearing and Share Buyback Programme
(Incorporated and registered in
under Companies Act 1985 with registered
Incorporated in the
number 3937466 on
Share code on AIM: PAF Registration number: 2012/021237/06
Share code on JSE: PAN Alpha code: PARI
ISIN: GB0004300496
ADR code: PAFRY
(“Pan African” or “the Company” or “the Group”)
OPERATIONAL UPDATE, RECORD HALF-YEAR GOLD PRODUCTION, SUBSTANTIAL DECREASE IN GROUP GEARING AND SHARE BUYBACK PROGRAMME
Pan African is pleased to provide its shareholders and noteholders with an operational update for the financial year ending
KEY FEATURES
-- Regrettably, the Group suffered a fatal accident on 6 June 2025 at
Barberton’s Sheba Mine . The Group will continue its focus on various
safety performance initiatives in order to improve safety statistics and
strive for zero harm
-- Record half year gold production in FY25H2 and a substantial increase
when compared to FY25H1. Production for FY25H2 estimated at
approximately 112,000oz, representing an increase of approximately 32%
when compared to FY25H1 (84,705oz).
-- Substantial reduction in Group gearing with net debt of approximately
US$155 million expected as at 30 June 2025 , a decrease of US$72 million
or 32% compared to
31 December 2024 (net debt of US$228.5 million ) – the Group is expected
to be fully degeared during FY26 at prevailing gold prices
-- Board approved share buyback programme to purchase up to ZAR200 million
(approximately US$11.1 million ) of ordinary shares in the market
-- Total full year production for FY25 expected to be approximately
197,000oz (FY24: 186,039oz), an increase in production of approximately
6% compared to the prior financial year. Despite a significant increase
in production in H2, full year production will therefore fall marginally
below FY25 production guidance range of 205,000oz to 215,000oz as a
result of:
o Slower than expected ramp up of the Evander underground subvertical
shaft project, which is now fully commissioned and operational
o Delays encountered with the commissioning of the filter presses
associated with the dry stack landforms (tailings section) of the
Tennant Mines plant, resulting in a slower ramp up in production
-- Tennant Mines gold processing plant commissioned on budget and on
schedule with steady state production of approximately 50,000oz per
annum now expected during the first quarter of FY26
-- Group all-in sustaining costs (AISC) for FY25H2 estimated between
US$1,525 and US$1,550 (previous guidance of US$ 1,450 /oz to US$1,500 /oz)
at an average exchange rate of US$/ZAR:18.50, primarily as a result of
lower than expected production following the slower than anticipated
ramp up in production at Evander underground and realised losses on the
zero cost collar hedges of approximately US$25 /oz
-- Group AISC for FY25 is expected to be between US$1,550 /oz to US$1,575 /oz
at an average exchange rate of US$/ZAR:18.50 (previous guidance of
US$1,450 /oz to US$1,500 /oz). This AISC includes the impact of zero cost
collar detailed above
-- Production guidance for FY26 of between 275,000oz and 292,000oz, an
increase of approximately 40% compared to expected FY25 production at an
AISC of between US$1,475 and $1,525
GROUP GOLD PRODUCTION FOR FY25
The notable increase in the Group’s production in FY25H2 is as a result of the following:
-- The successful ramp up at the Mogale Tailings Retreatment (MTR)
operation
-- Steady production at Elikhulu and Barberton Tailings Retreatment Plant
(BTRP)
-- Improved grades and tonnages following the commissioning of the Evander
subvertical shaft
-- Much improved production from all of the Barberton underground
operations.
Production for FY25 is estimated at approximatley 197,000oz (FY24: 186,039oz), an increase of approximately 6% from the prior financial year.
SURFACE OPERATIONS
-- Elikhulu production is estimated at approximately 26,000oz for FY25H2,
and is on track for achieving production of more than 52,000oz for FY25
(FY24: 54,812 oz)
-- The MTR operation reached steady state production during December 2024
o Production of approximately 21,000oz for FY25H2, with estimated
production of approximately 30,000oz for FY25
o The expansion of the plant from 800Ktpm to 1Mtpm, with the addition of
two carbon-in-leach (CIL) tanks together with the installation of
reactors to further improve recoveries, at a total expansion cost of
US$6.5 million , is in progress. This will result in an increase in
production from 50,000oz to approximately 60,000oz per annum, with the
expansion project expected to be completed during FY26
o MTR has successfully concluded a three-year wage agreement with its
employees at an average wage increase of 5% per annum over the
three-year period, providing stability to the operation
o Soweto Cluster Feasibility Study (FS) is on track for completion by
September 2025 , with the study focusing on the option of constructing
a new processing facility which would be a stand-alone operation also
producing approximately 50,000oz per annum
-- BTRP is expected to achieve production of approximately 8,000oz in
FY25H2, with full year production of approximately 15,500oz (FY24:
18,888). As previously reported, the remaining life-of-mine (LOM) of the
BTRP has now been increased to six years from current surface sources
-- Construction work at Tennant Mines’ Nobles operation, at a cost of US$36
million , was completed with successful hot commissioning during April
2025 . An inaugural gold pour from this operation was achieved in May
2025 . Production ramp up was slower than expected as a result of a delay
in the commissioning of the filter presses associated with the dry stack
landforms (tailings section) of the plant. Steady-state throughput at an
annualised rate of circa 50,000oz is expected to be achieved during the
first quarter of FY26.
UNDERGROUND OPERATIONS
-- The sub-vertical hoisting shaft commissioning at the Evander underground
operation was completed during January 2025 , with ramp-up to its
expected hoisting capacity achieved during April 2025 , enabling full
production from 24-25 levels and production of approximately 27,000oz
expected for FY25
o Average production for the last two months of FY25 of approximately
3,850oz per month, confirming production capacity of ~50,000oz per
annum going forward
-- Barberton Mines
o The restructuring of the underground operations was successfully
completed in May 2025 , with an approximate 20% reduction in the
overall Barberton workforce
o Excellent improvement in performance of all underground operations
during FY25H2, as follows:
-- Fairview Mine expected production of approximately 22,000oz
(FY25H1: 19,096oz), an increase of 15%
-- Consort Mine production is expected to increase by 70%
toapproximately 5,500oz for FY25H2 (FY25H1: 3,242oz), with
this operation now positively contributing to cash flow
-- Sheba Mine production is expected to increase by 20% to
approximately 10,600oz (FY25H1: 8,805oz) as a result of access
to higher grade mining areas and initiatives to improve
productivity.
o Production of approximately 38,000oz is expected for the Barberton
Mines underground operations in FY25H2 (FY25H1: 31,142oz), with full
year production of approximately 69,000oz (FY24: 71,470oz).
FINANCIAL
-- The Group is expected to be fully degeared (in terms of net debt) in the
next 12 months at prevailing gold prices
-- The Group will be unhedged from 1 July 2025 , following the expiry of the
last zero cost collars at the end of June 2025 , and the synthetic
forward that matured at the end of February 2025 , allowing the Group to
fully benefit from prevailing gold prices. Realised losses on these zero
cost collars is estimated to have a negative impact on AISC of
approximately US$25 /oz for FY25H2
-- The Group expects AISC for FY25H2 of between US$1,525 /oz to US$1,550 /oz
at an exchange rate of ZAR18.50 /US$. This represents a significant
improvement from the US$1,675 /oz for FY25H1, with full year AISC
expected to be between US$1,550 /oz and US$1,575 /oz.
-- AISC guidance for FY26 is between US$1,475 and $1,525 , with the
following contributing positively to the cost outlook for FY26:
o Increase in the contribution to Group production from lower cost
surface operations, with a full year of production from MTR and
Tennant Mines
o Increased production from Evander underground operations
o Reduction in the labour cost for the Barberton underground operations,
following the successful conclusion of the operation’s restructuring
programme
o Savings arising from the extensive use of renewable energy projects
o Ongoing efforts to contain costs and reinforcing a culture of cost
consciousness.
FY26 PRODUCTION GUIDANCE
Group production for FY26 is expected to increase substantially, principally as a result of steady-state production at the MTR operation, increased production from Evander underground (following substantial investments in infrastructure and underground development over the last years), as well as the production contribution from
Group production for FY26 is expected to be between 275,000oz and 292,000oz as outlined below:
_________________________________________________ |Operation |Production Range (oz)| |___________________________|_____________________| |Elikhulu |49,000-51,000 | |___________________________|_____________________| |BTRP |13,000-15,000 | |___________________________|_____________________| |MTR |52,000-54,000 | |___________________________|_____________________| |Tennant Mines |46,000-50,000 | |___________________________|_____________________| |Evander underground |46,000-50,000 | |___________________________|_____________________| |Barberton Mines underground|69,000-72,000 | |___________________________|_____________________| |Total |275,000-292,000 | |___________________________|_____________________|
SHARE BUYBACK PROGRAMME
Pan African is pleased to announce that the board of directors (Board) has approved a share buyback programme to purchase up to
The Board believes that at the current Share price, the Company’s Shares offer significant value, given the quality and profitability of the Group’s existing operations and growth projects. The Board has therefore taken the decision to implement the Programme as part of the Company's broader strategy to deliver value to shareholders.
Purchases pursuant to the Programme will be made under the authority granted by shareholders at the Company’s 2024 annual general meeting (the Repurchase Authority) which
enables the Company to make market acquisitions of Shares in accordance with the Companies Act 2006. The Programme will be conducted in accordance with the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (each as in force in the
The Repurchase Authority permits the purchase of a maximum of 144,486,033 Shares at a maximum price (excluding expenses) of 105 per cent of (i) the average closing price of a Share as derived from the AIM Appendix to the London Stock Exchange Daily Official List for the five business days immediately preceding the date of purchase.
Purchases pursuant to the Programme will take place on the
Purchases pursuant to the Programme will be carried out in compliance with the relevant conditions for trading, restrictions regarding time and volume, disclosure and reporting obligations, and price conditions. The Shares will be repurchased at a price (excluding expenses) that does not exceed the last independent trade or the highest current independent bid on the relevant trading platform. The Company intends to cancel those Shares purchased.
Details of any purchases made under the Programme will be provided via SENS and RNS announcements and published on the Company's website.
“We are saddened by the loss of a colleague following a fatal accident in a Sheba underground workshop last week, with an auto electrician succumbing to injuries sustained whilst on duty. Our thoughts and prayers are with the family and friends of the deceased, as we continue to work towards our goal of zero harm.
The commissioning during
The performance of our surface operations at Elikhulu, MTR and BTRP remained consistent and largely unaffected by the excessive rainfall experienced throughout
Additionally, steady progress has been made on our South African underground operations, with improved operational performances achieved at all our mines in the second half of the financial year. The restructuring of the Barberton operations has already yielded positive results and productivity improvements, evidenced by increased gold production. Evander’s underground is also now positioned to deliver a notable production increase in the year ahead, following a period of large-scale investment into this long-life asset.
I believe the Group has never been better positioned to take advantage of record gold prices, with record second half gold production being testament to that achievement. Increased cashflow generation and de-gearing is allowing our business to continue to invest and grow, whilst also increasing cash returns to shareholders. The share buy back programme approved by our board demonstrates our confidence in the Group and its prospects.
We look forward to reporting our final results for the year ended
The information contained in this announcement is the responsibility of the Board and has not been reviewed or reported on by the Group’s external auditors.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
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___________________________________________________________________________ |Corporate information | |___________________________________________________________________________| |Corporate Office | | | | | |The Firs Building |Registered Office | | | | |2nd Floor, Office 204 |107 Cheapside, 2nd Floor | | | | |Corner Cradock and Biermann Avenues |London, EC2V 6DN | | | | |Rosebank, Johannesburg |United Kingdom | | | | |South Africa |Office: + 44 (0)20 3869 0706 | | | | |Office: + 27 (0)11 243 2900 |jane.kirton@corpserv.co.uk | | | | |info@paf.co.za | | |______________________________________|____________________________________| |Chief Executive Officer |Financial Director and debt officer | | | | |Cobus Loots |Marileen Kok | | | | |Office: + 27 (0)11 243 2900 |Office: + 27 (0)11 243 2900 | |______________________________________|____________________________________| |Head: Investor Relations | | | | | |Hethen Hira |Website: www.panafricanresources.com| |Tel: + 27 (0)11 243 2900 | | |E-mail: hhira@paf.co.za | | |______________________________________|____________________________________| |Company Secretary |Nominated Adviser and Joint Broker | | | | |Jane Kirton |Ross Allister/Georgia Langoulant | | | | |St James's Corporate Services Limited |Peel Hunt LLP | | | | |Office: + 44 (0)20 3869 0706 |Office: +44 (0)20 7418 8900 | |______________________________________|____________________________________| |JSE Sponsor & JSE Debt Sponsor |Joint Broker | | | | |Ciska Kloppers |Thomas Rider/Nick Macann | | | | |Questco Corporate Advisory Proprietary|BMO Capital Markets Limited | |Limited | | | |Office: +44 (0)20 7236 1010 | |Office: + 27 (0) 63 482 3802 | | |______________________________________|____________________________________| | |Joint Broker | | | | | |Matthew Armitt/Jennifer Lee | | | | | |Joh. Berenberg, Gossler & Co KG | | |(Berenberg) | | | | | |Office: +44 (0)20 3207 7800 | |______________________________________|____________________________________|
