Pan African Resources (PAF)

Sector:

Mining

Index:

FTSE AIM 100

22.50p
   
  • Change Today:
      0.60p
  • 52 Week High: 22.60
  • 52 Week Low: 12.02
  • Currency: UK Pounds
  • Shares Issued: 2,222.86m
  • Volume: 4,140,484
  • Market Cap: £500.14m
  • RiskGrade: 255

Pan African agrees to acquire Blyvoor tailings facilities

By Josh White

Date: Wednesday 15 Dec 2021

LONDON (ShareCast) - (Sharecast News) - Pan African has entered into a conditional agreement to acquire the entire issued share capital of Blyvoor Gold Operations from Blyvoor Gold, it announced on Wednesday, for just over £5m.
The AIM-traded firm said the acquisition would include six historical tailings storage facilities with total mineral resources of more than 1.4 million ounces of contained gold.

It said a technical study to pre-feasibility level indicated the potential to produce 25,000 to 30,000 ounces of gold by processing six million tonnes of tailings each year over a mine life of 15 years, extendable to 25 years with the inclusion of inferred mineral resources.

Pan African said it had a "demonstrable track record" of developing and operating similar high-margin tailings processing operations at its Barberton and Evander tailings retreatment plants and its Elikhulu operations.

The company described a "staged" acquisition process, with a three-month initial fatal-flaw due diligence period, following which it could choose to proceed with a definitive feasibility study over the following nine months to December 2022.

Pan African could then, at its sole discretion, choose to acquire Blyvoor Operations for cash consideration of ZAR 110m (£5.1m), to be funded from internal cash resources.

Blyvoor Operations owns a total of six historical tailings storage facilities.

During 2020, independent consultant Minxcon completed a technical study to pre-feasibility study level for the Blyvoor facilities, and quantified the mineral resources at 142.9 million tonnes, with an in-situ grade of 0.31 grams of gold per tonne, for an estimated gold content of more than 1.4 million ounces.

"Pan African is pleased to have secured the right to the Blyvoor tailings, which is one of the last remaining large-scale gold tailings resources available in South Africa," said chief executive officer Cobus Loots.

"We look forward to progressing our studies on this opportunity in the year ahead, and we are hopeful that we can ultimately demonstrate a compelling project, for the benefit of all stakeholders.

"Pan African is poised to grow its tailings retreatment operations in the years ahead, adding additional long-life, high-margin production to our already attractive portfolio of assets."

At 1151 GMT, shares in Pan African Resources were up 5.12% at 16.82p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PAF Market Data

Currency UK Pounds
Share Price 22.50p
Change Today 0.60p
% Change 2.74 %
52 Week High 22.60
52 Week Low 12.02
Volume 4,140,484
Shares Issued 2,222.86m
Market Cap £500.14m
RiskGrade 255

PAF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.46% above the market average76.46% above the market average76.46% above the market average76.46% above the market average76.46% above the market average
38.93% above the sector average38.93% above the sector average38.93% above the sector average38.93% above the sector average38.93% above the sector average
Price Trend
88.80% above the market average88.80% above the market average88.80% above the market average88.80% above the market average88.80% above the market average
88.81% above the sector average88.81% above the sector average88.81% above the sector average88.81% above the sector average88.81% above the sector average
Income
61.92% above the market average61.92% above the market average61.92% above the market average61.92% above the market average61.92% above the market average
4.35% above the sector average4.35% above the sector average4.35% above the sector average4.35% above the sector average4.35% above the sector average
Growth
81.29% below the market average81.29% below the market average81.29% below the market average81.29% below the market average81.29% below the market average
56.25% below the sector average56.25% below the sector average56.25% below the sector average56.25% below the sector average56.25% below the sector average

What The Brokers Say

Strong Buy 2
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PAF Dividends

  Latest Previous
  Final Final
Ex-Div 30-Nov-23 01-Dec-22
Paid 12-Dec-23 13-Dec-22
Amount 0.75p 0.91p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 655,022 @ 22.50p
16:35 2,296 @ 22.50p
16:35 6,422 @ 22.50p
16:35 3,640 @ 22.50p
16:35 20,447 @ 22.50p

PAF Key Personnel

CEO Cobus Loots
Finance Director Deon Louw

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