Pan African Resources (PAF)

Sector:

Mining

Index:

FTSE AIM 100

 17.04p
   
  • Change Today:
      0.000p
  • 52 Week High: 24.00
  • 52 Week Low: 16.10
  • Currency: UK Pounds
  • Shares Issued: 2,222.86m
  • Volume: 0
  • Market Cap: £378.78m
  • RiskGrade: 255

Berenberg slightly raises target price on Pan African Resources

By Iain Gilbert

Date: Thursday 30 Jun 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg slightly raised their target price on precious metals group Pan African Resources from 28.0p to 33.0p on Thursday following "positive" results from a definitive feasibility study on the Mogale part of its Mintails project in South Africa.
Pan African Resources provided an update on Mogale, stating the study estimated capex of $161.3m would be required for a project that would produce 50,000 ounces of gold per year over a project life of 13 years, with average all-in sustaining costs of $914 per ounce.

The study also revealed that, in aggregate, the Mogale project hosts 123.6 megatons at 0.29 grams of gold per tone to host 1.14m ounces. If the Mintails Soweto Cluster was also added, then production could be increased from 13 to 21 years, with production of 54,000 ounces in years 14-20.

Berenberg, which reiterated its 'buy' rating on the stock, noted that while tailings reprocessing operations "lack the exploration potential of mines", it said they have low operating risk and were similar to Pan African's existing Elikhulu hydromining operation, with a cyanidation plant with a capacity of 800,000 tonnes per month, which could be expanded to 900,000.

"Production should commence in H2 2024 if development is approved and assuming environmental approval in March 2023. We value the project at $70.0m and view development as positive for Pan African as it injects low-risk growth into the production profile," said the German bank.

"We maintain a 'buy' recommendation, with a new price target of 33.0p per share based on an unchanged blend of 1x NAV and 5x EV/EBITDA. Production is guided to increase to 215,000 oz in FY 2022/23 and to 220,000 oz in FY 2023/24. Our forecasts are in line with this and we expect AISC of $1,100/oz and $1,085/oz, respectively. There are near-term headwinds to production if the South African power utility, Eskom, introduces power cuts following an increasingly acrimonious standoff with unions, which could result in power cuts for up to six hours a day."



Reporting by Iain Gilbert at Sharecast.com

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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 17.04p
Change Today 0.000p
% Change 0.00 %
52 Week High 24.00
52 Week Low 16.10
Volume 0
Shares Issued 2,222.86m
Market Cap £378.78m
RiskGrade 255

PAF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
88.94% below the market average88.94% below the market average88.94% below the market average88.94% below the market average88.94% below the market average
87.79% below the sector average87.79% below the sector average87.79% below the sector average87.79% below the sector average87.79% below the sector average
Price Trend
33.23% below the market average33.23% below the market average33.23% below the market average33.23% below the market average33.23% below the market average
6.94% above the sector average6.94% above the sector average6.94% above the sector average6.94% above the sector average6.94% above the sector average
Income
32.15% below the market average32.15% below the market average32.15% below the market average32.15% below the market average32.15% below the market average
15.38% below the sector average15.38% below the sector average15.38% below the sector average15.38% below the sector average15.38% below the sector average
Growth
10.58% above the market average10.58% above the market average10.58% above the market average10.58% above the market average10.58% above the market average
64.18% below the sector average64.18% below the sector average64.18% below the sector average64.18% below the sector average64.18% 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 01-Dec-22 02-Dec-21
Paid 13-Dec-22 14-Dec-21
Amount 0.91p 0.92p

Trades for --2023

Time Volume / Share Price
0 @ 0.000p

PAF Key Personnel

CEO Cobus Loots
Finance Director Deon Louw

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