Pan African Resources (PAF)

Sector:

Mining

Index:

FTSE AIM 100

24.40p
   
  • Change Today:
    -0.20p
  • 52 Week High: 25.00
  • 52 Week Low: 12.02
  • Currency: UK Pounds
  • Shares Issued: 2,222.86m
  • Volume: 736,828
  • Market Cap: £542.38m
  • RiskGrade: 255

Pan African reports increased first-half gold production

By Josh White

Date: Monday 22 Jan 2024

LONDON (ShareCast) - (Sharecast News) - Pan African released a production update for the first half of its financial year on Monday, reporting an improved safety performance, increased gold production, and progress on the Mogale Tailings Retreatment (MTR) Project.
The AIM-traded company reported a notable improvement in safety, with a decline in the total recordable injury frequency rate (TIFR) to 6.13 per million man-hours for the six months ended 31 December, down from 8.54 in 2022.

Gold production exceeded expectations, including at Barberton Mines underground, Evander Mines underground, Elikhulu tailings retreatment, Barberton tailings retreatment plant (BTRP), and Evander Mines' surface sources.

Pan African maintained its production guidance for the full year at between 180,000 and 190,000 ounces.

Additionally, production for 2025 was expected to significantly increase following the commissioning of the MTR Project, adding around 50,000 ounces per year to the group's output, making for a 25% increase.

The firm's all-in sustaining costs (AISC) for the reporting period were expected to be around $1,300 per ounce, thanks to effective cost control, improved gold production and favourable exchange rates.

Group net senior debt increased to $60m due to capital expenditure on the MTR Project and a dividend payment to shareholders in December.

Progress on the MTR Project's processing plant remained on track, with commissioning expected in the latter half of 2024 and steady-state production anticipated by December.

The construction was proceeding according to schedule and within budget, with key milestones achieved.

Progress at Evander Gold Mine's 24 to 26 level underground expansion project was meanwhile on track, including the construction of phase two of the refrigeration plant, development to access 25 and 26 level mining areas, and equipping the 17 level underground ventilation shaft.

On the environment, social and governance (ESG) front, Pan African said the construction of Fairview Mine's 8.75MW solar energy plant was progressing, with commissioning expected in June.

Community social and labour plan projects were continuing to benefit local communities and schools.

Environmental rehabilitation efforts, including cleaning up historical spillages, removing derelict pipelines, eradicating alien vegetation, and wetlands remediation, were said to positively impact local living conditions.

"We are pleased with the group's excellent safety, production and cost performance for the reporting period, which positions us well to deliver on our guidance for the full financial year," said chief executive officer Cobus Loots.

"Commissioning of the world-class processing plant at the MTR Project towards the end of this calendar year will further increase the group's production with approximately 50,000 oz per year of high margin ounces."

Loots said the commissioning of Barberton's solar photovoltaic plant would contribute to further cost savings in the next financial year, adding to the benefits already being realised from Evander's PV solar plant.

"We are also excited by the positive and tangible impact the group's ESG projects have made on improving relationships with our host communities and contributing to the sustainability of these areas."

At 1310 GMT, shares in Pan African Resources were up 4.73% at 16.38p.

Reporting by Josh White for 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 24.40p
Change Today -0.20p
% Change -0.81 %
52 Week High 25.00
52 Week Low 12.02
Volume 736,828
Shares Issued 2,222.86m
Market Cap £542.38m
RiskGrade 255

PAF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
69.91% above the market average69.91% above the market average69.91% above the market average69.91% above the market average69.91% 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
88.43% above the market average88.43% above the market average88.43% above the market average88.43% above the market average88.43% above the market average
86.01% above the sector average86.01% above the sector average86.01% above the sector average86.01% above the sector average86.01% above the sector average
Income
50.44% above the market average50.44% above the market average50.44% above the market average50.44% above the market average50.44% above the market average
Sector averageSector averageSector averageSector averageSector average
Growth
81.77% below the market average81.77% below the market average81.77% below the market average81.77% below the market average81.77% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% 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 15-Apr-2024

Time Volume / Share Price
10:03 50,000 @ 24.30p
10:02 4 @ 24.41p
10:00 14,000 @ 24.31p
09:56 5,000 @ 24.33p
09:46 4 @ 24.45p

PAF Key Personnel

CEO Cobus Loots
Finance Director Deon Louw

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