Pan African reports strong set of full-year results

The AIM-traded firm said profit for the year grew 30.2% to $78.8m, while headline earnings rose 32.1% to $79.5m.

Earnings per share also increased by 32.1%, reflecting the company’s continued financial strength.

However, net cash generated from operating activities declined to $90.8m, and net debt increased to $106.4m, largely due to the construction of the Mogale Tailings Retreatment (MTR) project.

The company proposed a final dividend of 22 South African cents per share - around 1.21 US cents - for shareholder approval at its upcoming annual general meeting.

On the operational front, Pan African said its gold production rose 6.2% to 186,039 ounces, in line with guidance.

Notable improvements were seen at Barberton Mines and Elikhulu Tailings Retreatment Plant, with production increasing by 13.5% and 8.4%, respectively.

In terms of costs, all-in sustaining costs (AISC) for the year stood at $1,354 per ounce, slightly above guidance due to delays in commissioning Evander Mines' subvertical hoisting shaft.

Looking ahead, Pan African said it expected AISC for 2025 to range between $1,350 and $1,400 per ounce.

The company also said it was making significant progress on key growth projects, with the MTR project, valued at $135.1m, expected to reach steady-state production by December, ahead of schedule and under budget.

It said the Barberton Tailings Retreatment Plant’s life had been extended by five years, reinforcing the company’s long-term surface remining operations.

Additionally, the Evander Mines expansion project was scheduled for completion by September, which would improve mining efficiencies.

For the 2025 financial year, the firm said it expected gold production to range between 215,000 and 225,000 ounces, supported by the MTR project, though the delay in the Evander Mines subvertical shaft could impact output by around 5,000 ounces.

“I am extremely pleased to report on Pan African’s achievements and outstanding financial results for the past year,” said chief executive officer Cobus Loots.

“Furthermore, the group is now poised to deliver on our next phase of value-accretive production growth at the MTR project, a testament to Pan African’s ability to continue to create value for all its stakeholders.

“With the additional production from the MTR project, our group will be firmly positioned as a mid-tier producer, with production growing by approximately 25% and a commensurate reduction in the group’s unit costs of production - a feat that larger gold miners may find difficult to emulate, given the scale of their operations.”

At 1416 BST, shares in Pan African Resources were down 1.18% at 29.3p.

Reporting by Josh White for Sharecast.com.