Pan African Resources transitions to main market listing as gold prices reach record highs

Pan African Resources on Monday announced its intention to transfer its listing from the Alternative Investment Market (AIM) to the main market of the London Stock Exchange (LSE) in a bid to tap into a larger pool of investors and breathe impetus into the stock’s liquidity.

The shift comes at a propitious time as current elevated gold prices are proving beneficial for producers within the sector.

Shares in the company surged 9.27% to R18.03 in afternoon trade on the JSE on Monday, extending the stock’s 11.94% and 11.34% appreciation in the past seven and 30 days, respectively.

Gold prices on Monday rose to above $3 600 per ounce, a new high for the precious metal currently viewed as a safe-haven asset.

Pan African Resources and other South African gold producers have been benefiting from the higher gold price despite drawbacks from higher production costs.

“We are currently befiting from the strong gold price environment which we expect will enable us to be fully de-geared (from a net debt perspective) during the course of FY26,” said Cobus Loots, the Pan African Resources CEO.

The company has also been on a production expansion project. It believes that the move from AIM to the main market will enable it to “access a deeper pool of capital and enhance liquidity for the group as we continue our ambitious growth” strategy.

Greg Davies, head of wealth at Cratos Capital, said the switch to the London Stock Exchange main market will also “enhance its corporate profile,” with the transition expected to occur before the end of this year and still subject to regulatory approvals.

“Our proposed listing on the main market of the London Stock Exchange represents a natural continuation of Pan African’s growth. Over the last decade, we have consistently grown both organically and through acquisitions whilst returning capital to our loyal shareholders,” said the company.

Currently, Pan African operates high-margin, quality assets across South Africa and Australia.

The company is poised to increase its annual gold production for the financial year ending 30 June 2026 to between 275 000 ounces and 292 000 ounces, marking a considerable increase of approximately 40% compared to the previous financial year’s output.

The production by Pan African Resources, which reports full year financials this week,  is “completely unhedged from 1 July 2025,” with the company able to fully benefit from the current record high gold prices.

Under the move to the LSE main market, Pan African will not be seeking to raise any funds or offer any new securities. The proposed admission will be effected through an introduction of the company’s existing ordinary shares and will have no impact on the Company’s listing on the JSE, it explained.

“For the avoidance of doubt, following the proposed admission, the company will be dual primary listed on the main market and the main board of the JSE,” said Pan African Resources. 

“Admission is subject, among other things, to the approval by the FCA of a prospectus and the ordinary shares being admitted by the FCA to the ESCC category of the Official List and by the London Stock Exchange to trading on the main market.” 

According to Loots, Pan African Resources has diversified its production base from predominantly older underground mines to a more balanced portfolio of surface and underground assets.

The company said earlier that it was positioned for improved production in the half year to June, with significant increases in production expected for FY2026.

It commissioned its Mogale Tailings Retreatment (MTR) operation ahead of schedule during the half year to December, saving some $8 million on the upfront project capital.

The MTR project is a tailings re-treatment asset that will produce approximately 50 000 ounces of gold per year over a period of at least 20 years.

BUSINESS REPORT