Pan African Resources’ share price rises as profits soar by over 200%

Pan African Resources’ share price continued a 12-month rally with its price shooting up 5.1% on Wednesday after the release of results showing profit soared by over 200%.

Gold production increased by 51.5% in the six months to December 31, while profit soared by 211.9% to a record $147.8 million after benefiting from the higher gold price.

The share price traded 5.2% higher at R32.01 on Wednesday afternoon on the JSE, extending a rally from R8.30 a year ago.

Production from underground and surface tailings mining came 128,296 ounces, with the group was on track to meet its full-year production guidance range of between 275 000oz and 292 000oz.

 Revenue increased substantially by 157.3% to $487.1m, with a 61.6% increase in the dollar gold price received to US$3812/oz, compared to prevailing gold prices of about $5 000/oz.

Net cash generated from operating activities increased by $174.1m to US$170.9m, resulting in a big reduction in net debt of 69.3% to $46.2m, compared to $150.5m at June 30, 2025. Headline earnings per share (HEPS) increased by 511.7% to US 7.34 cents.

The board declared an interim cash dividend of $17.4m, which amounts to 12 South African cents, or $0.07, a share. The group’s lower-cost operations, which account for 88% of group production, recorded all in sustained costs (AISC) of $1 700/oz.

The group said it is well positioned to continue its trajectory of near-term, and fully funded production growth. 

Tennant Mines in Australia was expected to grow gold production by about 100% (to approximately 100Koz per annum) over the next three years), while Mogale Tailings Retreatment’s (MTR) Soweto Cluster bankable feasibility study was expected to be completed in the coming months.

Barberton Mines’ Royal Sheba project, following an independent review of the current feasibility study, would require a relatively minimal upfront capital investment of some $11m in its first year, with the project expected to be self-funding thereafter.

Additionally, Evander Mines’ Poplar project (28.7Mt at 6.99g/t for 6.46Moz in mineral resources) will undergo an advanced prefeasibility study (PFS) within the calendar year to assess potential access approaches for this shallow deposit.

Barberton Mines’ underground production increased by 5.2% to 3 774oz, and Barberton Tailings Retreatment Plant (BTRP) production remained stable at 7 143oz.

The Elikhulu Tailings Retreatment Plant (Elikhulu) saw production rise 14.5% to 29 450oz. 

Production at Evander Mines’ operations improved substantially by 87.3% to 21 640oz and was expected to increase further with higher mined tonnages.

The MTR operation performed at steady state, with production of 21 729oz, about 10% lower than expected, as a result of mined grades and recoveries impacted by the current mined area.

Tennant Mines achieved steady-state throughput, with production of 15 560oz. Production was anticipated to increase to about 30 000oz as higher-grade ore from open pits replaces lower-grade feed from the Crown Pillar Stockpile. 

BUSINESS REPORT