PAN African Resources has listed its shares in New York in an effort to extend its international appeal. The move comes amid strong gains in the gold market as central bank stimulus generates interest in bullion’s store of wealth properties.
The Johannesburg- and London-listed firm said in a statement today it had established a sponsored level ADR (American Depository Receipt) programme on the over-the-counter market in the US. Each depository receipt will be equal to 20 ordinary Pan African shares.
“Pan African has a strong shareholder base in South Africa and in the United Kingdom,” said Cobus Loots, CEO of Pan African in a statement. The ADRs would make the share more accessible to international investors and joins peer group companies such as DRDGOLD and Harmony Gold which have ADRs.
Shares in Pan African Resources have more than doubled since mid-March when the South African government imposed a hard five-week lockdown. At R4 per share in Johannesburg, the stock is rivalling its all-time higher of R4.35/share in mid-2016.
The dollar price of gold is 10% higher over the last 90 days; in rand terms, the gold price is virtually flat, but on a year-to-date basis, it is 35% higher.
In May, Pan African forecast a 5% reduction in gold production to 176,000 ounces for its 2020 financial year which ended on June 30. Pan African had guided production at 185,000 oz for this year compared to 171,706 oz in its 2019 financial year.
No mention was made in the update of making a change to the firm’s dividend which was re-introduced in September.