Pan African Resources
The financial year to end-June was a miserable one for Pan African during which debt soared and the company was forced to pass its annual dividend. While Loots reckons the worst is now behind the group, the market does not appear to be listening judging by the lacklustre performance of the share price. The stock halved from 251 South African cents in January last year to a low of 105c in April and has been range-bound around 150c to 160c since. That is despite Loots’ doing his best to talk up Pan African’s prospects with the discovery of a high-grade resource at its Royal Sheba mine at Barberton. “There’s no resource like this anywhere in South Africa,” declared Loots in September. His shareholders remained unimpressed and, at the AGM in November, 51.4% of them voted against the company’s executive remuneration policy along with a standard resolution to issue shares without having to seek prior shareholder approval. They must be really smarting from that passed dividend. Last year, Pan African ceased underground mining at Evander but, on the positive side, brought the Elikhulu surface dump retreatment operation into production. Loots says he is confident of achieving production guidance for the year to June of 170,000 ounces. If he delivers on that then his shareholders will start to believe in the company prospects again.
“Pan African will be able to resume its attractive dividends in the near future.”
LIFE OF COBUS
He’s an accountant who qualified as a CA with Deloitte & Touche before moving into mining industry via Shanduka, South African President Cyril Ramaphosa’s former mining investment company. Loots was also MD of Shanduka Resources which was Pan African’s BEE partner. He was appointed financial director of Pan African in 2009 and became CEO in March 2015 replacing Ron Holding who retired.
- Web Address: www.panafricanresources.com