PAN African Resources said on Thursday it would report a tripling in full year headline earnings after increasing gold production amid a 54.8% increase in the average gold price.
The Johannesburg-headquartered miner increased gold production 38.3% to 272,373 ounces in the 12 months ended June – the lower end of guidance – which was sold at an average price of $4,235/oz. It reported all-in sustaining costs of $1,870/oz, which was at the upper end of forecast costs for the year.
Despite testing the edges of guidance, the group expected stand-out headline earnings per share of between 17.35 US cents and 17.94 US cents. This compares to 5.89 US cents per share in the previous financial year and represents a 195% to 205% year-on-year improvement.
These are days of plenty for Pan African which said in an operational update in June that it had surged back into net cash after reporting net debt of $46.2m at the close of the 2025 financial year. Projected total cash was $220m for the year under review, but the net cash position was not disclosed.
For the 2027 financial year, the firm expects to mine between 280,000 oz and 302,000 oz, largely attributable to increased production from Tennant Mines (although the Tennant Creek mine reported slower-than-expected production ramp-up in the period under review).
Pan African also significantly hiked its cost forecast: AISC has been guided to between $2,075 and $2,175/oz owing to above-inflation increases for reagents and electricity, along with other “key inputs”, it said in June.
In the period under review, the company spent $7m securing cyanide, hinting at the pressure being placed on supply chains amid Middle East tensions.
During the year, Pan African bought out the 25% balance of Tennant Creek after offering shares worth £163m (A$311m) to minority shareholder Emmerson Resources. Pan African also listed its shares on the Australian Securities Exchange.
Shares in Pan African Resources are 62% higher over the last 12 months. Year-to-date, the stock is 9% higher. The group is due to report its year-end numbers on September 16.
