Pan African Resources Expansion, Solid Earnings and Dividend, PAN Share Price JSE Up 20%
Pan African Resources delivered record earnings in FY2025, with surging gold prices and new projects propelling both profits and its stock..
Quick overview
- Pan African Resources achieved record earnings in FY2025, driven by rising gold prices and increased production from new projects.
- The company's stock price surged 450% over 20 months, reflecting strong technical momentum and market confidence.
- Pan African plans to eliminate net debt by 2026 while enhancing shareholder returns through dividends and buybacks.
- With ongoing expansion and a favorable market outlook, Pan African is positioned to strengthen its status as a leading mid-tier gold producer in Africa.
Pan African Resources delivered record earnings in FY2025, with surging gold prices and new projects propelling both profits and its stock price to historic highs.
Record-Breaking Year
Rising bullion prices and increased output from new projects helped South African–based Pan African Resources PLC achieve what it called record results for the year ending June 30, 2025. The company’s stock (JSE: PAN) has staged a stunning rally since early 2024, climbing from around R4 to over R18 this week—a gain of 450% in just 20 months. Technical momentum remains strong, with the 20-week SMA continuing to act as reliable support for the uptrend.
PANJ Chart Weekly – MAs Can’t Catch Up
CEO Cobus Loots highlighted that Pan African is well-positioned to benefit from high gold prices in FY2026, calling the metal’s two-year surge a “historic rally” driven by central bank demand, geopolitical uncertainty, and constrained supply.
Financial Strength and Growth Outlook
The company reported robust financial and operational results in FY2025, supported by stronger gold output, healthy cash generation, and continued progress on debt reduction. While cost inflation lifted all-in sustaining costs, the ramp-up of lower-cost operations such as Mogale Tailings Retreatment (MTR) and Tennant Mines in Australia is expected to ease margin pressures going forward. Management reaffirmed its target of eliminating net debt by 2026 while continuing to boost shareholder returns through dividends and buybacks.
Pan African Resources PLC H1 2025 Financial Performance
- Revenue: Up 44.5% YoY to $540mn.
- Profit: Increased 78% YoY to $140.6mn.
- Adjusted EBITDA: Rose 60.5% to $226.6mn.
- EPS: Jumped 72.9% to ZAR 7.16 cents ($0.39c, GBP 0.30p).
- Operating Cash Flow: Strengthened to $154.9mn, from $90.8mn a year ago.
Production Update
- Gold Output: +5.6% YoY to 196,527oz (111,822oz in H2).
- Mogale Tailings Retreatment (MTR): Delivered 22,063oz; targeting 50,000oz in FY2026.
- Tennant Mines (Australia): First gold pour in May 2025; annual output forecast 46,000–50,000oz for the next three years.
- FY2026 Guidance: 275,000–292,000oz total production expected.
Cost Structure
- All-in Sustaining Costs (AISC): Increased to $1,600/oz (from $1,354/oz), above guidance.
- Drivers: Higher underground costs, inflationary pressures, hedge losses.
- Lower-Cost Operations: Represent 85% of production, with AISC $1,425/oz.
- FY2026 Guidance: $1,525–1,575/oz.
Capital Allocation
- Final Dividend: ZAR37/share, up 68% YoY (payout of $48.7mn).
- Share Buyback: Up to ZAR200mn ($11.1mn) approved.
- Net Debt: Reduced to $150.5mn (vs $228.5mn in Dec 2024).
- Target: Zero net debt by June 2026.
Key Operational Projects
- MTR Expansion: Scaling to 1mtpm capacity by FY2026.
- Soweto Cluster Study: Potential output of 50,000–60,000oz/year.
- Evander Mines 8 Shaft: Ramp-up secured 50,000–60,000oz annually for 11 years.
- Barberton Restructuring: Improved grades, reduced dilution.
Strategic Plans and Market Position
Listed on both the Johannesburg Stock Exchange (JSE: PAN) and London’s AIM market (PAF), Pan African stated it plans to channel its earnings windfall into strengthening its balance sheet, expanding in South Africa and Australia, and enhancing dividends. The company is also considering moving its AIM listing to the London Stock Exchange’s main market, a step aimed at attracting a broader investor base and improving market visibility.
Conclusion: With gold prices still bullish, Pan African Resources is capitalizing on favorable conditions by expanding output, reducing debt, and rewarding shareholders. The company’s remarkable stock rally and strategic ambitions suggest it is poised to cement its position as one of Africa’s most resilient mid-tier gold producers.
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