Pan African Share Price JSE: PAN Accelerates Uptrend as Record H1, Gold Rally Lift Profits
As new project ramp-ups and soaring gold prices contributed to the company's impressive interim earnings, Pan African Resources plc shares..
Quick overview
- Pan African Resources plc achieved record interim results for H1 2025, with gold production increasing by over 50% and revenue surging 157% to $487 million.
- The company's stock has risen dramatically, climbing from around R4 to over R33.75, reflecting a gain of more than 800% in two years.
- Management expects to be net debt-free by the end of the month and has reiterated full-year production guidance of at least 275,000 ounces, potentially reaching 300,000 ounces next year.
- Despite strong performance, the company faces potential headwinds from cost inflation and currency fluctuations, which could impact future earnings.
As new project ramp-ups and soaring gold prices contributed to the company’s impressive interim earnings, Pan African Resources plc shares have surged to all-time highs.
Record Interim Performance
Pan African Resources reported record results for the first half of its financial year, supported by a sharp rise in the gold price and a substantial increase in production. Output rose by more than 50%, reflecting the successful ramp-up and integration of two newer operations: Mintails Tailings Retreatment (MTR) in South Africa and Tennant Mines in Australia.
Management noted that the group is benefiting from what it described as “the highest gold prices in history,” while remaining entirely unhedged. This positioning allows full exposure to prevailing bullion prices but also leaves the company more sensitive to any downside volatility. The company expects to be net debt-free by the end of the month, underscoring rapid deleveraging supported by strong cash generation.
During the period, Pan African also transitioned to the London Main Market and secured inclusion in the FTSE 250 index, steps that may broaden its investor base and improve liquidity.
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 H1 ending December 31, 2025. The company’s stock (JSE: PAN) has staged a stunning rally since early 2024, climbing from around R4 to over R33.75 on Wednesday—a gain of nearly 11% daily and more than 800% in two years. Technical momentum remains strong, with the 20-daily SMA continuing to act as reliable support for the uptrend.
PANJ Chart Daily – MAs Can’t Catch Up
Production Outlook and Expansion
Management reiterated full-year production guidance of at least 275,000 ounces, with output weighted toward the second half. This is expected to be driven by the completion of expansion work at MTR, higher-grade open-pit processing at Tennant, and improved access to higher-grade areas at Evander Underground.
Looking ahead, the company indicated that next financial year’s production could approach 300,000 ounces, largely supported by continued ramp-ups at MTR and Tennant.
Pan African Resources plc – H1 Results Overview
Record Interim Performance
- Gold production: Increased by more than 50% year-on-year in H1.
- Revenue: Surged 157% to $487 million.
- Earnings: Rose 207% to $148 million.
- Operating cash flow (before items): Jumped 588% to $260 million.
- The group remains entirely unhedged, maintaining full exposure to prevailing gold prices.
- Management expects the company to be net debt-free by month-end, reflecting strong deleveraging momentum.
Costs and Updated Guidance
- H1 All-in Sustaining Cost (AISC): $1,874 per ounce, above initial guidance.
- Revised full-year AISC guidance: $1,820–$1,870 per ounce.
Cost pressures attributed to:
- Strength in the South African rand.
- Share-based payment expenses.
- Higher royalty charges.
- Increased third-party processing costs.
Despite elevated group-level costs, approximately 90% of the portfolio operated at around $1,700 per ounce, indicating underlying operational efficiency at core assets.
Growth Pipeline and Capital Allocation
- Production ramp-ups at MTR and Tennant underpin full-year guidance of at least 275,000 ounces, with a target closer to 300,000 ounces next year.
Expansion initiatives being accelerated include:
- Increased throughput at Tennant.
- Soweto tailings project (Pre-Feasibility Study phase).
- Development at Poplar.
Debt and Dividend
- Net debt reduced by more than $180 million during the period.
- An interim dividend of 12 South African cents per share was declared, signaling confidence in cash generation.
A Strong Position, with Caveats
While operational momentum is clear, cost inflation and currency fluctuations remain potential headwinds. Sustaining growth will depend on disciplined execution, cost management, and stable gold prices. Should bullion prices soften, the company’s unhedged exposure could amplify earnings volatility, tempering what has otherwise been a period of record performance.
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