Since being brought in as chief executive of AIM listed mining group Pan African Resources Plc (LON:PAF) in 2005, Jan Nelson has overseen a transformation in the group’s fortunes from a fledgling explorer to mid-tier gold producer. Central to his achievement was the 2007 acquisition of a majority stake in South Africa’s Barberton Mines, which has helped to drive up group profits by 91% during the past three years. With other assets including the Manica gold project in Mozambique and near-term plans to begin producing platinum group metals, Nelson is keen to expand Pan African’s operations and is continuing to explore additional deals.

Last month the group unveiled a 29% rise full year revenues from gold sales to £68.5m, with earnings rising by 9.1% to £25.0m. The figures followed a year in which Pan African consolidated its hold on the flagship Barberton Mines by acquiring the outstanding 26% stake from its black economic empowerment partner Shanduka Resources, in return for shares. As part of an operational restructuring, Pan African also bought out a management contract for Barberton from previous shareholder Metorex (JSE:MTX) in a move that also paid off Pan African’s acquisition of Phoenix Platinum in South Africa. Phoenix is Nelson’s next major play, and a move that will see the group diversify into producing platinum group metals from tailings in South Africa’s Bushveld Igneous Complex, where the likes of Aquarius Platinum Limited (LON:AQP) , Jubilee Platinum (LON:JLP) and Caledonia Mining Corp (LON:CMCL) are active.

Jan Nelson spoke to Stockopedia about the continuing success of the Barberton Mines operation and his plans to expand Pan African Resources even further.

Jan, since taking the reigns as CEO of Pan African back in 2005, what have been the key moments that have got the company where it is today?

I think the defining moment for the company was certainly when it acquired a 74% stake in Barberton Gold Mines. I don’t think that distracts from what the company did before, because I think we did some good work on the Manica deposit, but I think Barberton redefined the company, that’s what gave us our cash flow and I think put us in the position we are in now.

Can you tell me a bit more about Barberton – what factors have…

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