Operational Update, Record Half-Year Gold Production, Substantial Decrease in Group Gearing and Share Buyback Programme
11/06/2025 08:45
Pan African Resources PLC Pan African Resources Funding Company (Incorporated and registered in England and Wales Limited under Companies Act 1985 with registered Incorporated in the Republic of South Africa number 3937466 on 25 February 2000) with limited liability Share code on AIM: PAF Registration number: 2012/021237/06 Share code on JSE: PAN Alpha code: PARI ISIN: GB0004300496 ADR code: PAFRY (“Pan African” or “the Company” or “the Group”) OPERATIONAL UPDATE, RECORD HALF-YEAR GOLD PRODUCTION, SUBSTANTIAL DECREASE IN GROUP GEARING AND SHARE BUYBACK PROGRAMME Pan African is pleased to provide its shareholders and noteholders with an operational update for the financial year ending 30 June 2025 (FY25). KEY FEATURES Regrettably, the Group suffered a fatal accident on 6 June 2025 at Barberton’s Sheba Mine. The Group will continue its focus on various safety performance initiatives in order to improve safety statistics and strive for zero harm Record half year gold production in FY25H2 and a substantial increase when compared to FY25H1. Production for FY25H2 estimated at approximately 112,000oz, representing an increase of approximately 32% when compared to FY25H1 (84,705oz). Substantial reduction in Group gearing with net debt of approximately US$155 million expected as at 30 June 2025, a decrease of US$72 million or 32% compared to 31 December 2024 (net debt of US$228.5 million) – the Group is expected to be fully degeared during FY26 at prevailing gold prices Board approved share buyback programme to purchase up to ZAR200 million (approximately US$11.1 million) of ordinary shares in the market Total full year production for FY25 expected to be approximately 197,000oz (FY24: 186,039oz), an increase in production of approximately 6% compared to the prior financial year. Despite a significant increase in production in H2, full year production will therefore fall marginally below FY25 production guidance range of 205,000oz to 215,000oz as a result of: Slower than expected ramp up of the Evander underground subvertical shaft project, which is now fully commissioned and operational Delays encountered with the commissioning of the filter presses associated with the dry stack landforms (tailings section) of the Tennant Mines plant, resulting in a slower ramp up in production Tennant Mines gold processing plant commissioned on budget and on schedule with steady state production of approximately 50,000oz per annum now expected during the first quarter of FY26 Group all-in sustaining costs (AISC) for FY25H2 estimated between US$1,525 and US$1,550 (previous guidance of US$ 1,450/oz to US$1,500/oz) at an average exchange rate of US$/ZAR:18.50, primarily as a result of lower than expected production following the slower than anticipated ramp up in production at Evander underground and realised losses on the zero cost collar hedges of approximately US$25/oz Group AISC for FY25 is expected to be between US$1,550/oz to US$1,575/oz at an average exchange rate of US$/ZAR:18.50 (previous guidance of US$1,450/oz to US$1,500/oz). This AISC includes the impact of zero cost collar detailed above Production guidance for FY26 of between 275,000oz and 292,000oz, an increase of approximately 40% compared to expected FY25 production at an AISC of between US$1,475 and $1,525 GROUP GOLD PRODUCTION FOR FY25 The notable increase in the Group’s production in FY25H2 is as a result of the following: The successful ramp up at the Mogale Tailings Retreatment (MTR) operation Steady production at Elikhulu and Barberton Tailings Retreatment Plant (BTRP) Improved grades and tonnages following the commissioning of the Evander subvertical shaft Much improved production from all of the Barberton underground operations. Production for FY25 is estimated at approximatley 197,000oz (FY24: 186,039oz), an increase of approximately 6% from the prior financial year. SURFACE OPERATIONS Elikhulu production is estimated at approximately 26,000oz for FY25H2, and is on track for achieving production of more than 52,000oz for FY25 (FY24: 54,812 oz) The MTR operation reached steady state production during December 2024 Production of approximately 21,000oz for FY25H2, with estimated production of approximately 30,000oz for FY25 The expansion of the plant from 800Ktpm to 1Mtpm, with the addition of two carbon-in-leach (CIL) tanks together with the installation of reactors to further improve recoveries, at a total expansion cost of US$6.5 million, is in progress. This will result in an increase in production from 50,000oz to approximately 60,000oz per annum, with the expansion project expected to be completed during FY26 MTR has successfully concluded a three-year wage agreement with its employees at an average wage increase of 5% per annum over the three-year period, providing stability to the operation Soweto Cluster Feasibility Study (FS) is on track for completion by September 2025, with the study focusing on the option of constructing a new processing facility which would be a stand-alone operation also producing approximately 50,000oz per annum BTRP is expected to achieve production of approximately 8,000oz in FY25H2, with full year production of approximately 15,500oz (FY24: 18,888). As previously reported, the remaining life-of-mine (LOM) of the BTRP has now been increased to six years from current surface sources Construction work at Tennant Mines’ Nobles operation, at a cost of US$36 million, was completed with successful hot commissioning during April 2025. An inaugural gold pour from this operation was achieved in May 2025. Production ramp up was slower than expected as a result of a delay in the commissioning of the filter presses associated with the dry stack landforms (tailings section) of the plant. Steady-state throughput at an annualised rate of circa 50,000oz is expected to be achieved during the first quarter of FY26. UNDERGROUND OPERATIONS The sub-vertical hoisting shaft commissioning at the Evander underground operation was completed during January 2025, with ramp-up to its expected hoisting capacity achieved during April 2025, enabling full production from 24-25 levels and production of approximately 27,000oz expected for FY25 Average production for the last two months of FY25 of approximately 3,850oz per month, confirming production capacity of ~50,000oz per annum going forward Barberton Mines The restructuring of the underground operations was successfully completed in May 2025, with an approximate 20% reduction in the overall Barberton workforce Excellent improvement in performance of all underground operations during FY25H2, as follows: Fairview Mine expected production of approximately 22,000oz (FY25H1: 19,096oz), an increase of 15% Consort Mine production is expected to increase by 70% to approximately 5,500oz for FY25H2 (FY25H1: 3,242oz), with this operation now positively contributing to cash flow Sheba Mine production is expected to increase by 20% to approximately 10,600oz (FY25H1: 8,805oz) as a result of access to higher grade mining areas and initiatives to improve productivity. Production of approximately 38,000oz is expected for the Barberton Mines underground operations in FY25H2 (FY25H1: 31,142oz), with full year production of approximately 69,000oz (FY24: 71,470oz). FINANCIAL The Group is expected to be fully degeared (in terms of net debt) in the next 12 months at prevailing gold prices The Group will be unhedged from 1 July 2025, following the expiry of the last zero cost collars at the end of June 2025, and the synthetic forward that matured at the end of February 2025, allowing the Group to fully benefit from prevailing gold prices. Realised losses on these zero cost collars is estimated to have a negative impact on AISC of approximately US$25/oz for FY25H2 The Group expects AISC for FY25H2 of between US$1,525/oz to US$1,550/oz at an exchange rate of ZAR18.50/US$. This represents a significant improvement from the US$1,675/oz for FY25H1, with full year AISC expected to be between US$1,550/oz and US$1,575/oz. AISC guidance for FY26 is between US$1,475 and $1,525, with the following contributing positively to the cost outlook for FY26: Increase in the contribution to Group production from lower cost surface operations, with a full year of production from MTR and Tennant Mines Increased production from Evander underground operations Reduction in the labour cost for the Barberton underground operations, following the successful conclusion of the operation’s restructuring programme Savings arising from the extensive use of renewable energy projects Ongoing efforts to contain costs and reinforcing a culture of cost consciousness. FY26 PRODUCTION GUIDANCE Group production for FY26 is expected to increase substantially, principally as a result of steady-state production at the MTR operation, increased production from Evander underground (following substantial investments in infrastructure and underground development over the last years), as well as the production contribution from Tennant Mines, with production ramp up expected to be completed in the first quarter of FY26. Group production for FY26 is expected to be between 275,000oz and 292,000oz as outlined below:
| Operation | Production Range (oz) |
| Elikhulu | 49,000-51,000 |
| BTRP | 13,000-15,000 |
| MTR | 52,000-54,000 |
| Tennant Mines | 46,000-50,000 |
| Evander underground | 46,000-50,000 |
| Barberton Mines underground | 69,000-72,000 |
| Total | 275,000-292,000 |
| Corporate information | |
| Corporate Office The Firs Building 2nd Floor, Office 204 Corner Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 info@paf.co.za | Registered Office 107 Cheapside, 2nd Floor London, EC2V 6DN United Kingdom Office: + 44 (0)20 3869 0706 jane.kirton@corpserv.co.uk |
| Chief Executive Officer Cobus Loots Office: + 27 (0)11 243 2900 | Financial Director and debt officer Marileen Kok Office: + 27 (0)11 243 2900 |
| Head: Investor Relations Hethen Hira Tel: + 27 (0)11 243 2900 E-mail: hhira@paf.co.za | Website: www.panafricanresources.com |
| Company Secretary Jane Kirton St James's Corporate Services Limited Office: + 44 (0)20 3869 0706 | Nominated Adviser and Joint Broker Ross Allister/Georgia Langoulant Peel Hunt LLP Office: +44 (0)20 7418 8900 |
| JSE Sponsor & JSE Debt Sponsor Ciska Kloppers Questco Corporate Advisory Proprietary Limited Office: + 27 (0) 63 482 3802 | Joint Broker Thomas Rider/Nick Macann BMO Capital Markets Limited Office: +44 (0)20 7236 1010 |
| Joint Broker Matthew Armitt/Jennifer Lee Joh. Berenberg, Gossler & Co KG (Berenberg) Office: +44 (0)20 3207 7800 | |
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