REG-Pan African Resources Plc: Operational Update ahead of year ending 30 June 2026
Today 07:02
Pan African Resources PLC (Incorporated and registered in England and Wales under the Companies Act 1985 with registered number 3937466 on 25 February 2000) Share code on LSE: PAF Share code on JSE: PAN ISIN: GB0004300496 ADR ticker code: PAFRY (‘Pan African’ or the ‘Group’ or the ‘Company’) Pan African Resources Funding Company Limited Incorporated in the Republic of South Africa with limited liability Registration number: 2012/021237/06 Alpha code: PARI
OPERATIONAL UPDATE AHEAD OF YEAR ENDING 30 JUNE 2026
Pan African is pleased to provide its shareholders and noteholders with an
operational update ahead of the financial year ending 30 June 2026 (FY26).
HIGHLIGHTS
* Improvement in safety statistics with continued focus on safety
initiatives
* Record annual and half-year gold production *
Increase of ~40% in annual gold production to approximately 275,000oz, in
line with the lower end of FY26 production guidance of 275,000oz to 292,000oz
(FY25: 196,527oz)
* Material increase in gold production in FY26H2 compared to
FY26H1 (~14% increase) to 147,000oz (FY26H1: 128,296oz)
* Excellent production performances from the Elikhulu
Tailings Retreatment Plant (Elikhulu) and Mogale Tailings Retreatment (MTR)
surface operations and the Evander and Barberton Mines underground operations
offset slower than anticipated ramp up of production from Tennant Mines
* Tennant Mines FY27 production expected to increase
significantly as the operation commences mining of the White Devil deposit
* Despite inflationary pressures, the Group is expected to achieve
full-year all-in sustaining cost (AISC) guidance of US$1,870/oz (at an
exchange rate of US$/ZAR:17.00)
* Record operating cash flow generation with Group projected cash
position of ~US$220 million at the end of FY26 *
Impacted by strategic investment of US$10.3 million in CuFe Limited and
securing strategic cyanide supplies (US$7.0 million)
* The Group is now in a net cash position (net debt of US$46.2
million at 31 December 2025), with the only outstanding debt being the
domestic medium-term notes (DMTNs) of US$49.7 million
* Measures in place at all operations to mitigate potential fuel
and reagent shortages resulting from Middle East conflict
* FY27 production guidance of 280,000oz-302,000oz at an AISC of
between US$2,075/oz and US$2,175/oz (at an exchange rate of US$/ZAR:17.00)
* AISC estimates allow for above inflation increases for
reagents, electricity and other key inputs
* Further production increases are expected in later years,
primarily driven by production growth from Tennant Mines and the Mogale
Tailings Retreatment (MTR) surface operations
* The proposed acquisition of Emmerson Resources Limited
(Emmerson) to consolidate the Tennant Creek mineral field is expected to be
concluded during July 2026.
PRODUCTION
* Record Group gold production * Increased
throughput and gold recoveries at MTR, an excellent production performance
from Elikhulu together with improved mining grades and orebody accessibility
at the Evander and Barberton Mines underground operations offset lower than
anticipated ramp-up of production from Tennant Mines
* At Tennant Mines in Australia, blending of open pit ore sources
with historic Crown Pillar Stockpile (CPS) material resulted in the head grade
improving to ~1.5g/t (FY26H1: 1.3g/t). During the last quarter of FY26 the
operation is expected to achieve annualised gold production of approximately
45,000oz * Capital allocated to the Nobles plant
for a fixed crusher circuit, secondary mill and a belt filter for dry stack
tailings as well as mining of the White Devil deposit to improve future
production, with forecast FY27 production guidance of between 48,000-52,000oz.
Surface operations
* Production at MTR improved substantially in FY26H2. The
previously reported calcine layer identified in the source material continues
to impact both grade and recoveries. The operational plan, however,
anticipates mining through the last of the calcine material during the FY27Q1
production period * Production is expected to reach
approximately 30,500oz for FY26H2, delivering an
estimated production of ~52,000oz for FY26
* The Soweto Cluster definitive feasibility study (DFS) is on
track for completion by June 2026, with the study focusing on the option of
constructing a new tailings processing facility with a capacity of 600ktpm,
adjacent to MTR, which would be a stand-alone operation producing
approximately 30,000oz to 35,000oz per annum with a life-of-mine of 15 years
* Environmental approvals and processing of water use
licence applications are in progress. The Company is currently also in the
process of identifying and concluding the required pipeline servitudes from
the Soweto Cluster tailings storage facilities to the MTR plant site
* The study for the expansion of the MTR plant to include a
separate circuit for the treatment of hard rock ore from local surface
material is being finalised and could potentially further increase annual
production from the MTR complex by 20,000oz to 30,000oz
* Elikhulu production is estimated at approximately 27,000oz for
FY26H2, with the operation on track for achieving gold production of more than
56,500oz for FY26 (FY25: 52,606 oz). This is the highest production rate at
Elikhulu since FY20, when production reached 59,616oz
* The Barberton Tailings Retreatment Plant (BTRP) is expected to
achieve production of approximately 5,500oz in FY26H2, with full year
production of approximately 13,000oz (FY25: 15,224oz).
The reduced production is in line with the mine plan *
The addition of a flotation circuit to improve recoveries has been approved at
a cost of ~US$5.9 million. The project is anticipated to be completed by the
end of calendar year 2026. This will also enable the BTRP to treat refractory
ore types in future
* The Group is further advancing its studies and designs for the
installation of a crusher circuit at the BTRP to allow for the processing of
hard rock from Royal Sheba
* Tennant Mines is expected to produce approximately 18,500oz in
FY26H2, a 19% increase in production from FY26H1 (15,560oz). Full-year
production for FY26 is estimated at ~34,000oz * In
FY26H2 engineering works were completed on both the ball mill and the filter
presses at the Nobles plant, which enhanced throughput and improved
efficiencies
* An increase in grade was achieved as the mining operations
progressed from only treating CPS material in FY26H1 at 1.3g/t to processing a
blend of this material with fresh ore from the Weaber’s Find, Rising Sun and
Nobles open pits in FY26H2 at ~1.5g/t
* The Group is planning increased capital expenditure in FY27 at
Tennant Mines to further enhance the Nobles plant efficiencies and increase
throughput while also expediting mining at the large-scale White Devil open
pit, which contains Indicated Mineral Resources of over 3Mt at 3.73g/t
(378koz) in the current open pit envelope. The White Devil orebody remains
open at depth and on strike
* The Group will also commence with the development of two large,
shallow and high-grade underground sections at Juno (Indicated and Inferred
Mineral Resource of 1.96Mt at 4.16g/t for 262koz) and Golden Forty (Indicated
and Inferred Mineral Resource of 0.5Mt at 7.25g/t for 114koz), which together
with White Devil, will underpin gold production at Tennant Mines over the next
five years.
Underground operations
* FY26H2 gold production at Evander Mines’ underground complex is
estimated at 25,000oz, a 16% increase (FY26H1:21,640oz). Production of
~47,000oz is anticipated for the full year, representing a 68% increase
year-on-year. The substantial increase in production is attributed to:
* Evander Mines’ 8 Shaft underground development reaching the
high-grade 24 Level B-Raise line, resulting in the average recovered grade
increasing to more than 11g/t in FY26 (from 6.8g/t in FY25). Additionally,
development has advanced to the adjacent 24 Level A-Raise line with persistent
high-grade mineralisation. These two Raise lines will continue to yield the
bulk of the ore tonnage to be processed at Evander Mines in FY27
* Development on the 25 Level access haulage has commenced and is
progressing according to plan
* Increased sourcing of third-party surface material treated
through a dedicated circuit within Evander Mines’ Kinross metallurgical
plant will yield circa 3,000oz gold (170,000t at 1.2g/t in FY26 (FY25: 34,411t
at 1.1g/t)
* Barberton Mines * FY26H2 production of
approximately 39,500oz is expected for the Barberton Mines underground
operations (FY26H1: 32,774oz), with full year production of approximately
72,000oz (FY25: 68,550oz), an increase of 5%.
FINANCIAL
* The Group is now fully degeared from a net debt perspective,
compared to net debt of US$46.2 million at 31 December 2025, with the only
current outstanding debt being the DMTNs of US$49.7 million
* Group AISC for FY26 is expected to be in line with the higher end
of guidance at approximately US$1,870/oz at an average exchange rate of
US$/ZAR:17.00, excluding any year-end adjustments for share-based payment
liabilities and other accounting adjustments
* The Group remains fully unhedged
FY27 PRODUCTION GUIDANCE
Improved production contribution from Tennant Mines is expected following CIL
plant infrastructure upgrades and accelerated access and development plans at
the White Devil open-pit and shallow underground operations at Juno and Golden
Forty deposits.
Group production for FY27 is expected to be between 280,000oz and 302,000oz as
outlined below:
Operation Production range (oz)
Elikhulu 48,000-52,000
BTRP 12,000-14,000
MTR* 50,000-54,000
Tennant Mines 48,000-52,000
Evander Mines underground 50,000-55,000
Barberton Mines underground 72,000-75,000
Total 280,000-302,000
* Expected production from MTR takes into account
treatment of final calcine elements, whereafter annual production is forecast
to increase to over 60,000oz/year
CAPITAL EXPENDITURE
Total capital expenditure for FY26 is forecast at US$180 million and now
includes:
* US$10 million for expedited development of the White Devil
deposit at Tennant Mines
* solar plant construction costs of ~US$8 million at
Tennant Mines
* ~US$3 million to finalise feasibility studies for the Soweto
Cluster DFS.
Given the sustained high gold price environment, the Group is expediting
several initiatives to grow gold production further and reduce AISC over the
next years. The Group’s capital expenditure guidance for FY27 has been
revised to US$324 million, as detailed in the table below (up from US$267
million previously guided).
This increase is mainly driven by expediting the development of the White
Devil open pit and the installation of a fixed crusher circuit and filter belt
at the Nobles plant to support current and future production growths, as well
as fast-tracking exploration. Additionally, construction costs for the
renewable energy projects have also been finalised and included in the revised
capital expenditure.
Operation Expansion capital (US$ million) 4 Sustaining capital (US$ million)
Elikhulu 2 2
BTRP 8 1
MTR 1 46 4
Tennant Mines 140 7
Evander underground 2 50 0
Barberton Mines underground 3 20 28
Evander phase 2 and Tennant Mines solar plants 16 0
Total 282 42
1 Includes capital to construct new tailings
deposition capacity and install a mill to increase gold production further.
2 Includes capital for ongoing capital
development, equipping of 25 Level and capitalised working costs.
3 Includes capital to construct new tailings
deposition capacity as well as ongoing capital development (mainly for the
Fairview and Western Cross orebodies).
4 Excludes capital for the Soweto Cluster,
Poplar, Royal Sheba and certain environmental, social and corporate governance
(ESG)-related projects.
CONTINGENCY PLANNING
In light of the continuing unrest in the Middle East, the Group has secured:
* a rolling three-month supply of cyanide at all South African
operations
* one-month on-site storage of diesel fuel reserves at Tennant
Mines.
EXPLORATION
The Group continues to advance its exploration strategy with a focus on
converting Inferred Mineral Resources into Mineral Reserves, identifying
extensions at known deposits at Tennant Mines and drill testing new targets
* At Tennant Mines, exploration will be directed towards more than
10 targets identified through the regional geophysics programme completed in
FY26, while the programme itself will be further expanded. Key activities
include: * a regional soil sampling programme
comprising approximately 6,000 samples across up to 13 anomalous targets
* diamond and reverse circulation drilling programmes at Chariot,
Golden Forty, Juno and White Devil
* regional reverse circulation drilling across several additional
targets
* advancing project studies and approvals for known deposits to
support their inclusion in the life-of-mine plan.
PROPOSED ACQUISITION IN AUSTRALIA OF EMMERSON RESOURCES LIMITED (ASX:ERM)
(EMMERSON) 1 AND
ACQUISITION OF STRATEGIC STAKE IN CuFe LIMITED (ASX:CUF) (CuFe)
* The acquisition of Emmerson consolidates the Group’s position
in the prospective Tennant Creek mineral field in the Northern Territory,
Australia. The successful conclusion of the transaction will deliver
100%-ownership of a strategic asset and eliminates the complexity associated
with the existing joint venture arrangements * As part
of the transaction, Pan African will also undertake an Australian Securities
Exchange (ASX) listing, reflecting its long-term commitment to the Australian
market
* The Scheme Meeting of Emmerson shareholders to approve the
Scheme will be held on Monday, 15 June 2026. Subject to the conditions of the
Scheme being satisfied, or waived (as permitted), the Scheme is expected to be
implemented in accordance with the following indicative timetable:
Event Indicative dates*
Scheme meeting Monday, 15 June 2026
Second court date Friday, 19 June 2026
Effective date Monday, 22 June 2026
Scheme record date Wednesday, 24 June 2026
Implementation date Wednesday, 1 July 2026
* All stated dates are indicative only and subject to
change. Any changes to the above timetable will be announced and will be
available under Pan African’s and Emmerson’s profiles on their relevant
exchanges .
* On 19 May 2026, the Group acquired a 15% strategic investment in
ASX-listed CuFe for ~A$15.35 million. CuFe’s advanced Gecko and Orlando
projects have synergies with the Group’s Warrego project, which is the
largest copper and gold resource in Tennant Creek and with historical
production from these projects previously having been processed jointly. In c
onnection with the Group’s investment, CuFe has committed to form a
technical working group, comprising representatives of Pan African, to
investigate (amongst other things) potential synergistic benefits associated
with the development of these projects.
1 Further details are included in the Stock Exchange News
Service/Regulatory News Service announcements of 9 March 2026 and 8 May 2026
Cobus Loots, Pan African’s chief executive officer, commented:
It has been an exceptional year for Pan African Resources, with the Group set
to achieve its record gold production target, increasing gold output by some
40% year-on-year. Financially, the Group has never been in a stronger
position, with the growth in gold production achieved in a sustained high gold
price environment, allowing us to accumulate a projected US$220 million of
cash on the balance sheet by financial year end, despite the significant
investments into production growth and dividends paid to shareholders.
Our very robust
financial position will allow us to continue our considered growth trajectory,
executing into initiatives to expand annual gold output to 300,000oz and
beyond, while also further increasing cash returned to shareholders.
The strong operational performance from our South African portfolio offset the
slower-than-anticipated production ramp-up from Tennant Mines.
In the next financial year, we
expect a much improved performance from Tennant Mines, with a full year of
mining from the high-grade White Devil deposit, and a clear pathway to growing
Australian gold production to ~100,000oz per annum in the next three years.
In addition, we
anticipate increasing gold production from MTR in the next years, with the
Soweto Cluster DFS now nearing completion.
Despite inflationary pressures, costs remain well managed.
We are in a fortunate position in
South Africa, with stable grid power to all our operations, and an
accelerating renewable energy portfolio being rolled out to maintain this
supply and reduce the impact of Eskom cost increases. In Australia, while
diesel price increases have had an impact on production costs, sufficient
storage facilities are now in place to minimise risks associated with
potential fuel supply shortages.
We are also investing in a large renewable energy solution
for Tennant Mines, which will include battery storage, to reduce future
operating costs.
The conclusion of the Emmerson transaction will see Pan African consolidate
the Tennant Creek goldfield, and we look forward to welcoming the Emmerson
shareholders onto our register as we also complete our listing on the
Australian Stock Exchange, subject to the implementation of the transaction.
We also look forward to reporting our final results for the year ended 30 June
2026 on or about 16 September 2026, where additional details on progress with
our growth projects and ESG initiatives will be presented.
Competent Person
The competent person for Pan African, Hendrik Pretorius, the executive for
technical services and new business, signs off the Mineral Resources and
Mineral Reserves for the Group. He is a member of the South African Council
for Natural Scientific Professions (SACNASP 400051/11 – Management
Enterprise Building, Mark Shuttleworth Street, Innovation Hub, Pretoria,
Gauteng Province, South Africa), as well as a fellow in good standing of the
Geological Society of South Africa (GSSA – CSIR Mining Precinct, Corner
Rustenburg and Carlow Roads, Melville, Gauteng Province, South Africa).
Hendrik has 23 years' experience in economic geology, mineral resource
management (MRM) and mining (surface mining and shallow to ultra-deep
underground mining). He is based at The Firs Office Building, 2nd Floor,
Office 204, Corner Cradock and Biermann Avenues, Rosebank, Johannesburg, South
Africa. He holds a BSc (Hons) degree in Geology from the University of
Johannesburg as well as a Graduate Diploma in Mining Engineering from the
University of the Witwatersrand. Hendrik has reviewed, and approved, in
writing the information contained in this announcement as it pertains to
Mineral Resources and Mineral Reserves.
The information contained in this announcement is the responsibility of the
board and has not been reviewed or reported on by the Group’s external
auditors.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via the Regulatory
Information Service and SENS, this inside information is now considered to be
in the public domain.
Johannesburg
1 June 2026
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
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, 2 nd 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 Website: www.panafricanresources.com
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company secretary Jane Kirton St James's Corporate Services Limited Office: + 44 (0)20 3869 0706 Joint broker Ross Allister/Georgia Langoulant Peel Hunt LLP Office: +44 (0)20 7418 8900
JSE sponsor and 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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