Pan African Resources Share Discussion Threads

[2vdm] 08/3/2016 22:07

Couldn't get the link to work, so here is the article.

Pan African Resources has built a solid and stable mid-tier gold producer on the back of two key assets in South Africa
Pan African Resources PLC well established as mid-tier producer
INVESTMENT OVERVIEW: PAF The Big Picture
Gold production is running at over 200,000 ounces per year

It’s more than a decade now since Pan African Resources PLC (LON:PAF) listed on Aim as a virtual cash shell with an interest in Mozambican refractory gold.

The business has changed markedly since then.

Several deals later and the company is firmly ensconced in the ranks of the mid-tier gold producers, having produced at or around the 200,000 ounces mark for the past few years.

The company’s production is split fairly evenly between two main operations in South Africa, the Evander mine, which used to be owned by Harmony Gold (JSE:HAR), and the Barberton mines, which are some of the oldest and most historic gold mines in the country.

The latest numbers show that together the mines continue to produce at around an annualised 200,000 ounces per year at all-in sustaining costs of US$908 per ounce, which stacks up well against an average gold price received of US$1,110 per ounce.

Head grades at Evander ran at 5.8 grams of gold per tonne, while head grade at Barberton ran at 10.9 grams per tonne.

Evander has also been the subject of expansion, as a new tailings re-treatment facility came on stream and contributed 3,708 ounces of gold during its first six months of production. But what was especially nice was that recoveries came in much higher than expected, at 49% as against the 42% that had been anticipated.

For its part, Barberton remains a central pillar of the company, with twenty years’ worth of reserves still ahead of it. Barberton was acquired when Pan African bought Metorex back in 2007, at which time it was averaging production of around 100,000 ounces per year.

Pan African initially acquired a 74 per cent stake in Barberton, to comply with South Africa’s Black Economic Empowerment laws.

But Metorex’s black economic empowerment partner at the time, Shanduka, remains to this day Pan African’s black empowerment partner.

And the strength of the relationship that was created back then is clear from more recent developments: the current Pan African chief executive Cobus Loots is drawn from Shanduka’s ranks.

Even more recently still, Pan African agreed to acquire a stake in Shanduka itself.

This cross-holding arrangement is somewhat unusual but it speaks of a company that is at ease with its social and commercial responsibilities and more than able to combine the two into a workable solution, in what is not always an easy political environment.

Workers at both Barberton and Evander are unionised but haven’t shown a greater tendency to industrial action than any other workers in the sector, and Cobus Loots has worked hard to ensure that Pan African enjoys relatively stable industrial relations.

The company also has a platinum tailings re-treatment operation at Phoenix, in close proximity to a chrome mine controlled by International Ferro Metals Limited (LON:IFL).

This is a smaller scale operation that is designed to produce 211,000 ounces over a 17 year life, but which has been held back somewhat by recent weakness in platinum and platinum group metals prices.

Platinum now looks like it might be about to turn around and start to follow the upward trajectory that gold has set since the beginning of 2016. If that turns out to be the case then Phoenix will at last come into its own and add significant cashflow and value to the company..

[2vdm] 08/3/2016 20:39

Good article today at Proactive Investor, particularly for anybody new to this board [...]

[srpactive] 08/3/2016 16:15

I am not expecting it, but it could easily happen, miners
are known for quick appreciation.

dyor

[donald trumpton] 08/3/2016 16:00

donald trumpton 25 Feb'16 - 12:30 - 8498 of 8522 1 0 edit

From early December to early February, PAF rose approximately 100%.

It would be strange if it rose another 100% in two months, say March/April, unless POG travels north to around 1500 dollars. As I think it will, later this year.

PAF 26p?

[srpactive] 08/3/2016 14:35

This consolidation is good for the share price, especially
as the gold price is appreciating whilst we wait, once this
has happened for a few days a challenge of 15p is expected.

dyor

[edjge2] 08/3/2016 12:49

if pixi got em....... Looking today but would have to exchange within ISA.

[pixi] 04/3/2016 16:28

I've picked up a lot here today: 250,000. Lovely jubbly!

[donald trumpton] 04/3/2016 13:13

POG worried about Non-Farms. Not many minutes to go now..

Roll up roll up

[donald trumpton] 04/3/2016 13:12

Budgey price.

[pixi] 04/3/2016 13:05

I think PAF is cheap.

[donald trumpton] 04/3/2016 12:13

Reckon PAF is a much safer bet right now though.

dyor

[donald trumpton] 04/3/2016 12:03

Lonmin up 50% in two days is impressive.

[srpactive] 04/3/2016 12:00

dt

Thank you I will, I always say to people around me,
if we all work together we will achieve more.

Keep an eye on lam, expecting a serious rise higher there
very soon.

dyor

regards

active

[donald trumpton] 04/3/2016 11:43

srpactive, another exciting stock I am investing in, is one of these so called "new oil" stocks: REDT Energy Storage. Ticker: RED. Why not take a look..

[donald trumpton] 04/3/2016 11:37

My mantra is: "keep Buying"


donald trumpton 25 Feb'16 - 12:30 - 8498 of 8522 1 0 edit

From early December to early February, PAF rose approximately 100%.

It would be strange if it rose another 100% in two months, say March/April, unless POG travels north to around 1500 dollars. As I think it will, later this year.

PAF 26p?

[cultivator1] 04/3/2016 09:02

I.C view, 23rd Febuary.

Prior to these results, Peel Hunt was forecasting full-year adjusted EPS of 2p and pre-tax profit of £50.4m for the June 2016.
Share price appreciation since the start of the year has finally rewarded investors in our original buy call (11.5p, 30 Apr 2015), but the company still trades well below the average price to earnings ratio for the sector. Together with a good return on equity, dividend yield, and the recent added support in the gold price, we remain bullish. Buy.

[srpactive] 04/3/2016 09:01

I have just posted this on the hgm thread and the gold comment
applies here too. After the recent strong rise the market is
just letting the rsi relax a little before moving
seriously higher very soon. I continue to buy here, hgm, gfs, lam
and aly.

dyor

==========================

Cup and handle formed on the gold chart, now forming here,
I feel we should be closer to 72p than this.

dyor

regards

active

[cultivator1] 04/3/2016 08:53

Recent price action here seems to be running counter to the recent resurgence in PM stocks. This stock is fundamentally cheap, my speculation is that the share price is being institutionally suppressed prior/during a bid process. If not, what does the market know, who of sound investing principles would be selling at this point in a gold "baby" bull market? Very tempted to add to my holding, > 200000 . My thinking is a take over by RRS at 20p. AIMHO.

Donald, like your backing up the truck(stiffer springs) analogy!

[srpactive] 04/3/2016 08:37

On citywire today:

The times:: Lonmin drew a line under its heavy staff cuts yesterday, prompting a 17% leap in the share price of the South African miner.

=========================

We are being held back here, I feel we will stabalise around here
before moving alot higher very soon. Look at gold, higher gold price
straight to the bottom line.

dyor

active

[srpactive] 04/3/2016 08:28

Yes, a spike higher near the close probably.

[donald trumpton] 03/3/2016 22:30

POG has blasted up out of it's rising wedge folks.

PAF will rise by more %, although it can be slow off the blocks sometimes!

[srpactive] 03/3/2016 15:03

gold hopefully 1300 soon, looking good paf 15p.

[donald trumpton] 03/3/2016 14:13

Gold going great guns.

PAF? Fill your boots.

[donald trumpton] 03/3/2016 11:34

POG seems to be trotting on..