Pan African Resources Share Discussion Threads

[jimbomorry] 22/2/2021 19:23

IMHO looks like a bottom. Been watching this for a while. This company seems to have good fundamentals, and commods coming back. Am going to watch for 2 higher lows and, if so, could be time to invest.

[risa5] 19/2/2021 16:05

It should be debt free by Dec 21.

There is no plan for any buybacks.

Dividends should increase from next year (possibly 2, interim and final).

Egoli and tailings(Mintails is still subject to DD) will be stand alone operations, meaning there will not be any additional debt/risk to PAF.

[johnbull1] 19/2/2021 15:30

Debt free by company year end which is June 21. It might be more like July given the pull back in the gold price. The question is what they do then? Go ahead with Egoli, put money into tailings, increase the dividend, or buybacks. All good options.

[juuunx2] 19/2/2021 14:59

They are planning to be debt free end of 21

[risa5] 19/2/2021 14:37

It must have triggered a lot of stop losses from 20 and then 19 with some panicking about the blip in gold price.

There is probably not many buyers atm given the blip in gold and mm must have a lot of stock on their hands hence the bargain.

[thecynical1] 19/2/2021 14:19

Also carving through moving averages, again in the wrong direction......will see whether it bounces off support just below 18.......

[thecynical1] 19/2/2021 14:16

Hi! Thanks.

I am wondering whether it is only the gold price that is causing concern here or is there something else...it has now broken down through a couple of support levels which is not normally a good sign....?

[johnbull1] 19/2/2021 13:29

PE of 5x is their actual market cap £350m divided by current run-rate earnings of ~£70m pa... (note they did $40m in H1, off a rev/oz a bit higher than spot, but with costs projected to fall by more than an offsetting amount), 200k oz pa * $1800 rev/oz - $1100 AISC cost/oz = $140m minus other and interest = $120m and post tax $95m so in gbp >£70m.

The co projects net debt to go to zero by June. See the latest presentation.

Agree, the 'vibe' feels pretty grim. But that's why you're getting the bargain I feel. At this valuation, a bid cannot be ruled out.

[thecynical1] 19/2/2021 13:08

How do you mean almost no debt?

And how do you get a PE of 5?

Just wondering......am also considering dipping a toe back in here but not sure I like the "vibe" at the moment....

[johnbull1] 19/2/2021 11:37

I've just bought in here. Stock on 5x PE (note the Market cap is £350m not the figure shown in this header as the co owns 25% in itself via BEE), well below its historical average 9x. Balance sheet almost no net debt, and great accretive projects possible at Egoli and in tailings.

The reason it's down is the fear gold is going to continue to fall short term. It might, but it will bounce when people remember its the best inflation hedge out there, and the Fed has to discuss yield control. Buy when everyone else is panicking; she'll come good.

[juuunx2] 19/2/2021 11:12

Rated a buy today in investors Chronicle

[thecynical1] 19/2/2021 08:20

It seems to be busting through a number of moving averages......in the wrong direction....

[thecynical1] 19/2/2021 08:18

Morning all! Have been in and out of this a few times over the years.....

Could someone me where the next support level is? Seems strange that this is dropping given the gold price? Is there something going on the in the background? 🤔🤔

[risa5] 18/2/2021 21:17

Pan African capitalises on gold's ascent

The gold miner has delivered a strong operational performance, while prices have been favourable

February 16, 2021
By Mark Robinson

Rising production through a step-up at Barberton Mines

A marked reduction in net borrowings

Apleasing operational performance at Barberton Mines enabled Pan African Resources (PAF) to boost gold production by 5.9 per cent to 98,386 ounces (oz) at the half-year mark, leaving it on track to match full-year production guidance of around 190,000 oz.

Comparative figures for the Aim-traded miner benefited from a 22 per cent increase in the gold price through 2020. The combination of favourable pricing and rising production fed through to a 178 per cent increase in net operating cash to $28.1m (£20.2m). In turn, this enabled the company to bring down net debt by almost half.

Pan African is moving ahead with projects to bolster its environmental, social and governance credentials, most notably the 9,975 megawatt (MW) solar photovoltaic plant at Evander Mines, with commissioning planned for the third quarter of this year.

A laudable operational performance, but the price outlook for gold depends to a large extent on US dollar weakness tempered by the yield on 10-year Treasuries. On balance, we think the long-term outlook for the underlying commodity is generally favourable. Buy.

[astjgroom] 18/2/2021 14:42

I've sold 150k to minimize some CG tax, I'll buy them back in 30 days ;-)

[risa5] 18/2/2021 14:34

It must have triggered some stop losses.

[risa5] 18/2/2021 14:11

I've also added what a bargain.

[juuunx2] 18/2/2021 13:23

Bargain sub 20p ive added

[jimbomorry] 17/2/2021 19:27

Positive RNS. These seem cheap right now.

[risa5] 16/2/2021 15:14

Pan African gears up for new gold project

The underground and tailings miner doubles interim profit and nears agreement on R1.2bn funding for large new project
16 FEBRUARY 2021 - 11:40

Pan African Resources has nearly doubled interim profit from its mix of underground and tailings retreatment operations as it moves closer to bringing a R1.2bn new mining project into production.

Pan African, which is traded in London and Johannesburg, recorded after-tax profit of $40.8m for the six months to end-December 2020 compared to $22m in the previous year.

Gold output increased by 6% to 98,386oz, allowing Pan African to benefit from a 27% rise in the dollar price of the metal and a 41% rise in the rand price.

The benefit was offset by a one-quarter increase in the all-in sustaining cost to R654,400, which is the best representation of the actual cost of producing gold.


Pan African is expected to deliver 190,000oz of gold for its full 2021 financial year compared to 179,457oz for 2020.

The Barberton underground mines in Mpumalanga had a strong interim period and the tailings retreatment operation at the mines had a steady performance.

The Evander tailings and underground mine in Mpumalanga had a more difficult time, with the large Elikhulu tailings retreatment plant recording reduced recoveries of gold and operational issues. The extraction of the shaft pillar at the 8 Shaft was slower than expected because of difficulties in supporting the tunnels.

“Production from the 8 Shaft pillar is expected to improve and stabilise during the second half of the 2021 financial year,” said CEO Cobus Loots, adding that the three-year project will deliver 30,000oz a year at an all-in sustaining cost of less than $1,000/oz.

Pan African is close to finalising the debt funding for its Egoli project, with is a large underground mining project at Evander. The funding will be in two tranches of R400m and R800m. The lending agreements will be concluded before the end of March.

“We are excited about the Egoli project, which will be SA’s newest underground gold mine and which will contribute considerably to the group’s future gold production,” Loots said. “We have now commenced with early preparation work and limited capital expenditure in anticipation of the commencement of the execution phase of this organic growth project.”

Egoli will add 72,000oz of low-cost gold to Pan African for nine years and there are a further 1.95-million ounces of resources that will be unlocked once underground development is in place, extending the life of the project by another five years.

Pan African reduced net debt by 47% to $65m during the interim period.

Pan African is one of the few companies to secure permission to build a solar plant. The $9.5m, 10MW project at Elikhulu will generate electricity before September 2021 and supply a third of the tailing retreatment operation’s power needs. The solar project will repay its investment in five years and reduce carbon taxes and electricity costs for the project, said Loots.

Pan African is considering a similar plant at Barberton.

Pan African could “quickly grow to 30MW in the years ahead”, Loots said, adding that the company would look at battery storage options as well.

[juuunx2] 16/2/2021 15:06

Great time to add