Pan African Resources Share Discussion Threads

[stonedyou] 01/8/2023 08:20

("Pan African" or "the Company" or "the Group")

MINTAILS PROJECT FUNDING CLOSED AND GRANTING OF INTEGRATED ENVIRONMENTAL
AUTHORISATION

Pan African is pleased to announce that all conditions precedent to the Group's
ZAR1.3bn (US$70.3 million*) senior debt tranche (Senior Debt Facility),
designated for the funding of the Group's Mintails project (the Project), have
been fulfilled and the Senior Debt Facility has become effective. The Senior
Debt Facility was underwritten by Rand Merchant Bank, a division of FirstRand
Bank Limited (RMB), with Nedbank Limited (acting through its Nedbank Corporate
and Investment Banking division), as co-financier.

Following the successful issue of the Group's inaugural Domestic Medium Term
Note programme of ZAR800m (US$43.2 million*) in December 2022 (announced on SENS
on 9 December 2022), completion of a ZAR400 million (US$21.6 million*)
derivative funding structure with RMB (announced on SENS on 13 March 2023), and
closure of the Senior Debt Facility, the full upfront capital of ZAR2.5bn
(US$135.1 million*) for the Project's development has been secured.

The Department of Mineral Resources and Energy has also granted an environmental
authorisation for the Project in terms of regulation 24(1)(a) of the
Environmental Impact Assessment Regulations, 2014 ("EIA Regulations").

Pan African CEO Cobus Loots commented:

"This important milestone completes the funding package for Mintails'
development capital. Full scale construction of the tailings retreatment plant
at Mogale will now commence, with expected production of 50,000 ounces per year
for more than 20 years (when including both the Mogale and Soweto tailings
resources), at an all-in-sustaining costs similar to that of the Group's highly
profitable Elikhulu operation at Evander.

We look forward to the commissioning of the Project in the latter half of the
2025 calendar year and its meaningful contribution to all stakeholders.

*converted at an exchange rate of US$/ZAR: 18.50

Rosebank

[justiceforthemany] 28/7/2023 15:21

Gold soaring again
>$1960

[justiceforthemany] 28/7/2023 13:15

Update must be Monday then?

[stonedyou] 25/7/2023 14:18

China's gold consumption rises in H1.


China's gold consumption rose more than 16.37 percent year-on-year to 554.88 metric tons during the first half of the year, while output climbed 2.24 percent to 178.6 tons, according to the China Gold Association.

The consumption of gold jewelry in the world's largest consumer market of the precious metal increased 14.82 percent to 368.26 tons in the first six months of this year, the association said in a report on Tuesday.

As the economy has fully resumed normal operation and the national economy rebounded, the national gold consumption has generally shown a rapid recovery trend, it said.

The production of gold enterprises has returned to normal in the first half of this year, it said, adding that large enterprises were actively promoting mergers and acquisitions, which will further concentrate on high-quality gold resources.

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[stonedyou] 24/7/2023 14:21

The Collapse of the ‘Risk-Free’ Delusion: Implications for the $133 Trillion Bond Market.

by Nick Giambruno


Did you know that 2022 was the WORST year for US Treasuries in American history?

The benchmark 10-year Treasury fell nearly 18%, and the 30-year Treasury collapsed over 39%. Many other bonds did even worse.

Even if you go back 250 years, you can’t find a worse year for Treasuries, the foundation of the colossal global bond market.

It should forever end the ridiculous—yet pervasive—delusion that Treasuries are “risk-free.”

Many people and almost every financial institution have long thoughtlessly accepted this trope.

As a result, bonds in general—and Treasuries in particular—became the store-of-value asset of choice and the de facto savings account for savers and investors worldwide.

Today, the global bond market has grown to be worth more than an estimated $133 trillion as the masses parked their savings there because conventional wisdom said it was the “safe” thing to do.

By contrast, all the mined gold in the world is worth about $12.7 trillion, less than 10% of the bond market.

It may be tempting to think the worst is over for bonds—it’s not. As you’ll see, the pain for bondholders is just starting.

Although most don’t realize it yet, bonds will become a graveyard for capital. They will no longer be the “go-to” savings vehicle because they will no longer be a reliable store-of-value asset.

I believe the opposite will be true; bonds will become a guaranteed way to lose value. Investors will flee them in droves.

The implications of that are profound.

If not bonds, where will people, companies, and nation states park their savings?

Much of the value stored in the $133 trillion global bond market will move elsewhere—voluntarily to superior store-of-value assets or involuntarily to bankrupt governments and their cronies as they accelerate the largest wealth transfer in history.

That is the Big Picture reality that most people don’t understand… yet.

Until recently, bonds had been in a bull market that lasted more than 40 years. Therefore, it’s not surprising that complacency is ingrained and widespread.


The Big Picture
In the post-WWII era, Treasuries were a stable foundation for the global bond market as the US dollar reigned supreme as the world’s premier reserve currency.

However, that foundation has rotted. It is on the path to collapse as the petrodollar system falls apart and a multipolar world order emerges.

In short, the supply of Treasuries is increasing at an accelerating rate while there’s a shrinking number of suckers (i.e., buyers).

The inevitable is imminent as the US government can no longer delay or disguise its impending bankruptcy.

The US federal government has the biggest debt in the history of the world. And it’s continuing to grow at a rapid, unstoppable pace.

Today, the US federal debt has gone parabolic and is over $32.5 TRILLION.

To put that in perspective, if you earned $1 a second 24/7/365—about $31 million per year—it would take you over 1,029,860 YEARS to pay off the US federal debt.

And that’s with the unrealistic assumption that it would stop growing.

Observation #1: The US government can’t repay its debt. Default is inevitable.

This isn’t exactly a revelation, but it’s important to remember.

Therefore, the question is not whether the US government will default but how.

When faced with a choice, politicians always choose the most expedient option. In this case, that means issuing more debt rather than making tough budget decisions or explicitly defaulting.

Consider the recent debt ceiling farce, which raised the debt ceiling for the 105th time since 1944 to avoid an explicit default.

Observation #2: It will not be an explicit default.

In reality, there is no meaningful limit on the debt and spending.

Congress is racing towards ever-increasing spending and debt now that they’ve normalized multitrillion-dollar deficits.

Below is a chart of the Congressional Budget Office’s deficit projections for the next decade. These estimates will almost certainly be too rosy, as they often are.

Even by the CBO’s optimistic projections, the US government will have a cumulative deficit of over $20 TRILLION for the next ten years that will have to be financed by issuing more Treasuries.

[stonedyou] 20/7/2023 21:03

BullionVault survey sees gold increasing by 10% by year-end.


BullionVault Ltd has said half of the private investors (49.5%) it surveyed have forecast that the price of gold will increase by 10% by the end of the year, to around $2,125 per troy ounce.

Some are even more bullish, according to the firm's half-yearly research report, with 15% believing that the gold price will increase by 20%, while one in five (21%) predict no change. That gives a consensus outlook for gold to end 2023 at $2,110.

BullionVault currently cares for £3.1 billion of precious metals for more than 100,000 users worldwide, almost 90% of them living in the UK, Europe or North America. Its latest customer survey – run twice a year since 2014 – polled over 1,440 responses from private investors saying, on average, that they currently hold four-fifths of their investable wealth in other assets besides precious metals.

That is reflected in the survey results, as diversification remains the most important reason named for adding precious metals to a portfolio (39%), followed closely by inflation (32%).

Looking ahead, investors responding to BullionVault's survey believe monetary policy - such as interest rates and quantitative easing or tightening - will have the greatest impact of gold prices and other precious metals between now and the end of this year (33%), followed by geopolitical issues (17%) and the size of government spending and deficits (16%).


Adrian Ash, Director of Research at BullionVault, commented: "Gold tends do well when other assets perform poorly. With the precious metal continuing to outpace the FTSE and global stock markets since the eve of the terrible shocks from Covid and then inflation, private investors remain confident in gold's role as portfolio insurance.

"Because gold pays no income, rising interest rates could present a headwind to the bullion market. But gold shrugged off rising interest rates in the first half of 2023 to reach new all-time highs in terms of all major currencies, including the Pound.”

He added: "Private investors using BullionVault to spread their risk with physical precious metals now expect gold to set a fresh all-time high by New Year 2024, and after a dip in June, gold has already rebounded so far this month as interest-rate forecasts switch from higher-for-longer to peaking-sooner-than-later thanks to inflation data suggesting that the worst may be behind us.

"The gentler outlook for inflation and interest rates, plus the floor beneath gold prices coming from strong central-bank and Asian consumer demand, make another ten per cent increase by year-end very possible, especially if the broader economic picture turns markedly gloomier."

[stonedyou] 19/7/2023 09:32

Still on track to hit guidance of 195–205koz for FY23

Output of 92,307oz for H123 was towards the lower end of the range of what would ordinarily be expected, given full-year guidance of 195–205koz for the full year (on a pro-rata basis), but was consistent with our expectations, the normal variance in production at PAF’s operations in half-year periods and the fact that the company is guiding towards production of 103–112koz gold for H223. This compares with our updated forecast for production of 108.3koz in H223 and 200.6koz for FY23 after the reconfiguration of shift cycles at the Fairview and Sheba Mines to continuous (24-hour) operations, seven days a week (cf five previously) from this month, while the Consort Mine will be converted to a contractor mining model.

[stonedyou] 18/7/2023 19:26

Pan African Resources CEO Shares Growth Plans and Profitable Prospects in Gold Mining Industry.

Pan African Resources CEO Cobus Loots joined Steve Darling from Proactive to discuss the company's performance and future prospects in an interview. Pan African Resources is a South African-based gold mining company with attractive margins and long-life assets. Despite some challenges in the past year, the company is optimistic about its growth and expansion plans. The production side has seen improvements, with increased production at the Barberton underground mine and progress at the Evander underground mine. Loots emphasized the balance between underground mining and surface operations, with the Kulu operation performing well and generating strong cash flows.

Additionally, Pan African Resources highlights the favorable gold price it has been receiving. Continuous improvements and safety measures are vital aspects of the company's operations. One significant development for Pan African Resources is the upcoming construction of the Mintails project, a promising addition to its portfolio. With a reserve of nearly 2 million ounces and a low acquisition cost, the project is expected to produce 50,000 ounces of gold annually for 20 years at attractive margins. The company also emphasizes its positive outlook for gold prices, its growth potential, and its commitment to maintaining and increasing dividends for shareholders. Pan African Resources aims to expand its presence in the US market, highlighting its offerings in terms of dividends, growth, and profitability.

[blue59] 17/7/2023 08:23

13.25 to sell 13.44 to buy

[lovewinshatelosses] 16/7/2023 17:01

Apart from the matter of recent civil unrest, I agree with everything else you have said, tuscan4.
Whether that will benefit UK shareholders here is the issue I have been pondering of late.
Maybe PAF will have to relist elsewhere at some point? Maybe to a territory that will not only remove the ISA wrapper opportunity, but also perhaps be unfriendly to western holders even in a trading account - or be off limits by virtue of our own government applying a block etc. If you want to hold shares in what is probably the best, or certainly one of the best, PM miners in the world, you now need to open an account on the Kazakhstan exchange....

[tuscan4] 16/7/2023 09:56

Lovewin,
In my opinion, SA as a BRICS member ,soon to be enlarged will be a massive beneficiary of the coming acceleration of de-dollarisation with the move to a commodity backed rival to the $ . I do not see civil unrest in SA, on the contrary , the likelihood that gold will be set free from Western manipulation will give the SA miners a huge boost which will benefit the country. S Africa has every reason to wish to see the demise of US hegemony which has impoverished the people for decades.

[lovewinshatelosses] 15/7/2023 14:35

Let's see what happens if Vlad attends the BRICS summit in August.
SA in a bind on this one. Civil unrest on a scale unseen for decades very recently.
Then elections in 2024, and who knows what that might lead to.
Great company. Great management. Great assets. Hostage to a number of ill winds that they can do very little about. AIMO, naturally.

[justiceforthemany] 13/7/2023 15:57

Must be due. All about forward guidance.

[cinoib] 13/7/2023 13:32

Let's hope something good comes from that update then as am sitting on too many losses just now and right when I need some cash.Inflation will drop even more as £ just hit $1.306 that's good news all round $1.50 would be nice and e1.25 likewise.

[af004] 13/7/2023 09:23

Update tomorrow?

[astjgroom] 12/7/2023 15:38

Told ya, once inflation drops and interest rates follow there will be a boom in gold, how long and how high depends on the landing.

[justiceforthemany] 12/7/2023 13:37

Gold surging

[blue59] 11/7/2023 13:52

Now 12.72 12.76

[blue59] 11/7/2023 09:40

Ignore BS chart, 12.50 sell 12.57 buy are correct prices