Pan African Resources Share Discussion Threads

[salisbury3] 26/8/2024 11:01

Yes, I think that transfer to the main market is indeed doable - but there is no fast-track procedure for this. The AIM listing has to be cancelled and a whole new application process to the Main Market undertaken, including a prospectus. So share-holder approval would be the first step, I would think. Would be interesting to know what the company view is on this.

[cfb2] 26/8/2024 09:33

They already get their finals out within 4 months of EoY. Main change would be to comply with the FCA rather than use a nomad. They might need to tighten up their governance and roles between CEO and Chairman but in my opinion FTSE 250 is doable.

[salisbury3] 26/8/2024 08:56

PAF is an AIM company - not a main market company. Consequently, I don't think it's correct to say that FTSE 250 entry is imminent for this company.

[justiceforthemany] 24/8/2024 08:48

Market cap of almost £600M
FTSE 250 entry imminent

[stonedyou] 23/8/2024 07:36

Bloomberg

Gold Bars Are Worth a Million Dollars for the First Time

Jack Wittels
Mon, Aug 19, 2024, 6:05 PM GMT+11 min read

1.3k
(Bloomberg) -- For the first time ever, a bar of gold is worth a cool one million dollars.


The milestone was reached Friday, when the precious metal’s spot price surpassed $2,500 per troy ounce, an all-time high. With gold bars typically weighing about 400 ounces, that would make each one worth more than $1 million.

There are some nuances to the figure. While gold bars in the London market — the global center for trading the precious metal — normally weigh about 400 troy ounces, they can contain 350 to 430 ounces of pure gold, according to the London Bullion Market Association. It’s also possible for individuals to buy much smaller, more affordable bars such as those sold by Costco.

In the first half of this year, central bank net purchases of gold stood at 483.3 tons, equivalent to almost 40,000 bars, according to a Bloomberg calculation using figures from consultancy Metals Focus. It’s one of the factors that has supported the precious metal’s blistering rally so far this year, along with expectations of looser monetary policy from the US Federal Reserve.

[stonedyou] 21/8/2024 09:18

James Turk: Is gold overvalued?

Submitted by admin on Tue, 2024-08-20 21:27 Section: Daily Dispatches
By James Turk

Free Gold Money Report
Tuesday, August 20, 2024

"Nevertheless, based on my objective calculation, gold is undervalued."

Gold may seem overvalued because of the recent record highs in its 6-decade ascent from $35 to $2500, but prices -- like appearances -- can be deceiving. What’s more, the value of any asset is more important than its price.

Price and value are too often conflated, which is a mistake. An asset’s price and the usefulness that determines its value are different sets of information that need to be viewed separately, but interrelatedly because price communicates an asset’s value. The undervaluation or overvaluation of anything are seminal circumstances that enable the informed observer to gain wealth because assets inevitably return to fair value.

Home prices provide a good example of the difference between price and value. Using the popular Case-Shiller Home Price Index, a home priced at $165,000 10 years ago is now being priced at $323,000. Nevertheless, the home did not increase in value. It is the same house providing the same usefulness (shelter) it did a decade ago. Only its price has changed.

Gold -- measured by the U.S. dollar and the world's other major currencies -- closed at a new record high. Nevertheless, based on my objective calculation, gold is undervalued. We can expect new records will be achieved as gold's usefulness and undervaluation are recognized by ever more people, repeating what happened to it in the 1970s and many other occasions throughout monetary history. ...

... For the remainder of the analysis:

[thekobbler] 20/8/2024 13:49

Pan African Resources's stock had its "buy" rating reissued by analysts at Berenberg Bank in a research report issued to clients and investors on Wednesday 14th August, MarketBeat Ratings reports. They currently have a GBX 38 ($0.49) price objective on the stock

[coincall] 15/8/2024 20:11

Thanks stonedyou. I found the video of the interview which came out 2 weeks ago.

[stonedyou] 15/8/2024 19:09

Pan African Resources PLC


Pan African CEO talks through big strides being made across all its mines - ICYMI


Cobus Loots, chief executive of Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF), talks through an important year at the South Africa-based gold miner.

While the very high dollar and Rand gold prices were clear tailwinds, Loots adds there were also several operational achievements and milestones.

Cobus Loots: We made our production guidance for the year, we made our cost guidance also. Very importantly, safety has improved even further.

And then we are very excited about the imminent commissioning of a Mintails operation on the wasteland of South Africa.

Proactive: So, surface tailings at Elikhulu and BTRP are performing well with an improvement in gold production at Barberton.

Cobus Loots: Certainly. Elikhulu and BTRP are some of the lowest-cost producers of gold in Africa at this point.

At Elikhulu, we're in a fortunate position where we still have almost ten years of life remaining.

And Elikhulu was a blueprint for what we're doing at Mintails. So, the surface operations performed very well.

Meanwhile, continuous operations at Barberton yielded some very successful results.

Proactive: How about the Mogale tailings retreatment projects?

Cobus Loots: Again, it’s a testament to benefiting from the ability to successfully execute and then operate these world-class projects.

It will require about $130 million of capital and total construction time will be in the order of 14 months.

We've scheduled the first gold pool for the beginning of October at Mintails, and steady-state operations during December of this year.

We are busy with our budgets, but currently, we still expect to be producing at circa $900, all in sustaining.

This operation is going to lower the group's all-in-sustaining cost of production and add some very good incremental cash flows.

Mintails can be operating for more than 20 years. So, that's a great result.

And if you look at all the ancillary benefits to our communities already,

Huge job creation in that part of the world, and then the environmental rehabilitation, which we are busy with at the moment, is making a very large positive difference in that area.

Proactive: You mentioned the commissioning of the ventilation shaft and hoisting system at Evander. Take us through the benefits you're going to see from that.

Cobus Loots: On the Evander underground, which is a long-life asset, it's an excellent quality ore body.

We've invested quite a large chunk of capital over the last three years or so, about $100 million.

It's gone into the operation to optimize and to ensure that we can produce profitably and safely in the years ahead.

The ventilation shaft will eliminate around five kilometres of underground conveyors with resultant efficiency improvements.

The project was somewhat delayed but we expect that shaft to be commissioned in the next month or so, and then will see those benefits start to come through.

Proactive: You've also been making progress with your renewable energy projects,

The projects at Fairview mine have been completed, including the solar photovoltaic generation plant.

And there's a feasibility study underway to expand the solar facilities at Evander and also looking at the Mogale tailings retreatment.

Cobus Loots: It’s an exciting time for us as far as renewables are concerned.

If you remember, we were the first South African miner to commission a large-scale utility plant at our Evander operation that was ten megawatts.

Barberton is near complete and we've actually just received word that we should be energized in the next couple of days.

So that's very exciting for us. It’s another nine megawatts.

And then, we are very much fast-tracking the studies on both Mogale and Evander's expansion.

So, I think in the next 18 to 24 months we should be able to double, at the very least, our own generation capacity as far as renewables are concerned.

We looking to enter into a couple of further agreements to make sure that we continue to expand that renewables footprint.

Proactive: What does that do to your cost profile going forward?

Cobus Loots: It will have quite a large cost benefit, particularly given the substantial cost increases from SA utility, Eskom.

So, in terms of the Barberton facility, initially, we estimate a cost saving of almost $2.5 million a year, which is quite attractive.

Proactive: And full year 2025. What does that hold in store for the company?

Cobus Loots: Continue to focus on producing safely and continue to optimize our existing operations.

We are very much looking forward to commissioning Mogale and all of the tailwinds that will bring.

And then hopefully, we continue to see a lot of enthusiasm in the gold market, which has been very attractive.

Certainly, our sense is that the gold price will remain strong.

[coincall] 15/8/2024 15:51

Just read this interview with Cobus.

[stonedyou] 12/8/2024 23:13

Live Gold Price

Bid|Ask

2,473.52 2,473.74 Low|High

2,423.77 2,473.98 Change 3.03 0.12%

[stonedyou] 01/8/2024 09:46

Pan African Resources PLC

AIM:PAF
OTCQX:PAFRY
JSE:PAN
OTCQX:PAFRF


Pan African receives highest average gold price in its history.

Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) said gold production was 186,039oz in the year to end June, within guidance and an increase of 6.2% year-on-year while its received gold price was its highest ever at US$2,021/oz.

The gold miner added it expects Fairview Mine’s 8.75MW solar photovoltaic generating plant to generate its first power next month and provide 15% of Barberton Mines’ energy requirements, saving US$2.4 million annually.

Independent feasibility studies are in progress to expand Evander Mines’ current 9.975MW solar facility and for a new solar plant at the Mogale Tailings Retreatment operation, added the statement.

Cobus Loots, Pan African’s chief executive, said: “We are pleased that the group has again delivered into its production guidance while further improving safety rates.

“The surface tailings retreatment operations at Elikhulu and the BTRP performed exceptionally well, with some of the lowest all-in sustaining production costs in Southern Africa.

“The group is poised to deliver another world-class tailings retreatment operation ahead of schedule and below budget in the coming months with the MTR Project.

“Barberton Mines has seen a steady improvement in gold production, with planned optimisation initiatives to increase ore tonnages expected further to bolster gold production in the next financial year.

“Commissioning of the ventilation shaft hoisting system at Evander underground during the start of the 2025 financial year, will substantially improve efficiencies and reduce reliance on the cumbersome conveyor system currently in use, vastly improving this operation’s production profile and facilitate the 25-26 Level project’s development."

Pan African added that finance director Deon Louw has announced he is to retire with Marileen Kok taking his place.

“We would like to thank Deon for his commitment and the significant contribution he has made to the group over the years,” said Loots.

[bandflex] 01/8/2024 08:09

hxxps://www.edisongroup.com/research/hitting-expectations/33840/

Valuation: Trending higher

Given our updated forecasts, our core (absolute) valuation of Pan African has increased from 48.08c per share to 48.41c per share (37.72p), based on projects either sanctioned or already in production. This valuation rises by a further 22.35–27.37c if other assets (eg Egoli and the Soweto cluster) are also taken into account. Alternatively, if PAF’s historical average price to normalised headline earnings per share (HEPS) ratio of 8.4x in the period FY10–23 is applied to our FY24 and FY25 forecasts, it implies a value of 37.41p in FY24, followed by 52.43p in FY25. As such, PAF’s current share price of 28.15p could be interpreted as discounting normalised HEPS falling to 4.31c per share (cf our forecasts of 5.72c/share for FY24 and 8.02c/share for FY25). In the meantime, PAF remains cheaper than its principal London- and South African-listed gold mining peers on at least 69% of commonly used valuation measures, regardless of whether they are based on Edison or consensus forecasts. Performing a relative valuation analysis, its peers imply a comparable valuation for PAF of 52.31p based on our year one EPS estimate and one of 48.49p based on our year two EPS estimate. Separately, we estimate that PAF has the 24th highest dividend yield of the 61 precious metals mining companies expected to pay dividends to shareholders over the next 12 months (globally). Finally, we calculate that PAF is trading at an enterprise value that equates to just US$19.72 per resource ounce of gold.

[apatel21] 31/7/2024 09:53

Anyone know why average realised Gold Price in only c$2,000 - are they hedged ?When do the hedges come off ?TIA

[stonedyou] 31/7/2024 08:50

OPERATIONAL UPDATE FOR THE YEAR ENDED 30 JUNE 2024 AND BOARD CHANGE

Pan African is pleased to provide its shareholders and noteholders with a preliminary operational update for the financial year ended 30 June 2024 (“Reporting Period”), an update on the Mogale Tailings Retreatment project (MTR Project) commissioning and information on progress with its renewable energy projects. Group full year production of 186,039oz was within guidance and increased by 6.2% year-on-year. The average achieved gold price for the Reporting Period was US$2,021/oz (R1,215,827/kg at an exchange rate of US$/ZAR18:71), and will be the highest on record for the Group.


Gold production increased by 6.2% to 186,039oz (FY2023: 175,209oz), in line with the revised guidance previously announced, with operations performing consistent with expectations: (FY2023 figures in brackets)
Barberton Mines:
71,470oz (64,586oz)

Evander Mines underground:
40,869oz (40,175oz)

Elikhulu:
54,812oz (50,573oz)

Barberton Tailings Retreatment Plant (BTRP):
18,888oz (19,875oz)

The Group’s all-in sustaining costs (AISC) for the Reporting Period is expected to be approximately US$1,350/oz, at an average exchange rate of US$/ZAR: 18.71.

A delay in commissioning the ventilation shaft for hoisting at Evander 8 underground operations adversely impacted production in the last two months of the Reporting Period, resulting in the Group not achieving the higher end of production guidance and also negatively impacted unit costs. Work is now scheduled to be completed in the coming weeks, after which the full benefits of the improved ore flow will achieve the planned increased production profile.

Exceptional progress has been made with the MTR Project’s construction, which is nearing its final stages. Plant commissioning and first gold production is anticipated ahead of schedule in October 2024, with steady state production expected during December 2024. Furthermore, the project is expected to be completed below budget.
Including the Soweto Cluster Mineral Resources, as per the internal pre-feasibility study outcomes reported in May 2024, MTR is expected to produce approximately 60koz/year over a 21-year life of mine, at a forecast AISC of less than US$900/oz

Previously announced FY2025 production guidance reiterated at between 215,000oz and 225,000oz.

Net debt at the end of the Reporting Period increased to US$106.4 million (FY2023: US$22.0 million), mainly attributable to construction costs at the MTR Project (US$71.5 million for the year), expansion capital expenditure in respect of Evander 8 Shaft 25-26 Level development and Elikhulu’s new tailings storage facility extension (US$23.8 million) and Fairview solar plant expenditure (US$9.9 million)

Construction of the Fairview Mine’s 8.75MW solar photovoltaic plant has been completed, with final commissioning in the coming weeks.

[buffetcharliemtesque] 29/7/2024 07:40

Good operational update announced this morning:-)


Group full year production of 186,039oz was within guidance and increased by 6.2% year-on-year. The average achieved gold price for the Reporting Period was US$2,021/oz (R1,215,827/kg at an exchange rate of US$/ZAR18:71), and will be the highest on record for the Group.

The Group’s all-in sustaining costs (AISC) for the Reporting Period is expected to be approximately US$1,350/oz

Previously announced FY2025 production guidance reiterated at between 215,000oz and 225,000oz