Pan African Resources Share Discussion Threads

[cinoib] 04/10/2024 13:19

baldrick, yes is more than possible as gold is steadying ready for another push to go through the $2,700 mark. If my $3,000 by Christmas is reached the there will be some fireworks in the gold producers and I think the Israeli's will provide that.

[baldrick1] 04/10/2024 09:47

We could see a break thru 35p soon and then rallying towards 40p with ease.

[stonedyou] 01/10/2024 12:08

Appointment of Financial Director
Published: 01/10/2024, 07:00
Pan African Resources Plc - Appointment of Financial Director
PR Newswire

LONDON, United Kingdom, October 01


APPOINTMENT OF FINANCIAL DIRECTOR



Shareholders are referred to the announcement released on SENS and RNS on 29 July 2024, and are further advised that Marileen Kok has been appointed to the Board as the Financial Director and as a member of the social and ethics committee with effect from 1 October 2024. Marileen will also be appointed as a director of PAR Funding Company and as the debt officer with effect from 1 October 2024.



Marileen is a Chartered Accountant with extensive experience in the mining industry, specifically relating to financial reporting, corporate finance, governance and regulatory compliance and various other commercial matters. She joined the Group as Group Financial Manager in January 2020.



Regulatory

The following information is disclosed under Rule 17 of the AIM Rules for Companies ("AIM Rules") and Schedule Two Paragraph (g) of the AIM Rules:

Marileen Kok (aged 41)

Marileen Kok holds 25,000 ordinary shares in the Company.

Current Directorships

Past Directorships (within the last five years)

Barberton Mines Proprietary Limited

Midstream Ridge Home Owners Association

Evander Gold Mining Proprietary Limited


Pan African Resources Properties Proprietary Limited

Mogale Clay Proprietary Limited

There is no further information which is required to be disclosed under Schedule Two, paragraph (g) of the AIM Rules for Companies in respect of Marileen Kok.

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

[stonedyou] 27/9/2024 16:19

Costco still selling gold bars like hot cakes as prices surge.

Costco (COST) is slinging a lot of gold bars as prices for the yellow metal continue to surge.

Sales of gold were up "double digits" in the most recent quarter, Costco CFO Gary Millerchip told analysts on its earnings call Thursday evening. Millerchip went on to add that gold was a "meaningful tailwind" to e-commerce sales in the quarter.

Costco began selling gold bars in the fall of 2023. Wells Fargo analysts have estimated Costco is selling $100 million to $200 million in gold bars each month.

The most recent gold performance led to a tongue-in-cheek moment as Costco's call was nearing its end.

Veteran Evercore ISI analyst Greg Melich asked executives, "Given the nonfood, the success there, ... I'm just curious, are there any plans to maybe bring Kirkland Signature into the gold bullion market?"

Kirkland Signature is Costco's large private-label business.

"No plans at this time," Costco CEO Ron Vachris said.

A screenshot from Costco's online store showing its gold bar offering.

The gold rush at the warehouse club comes as futures for the metal hit (GC=F) record highs at $2,708.70 an ounce during Thursday's trading session. Year to date, gold is up 30%, with the Fed's decision to cut rates by a half percentage point last week giving it another boost.

Top gold stocks such as Freeport McMoRan (FCX) and Barrick Gold (GOLD) have gained a cool 22% and 18%, respectively, in 2024.

On its website, Costco sells its 1 oz gold bar for $2,679.99. You have to be a member to buy the bullion. It's also non-refundable, and there's a limit of five total units per membership.

It's likely that Costco's gold business will stay lucrative in the near term, pros suggest.

IDX CIO Ben McMillan told Yahoo Finance this week that after years of gold being "sleepy," it's now firing on all cylinders as investors look to de-risk their portfolios.

“Gold historically has been ... kind of associated with very risk-off, very flight to safety type trades like hard landing recessions," McMillan said.

Despite the hefty sales of gold, Costco's bread and butter is still hawking products like, well, bread and butter to cost-conscious shoppers.

Its fiscal fourth quarter same-store sales growth came in at 6.9%, compared to estimates of 6.4%. E-commerce sales jumped 19.5%, slightly lower than the 19.63% growth rate Wall Street was projecting.

Sales were powered by growth in appliances, food health and beauty aids, tires, toys, and gift cards, among other items.

NasdaqGS - Nasdaq Real Time Price
•
USD
Costco Wholesale Corporation (COST)

Shares of Costco fell 1.5% in premarket trading on Friday.

"In total, we think strong comparable sales and membership growth, and solid member retention rates indicate the company’s value proposition continues to appeal, with strong share gains across most of the company’s businesses. We anticipate the recently enacted membership fee increase will be largely reinvested, further aiding sales, comp, and traffic growth over the next 12-18 months," Stifel analyst Mark Astrachan wrote in a client note.

Astrachan maintained a Buy rating on the stock.

[stonedyou] 27/9/2024 11:35

Gold suppression policy is blown, GATA's Ed Steer tells talk radio's Dave Janda

Submitted by admin on Wed, 2024-09-25 12:46 Section: Daily Dispatches

12:50p ET Wednesday, September 25, 2024

Dear Friend of GATA and Gold:

Interviewed last week by talk radio host Dave Janda on WAAM-AM1600 in Ann Arbor, Michigan, GATA board member Ed Steer, publisher of Ed Steer's Gold and Silver Digest letter, said the U.S. and international economies are in their most fragile condition ever, being supported only by frantic creation of money by governments and central banks.

Steer said the U.S. government has pursued a surreptitious policy of suppressing gold and commodity prices ever since repudiating the dollar's formal link to gold in 1971.

He added that many governments and central banks are aware of this policy and aren't playing along with it anymore and are buying gold on price dips.

Silver, Steer said, is in much shorter supply than gold and its price potential is much greater.

The interview is 25 minutes long and can be heard at Janda's internet site here:



CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
[e-mail]

[stonedyou] 27/9/2024 11:03

Sept 2024


Pan African has delivered an outstanding set of operational and financial results for

the 2024 financial year. Notably, revenue increased by 16.8%, supported by a 4.9%

increase in gold sales to 184,885oz (2023: restated 176,216oz) and an 11.3% increase

in the average US$ gold price received during this period.11 Sept 2024

[cinoib] 26/9/2024 18:46

See some late profit taking at the close, they be kicking themselves when gold hits $3,000.

[stonedyou] 26/9/2024 14:21

President Trump 1 Oz Silver Round

[stonedyou] 26/9/2024 09:48

The 5 Best Gold Stocks to Buy in 2024

With the price of gold hitting an all-time high in 2024, it is worth once again considering investing in the precious metal. This movement is in line with an increasing number of predictions made in 2023, suggesting a predictability that provides a safe investment option for investors looking to diversify their risks. As global instability seems to be increasing, the markets remain volatile for various other potential investments. Gold provides an asset that has shown consistent growth and an ability to be a store of value over a long period of time. This suggests that the stable and consistent precious metal may be a wise choice for investors. Looking at the time value of gold, there are numerous comparisons being made, where for example in 1975, one could purchase a medium sized house for around 250 ounces of gold. A similar investment today would require less than 200 ounces of gold!

Investing in gold stocks has a number of benefits such as inflation protection, diversification and it can serve as a safe haven for your investment portfolio. There are a few potential pitfalls, but these can be mitigated by investing in the most reliable gold mining stock which returns value to shareholders through regular dividends, as well as providing leverage to the increasing price of gold. We have collated a list of some of the best gold stocks that you can invest in. This will help you assess the benefits of the different stocks, their mines, risk profile, capital allocation track record, reserve and production growth potential, evaluation and initiatives. This should give you a more holistic approach to the gold mining companies you may choose to invest in.

Table Of Contents

How To Choose the Best Gold Stocks
Pan African Resources (PAR)
Newmont Corporation (NEM)
Barrick Gold Corporation (GOLD) Gold price forecasts according to J.P. Morgan
Kinross Gold Corporation (KGC)
Harmony Gold Mining Limited (HMY)

1. Pan African Resources (PAR)

If you’re seeking a gold stock with exceptional value and growth potential, Pan African Resources (PAR) is a standout choice. PAR is listed on the Johannesburg Stock Exchange, the AIM market in London as well as on the OTCQX exchange in the USA. Not only has PAR maintained a consistent “buy” rating and attractive dividend yield, but it also offers a compelling investment story grounded in environmental sustainability and robust ESG initiatives.

PAR operates key mines in Barberton and Evander in Mpumalanga, and will soon commission Mintails in Gauteng, South Africa. This strategic location is promising politically as it has recently successfully navigated a transition of power for the second time in its democratic history. As the global markets suggest instability, South Africa has shown great potential to find peaceful and sustainable solutions to governmental changes. This suggests a potentially robust nation to consider for investment. South Africa also has a relatively weak currency, which allows high prices to be received in rand terms when the currency weakens while costs remain stable as they are incurred in rands. In addition, despite having the world’s largest producer status for a number of years South Africa still has some of the largest gold mineral resources, and PAR has over 30 million ounces within its mining rights, which are secured up to 2051 in Barberton and 2038 at Evander.

A significant concern for South African gold mines is an unstable power grid as a result of load-shedding, which causes damage to aging infrastructure (the mines are not load shed due to safety reasons). However, PAR proactively addresses this by investing in renewable energy projects. In 2021, they built a 22-ha solar plant on rehabilitated mine ground at Evander Mines. They continued this green energy push in 2023, constructing an 8.75MW solar plant at Barberton mines and will be expanding the Evander Plant from 12MW to 22MW, and is busy with a feasibility study for a renewable energy plant at Mintails. There are also wheeling agreements in place with private producers for other solar and wind projects and PAR is aiming for 50% of its power requirements from renewable sources by 2030.

Beyond their innovative energy solutions, PAR invests heavily in the surrounding communities. They’ve allocated $6,000,000 to social and community projects like Barberton Blue (a 15ha blueberry farm employing over 200 locals), various schools and clinic infrastructure projects and the Barberton mines bursaries, demonstrating a genuine commitment to improving local livelihoods.

Investing in PAR means supporting a company that prioritizes sustainability and community development. This approach not only mitigates potential risks but also enhances long-term stock value. PAR’s blend of financial strength, growth potential, gold resource base, dividend track record and unwavering dedication to ESG principles makes it a compelling choice for investors looking to achieve positive returns while making a meaningful impact.

Conclusion

FAQ’s
Is Pan African Resources a good buy?
What is the best physical gold stock?
Which gold stock pays the highest dividend?

[stonedyou] 26/9/2024 09:38

Simply Wall St.

Investors Should Be Encouraged By Pan African Resources' (LON:PAF) Returns On Capital

[e-mail] (Simply Wall St)

April 3, 2024 2 min read

In This Article:

PAFRY
0.00%

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at the ROCE trend of Pan African Resources (LON:PAF) we really liked what we saw.

What Is Return On Capital Employed (ROCE)?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Pan African Resources is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.24 = US$124m ÷ (US$574m - US$60m) (Based on the trailing twelve months to December 2023).

Therefore, Pan African Resources has an ROCE of 24%. In absolute terms that's a great return and it's even better than the Metals and Mining industry average of 7.5%.

Check out our latest analysis for Pan African Resources

In the above chart we have measured Pan African Resources' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Pan African Resources for free.

So How Is Pan African Resources' ROCE Trending?
Pan African Resources is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 24%. Basically the business is earning more per dollar of capital invested and in addition to that, 66% more capital is being employed now too. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.

Our Take On Pan African Resources' ROCE
To sum it up, Pan African Resources has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has returned a staggering 194% to shareholders over the last five years, it looks like investors are recognizing these changes. In light of that, we think it's worth looking further into this stock because if Pan African Resources can keep these trends up, it could have a bright future ahead.

On a final note, we've found 1 warning sign for Pan African Resources that we think you should be aware of.

High returns are a key ingredient to strong performance, so check out our free list of stocks earning high returns on equity with solid balance sheets.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.


This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

[stonedyou] 26/9/2024 09:18

Pan African Resources PLC's analyst rating consensus is a Strong Buy. This is based on the ratings of 3 Wall Streets Analysts.

[stonedyou] 25/9/2024 16:08

Pan African Resources Plc - Holding(s) in Company


TR-1: Standard form for notification of major holdings


Full name of shareholder(s) (if different from 3.)v

Name

ESB Pension Fund GDX

VanEck Gold Miners ETF

VanEck Gold Miners ETF (AU)

VanEck Gold Miners UCITS ETF



Common Stock GB0004300496

113,098,953 5.901%



SUBTOTAL 8. A

113,098,953

5.901%

[cinoib] 25/9/2024 15:07

$2,662 now and holding steady with more to come I still have $3,000 penciled in for year end.

[stonedyou] 24/9/2024 20:46

Live Gold Price

Low| High

Bid|Ask 2,662.70 2,662.82

2,622.64 2,663.18

Change $18.66 0.71%

[stonedyou] 24/9/2024 16:22

Mogale (MTR)

On 1 August 2023, PAF announced that all conditions precedent for its ZAR1.3bn senior debt facility, designated for funding the group’s MTR project, had been fulfilled, thereby completing the full upfront funding package of ZAR2.5bn. Since then, PAF reports that construction is progressing on time and within budget, with commissioning and steady state production on track for December 2024.

In addition, PAF reported that it had updated its financial model (relative to the initial definitive feasibility study model) to reflect the latest operating cost updates, as well as a ZAR19.00/US$ forex rate and a US$2,200/oz gold price. Given these changes, the pertinent results of the updated financial model were:

■
A near threefold increase in pre-tax NPV from US$63m to US$183m.

■
A doubling of the ungeared real internal rate of return from 20.1% to 41.7%

■
A two-year payback on upfront capital investment of c US$135.1m (cf an initial DFS model estimate of 3.5 years), post commissioning.

[stonedyou] 24/9/2024 16:22

Once again, we expect deferred taxes to account for the majority of the total tax charge for the year, with cash taxes paid amounting to less than half the total tax charge.

Growth projects

PAF has two organic growth projects currently underway (namely the MTR project within the Mintails Soweto Cluster and the Evander 24 to 26 Level expansion project) and one more immediately in prospect (the Sheba Fault project). Beyond these, it has the Egoli and Fairview sub-vertical shaft projects at feasibility study stage followed by Rolspruit, Poplar and Evander South also available for development.

[stonedyou] 24/9/2024 14:09

Updated FY24 financial forecasts

Relative to our prior forecast for H224e – and all other things being equal – we expect these changes to result in a positive variance to revenue of US$20.6m, partially offset by an additional US$6.6m in ‘other’ expenses (in this case, a contract liability for the ZAR400m upfront payment that PAF received in March 2023 for its Mintails funding at rand gold prices in excess of ZAR1,025,000/kg – see our note Innovative funding avoids dilution, published on 17 March 2023) and a US$5.5m negative variance in tax to result in a positive variance of US$11.2m, or 44.4%, at the post-tax level:

[stonedyou] 24/9/2024 14:02

In addition to changes to our immediate output assumptions, we have increased our estimate of the gold price for the remainder of the financial year to June from US$2,017/oz previously (see our note A happy valentine, published on 20 February 2024) to US$2,347/oz (ie that prevailing at the time of writing).

At the same time, we have adjusted our foreign exchange rates to reflect the recent relative strength of the rand against both the US dollar and sterling:

■
from ZAR23.8998/£ to ZAR23.0097/£ (-3.7%),

■
from ZAR18.9774/US$ to ZAR18.3215/US$ (-3.4%), and

■
from US$1.2593/£ to US$1.2554/£ (-0.3%).

[stonedyou] 24/9/2024 13:34

FY24 guidance

On 9 May, Pan African announced that it was narrowing its production guidance for the year ending 30 June to 186–190koz (cf 180–190koz), notwithstanding the end of processing marginal surface sources at Evander during H224. Nonetheless, group all-in sustaining cost (AISC) guidance was maintained at US$1,325–1,350/oz (at an assumed exchange rate of ZAR18.50/US$). Production guidance was also provided for FY25 of 215–225koz, which compares with Edison’s unchanged (and, in the event, relatively conservative) forecast of 216.6koz.

In the light of PAF’s announcement, we have updated our half year and full year production expectations for FY24 to those shown below:

[stonedyou] 24/9/2024 13:28

Valuation: Nosing in towards 40p

Given our revised forecasts, our core (absolute) valuation of Pan African has

increased by a material 16.8% to 48.08c/share (38.30p), based on projects either

sanctioned or already in production. This valuation rises by a further 22.17–27.19c

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 38.30p in FY24, followed by 41.94p in FY25. As

such, PAF’s current share price of 26.70p could be interpreted as discounting

normalised HEPS falling to 4.00c per share (cf our forecasts of 5.73c/share for FY24

and 6.28c/share for FY25), which is barely above FY23’s level. In the meantime, PAF

remains cheaper than its principal London- and South African-listed gold mining

peers on at least 66% of commonly used valuation measures regardless of whether

Edison or consensus forecasts are used. Performing a relative valuation analysis,

its peers imply a comparable valuation for PAF of 63.21p based on our year one EPS

estimate and one of 48.06p based on our year two EPS estimate. Separately, we

estimate that PAF has the 18th highest dividend yield of the 62 precious metals

mining companies expected to pay dividends to shareholders in the next 12 months (globally). Finally, we calculate that it is trading at an enterprise value that

equates to just US$17.39 per resource ounce of gold.