Pan African Resources Share Discussion Threads

[stonedyou] 25/10/2024 13:02

PFS completed on the Mintails SA Soweto Cluster TSFs

• Further upside – potential to increase production to ~60koz/yr
over 21-year LOM with plant expansion to treat 1Mtpm from year 6
• Total additional capex of US$113m over 10 years
• At US$2,200/oz## (ZAR1 344,000/kg): Pre-tax NPV (9.5%) of US$283m,
an increase of US$96m relative to updated Mogale standalone DFS
• Real ungeared IRR increases to 44.0%
• Extends LOM from 13 years to 21 years
# converted at an exchange rate of US$/ZAR:15.50)
## converted at an exchange rate of US$/ZAR:19.00

[stonedyou] 25/10/2024 13:00

PERFORMANCE BY OPERATION

MOGALE TAILINGS RETREATMENT (MTR)

October 2022 – PAR closed transaction to acquire Mogale Gold
and Mintails SA Soweto Cluster TSFs

• Acquisition price of ZAR50million (US$2.8 million)
• ~ US$ 1.12/Resource oz
• Expected to add ~50koz/year over a 13-year LOM, increasing
Group production by ~25% per annum
• Initial DFS October 2022 - US$1,750/oz# (ZAR872,000/kg):
Pre-tax NPV (9.5%) of US$63m, real ungeared IRR of 20.1%
• Updated DFS May 2024 - US$2,200/oz## (ZAR1 344,000/kg):
Pre-tax NPV (9.5%) of US$183m, real ungeared IRR of 41.7%
• Forecast AISC of ~US$900/oz over initial 13-year LOM
• 800ktpm processing plant design at MTR based on successful Elikhulu
and BTRP operations
• Construction capex of ZAR2,5 billion (US$135.1million*) – payback
expected within 2.5 years post commissioning (initial DFS model: 3.5y

[juuunx2] 25/10/2024 10:11

Commissioned in December

[justiceforthemany] 24/10/2024 18:18

Mintails commissioning must be due.

[stonedyou] 24/10/2024 11:21

BRICS, State Gold Initiatives, and De-dollarization: Sound Money on Arcadia
Economics

Jp Cortez, executive director of the Sound Money Defense League, joined Chris Marcus from Arcadia Economics to discuss sound money legislation at the state level, de-dollarization, and what the global monetary system might look like 20 years from now.

Summary of the Interview Between Jp Cortez and Chris Marcus
In this interview, Chris Marcus from Arcadia Economics talks with Jp Cortez, the executive director of the Sound Money Defense League, about the growing movement for the remonetization of gold and silver in the United States.

They disxuss Money Metals' strong advocacy for removing taxes on precious metals and the increasing number of U.S. states that are introducing legislation to support sound money policies. Key topics include the role of the BRICS nations in de-dollarization, the importance of state-level initiatives, and how individual states are starting to invest in physical gold.

Cortez shares the successes in passing sound money legislation, such as eliminating sales and income taxes on precious metals in multiple states, and he highlights how Money Metals and the Sound Money Defense League continue to push for legislative reforms. The interview also explores the challenges in using gold and silver as money, including Gresham's Law and the friction created by taxation.



The BRICS Aren’t The Only Ones Turning To Gold...

Arcadia Economics


Key Questions and Answers
What is the Sound Money Defense League?

Jp Cortez explains that it is an advocacy group owned by Money Metals Exchange, focused on removing regulatory and tax barriers that prevent people from using gold and silver as money.
Why is removing taxes on precious metals important?

Jp highlights that sales and income taxes on precious metals create friction that discourages their use as money. The Sound Money Defense League has helped pass legislation in several states to eliminate these taxes.
Which states have introduced sound money legislation?

Jp shares that 27 states have introduced pro- gold and silver legislation, and in 2024, seven pieces of legislation have been signed into law.
What are some notable legislative successes?

Recent wins include eliminating income taxes on precious metals in Nebraska and adding protections against Central Bank Digital Currencies (CBDCs) in other states. New Jersey and Wisconsin became the 44th and 45th state in the country to end sales taxes on purchases of gold and silver. Alabama passed its third pro- sound money bill in as many years by removing income tax on precious metals.
How are states like Texas and Utah advancing sound money?

States like Texas are establishing bullion depositories, while Utah is moving forward with investing state funds in physical gold, showcasing how states are acting as custodians of sound money.
What challenges remain in promoting sound money?

Jp points out that Gresham's Law (bad money driving out good money) and people's reluctance to spend gold and silver, as they believe its value will increase, are ongoing challenges.
What does the future of sound money look like?

Jp believes that the current U.S. dollar system is unsustainable and that the shift toward sound money is inevitable, driven by rising inflation and the decline of the dollar.

This interview dives into the rising movement toward sound money in the U.S., where Jp Cortez discusses recent legislative successes in removing taxes on precious metals. Key topics include how BRICS nations and individual U.S. states are moving toward gold-backed assets, challenges in using gold and silver as money, and what the future may hold for the U.S. dollar.

[saint in exile] 24/10/2024 07:59

Thanks stoned you

[saint in exile] 23/10/2024 11:46

What are the prospects of the dividend increasing here?

[stonedyou] 21/10/2024 15:25

International

Hong Kong to Bring In Measures to Boost Gold Trading, Chan Says

By Jeanny Yu

October 20, 2024 at 1:34AM EDT


A selection of gold bars and one-ounce gold coins arranged at Gold Investments Ltd. bullion dealers in London, UK, on Tuesday, May 21, 2024. Gold slipped — after hitting an all-time high in the previous session — with investors assessing recent hawkish commentary from Federal Reserve officials that downplayed the possibility of imminent rate cuts. Photographer: Chris Ratcliffe/Bloomberg (Chris Ratcliffe/Bloomberg)


(Bloomberg) -- Hong Kong will roll out several measures with the aim of becoming an international trading center for gold and other commodities, Financial Secretary Paul Chan wrote in his blog Sunday.

Policymakers plan to increase gold inventory facilities and accelerate the development of related businesses, such as trading, insurance and logistics, according to Chan. The city’s government will also expand gold-related derivatives trading to satisfy mortgage and hedging needs.

Chief Executive John Lee said in his 2024 policy address Wednesday that the government would form a working group to establish a global gold trading center and enhance its position as an international financial hub.

Apart from gold-related trading, Hong Kong will also speed up the development of non-metals commodities trading，Chan wrote. The city is studying policies, including tax measures, to encourage large commodities companies to set up offices there.

©2024 Bloomberg L.P.

[stonedyou] 21/10/2024 15:06

Ghana Launches Gold Coin to Boost Savings, Soak Up Excess Liquidity

Mike Maharrey

Money Metals


Ghana has introduced a gold coin in an effort to boost savings and manage money-market liquidity.

According to Bank of Ghana Governor Ernest Addison, the coin will be refined to 99.99 percent purity and will come in 1-ounce, half-ounce, and quarter-ounce sizes.

"This initiative is a testament to our unwavering commitment to deepen financial markets by offering other avenues for savers to invest. It also serves as a significant reminder of our nation’s rich gold heritage," Addison said when he introduced the coin.

The coins feature the Ghana Coat of Arms on the front and the Independence Arch on the back.

Initially, the coins will only be available through commercial banks in Ghana and must be purchased with Ghanan cedi (1 cedi = 0.62 USD).

The coins will be minted using locally sourced gold and will comply with the central bank's responsible gold sourcing rules.

Ghana ranks as Africa's biggest gold producer.

Ghana launched a domestic gold-buying program in 2021. According to a report by Business Insider Africa, Ghana now requires big gold miners in that country to sell 20 percent of their refined gold to the country’s central bank.

According to the Bank of Ghana, it has purchased 65.4 tons of gold valued at around $5 billion from the domestic market. The gold is intended to increase the country's gold holdings and augment foreign reserves.

Addison said he hopes the coin will ease the country's excess liquidity and provide a safe and stable way to increase savings.

“The Ghana gold coin enables the Bank of Ghana to mop up excess liquidity in the banking sector and will supplement the bank’s bills for liquidity management. It gives those residents in Ghana an additional avenue to invest to reap the benefits of the Bank of Ghana’s domestic gold purchase program.”

Addison said the gold coin would provide Ghanans a savings option not linked to the dollar.

”Now, if you don’t buy dollars, you will buy treasury bills or bonds. We are giving you an opportunity from the domestic gold purchasing program to also buy gold."

Africans Increasingly Turning to Gold

If Dr. Mahamadu Bawumia has his way, gold will become an even bigger part of Ghana's economy. The presidential candidate recently said he would push to back the country's currency with gold. He said a gold-backed currency would “keep a lot of stability in the exchange market.”

“Right now, we don’t have an anchor to hold the currency, but if we back it with gold, it will be very stable, because its value ultimately will be reflected by the value of gold, which is very stable.”

A growing number of countries in Africa are turning to gold. Uganda, Tanzania, and Nigeria all recently launched domestic gold-buying programs to boost reserves. The Nigerian central bank has also announced plans to bring its existing gold reserves back into the country “to mitigate risks associated with the weakening U.S. economy.”

Zimbabwe has created its own gold-backed currency, although the government has already inflated the ZiG.

The growing movement toward gold in Africa underscores an important truth: while fiat currencies come and go, gold has remained trusted money for over 5,000 years.

[faz] 21/10/2024 11:23

THey have debt but that seems readily financed. Maybe to ramp up the MTR project - equivalent to £36m

[cinoib] 21/10/2024 11:04

Now would anyone like to explain what all this equity is about as am confused as I thought they had enough in the bank and the way gold is heading is only going to increase as I seem to remember all in was somewhere in the 1,300 mark so as much over that an oz, profit and a tad short of 200,000 oz should give them a very healthy bank accounts. Or have I missed something.

[cinoib] 21/10/2024 11:00

Faz, precisely.

[faz] 21/10/2024 07:25

if you two can settle the Middle East conundrum after 4 millennia, great. But please dont let this really good thread, and there arent many on Advfn, get side tracked.

[astjgroom] 19/10/2024 07:28

And NOTHING Cinoib, excuses the murder of 42,000 women and children, Nothing on this planet.

[astjgroom] 19/10/2024 07:27

Ahh Cinoib, they were living peacefully in the Middle East until Israel was formed and stole their land. Perhaps if you were ousted from your home tomorrow, forced to live in a refugee camp, denied food, jobs, embargoed for 15 years, saw your families murdered and their land stolen around the Golan heights and treated as a third class citizen, oppressed, you may do the same.

[stonedyou] 18/10/2024 14:46

Central bankers make rare comments in favor of bigger gold stash

(Bloomberg) -- Gold purchases from central banks have been a key driver in bullion’s record-smashing rally this year. But officials rarely signal ahead of time when buying is top of mind.

In a break to that form, reserve managers from the central banks of Mexico, Mongolia and Czech Republic on Monday sang the praises of bigger holdings. The comments provided unique insight into how they are viewing bullion, with the officials saying that gold as a percentage of their country’s reserves is more likely to increase in the years ahead amid a confluence of growing geopolitical tensions and lower interest rates.

“Given the context that we are facing right now — lower rates, your political tension, US election, a lot of uncertainty — maybe the share of gold in our portfolios could be increasing as well,” said Joaquín Tapia, director of international reserves at Banco de México.

Enkhjin Atarbaatar of Mongolia and Marek Sestak of Czech Republic echoed Tapia’s remarks. The three officials spoke together on a panel in Miami at an annual industry conference held by the London Bullion Market Association.

“In Mongolia’s case, I expect that the reserves will continue to grow, and I also expect that the share of gold in our reserves will likely increase in the future,” said Atarbaatar, director general of the financial markets department at the Centrl Bank of Mongolia.

Sestak, deputy executive director of the risk-management department at the Czech National Bank, responded: “I completely agree as well.”

Gold has surged more than 25% so far in 2024, outperforming US equities and bonds as it keeps climbing to fresh all-time highs. The rally was partly helped by unprecedented levels of bullion purchases by central banks as reserve managers seek safety in the precious metal to safeguard their nation’s wealth against geopolitical and economic uncertainty.

The average central bank has 15% of their foreign exchange reserves in precious metals at market valuations, according to Terrence Keeley, chief executive at Impact Evaluation Lab. Keeley is a former senior BlackRock executive, responsible for overseeing the relationships and services that the firm provided to central banks and sovereign wealth funds.

©2024 Bloomberg L.P.