Share Name Share Symbol Market Type Share ISIN Share Description
Pan African Resources Plc LSE:PAF London Ordinary Share GB0004300496 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  -0.50 -2.05% 23.90 2,129,472 16:35:03
Bid Price Offer Price High Price Low Price Open Price
23.80 24.10 24.90 23.70 24.90
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 221.29 42.14 1.86 14.1 534
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:03 UT 5,518 23.90 GBX

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Pan African Resources Daily Update: Pan African Resources Plc is listed in the Mining sector of the London Stock Exchange with ticker PAF. The last closing price for Pan African Resources was 24.40p.
Pan African Resources Plc has a 4 week average price of 23p and a 12 week average price of 18.50p.
The 1 year high share price is 28p while the 1 year low share price is currently 8.45p.
There are currently 2,234,687,537 shares in issue and the average daily traded volume is 1,665,728 shares. The market capitalisation of Pan African Resources Plc is £534,090,321.34.
hjs: PAF has broken the 24.40 resistance and if it closes above this then expect the share price to move to 28 in a very short period of time. Gold has started going up which will be a bonus for PAF.
hjs: IMO, who ever wins the election, will have to pump a lot of money in the US economy. They have no choice but to print more money. This action will push the dollar down and push the gold price much higher than where it is today. Some analysts are pushing the price to over $2,000. Todays RNS for PAF listing in US will help the share price to move North. I am invested in PAF which is fundamentally very strong. Their debt will be wiped off soon and will increase the dividends going in the future. They will have spare cash for acquisitions as well.
risa5: Here is 2 comments that came with that report... omments1 | + Follow I think your gold price assumption may well be correct for the longer-term but a bit short sighted over say, the next 3-4 years. With all governments spending like there's no tomorrow especially the USA, the dollar will not be the safe haven it was and inflation is on it's way, another positive for gold. In fact, governments are actively encouraging it. The recent flight to gold has a long way to go yet and one more push so take it clear of $2,000/oz for quite some time. Now is not a time to sell Pan African. 13 Oct 2020, 11:50 AMReply1Like Comments2 | + Follow Thanks for solid analysis of Pan African which I have recently sold out of as a 2.5 bagger. However, I do not necessarily share the author's view in that much of the overall judgement of PAF being overpriced is based upon an assumption that Gold is overpriced and that the PAF share price over-valuation is made based on the conservative gold price of $1,500. My own perspective is that Gold will never be $1,500 ever again and having finally pushed through the necessary technicals then a more reasonable conservative estimate of Gold price might be $1,800. As a Gold bull I expect much higher gold prices and as a high cost producer then this has a much higher effect on a fair value for PAF shares. What would the author consider a fair value for PAF at $2,300 Gold price I wonder. I choose this level because it is $400 higher than current levels rather than $400 lower than current levels as per the analysis and therefore arguably just as valid as an appraisal value. 13 Oct 2020, 11:48 AMReply1Like
hjs: risa5 the author of this article has analysed the valuation model beautifully but his assumptions are not valid! Gold price at $1500 is a totally wrong. US/UK and European governments has been pumping money in the markets which will create huge deficits and has to be paid at the end of the day. Inflation is another major factor which has been ignored. In my view dollar will fall further and gold price will rise even higher than $2000. In my view this article is not valid for PAF. In fact I would say the opposite that the Share price of PAF is under valued today and I would buy more and not sell as suggested by the author.
risa5: John’s Mining Journal: Pan African Resources – to sell or not to sell? By John Cornford 16 September 2020 With gold on, possibly, a bit of a plateau, or even at what some investors might think is a peak, they might be thinking of re-deploying their profits from my gold coverage. But from which stock? Pan African Resources (LON:PAF) (market cap £463m @24p) is definitely not one to sell, even though the price is down 15% since the end of July – when at 27.5p they had surged 150% above my buy recommendation a year ago. Full results for the year to June will have just been published when you read this but were flagged by the company on 1st September. On about the same volume as last year, PAF’s gold sales were 26% higher, producing underlying earnings per share 87% ahead, with company debt halved throughout the year’s second half. These results were better than expected only a few months ago, and better than forecast by Edison, which follows the company in more detail than I can (they get paid to do it by PAF after all, and are more reliable than some other ‘paid-for’ researchers I could name). No doubt a few traders took their profit at that point, but the shares now look as though ready to resume their up-trend, if only because, on Edison’s forecast of earnings per share of 16 cents, the forward PER at 24p is less than two. Not only that, but Edison is also forecasting a 1.5 cent dividend (1.15p) to deliver a 4.8% yield. Admittedly that is less than the 11% that was behind my strong recommendation a year ago, but it is highly likely to continue to increase when the company’s planned re-opening of the refurbished Egoli project (which it acquired along with Evander Mines – which initially proved disappointing – in 2013) starts producing in three years’ time. It will add 38% to PAF’s current gold output at an above average profit margin, while PAF’s solidly existing high-grade Barberton Mines continues to extend its already long life to at least another 15-20 years. So, Pan African Resources is not dependent on gold continuing strong. It shouldn’t be sold. Https://
risa5: Finals on Wednesday should have lots of good news on all fronts as well as news on increased dividend which could lift the price much higher... AIM stocks to watch: I think the PAF and APH share prices look promising With the price of gold on a tear, there has never been a better time to be in gold production, I feel. Pan African Resources (LSE:PAF) is a South African gold producer and an AIM stock to watch, in my view. The PAF share price has skyrocketed 99% in the past six months and it now has a market cap of £545m. The company kept things ticking over in a reduced capacity throughout lockdown. But it continues to make strides with revised production guidance for FY21 of 190,000 ounces. And it recently undertook a feasibility study on its Egoli Project, which shows a life of mine of between nine and 15 years, with gold production of 72,000 ounces annually and mining rights in place until 2038. In the meantime, the company already has several other mines producing substantial quantities of the precious metal. Paying down debt The rand/gold price is approaching an all-time high and this could mean Pan African achieving debt-free status before the end of FY21. With a forward EPS of around 16p, and current share price over 24p, the company has a price-to-earnings ratio of 1.5, which makes it a cheap UK stock. Its dividend yield is only 0.5%, but management would like to return to being a sector-leading dividend-payer later this year. Also appealing (and a key issue for future-proofing any business) is the fact that the company is big on safety and strongly committed to Environmental, Social and Governance (ESG) awareness. But operating a mining company in South Africa comes with considerable risk. Covid-19 continues to pose a danger in developing countries, and political strife can wreak havoc. The South African economy is struggling, and the treasury has said it needs to raise an additional R40bn in taxes over the next four years. This could mean Pan African Resources is in for a steep hike in tax payments. For these reasons, the PAF share price is likely to experience volatility. This makes it a share for those with a high risk-tolerance only. But I think it’s an AIM stock to watch nonetheless.
risa5: Pan African Resources shares are up threefold in the past four months, as new gold production looks set to hit 190,000 ounces Mon 10 Aug 2020 Pan African has a long track record of gold production in South Africa What a rollercoaster world we live in! From the enforced shutdown of a considerable portion of its gold mining activities in in South African in March, Pan African Resources plc (LON:PAF)(JSE:PAN) has roared back bigger and stronger and better than ever, beating revised production forecasts and forging ahead with new project developments. Along the way, the company’s share price has risen from its April 2020 nadir of 9p to its current price of 27p, a threefold rise in the space of a few months. The backdrop, of course, has been the record run in the gold price, a favourable dollar-rand exchange rate, and the ability of Pan African to be nimble in its response to coronavirus itself, both in terms of the way it protects its workers and in the way it has been able to get production going again. Initially, when the virus struck, it helped that not all Pan African’s operations are underground. The surface work, particularly the well-established tailings reprocessing operations, were allowed to continue to operate under strict guidelines, and this not only meant that significant cash was still coming into the company, even at the worst moments of the crisis, but also that there was a sense of continuity. Pan African never wholly shut down, the virus never wholly got on top of it. And once the South African government approved the re-opening of the rest of its operations the company came back with a vengeance. “Covid continues to have an impact,” says chief executive Cobus Loots. “And our operations are geared to health and safety. We’ve had to re-educate our workforce, but we feel we’ve done that quite well.” And with the workforce comfortably back in place under the new dispensation, Pan African has been confident enough to put out production guidance for the current year of 190,000 ounces. And, with the gold price roaring past the US$2,000 per ounce mark, there’s never been a better time to make such an announcement. What’s more that combination of a strong production outlook with a high gold price means that Pan African is likely to be debt free by the end of the year, and looking at paying a dividend. For a company that was in some difficulty just a few years ago, it’s a remarkable turnaround. But it comes as Loots has kept his eye on the ball, and stayed focused on what the company does best. In theory, supported by the company’s strong cashflow, he could go out into the market and acquire new projects and new ounces, and build value that way. And it’s possible that may happen. But not in the first instance. “The first order of business is re-investing in our own assets,” says Loots. “Why should we go out paying for acquisitions when we can develop our own projects.” Given that one of the company’s flagship operations, at Barberton, has been mined successfully for decades and decades, there is some wisdom in what he says. New parts of Barberton continue to be developed, and recent ore sampling has delivered shown grades as high as 40,000 grams per tonne, or 4% gold, so it’s not hard to see why Loots is reckoning on at least 20 years of mine life left in some parts of it. Meanwhile, at Evander, the recent commitment to a major new spend at Egoli allows for the future addition of 72,000 ounces per year over nine years. For a mid-tier company, these are significant numbers, especially since the internal rate of return, done at what now seems the conservative gold price of US$1,650 per ounce, runs at just over 50%. As Paul Newman once said: “Why go out for hamburger when you can have steak at home?” Of course, everything depends on the company’s social licence to operation, and Loots, having come up through the Black Empowerment structure himself, is as cognisant of this as anyone. “There is a need in the communities in which we operate to make sure that people earn a decent living,” he says. “A lot of people are desperate, and working successfully where we do demands that we address that. So we are active in our ESG. We support schools and a clinic, and we provide food to some of our people.” PI
risa5: There is a embedded video in this link... Pan African does it again with exciting rich vein of gold at New Consort JOHANNESBURG ( – London-, Johannesburg- and now also New York-listed Pan African Resources continues to demonstrate the resilience of its operations with an improved all-round performance, despite the challenges posed by the Covid-19 pandemic. In the last year, Pan African has taken strong steps to reduce all-in sustaining costs, to focus on its surface tailings retreatment business, which is doing exceptionally well, and to do additional exploration development at its underground assets, specifically at Barberton. “All of these things are coming together quite nicely at the moment, and we’re seeing it reflected in our results,” said Pan African CEO Cobus Loots, who was stricken by the coronavirus three weeks ago and has now recovered. (Also watch attached Creamer Media video.) Loots was speaking to Mining Weekly a day after the publication Business Insider South Africa reported on the discovery of an exceptionally high-grade gold vein at Pan African’s New Consort mine in Barberton. “So rich is the ore that in many cases it can be seen with the naked eye,” Business Insider commented, in reporting that New Consort’s deluxe vein of gold was “more than double what is normally considered high quality”. Showing a picture of a mineworker holding two big pieces of gold-bearing ore, the publication stated that the initial chip samples indicated local grades of 300-g/t-plus of milled ore, with an average density of around 25 g/t, at a time when the rand gold price is close to a million rand a kilogram and dollar price projections continue to point upwards beyond $1 800/oz. “The rich vein at New Consort is fairly small but certainly, in our view, it will turn around the fortunes of the mine, which has been struggling for some years to make profits,” said Loots. “It delivers into what we said to the market last year, about being busy with a number of initiatives to increase production from Consort, to make sure that it contributes to group profits going forward. “We also have a number of additional exploration targets at the mine. Many years ago, Consort was actually Barberton’s richest mine and what we’re doing at the moment, plus the exploration targets, will stand Consort in good stead for the years ahead,” Loots added to Mining Weekly. Development into the first target block on 42 level of Barberton’s New Consort Mine – Prince Consort shaft – was completed last month. ORGANIC GROWTH PROJECTS The good news from New Consort is just another example of the ongoing organic growth of the gold reserve base of Pan African, which has a knack of making its internal projects work. The Elikhulu tailings project is a case in point. When the R1.8-billion Elikhulu project was launched, an initial payback of four years was forecast. But at this gold price, and given the top performance of the asset, payback will be in less than three years. Moreover, hot on the heels of Elikhulu is the Egoli project, also at Evander, but this time an underground project, and it looks like being another winner. No shaft work is necessary as the existing twin-vertical shaft system extends down to a depth of 1.6 km. Ore will be fed into a fully operational plant at Kinross, and all the other required infrastructure is in place. Funding is being finalised, detailed project planning is advancing and a development plan update is likely in September. On the company’s strong share price performance, Loots says: “We know that gold is a cyclical commodity and it’s fair to say that currently we’re in a really good rand gold price environment. “We not only have the dollar gold price working for us. We also have a fairly weak rand. Even though it has strengthened recently, it still means a gold price which is just south of a million rand per kilo, which is very attractive,” Loots added. AMERICAN DEPOSITORY RECEIPTS As reported by Mining Weekly earlier this month, Pan African bolstered its already strong London and South African shareholder base by establishing a sponsored Level-1 American Depository Receipt (ADR) programme on the over-the-counter market in the US, with the Bank of New York Mellon being the appointed depository. In doing so, Pan African joins a number of its gold peers that have successfully implemented an ADR programme. “The US market, in terms of liquidity and the investor base, is massive. We’ve done very well in both the UK and South Africa in terms of our shareholder base, but we’re looking to access the depth of the market in the US, specifically in this gold price environment, and we should be doing so, given the quality of our assets, and the fact that we’re a long life and safe producer. We tick all the boxes and we’ll see how it goes,” said Loots. The Barberton Mines achieved three-million fatality-free shifts during June 2020, a record for the past decade, and Elikhulu has gone for 11 months without a single lost-time injury. “The focus is on safety. It’s been a key area for us for many years and it’s about trying to see that we keep achieving results. But as we said in our operational update, safety’s never done until we have absolutely no incidents and issues at our operations. It’s a journey and we’ll continue on this journey,” he said. ENVIRONMENTAL, SOCIOECONOMIC AND GOVERNANCE Environment, socioeconomic and governance (ESG) initiatives have been prioritised further through increased expenditure on rehabilitation and sustainable development projects that include large-scale agricultural projects at Barberton Mines, and the initiation of a feasibility study for a solar plant at Barberton Mines. Pan African has been placing much emphasis on the ‘S’ in ESG, with particular emphasis placed on it during lockdown. “It’s ongoing. If you look at our initiatives over certainly the last three, four months, since the start of the pandemic, we’ve gone to great lengths to look after our own employees and also the communities that surround our operations. “Those efforts will continue and we recognise that certainly in the Barberton area, and also in Evander, where we operate, we’re the largest employer in those areas and the largest economic activity, so to speak. So, we need to make a positive difference, which we are doing and we’ll continue to do so,” he said. Covid-19 assistance has risen to R5-million and R3-million worth of hygiene, water and food hampers to the company’s 2 600 Barberton Mines employees, as well as to near-mine families and local communities around its Fairview, Consort and Sheba operations. SOLAR POWER PLANTS Much emphasis is also being placed on the ‘E’ in ESG, evidenced by the board’s approval of a 10 MW solar power plant at the Elikhulu gold-from-tailings operation, which will lower the carbon footprint as well as the electricity bill after its 12-month construction period. “Given the improvements in technology, in recent years, this sort of project makes all the sense in the world. We have the support of government. The Minister of Mineral Resources and Energy has come out quite strongly to say that, to the extent that we experience bottlenecks, we need to let his department know. So we have supported government. From an economic perspective, it makes sense. “The solar plant will supply 30% of Elikhulu’s power. It’s a fairly limited capital item of about $7-million to $8-million. We estimate the payback on that investment to be, again, sub four years, so quite attractive, and it will be the precursor for us to look at further similar initiatives in the group. “We would hope to expand the plant at Evander for a portion of Egoli, number one, and we’ve also commenced a feasibility study at Barberton for a similar plant at Fairview. “Initially, we don't have a storage solution as part of the project but we certainly leaving the flexibility so that we can install storage going forward, which means that we could potentially increase the percentage of power that we get from these projects in the years to come,” Loots explained. DIVIDEND INTENT Earlier this month, in an operational update for the year ended June 30, Pan African reported intensified dividend intent and revealed that it was within striking distance of zero debt in the next 12 months. On the company’s current dividend outlook, Loots said: “Well, it’s always a balance between degearing, which we’re doing very nicely if you look at our operational update we put out earlier this month; reinvesting into our assets, which we’ve always done to ensure that they are sustainable over their long lives; and then returning cash to shareholders. “In the past, Pan African has been a leading dividend payer in terms of our yield, in the global gold space and we’d like to get back there in the years to come. “At the prevailing gold prices, assuming no major interruptions from Covid and assuming that we can achieve our guidance for the year ahead, which is 190 000 oz of gold, we should have pretty much no debt on the balance sheet in 12 months from now,” he said. An all-in sustaining cost level of below $1 000/oz is the ongoing target. “We’re very proud of our people and what they have achieved. These are exceptionally difficult circumstances and times. They’re unlikely to get easier soon. We have to deal with it in a responsible manner and that’s what we’ll continue to do,” said Loots.
xippy: I think the point is that if the tensions increase between US and China, Gold price will rise as gold is seen as a safe haven. Knock on - PAF share price rises.
risa5: What's in store for shares in Pan African Resources? Shares in Pan African Resources (LON:PAF) are currently trading at 16.418 but a key question for investors is how the economic uncertainty caused by Covid-19 will affect the price. The answer comes down to judging whether Pan African Resources is well placed to withstand economic shocks and ride out market volatility. To do that, it's essential to look at the profile of the stock to see where its strengths are. The good news is that Pan African Resources scores well against some important financial and technical measures. In particular, it has strong exposure to two influential drivers of investment returns: high quality and strong momentum. Decades of research shows that good quality stocks are more likely to be resilient, cash-generating businesses that can compound investment returns over time. Likewise, strong momentum in price and earnings is a pointer to stocks with positive trends that have the potential to continue. Why quality stocks pay off When it comes to stock analysis, company quality tends to show up in high profitability and strong industry-leading margins. These kinds of firms are stable, growing and often have accelerating sales and earnings. They also have strong and improving financial histories with no signs of accountancy or bankruptcy risk. One of the stand out quality metrics for Pan African Resources is its 5-year Return on Capital Employed, which is a solid 13.1%. Good, double-digit ROCEs are a pointer to companies that can grow very profitably. Harnessing the power of momentum Positive momentum trends show up in share prices and earnings growth. You can find the clues in stocks that are trading close to their 52 week high prices and outperforming the market. They’ll often be beating broker estimates and getting forecast upgrades and recommendation changes. This is true at Pan African Resources, where the share price has seen a 95.4% return relative to the market over the past 12 months. Market volatility and economic uncertainty can be a major drag on momentum, but previously strong stocks can be quick to recover when confidence returns. In summary, good quality and momentum are pointers to some of the best stocks on the strongest uptrends. This combination of factors can be a clue to finding shares that can deliver solid investment profits over many years. In good times, these shares can become expensive to buy. But in volatile markets, there may be chances to buy them at knock-down prices.
Pan African Resources share price data is direct from the London Stock Exchange
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