Pan African Resources PLC

FY2026 revenue increased 114% year over year to $1.1 billion. Headline earnings increased 207% to USD 358 million, HEPS increased 200% to $0.1764 per share, and EPS increased 146% to $0.176 per share. Adjusted EBITDA increased 169%, attributable earnings increased 152%, and cash flows from operating activities before dividend, tax, royalties and net finance costs increased 260% to USD 557 million. Gold production was up about 40%, with final production just under 275,000 ounces; the second-half annualized run rate was almost 290,000 ounces. The company said all-in sustaining costs came in within guidance, and more than 90% of the portfolio produced at an AISC of $1,700 per ounce. The group repaid a total of $149 million of debt, including $119 million of voluntary payments, and ended the year with $246 million cash and short-term investments plus $79 million of undrawn facilities. For FY2027, management guided to production of 280,000 ounces to just over 300,000 ounces, skewed to the second half, and FY2027 group capital of approximately $330 million.

Jacobus Loots emphasized that Pan African has transformed into a higher-production, high-margin business with long-life assets, strong cash generation and a growing pipeline of organic projects. He repeatedly framed the company as well positioned to benefit from current gold prices while still stressing prudence in capital allocation and a desire to grow without overpaying for acquisitions. His tone was upbeat and confident, especially on Tennant Creek, Royal Sheba, Soweto and Poplar, but he also highlighted disciplined sequencing and phased development.

Marileen Kok said FY2026 was a year of records financially, driven by the higher gold price, a 55% increase in average U.S. dollar gold price received, and 38% more gold sold. She noted production costs were affected by weaker rand and Australian dollar exchange rates, third-party material, the slower-than-expected Tennant ramp-up, higher share-based payment expense and higher royalties, but margins remained attractive. On capital structure, she said the group repaid $149 million of debt, fully settled the MTR term loan and all Australian debt facilities, and finished with $246 million cash and short-term investments, $79 million undrawn facilities, and a net cash position. She also detailed the shareholder return plan: the proposed ZAR 0.65 final dividend, ZAR 0.12 interim dividend, and ZAR 500 million buyback imply a payout ratio of about 40% of cash flow.

Analysts focused on Australia inflation and diesel costs, the expected steady-state AISC at 100,000 ounces, and the grade/run-rate outlook for White Devil and Tennant Creek. Management said Australian cost inflation was mainly around diesel and related inputs, budgeted conservatively with the AISC for the next year in Australia at about $2,000 per ounce, declining further as production scales. On White Devil, they said grades should improve as the mine ramps, with life-of-mine grade around 3.5 grams per tonne, and on Tennant they acknowledged the ramp-up was slower than hoped but said plant throughput is improving and White Devil should drive the turnaround toward nearly 50,000 ounces. Questions also touched on capital phasing for Soweto, acquisition strategy, Egoli versus Poplar, potential copper at Tennant, Sudan, and hedging; management said Soweto spending is likely to become meaningful in FY2028, they prefer organic growth and disciplined acquisitions, Poplar may be the better medium-term South African project, copper at Warrego is a phase 2 opportunity, Sudan is in care and maintenance, and they do not foresee hedging Consort and Sheba.