Pan African Resources PLC has announced record gold production for the second half of fiscal year 2025, delivering approximately 112,000 ounces, a 32% increase compared to the first half. This strong performance brings the company’s full-year forecast to 197,000 ounces, up 6% year-over-year, albeit slightly below its original guidance of 205,000–215,000 ounces.
The company attributed the shortfall to slower-than-expected ramp-up at the Evander underground subvertical shaft and delays in filter press commissioning at the Tennant Mines plant.
Financial Strengthening and Shareholder Returns
Pan African also reported meaningful progress in deleveraging, projecting net debt to fall to $155 million by June 30, 2025—a 32% reduction from $228.5 million six months earlier. At current gold prices, the miner expects to be fully degeared in FY26.
In a sign of confidence, the board has approved a ZAR200 million (~$11.1 million) share buyback program, set to begin on June 17, 2025. This move underscores management’s focus on capital returns and shareholder value.
FY26 Outlook: Aggressive Growth, Controlled Costs
Looking ahead, Pan African anticipates a 40% increase in output for FY26, targeting 275,000 to 292,000 ounces, as key projects ramp up. All-in sustaining costs (AISC) are forecast to range between $1,475 and $1,525 per ounce, which remains competitive amid a high-price environment for gold.
Safety and Operational Performance
The company reported a fatality at its Barberton Sheba Mine on June 6, reaffirming its ongoing commitment to safety across operations. Enhanced safety initiatives remain a priority.
Operational highlights include:
Successful ramp-up at the Mogale Tailings Retreatment operation
Stable output from Elikhulu and Barberton Tailings Retreatment Plant
Improved grades at Evander following shaft commissioning
Higher volumes from Barberton underground mining
Bottom Line
Pan African’s record H2 output, disciplined balance sheet management, and ambitious growth targets for FY26 position the company as a leading mid-tier African gold producer. While challenges remain, particularly around project execution timelines and safety, the outlook remains robust as the company leverages higher-grade ore and expanded retreatment capacity.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
