Pan African Resources (PAF)

Business description

Pan African Resources has five major precious metals assets in South Africa: Barberton (target output 95koz Au pa), the Barberton Tailings Retreatment Project (20koz), Evander (95koz), the Evander Tailings Retreatment Project (10koz) and Elikhulu (53koz).

Stock data

Market cap.£290.5m
Last close13.00p
High / Low (52 weeks)21.8p / 12.5p
Stock market listingLN
Forecast net cash (£m)3.6
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual0.0(14.8)(32.5)
Relative *0.8(12.9)(36.8)

* % Relative to local index

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Company news

Proactive weekly mining news - Pan African Resources, Tharisa, Vast Resources ...

Sat, 23 Sep 2017 07:30:00 GMT

Pan African Resources predicts recovery in current year after challenges at ...

Wed, 20 Sep 2017 07:23:48 GMT

Pan African in demand as it secures final regulatory approvals for ...

Fri, 25 Aug 2017 08:25:56 GMT

Pan African Resources to pay out a record £17mln to investors as first-half ...

Wed, 22 Feb 2017 09:35:09 GMT

Pan African Resources to sell Phoenix Platinum to Sylvania Resources for ...

Mon, 31 Jul 2017 06:56:31 GMT

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 140.4 28.4 16.0 0.64 20.3 9.0
2016A 168.4 57.4 45.9 2.08 6.3 5.0
2017E 193.1 37.4 22.5 1.01 12.9 8.1
2018E 196.7 62.0 52.1 1.95 6.7 3.2

Last updated on 29/08/2017

Latest research

Disposals hone investment case

Update | Mining | 24/08/2017

Canning coal

Update | Mining | 17/05/2017

Tails wagging

Update | Mining | 04/04/2017

The big one pounds ahead

Update | Mining | 13/12/2016

New dividend policy unveiled

Update | Mining | 28/09/2016

BEEing good

Update | Mining | 18/08/2016

Firing on four cylinders

Update | Mining | 16/03/2016

Better than expected

Update | Mining | 25/02/2016

Four cylinders firing at once

Update | Mining | 11/02/2016

Evander trending higher

Update | Mining | 10/12/2015

Uitkomst coal acquisition

Update | Mining | 15/06/2015

Daily comment

Institutional Comment | Mining | 17/03/2015

Investment summary

So far in CY17, PAF has announced the disposal of Uitkomst and Phoenix Platinum for an aggregate ZAR364m (£21.5m, or US$27.7m) as well as a placing to raise ZAR705m (£41m, or US$51m). Together, these initiatives effectively finance the ZAR1.7bn Elikhulu project to add c 52koz (or 25%) to PAF’s production profile by FY20. Final regulatory approval for project construction was granted in August and we value the project at US$69.9m at a 10% discount rate.

Last updated on 06/09/2017

Industry outlook

H117 results were in line with guidance after operations were disrupted by a series of DMR Section 54 notices. H217 results (scheduled for 21 September) will be restrained by the underground mining hiatus at Evander and production challenges at Barberton before recovering strongly in FY18. Based on a 10% discount rate applied to future dividends, we value PAF at 21.22p/share. In the meantime, it is cheap compared to its peers on conventional financial measures. It also has the sector's second-highest forecast dividend yield globally.

Last updated on 06/09/2017

Key management

Keith Cousens Spencer, Chairman
Cobus Loots, CEO
Deon Louw, FD

Company address

Suite 31, 2nd Floor, 107 Cheapside
London
EC2V 6DN
United Kingdom
+ 44 (20) 7499 3916
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