Search Follow us

Pan African Resources (PAF)

Business description

Pan African Resources has four major producing or near-producing precious metals assets in South Africa: Barberton (targeting 95koz Au pa), Barberton Tailings Retreatment Project (20koz), Evander Tailings Retreatment Project (10koz) and Elikhulu (55koz).

Stock data

Market cap.£234.6m
Last close10.50p
High / Low (52 weeks)10.8p / 6.5p
Stock market listingLN
Forecast net debt (£m)88.8
Forecast gearing ratio (%)70
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual15.423.528.1
Relative *11.518.829.2

* % Relative to local index

Other companies in sector Show

AEX Gold Afferro Mining
Afri-Can Marine Minerals African Barrick Gold
African Eagle Resources African Minerals
Alabama Graphite Alderon Iron Ore
Aldridge Minerals Alkane Resources
All Star Minerals Allied Gold Mining
Almonty Industries Altius Minerals
Altona Energy Amara Mining
Amerigo Resources Amur Minerals
Angel Mining Anglesey Mining
Anglo Pacific Group Antofagasta
Aquarius Platinum Arian Silver
Ariana Resources Asa Resource
Aspire Mining Atalaya Mining
Atlantic Gold NL Aurcana Corporation
Aureus Mining Auriant Mining
Aurizon Mines Avalon Rare Metals
Avnel Gold Mining Baobab Resources
BCI Minerals Bear Creek Mining
Bellzone Mining Bezant Resources
Blackthorn Resources Bushveld Minerals
Cabral Resources Cadence Minerals
Caledon Resources Caledonia Mining
Cameco Canada Lithium Corporation
Carpathian Gold Celamin Holdings
Central Asia Metals Centrex Metals
Champion Iron Chatham Rock Phosphate
Chieftain Metals Coal of Africa
Condor Gold Continental Coal
Cradle Resources Dalradian Resources
Danakali Denison Mines
Discovery Metals Doray Minerals
DRDGOLD Duluth Metals
Eastern Platinum ECR Minerals
Edgewater Exploration Element ASA
Endeavour Mining Energy Fuels
Entree Resources Equatorial Resources
Euromax Resources European Goldfields
Forsys Metals Corp Freegold Ventures
Fronteer Gold Frontier Mining
Frontline Gold Galane Gold
Galaxy Resources Gascoyne Resources
Gemfields Gemfields Group
GMA Resources Gold One
Gold Road Resources Gold Sector Report
Goldcrest Resources Golden Minerals Company
Goldplat Graphite Sector Report
Gunson Resources Hambledon Mining
Hecla Highland Gold
Highlands Pacific Hummingbird Resources
Ichor Coal International Mining & Infrastructure Corp
Iron Road Ironwood Gold
Jameson Resources KEFI Minerals
Kenmare Resources Kingsgate
Kinross Gold Corporation Kopy Goldfields
Lemur Resources Lepidico
Lithium Americas Corp Lithium X Energy
London Mining MacPhersons Resources
Majestic Gold Mandalay Resources Corp
Mariana Resources Matamec Explorations
MDM Engineering Group Medusa Mining
Metallica Minerals Metals Exploration
Minera IRL Mineral Commodities
Minotaur Exploration Mkango Resources
MMG MOD Resources
Natural Resource Partners Ncondezi Energy
Nevsun Resources New Energy Minerals
New Talisman Gold Mines Nkwe Platinum
Nordgold Northern Dynasty Minerals
Norton Gold Fields NovaCopper
OceanaGold Oracle Coalfields
Orbis Gold Ormonde Mining
Orosur Mining Orpheus Energy
Pan American Goldfields Papillon Resources
Pasinex Resources Petropavlovsk
Pilot Gold Platmin
PolyMet Mining Polymetals Mining
Randgold Resources Rare Element Resources
Red Rock Resources Regency Mines
Richmont Mines Rio Tinto
Robust Resources Rock Tech Lithium
Rutila Resources Sable Mining
Seabridge Gold Shore Gold
Sirius Minerals South American Silver Corp
St George Mining Sumatra Copper & Gold
Syndicated Metals Teck Resources
Tiger Resources Titanium Resources Group
Torex Gold Triton Minerals
True North Gems U3O8 Holdings
Universal Coal Vatukoula Gold Mines
Veris Gold Corp Victoria Gold
Volt Resources W Resources
Western Areas Wheaton Precious Metals
Wits Gold Wolf Minerals
Woulfe Mining Zanaga Iron Ore Company
Zazu Metals Corporation

Company news

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 167.8 32.4 19.4 1.22 8.6 5.5
2018A 154.2 14.8 2.4 1.60 6.6 N/A
2019E 160.1 54.5 31.8 1.09 9.6 4.3
2020E 187.1 79.2 58.2 1.83 5.7 2.7

Last updated on 30/01/2019

Latest research

On track for 170koz in FY19

Update | Mining | 12/11/2018

Return to dividend paying status in FY19 a priority

Update | Mining | 11/10/2018

EGM's Parthian shot

Update | Mining | 19/07/2018

Finishing unfinished business

Update | Mining | 16/05/2018

A second glance at the first half

Update | Mining | 23/04/2018

FY17 results in line

Update | Mining | 28/09/2017

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

Investment summary

With 1.08p of EPS derived from continuing operations and 160.4koz of production, PAF's FY18 results were ahead of our expectations. The closure of Evander underground will cost PAF c 49koz pa in lost production. However, it will be more than made up for by Elikhulu, which is now operating at full capacity and will propel EPS towards c 2p/share. In the meantime, interim production of 81koz puts PAF well on course to meet its production guidance of 170koz for FY19.

Last updated on 01/02/2019

Industry outlook

Additional near-term opportunities include the the Fairview sub-vertical shaft project (adding 7-10koz to production pa), the Royal Sheba project (c 30koz pa) and Egoli (optimised 34% IRR and ZAR1.04bn pre-tax NPV). Our all-in valuation of PAF is currently 17.01p/share plus the value of c 20.1m underground Witwatersrand ounces (which could add a further 0.17–4.15p/share). In addition, it remains cheaper than its peers on at least 91% of common valuation measures and has the eighth-highest prospective dividend yield globally.

Last updated on 01/02/2019

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
View website