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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.£181m
Last close8.10p
High / Low (52 weeks)15.8p / 6.5p
Stock market listingLN
Forecast net debt (£m)88.8
Forecast gearing ratio (%)70
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(6.9)11.0(44.1)
Relative *(5.9)19.9(41)

* % Relative to local index

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Company news

Pan African on track to produce between 177000 and 181000 ounces of gold this year

Mon, 16 Apr 2018 13:30:00 GMT

Pan African Resources to cease underground operations at the Evander gold mine ...

Wed, 02 May 2018 14:46:35 GMT

Pan African Resources still in profit and paying dividend, despite tough few ...

Tue, 13 Feb 2018 08:02:36 GMT

Pan African Resources is reviewing its cost base and "strategic merits" of its ...

Thu, 01 Feb 2018 10:43:41 GMT

Pan African Resources restructures black economic empowerment arrangements

Fri, 15 Dec 2017 11:29:53 GMT

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 6.6 4.2
2018A 154.2 14.8 2.4 1.60 5.1 N/A
2019E 160.1 54.5 31.8 1.09 7.4 3.3
2020E 187.1 79.2 58.2 1.83 4.4 2.1

Last updated on 12/11/2018

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

On 6 November, Pan African (PAF) announced that it had produced 37,729oz gold in Q119 (an annualised production rate of 150,916oz) and that it was confident of achieving its production guidance of c 170,000oz for FY19 (implying a steady state production rate of 44,090oz per quarter for the remaining three quarters of the year). This should be eminently achievable now that Elikhulu has reached its target throughput rate of 1Mt in October to produce c 145kg (4,600oz) gold per month.

Last updated on 12/11/2018

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 peers on at least 91% of common valuation measures and has the eighth-highest prospective dividend yield globally.

Last updated on 26/10/2018

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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