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.£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

Price performance

Relative *(5.9)19.9(41)

* % 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 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

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
United Kingdom
+ 44 (20) 7499 3916
View website