Pan African Resources Plc - Operational Update for the half-year ended December 2025 (H1FY26) & Proposed Initiation of Interim Dividend
Pan African Resources PLC
(Incorporated and registered in England
and Wales under the Companies Act 1985
with registered number 3937466 on 25 Pan African Resources Funding Company February 2000 ) Limited
Share code on LSE: PAF Incorporated in the Republic of South
Africa with limited liability
Share code on JSE: PAN
Registration number: 2012/021237/06
ISIN: GB0004300496
Alpha code: PARI
ADR ticker code: PAFRY
(“Pan African Resources” or the “Company”
or the “Group”)
OPERATIONAL UPDATE FOR THE HALF-YEAR ENDED
Pan African is pleased to provide its shareholders and noteholders with an operational update for the half year ended
KEY FEATURES
-- Increase in gold production of 51% to 128,296oz (H1FY25: 84,705oz)
-- Further production increases expected IN H2Fy26, on track to meet full
year production guidance
-- Substantially de-geared balance sheet - reduction in net debt of more
than 65%
-- INITIATION OF interim dividend PROPOSED - ZA12 cents per share
-- Definitive Feasibility Study Soweto Cluster project - expected to be
completed by June 2026
SAFETY
-- Improvement in overall Group safety performance
o Total Recordable Injury Frequency Rate (TRIFR) improved substantially
to 4.74 (H1FY25:8.25) per million-man hours
o Lost Time Injury Frequency Rate (LTIFR) improved to 1.22 (H1FY25:
1.54) per million-man hours.
PRODUCTION
-- Increase in gold production of 51% to 128,296oz (H1FY25: 84,705oz), with
the Group on track to meet full year production guidance range of
between 275,000oz and 292,000oz
o Production at Evander operations improved substantially by 87% to
21,640oz (H1FY25: 11,551oz), with the subvertical hoisting shaft
operating at capacity and mining in the high-grade Kinross Channel of
the Kimberley Reef. Production in H2FY26 is expected to increase
further with higher mined tonnages
o Elikhulu achieved excellent results, with production increasing by 14%
to 29,450oz (H1FY25: 25,725oz)
o Mogale Tailings Retreatment (MTR) operations at steady state following
ramp-up in FY25, with production of 21,729oz, approximately 10% lower
than expected, as a result of mining grades and recoveries impacted by
the current mining area
# MTR expansion to 1,000ktpm was successfully commissioned in December
2025 , with increased capacity and improved recoveries expected to
increase gold production in H2FY26. Going forward annualised
production from MTR is expected to be between 55-60kozpa
o Barberton Mines underground production increased by 5% to 32,774oz
(H1FY25: 31,142oz) and BTRP production remained stable at 7,143oz
(H1FY25: 7,544oz)
o Tennant Mines achieved steady state throughput, with production of
15,560oz (including gold equivalent ounces from the sale of copper
concentrate). Production in H2FY26 is anticipated to increase to
approximately 30,000oz as higher-grade ore from open pits replace
lower grade feed from the Crown Pillar Stockpile (CPS). The average
expected recovered mining grade in H2FY26 is planned at 2.22g/t
(H1FY26:1.15g/t).
FINANCIAL
-- The Group has now substantially de-geared its balance sheet, with
reduction in net debt of more than 65% to US$49.9m , compared to
US$150.5m in June 2025
o Given the prevailing high gold prices, the Group expects to be fully
de-geared (in terms of net debt) by the end of February 2026 . This is
despite the payment of a record final dividend to shareholders in
December 2025
-- All in sustaining cost (AISC) of production for H1FY26 is expected in
the range of US$1,825 /oz -US$1,875 /oz at US$/ZAR17.37 , (FY26 full year
guidance: US$1,525 /oz to US$1,575 /oz at US$/ZAR18.50 ) negatively
impacted by:
o the strengthening of the US$/ZAR exchange rate by 6.1% to US$17.37 ,
with an impact of approximately US$115 /oz
o the increase in employee share-based payment expenses, as a result of
an increase of more than 140% in the Company share price from ZAR11.09
(GBp45.75 ) at 30 June 2025 to ZAR26.98 (GBp121 .00p) at 2 January 2026
(approximately US$80 /oz)
o third party material processed at the Evander and MTR operations
during the period contributing to higher costs, as well as increased
royalty payments due to the higher gold price received
-- Increased gold production guided for H2FY26 is anticipated to reduce
unit costs of production.
PROPOSED INTERIM DIVIDEND FOR THE SIX MONTHS ENDED
-- Interim cash dividend of ZA12 cents per share (or US0.74488 cents per
share at an indicative exchange rate of US$/ZAR:16.11 or 0.54745 pence
per share at an indicative exchange rate of GBP/ZAR:21.92) is intended
to be approved by the Board together with the interim results for the
six months ended 31 December 2025 . Further information regarding the
formal declaration of the proposed interim dividend as required in terms
of the JSE Listings Requirements, including the salient dates, will be
communicated with the release of the Group’s interim results on 18
February 2026 .
FUTURE PRODUCTION GROWTH
-- A feasibility study to process the Group’s Soweto Cluster Tailings
Storage Facilities (Soweto TSFs) was successfully completed during the
Reporting Period (announced on SENS and RNS on 27 November 2025 ). An
integrated 600ktpm Soweto Tailings Retreatment (STR) circuit at MTR was
identified as the preferred option to process the Soweto TSFs, due to a
significantly lower upfront capital requirement, a shorter construction
period, reduced permitting obligations and superior financial returns.
This option will also benefit from synergies with the existing MTR plant
and operational infrastructure
o The Definitive Feasibility Study for this option is expected to be
completed by June 2026 , with a final Board decision to commence
project construction shortly thereafter
o Anticipated construction period of approximately 24 months
o Expected annual gold production of 30-35koz for approximately 15 years
at an all-in-sustaining-cost (AISC) of between US$1,000 /oz and
US$1,200 /oz, which will increase production from the MTR complex to
approximately 100kozpa, once construction is complete
-- At Tennant Mines, the earn-in exploration joint venture with ASX listed
Emmerson Resources on which the White Devil project and others are
located was successfully concluded during September 2025
o Ongoing exploration on the Group’s wholly owned Mining Leases at
Nobles, Juno and Warrego confirmed extensions to the known mineralised
zones. Additionally, regional exploration programmes comprising
magnetotelluric geophysical surveys and remote sensing has identified
more than 10 new prospective targets for exploration.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE UPDATES
-- Following the completion of positive feasibility studies for the 20MW
Evander Mines’ phase 2 solar plant expansion, total solar generation
capacity at Evander will be expanded from 10MW to 30MW. A contractor has
been appointed and construction of the additional capacity is expected
to commence by June 2026
-- In July 2025 , site work commenced on phase 2 of the 3ML/day Evander
water treatment plant, with first water expected in late February 2026 .
At MTR, construction of a 3ML/day water treatment plant to treat acid
mine drainage water commenced in November 2025 . This plant is expected
to be commissioned in May 2026 and will produce potable water to meet
the requirements of the MTR processing plant
-- The MTR operation was awarded the ‘Best ESG Initiative by a Mining
Company’ at the international Resourcing Tomorrow conference held in
December 2025 , where competing entries included projects from other
international mining groups. The judges recognised the immediate
positive impacts of Pan African's activities on the environment and
local communities, following years of neglect in the area.
“Pan African’s safety, operational and financial performance in the first half of the financial year, together with the boon of record gold prices, has positioned us to deliver outstanding results for the full year. During the reporting period the Group de-geared its balance sheet and is also now further boosting cash returns to shareholders, with our board set to approve an attractive proposed interim dividend payment.
The half year results demonstrate the success of our strategy of focusing on high-margin, long-life tailings retreatment operations and also the acquisition of the very prospective Tennant Mining in
Despite our continued focus on cost control, all-in sustaining unit costs were higher than guided for the reasons detailed in this release, we believe the expected increased gold production in H2 of the financial year will assist with reducing unit costs.
We are excited about the further production growth opportunities within our asset portfolio. Pan African is capitalising on the very favourable current environment to position the Group to continue “Mining for a Future” for many more years.
We look forward to presenting our interim results, including details on our prospects and initiatives, on 18 February 2026.”
The information contained in this announcement is the responsibility of the Company’s Board and has not been reviewed or reported on by the Group’s external auditors.
For further information on Pan African, please visit the Company's website at
___________________________________________________________________________ |Corporate information | |___________________________________________________________________________| |Corporate Office | | | | | |The Firs Building |Registered Office | | | | |2nd Floor, Office 204 |107 Cheapside, 2nd Floor | | | | |Corner Cradock and Biermann Avenues |London, EC2V 6DN | | | | |Rosebank, Johannesburg |United Kingdom | | | | |South Africa |Office: + 44 (0)20 3869 0706 | | | | |Office: + 27 (0)11 243 2900 |jane.kirton@corpserv.co.uk | | | | |info@paf.co.za | | |______________________________________|____________________________________| |Chief Executive Officer |Financial Director and debt officer | | | | |Cobus Loots |Marileen Kok | | | | |Office: + 27 (0)11 243 2900 |Office: + 27 (0)11 243 2900 | |______________________________________|____________________________________| |Head: Investor Relations | | | | | |Hethen Hira |Website: www.panafricanresources.com| |Tel: + 27 (0)11 243 2900 | | |E-mail: hhira@paf.co.za | | |______________________________________|____________________________________| |Company Secretary |Joint Broker | | | | |Jane Kirton |Ross Allister/Georgia Langoulant | | | | |St James's Corporate Services Limited |Peel Hunt LLP | | | | |Office: + 44 (0)20 3869 0706 |Office: +44 (0)20 7418 8900 | |______________________________________|____________________________________| |JSE Sponsor & JSE Debt Sponsor |Joint Broker | | | | |Ciska Kloppers |Thomas Rider/Nick Macann | | | | |Questco Corporate Advisory Proprietary|BMO Capital Markets Limited | |Limited | | | |Office: +44 (0)20 7236 1010 | |Office: + 27 (0) 63 482 3802 | | |______________________________________|____________________________________| | |Joint Broker | | | | | |Matthew Armitt/Jennifer Lee | | | | | |Joh. Berenberg, Gossler & Co KG | | |(Berenberg) | | | | | |Office: +44 (0)20 3207 7800 | |______________________________________|____________________________________|
