Download PDF

1. Company Snapshot

1.a. Company Description

Pan African Resources PLC engages in the mining, extraction, production, and the sale of gold in South Africa.Its flagship projects include the Barberton gold project that consists of three underground mines, including Fairview, Sheba, and New Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa.The company was incorporated in 2000 and is based in Johannesburg, South Africa.

Show Full description

1.b. Last Insights on PAF

Here is a 90-word analysis of the negative drivers behind Pan African Resources PLC's recent stock performance: Pan African Resources PLC's earnings growth rate has lagged behind its 28% CAGR delivered to shareholders, potentially weighing on investor sentiment. Weak trade data from China has also contributed to a decline in the FTSE 100 index, affecting the company's stock. Additionally, the South African mining sector is facing challenges, including high production costs and lower-grade gold production, which may have impacted Pan African Resources' operations. The company's unique approach to extracting gold from waste dumps and old mines may not be enough to offset these negative factors.

1.c. Company Highlights

2. Pan African Resources PLC: Strong FY2025 Results Driven by Operational Excellence

The company reported a 45% increase in revenue to $540 million in FY2025, driven by a 36% higher gold price and increased production. Adjusted EBITDA rose 60% and earnings per share (EPS) surged 78% to $0.0444, beating analyst estimates of $0.04254. Headline earnings grew 47% to $117 million, excluding a $28 million gain from the Tennant Mines acquisition.

Publication Date: Sep -28

📋 Highlights
  • Revenue & EBITDA Growth: FY2025 revenue rose 45% to $540M, with adjusted EBITDA up 60% to $198M, driven by higher gold prices and increased production.
  • Dividend Increase: Proposed dividend of ZAR0.37/share (up 68%) and $49M payout, with a 38% payout ratio reflecting strong cash flow generation.
  • Capital Expenditure: FY2025 CapEx totaled $168M, guided at $146M for FY2026, prioritizing MTR, Tennant, and Evander projects with debt reduction by FY2026.
  • Production Costs: AISC increased 3% YoY to $1,600/oz, impacted by rand-dollar exchange pressure and operational delays at Evander.
  • Renewable Energy & Listing: Targeting 15% renewable energy by 2027 and transitioning to London’s main market for broader investor access, with a $5.8M hedge loss offset by ZAR200M savings from mine restructuring.

Operational Highlights

Production grew 6% to 200,000 ounces, with guidance for 275,000+ ounces in FY2026 as MTR and Tennant Mines ramp up production. All-in sustaining costs (AISC) for FY2025 were $1,600/oz, with guidance of $1,525–1,575/oz for FY2026. Surface assets now dominate 60% of production, leveraging low-cost tailings retreatment and long-life underground mines.

Financial Performance and Valuation

The company's financial performance is reflected in its valuation metrics, with a 'P/E Ratio' of 0.91, 'P/S Ratio' of 5.12, 'EV/EBITDA' of 11.81, and 'ROE (%)' of 28.09. The 'Dividend Yield (%)' is 1.11, indicating a relatively stable return for shareholders. The 'Net Debt / EBITDA' ratio stands at 0.68, suggesting a manageable debt position.

Strategic Initiatives and Outlook

Pan African Resources is focused on expanding MTR, advancing renewable energy targets (15% by 2027), and optimizing low-cost production from surface assets. The company is also planning a London listing to access a broader investor base. CapEx for FY2026 is guided at $146 million, driven by the Winkelhaak pump station, MTR expansion, and Evander development.

3. NewsRoom

Card image cap

British Land promoted to FTSE 100 as WPP falls out after nearly three decades

Dec -04

Source:

Card image cap

How Recent Developments Are Shaping the Story and Valuation for Pan African Resources

Dec -02

Source:

Card image cap

Discover 3 UK Stocks Estimated To Be Up To 48.7% Below Their Intrinsic Value

Nov -26

Source:

Card image cap

UK's Elite Stocks Priced Below Estimated Value In November 2025

Nov -25

Source:

Card image cap

UK Market: Unveiling 3 Stocks That May Be Trading Below Estimated Value

Nov -24

Source:

Card image cap

Pan African Resources (LON:PAF) Will Pay A Larger Dividend Than Last Year At $0.0164

Nov -23

Source:

Card image cap

3 UK Stocks That May Be Trading At Discounts Of Up To 43.6%

Nov -21

Source:

Card image cap

UK Value Stocks Trading At Estimated Discounts

Nov -19

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.48%)

6. Segments

Evander Mines

Expected Growth: 12%

Evander Mines' 12% growth is driven by increased gold production, improved operational efficiencies, and a favorable gold price environment. Additionally, Pan African Resources' strategic investments in exploration and development have enhanced the mine's resource base, supporting sustainable growth.

Barberton Mines

Expected Growth: 13%

Barberton Mines' 13% growth is driven by increased gold production, improved operational efficiencies, and a favorable gold price environment. The mine's high-grade ore body and low-cost production profile also contribute to its strong performance. Additionally, Pan African Resources' focus on cost management and capital discipline has enabled the mine to maintain a competitive edge in the industry.

Agricultural Projects

Expected Growth: 11%

Pan African Resources PLC's 11% growth in Agricultural Projects is driven by increasing demand for food security, government initiatives promoting agricultural development, and investments in irrigation infrastructure. Additionally, the company's focus on sustainable farming practices, diversification of crops, and strategic partnerships with local farmers contribute to its growth momentum.

7. Detailed Products

Gold

Pan African Resources PLC is a leading gold producer in South Africa, with a portfolio of high-quality gold mines and projects.

Barite

The company is also a significant producer of barite, a mineral used in the oil and gas industry.

Silver

Pan African Resources PLC also produces silver as a by-product of its gold mining operations.

Copper

The company has copper exploration projects in South Africa, with potential for future copper production.

Tailings Storage Facilities (TSFs) Management

Pan African Resources PLC provides TSFs management services, ensuring the safe and responsible storage of mining waste.

8. Pan African Resources PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Pan African Resources PLC is medium due to the availability of alternative mining companies and the ease of switching costs for customers.

Bargaining Power Of Customers

The bargaining power of customers for Pan African Resources PLC is low due to the company's strong market position and the lack of buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Pan African Resources PLC is medium due to the presence of multiple suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Pan African Resources PLC is high due to the attractiveness of the mining industry and the ease of entry for new companies.

Intensity Of Rivalry

The intensity of rivalry for Pan African Resources PLC is high due to the presence of several established competitors and the high stakes of the mining industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.15%
Debt Cost 7.27%
Equity Weight 83.85%
Equity Cost 7.27%
WACC 7.27%
Leverage 19.26%

11. Quality Control: Pan African Resources PLC passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Semapa

A-Score: 7.2/10

Value: 8.4

Growth: 5.6

Quality: 4.8

Yield: 7.5

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Iberpapel

A-Score: 7.0/10

Value: 8.2

Growth: 5.0

Quality: 6.1

Yield: 7.5

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Rana Gruber

A-Score: 6.9/10

Value: 7.0

Growth: 5.9

Quality: 7.7

Yield: 10.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Pan African Resources

A-Score: 6.1/10

Value: 6.6

Growth: 7.8

Quality: 6.7

Yield: 4.4

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Hochschild Mining

A-Score: 4.7/10

Value: 3.6

Growth: 5.3

Quality: 6.7

Yield: 1.9

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Centamin

A-Score: 4.3/10

Value: 3.6

Growth: 3.4

Quality: 6.1

Yield: 3.8

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.07$

Current Price

1.07$

Potential

-0.00%

Expected Cash-Flows