Pan African Resources has posted record results for the 2025 financial year. The Johannesburg- and London-listed gold miner reported its highest profits, headline earnings, dividends, and second-half production in history.
The company also proposed a dividend almost 80% higher in dollars. Management expects to clear its debt before the end of the 2026 financial year. In the last six months, Pan African paid back nearly $80 million in debt.
Attention is now shifting to a new processing plant for the Soweto Cluster, west of Johannesburg. The site holds the Mogale Tailings Retreatment project, a low-cost and long-life operation that promises both jobs and growth.
Soweto Cluster seen as game-changer
The Soweto Cluster contains 130 million tons of tailings with more than 500,000 oz of recoverable gold. With global gold prices at record highs, the project looks even more attractive.
“We believe the Soweto Cluster can support a standalone plant that treats one million tons a month over ten years,” CEO Cobus Loots said during the results presentation.
“The feasibility study will be finished by month-end, and we may consolidate nearby facilities we don’t yet own.”
The project also promises social and environmental benefits. It will help rehabilitate scarred land while offering employment and reducing illegal mining.
Output and operations moving higher
Pan African expects to produce 275,000 oz of gold in 2026, up from about 200,000 oz in 2025. Production rose 6% from the year before.
Expansion at Mogale is under way, with capacity set to grow from 800,000 tons to one million tons a month. That should lift annual output by 10,000 oz to about 60,000 oz.
The Soweto Cluster plant could add another 60,000 oz each year. At the Elikhulu plant, new infrastructure will allow up to 51,000 oz annually.
Underground, Evander Mines’ new shaft is set to deliver 50,000 oz a year, with potential to reach 60,000 oz for more than a decade. Barberton Mines is also boosting output with new methods at Fairview and Consort.
Stronger finances despite challenges
Financial director Marileen Kok, presenting her first full-year results, said revenue jumped 45% to $540 million. Higher output and a 36% rise in the average gold price lifted earnings by 78% to $142 million.
Although three fatal accidents marred the year, Pan African has settled its green loan for renewable projects and cut its debt-to-equity ratio to 20%. With no hedging in place and gold prices at record highs, the company expects to be debt-free by June 2026.
