Key points
- Pan African Resources reported record FY2026 profit of $357 million on revenue of $1.16 billion, with gold production up 38.6% to 272,310 ounces.
- The group moved from $150.5 million net debt to $185.8 million net cash and proposed a record R1.86 billion ($113.6 million) total dividend plus a R500 million buyback.
- Production guidance for FY2027 is 280,000 to 302,000 ounces, but all-in sustaining costs are expected to rise to $2,075 to $2,175 an ounce.
Pan African Resources CEO Cobus Loots has delivered the strongest year in the gold miner’s history, with profit more than doubling to $357 million and gold production climbing 38.6% to 272,310 ounces in the financial year to June 30.
Revenue at the JSE-, LSE- and ASX-listed group jumped 114% to $1.16 billion, helped by a 54.8% rise in the average gold price received to $4,235 an ounce. Adjusted EBITDA rose 168.9% to $609 million, and headline earnings per share nearly tripled to $0.18.
Cash generation did the rest. Pan African ended the year with $185.8 million in net cash, a swing from net debt of $150.5 million 12 months earlier, and $246.2 million in cash and short-term investments on hand.
“Financially, the group has never been in a stronger position,” Loots said, adding that the balance sheet is now completely de-geared.
Tailings and Australia drive the growth
The Elikhulu tailings plant in Mpumalanga produced 56,000 ounces at an all-in sustaining cost of $1,231 an ounce, while the expanded Mogale Tailings Retreatment operation, commissioned in December 2025, added 51,927 ounces. Tennant Mines in Australia contributed 32,124 ounces after a slower than expected ramp-up at Nobles.
Underground output also improved. Barberton Mines lifted production 5.6% to about 72,000 ounces, and Evander Mines surged 68.4% to 46,800 ounces as recovered grades climbed above 11 grams a ton.
Costs are moving the other way, however. Group all-in sustaining costs rose 16.7% to $1,867 an ounce, still inside guidance, and Pan African expects them to reach $2,075 to $2,175 an ounce next year on higher electricity and input prices.
Record dividend and a buyback
The board has proposed a final dividend of about R1.5 billion, roughly $0.04 a share, taking the total payout for the year to R1.86 billion ($113.6 million), more than double the prior year.
Shareholders vote on it at the annual general meeting on Nov. 19. The company also plans to buy back up to R500 million ($30.4 million) of its shares.
Guidance for the 2027 financial year is 280,000 to 302,000 ounces, with growth expected from a full year of Mogale and White Devil at Tennant Mines, where the first blast went off in August.
Capital spending is set at $330 million, covering Royal Sheba at Barberton, where the first blast is due in early 2027, and the Soweto Cluster tailings project, which a feasibility study priced at $216 million.
Safety improved across the group, though one worker died at an underground operation during the year.
Finance director Marileen Kok said Pan African has enough liquidity after the dividend to fund operations, renewable energy projects and its growth pipeline.
