Wrap Text
Completion of Feasibility Study on Soweto Cluster Tailings Storage Facilities
Pan African Resources PLC Pan African Resources Funding Company
(Incorporated and registered in England and Wales Limited
under the Companies Act 1985 with registered Incorporated in the Republic of South Africa
number 3937466 on 25 February 2000) with limited liability
Share code on LSE: PAF Registration number: 2012/021237/06
Share code on JSE: PAN Alpha code: PARI
ISIN: GB0004300496
ADR ticker code: PAFRY
("Pan African Resources" or the "Company" or the
"Group")
COMPLETION OF FEASIBILITY STUDY ON SOWETO CLUSTER TAILINGS STORAGE FACILITIES
(SOWETO TSFs) DEFINES A PATHWAY TO SIGNIFICANT PRODUCTION GROWTH FROM THE
MOGALE TAILINGS RETREATMENT (MTR) COMPLEX, WITH SHORT-TERM EXPANSION PROJECT
TO INCREASE GOLD PRODUCTION FROM 50,000OZ/YR TO 60,000OZ/YR TO BE COMPLETED
DURING DECEMBER 2025
Pan African is pleased to advise shareholders and noteholders that the Company has completed a
feasibility study (the "study") to process the Group's Soweto TSFs, which were acquired by the Group in
2021 as part of the Mintails SA transaction. The Soweto TSFs contain Mineral Reserves of 108Mt at 0.28g/t
for 0.98Moz of gold.
As part of the study, two strategic options were evaluated, namely:
• A 1 Million tonne per month (Mtpm) standalone carbon in leach (CIL) plant, for which a definitive
feasibility study (DFS) was completed; and
• A 600,000 tonnes per month (tpm) expansion circuit to be added to the existing MTR operation, for
which the study was completed to a prefeasibility study (PFS) level.
The integrated 600ktpm Soweto Tailings Retreatment (STR) circuit at MTR was identified as the preferred
option 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. The DFS for this option is expected to be completed by
June 2026, with a final board decision to commence project construction shortly thereafter, subject to the
considerations outlined below.
Separately, the Company continues to optimise operations at MTR, with the expansion of its production
capacity from ~50koz/yr to ~60koz/yr to be completed in the next month.
PREFERRED OPTION PFS HIGHLIGHTS
• Addition of a 600ktpm module at MTR, to be partly integrated into the existing operation, with
standalone feed from the Soweto TSFs
• Anticipated construction period of approximately 24 months
• Capital cost of ~US$160 million (approximately ZAR2.8 billion (at an average exchange rate of
US$/ZAR:17.50)), which includes remining and overland pumping infrastructure and expanded
TSFs
• 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
• Utilising a gold price of US$2800/oz the project returns:
o A post-tax net present value (NPV)13.3 of US$ 129.7 million (ZAR2,270m)
o A real ungeared internal rate of return (IRR) of 29.4%
o Payback in 3 years post-commissioning
• Utilising a gold price of US$3500/oz the project returns:
o A post-tax NPV13.3 of US$ 235.4 million (ZAR4,120m)
o A real ungeared IRR of 40.2%
o Payback in 2 years post-commissioning
Pan African Resources CEO Cobus Loots commented: "The successful commissioning of the MTR
operation in October 2024, completed ahead of schedule and under budget, again demonstrated Pan
African's ability with regards to successfully commissioning tailings retreatment operations. We continue to
optimise operations at MTR, with the expansion of its production capacity from ~50koz/yr to ~60koz/yr to
be completed in the next month. The addition of the STR circuit would further increase annual production
from the MTR complex to almost 100,000oz/yr and leverage operational synergies to reduce the complex's
very competitive AISC even further.
Subject to the DFS and final board approval, the STR circuit would fast track the remining of the Soweto
Assets and also environmental rehabilitation programmes, positively impacting our local communities in the
area."
ENVIRONMENTAL AND PERMITTING
The Environmental Impact Assessment and Water Use Licence processes are progressing in accordance
with the project schedule, with approvals expected by June 2026.
GROUP DEGEARING PROFILE AND ANTICIPATED PROJECT FUNDING
Given the prevailing high gold prices, the Group is now on track to be fully de-geared from a net debt
perspective by February 2026. This is despite the payment of a record dividend to shareholders in
December 2025.
The Group's robust financial position and cashflow generation profile provides strategic flexibility in terms
of funding the STR circuit, and proposals have already been received from financial institutions in this
regard.
ESG/SOCIAL IMPACT
The MTR operation commenced with concurrent rehabilitation programmes during its construction phase
and has achieved significant milestones to date, with the successful re-establishment of wetlands and
improved air and water quality. This has positively impacted local communities in the area as well as the
Mogale region. The construction of the STR circuit will bring forward the original Soweto Cluster TSFs
remining schedule.
Independent engineering studies on the Soweto TSFs have confirmed the stability of the facilities, with no
identified failure risks that would endanger surrounding communities. The Company maintains the clearing
of silted drainage channels around affected TSFs to confine the overflow of excess rainwater to dedicated
evaporation ponds, eradicating the run-off that previously affected natural water systems. Pan African has
also commenced with the application of a newly developed binding agent that has reduced the amount of
airborne particulate matter during windy conditions, which will measurably improve the air quality in the
area.
COMPETENT PERSON
The competent person for Pan African Resources, Hendrik Pretorius, the executive for technical services
and new business, signs off the Mineral Resources and Mineral Reserves for the Group. He is a member
of the South African Council for Natural Scientific Professions (SACNASP 400051/11 – Management
Enterprise Building, Mark Shuttleworth Street, Innovation Hub, Pretoria, Gauteng Province, South Africa),
as well as a fellow in good standing of the Geological Society of South Africa (GSSA – CSIR Mining
Precinct, Corner Rustenburg and Carlow Roads, Melville, Gauteng Province, South Africa). Hendrik has 22
years' experience in economic geology, mineral resource management (MRM) and mining (surface mining
and shallow to ultra-deep underground mining). He is based at The Firs Office Building, 2nd Floor, Office
204, Corner Cradock and Biermann Avenues, Rosebank, Johannesburg, South Africa. He holds a BSc
(Hons) degree in Geology from the University of Johannesburg as well as a Graduate Diploma in Mining
Engineering from the University of the Witwatersrand. Hendrik has reviewed, and approved, in writing, the
information contained in this document as it pertains to Mineral Resources and Mineral Reserves.
The information contained in this announcement is the responsibility of the Company's board of directors
and has not been reviewed or reported on by the Group's external auditors.
Johannesburg
27 November 2025
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate Office Registered Office
The Firs Building 107 Cheapside, 2nd Floor
2nd Floor, Office 204 London, EC2V 6DN
Corner Cradock and Biermann Avenues United Kingdom
Rosebank, Johannesburg Office: + 44 (0)20 3869 0706
South Africa jane.kirton@corpserv.co.uk
Office: + 27 (0)11 243 2900
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 Website: www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company Secretary Nominated Adviser and 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
Date: 27-11-2025 09:00:00
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