Wrap Text
Pan African Completes Definitive Feasibility Study on the Soweto Tailings Retreatment Project, Delivering a Robust Long Term Growth Pathway for the Mogale Tailings Retreatment Complex
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
number 3937466 on 25 February 2000) Africa with limited liability
Share code on LSE: PAF Registration number: 2012/021237/06
Share code on JSE: PAN Alpha code: PARI
Share code on ASX: PAF
ISIN: GB0004300496
ADR ticker code: PAFRY
(‘Pan African Resources’ or the ‘Group’ or the
‘Company’)
PAN AFRICAN COMPLETES DEFINITIVE FEASIBILITY STUDY (DFS) ON THE SOWETO
TAILINGS RETREATMENT (STR) PROJECT, DELIVERING A ROBUST LONG TERM GROWTH
PATHWAY FOR THE MOGALE TAILINGS RETREATMENT (MTR) COMPLEX
Further to the announcement published on 27 November 2025, Pan African is pleased to advise
shareholders and noteholders that the Company has successfully completed the DFS for the STR
project, located adjacent to the Group’s MTR operations on the West Rand of Gauteng, South Africa.
The STR project encompasses the retreatment of the Soweto Cluster tailings storage facilities
(TSFs), acquired as part of the Mintails transaction, and comprises Mineral Reserves of
approximately 108Mt at 0.28g/t containing approximately 0.98Moz of gold.
The DFS evaluated the construction of a 600,000 tonnes per month (600ktpm) tailings retreatment
operation adjacent to the existing MTR processing facility. The project has been designed to
leverage the existing MTR elution, carbon regeneration, electrowinning and smelting infrastructure,
significantly reducing capital intensity and improving project economics relative to a standalone
development.
DFS HIGHLIGHTS
• Annual gold production of 35,000oz to 40,000oz from STR, with Life of Mine (LOM)
production of approximately 561,000oz over a project life of approximately 15 years
• LOM all-in sustaining cost (AISC) of approximately US$1,750-1,800/oz, excluding cost
savings from renewable energy supply
• Value-engineered project capital estimate of approximately ZAR3.68 billion (US$216 million
at ZAR:US$=17.00), which now takes into account the dedicated new TSF and associated
remining infrastructure
• Using a gold price of US$3,550/oz the project returns
o Post-tax NPV13 of approximately ZAR1.85 billion (US$109 million)
o Real ungeared internal rate of return (IRR) of approximately 29.55%
o Payback period of approximately three years, post-commissioning
• Construction period of approximately 28 months from Final Investment Decision (FID)
• Dedicated new TSF incorporated into the project design
• Synergies with existing MTR infrastructure for elution, carbon regeneration, electrowinning
and gold smelting
PROJECT OVERVIEW
The STR project will comprise a dedicated 600ktpm tailings retreatment circuit, together with
associated hydraulic mining infrastructure, pumping stations, overland slurry and water pipelines of
approximately 18km, process water infrastructure and a new modern GISTM compliant tailings
deposition facility.
The project has been designed to operate in conjunction with the existing MTR operation and will
materially increase gold production from the MTR complex to approximately 100,000oz/year at peak
production, while accelerating the rehabilitation of historical tailings facilities and surrounding areas
on the West Rand.
A comprehensive value engineering programme was undertaken by the Group following completion
of the base case DFS. This review identified potential capital savings of approximately ZAR718
million, reducing estimated project capital from approximately ZAR4.40 billion to ZAR3.68 billion
while maintaining project throughput, production and operational performance.
ENVIRONMENTAL AND PERMITTING
The Environmental Impact Assessment and permitting process is well advanced, including
approvals for pipeline servitudes, while the Water Use Licence application has been submitted and
is in progress. The Group currently anticipates receipt of the principal environmental authorisations
during FY27, supporting the targeted project development schedule.
FINAL INVESTMENT DECISION
The Group intends to complete the remaining permitting, optimisation and financing workstreams
during FY27.
Subject to board approval, project financing and receipt of the required statutory authorisations, a
FID is anticipated in December 2026.
Pan African Resources CEO Cobus Loots commented:
"The completion of the STR DFS marks another important milestone in the evolution of the MTR
complex. By leveraging the substantial infrastructure already established at MTR and Pan African’s
track record of optimally delivering tailings retreatment projects, we have been able to define a
project that delivers attractive returns, meaningful production growth and accelerated environmental
rehabilitation.
The STR project has the potential to increase annual gold production from the MTR complex to
approximately 100,000 ounces per annum at peak production, while simultaneously addressing
historical environmental liabilities on the West Rand. We look forward to advancing the remaining
permitting and financing workstreams ahead of a targeted Final Investment Decision during
December 2026."
COMPETENT PERSON
The competent person for Pan African, 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 23 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 announcement as it pertains to Mineral Resources and Mineral Reserves.
The information contained in this announcement is the responsibility of the board and has not been
reviewed or reported on by the Group’s external auditors.
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part
of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement via the Regulatory Information Service in the UK, the stock exchange news
service of the JSE and the Australian Stock Exchange, this inside information is now considered to
be in the public domain.
Johannesburg
11 September 2026
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 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) 78 286 9556
Joint Broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG
(Berenberg)
Office: +44 (0)20 3207 7800
Date: 11/09/2026 08:00:00
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