Wrap Text
Unaudited Interim Financial Results and Declaration of Interim Dividend for the six months ended 31 December 2025
Pan African Resources PLC
(Incorporated and registered in England and Wales
under the Companies Act 1985 with
registered number 3937466 on 25 February 2000)
Share code on LSE: PAF | Share code on JSE: PAN
ISIN: GB0004300496 | ADR ticker code: PAFRY
(Pan African or the Company or the Group)
UNAUDITED INTERIM FINANCIAL RESULTS AND DECLARATION OF INTERIM DIVIDEND
for the six months ended 31 December 2025
(Key features are reported in United States dollar (US$) or South African rand (ZAR) to the extent relevant)
KEY FEATURES
PRODUCTION
• Barberton Mines' underground production increased by 5.2% to 32,774oz (FY25H1: 31,142oz), and Barberton Tailings Retreatment Plant (BTRP) production remained
stable at 7,143oz (FY25H1: 7,544oz)
• The Elikhulu Tailings Retreatment Plant (Elikhulu) achieved excellent results, with production increasing by 14.5% to 29,450oz (FY25H1: 25,725oz)
• Production at Evander Mines' operations improved substantially by 87.3% to 21,640oz (FY25H1: 11,551oz). Production in FY26H2 is expected to increase further with
higher mined tonnages
• The Mogale Tailings Retreatment (MTR) operation performed at steady state following its ramp-up in FY25, with production of 21,729oz, approximately 10% lower
than expected, as a result of mined grades and recoveries impacted by the current mined area
• Tennant Mines achieved steady-state throughput, with production of 15,560oz (including gold equivalent ounces from the sale of copper concentrate). Production in
FY26H2 is anticipated to increase to approximately 30,000oz as higher-grade ore from open pits replaces lower-grade feed from the Crown Pillar Stockpile.
SAFETY
• Total recordable injury frequency rate improved substantially to 4.74 (FY25H1: 8.25) per million man hours
• Lost time injury frequency rate improved to 1.22 (FY25H1: 1.54) per million man hours
• Reportable injury frequency rate remained stable at 0.61 (FY25H1: 0.55) per million man hours
• A fatal incident was recorded at Evander Mines' underground operations in July 2025 (as reported in the FY25 final results)
• Commendably, Elikhulu and MTR surface operations achieved zero lost time and reportable injuries.
COSTS AND COST GUIDANCE
• All-in sustaining cost (AISC) of production for FY26H1 of US$1,874/oz at US$/ZAR:17.37 (previous FY26 full-year guidance: US$1,525/oz to US$1,575/oz at
US$/ZAR:18.50), negatively impacted by:
– the strengthening of the average US$/ZAR exchange rate by 6.1% to US$17.37, with an impact of approximately US$115/oz
– the increase in employee share-based payment expenses, as a result of an increase of more than 140% in the Company share price from ZAR11.09 (0.4575 pence)
at 30 June 2025 to ZAR26.93 (1.21 pence) at 31 December 2025 (approximately US$80/oz)
– third-party material processed at the Evander Mines and MTR operations during the period, contributing to higher costs, as well as increased royalty payments due to
the higher gold price received
• AISC for lower-cost operations accounting for 88% of Group production at US$1,700/oz
• The FY26 full-year AISC guidance has been revised to US$1,820/oz to US$1,870/oz (at US$/ZAR:17.00) to reflect the effects of the factors outlined previously,
resulting in an increase from the original forecast; nevertheless, the full-year AISC is still expected to be lower than the FY26H1 level due to higher production volumes
anticipated in FY26H2.
FINANCIAL
• Revenue increased by 157.3% to US$487.1 million (FY25H1: US$189.3 million)
• Net cash generated from operating activities increased by US$174.1 million to US$170.9 million (FY25H1: US$3.2 million net cash used)
• Adjusted EBITDA increased to US$245.2 million (FY25H1: US$58.0 million), and the EBITDA margin increased to 50.3% (FY25H1: 30.6%)
• Earnings per share (EPS) increased by 192.0% to US 7.30 cents per share (FY25H1: US 2.50 cents per share (restated))
• Headline earnings per share (HEPS) increased by 511.7% to US 7.34 cents per share (FY25H1: US 1.20 cents per share). Included in EPS in the previous reporting
period is a gain on acquisition relating to the Tennant Consolidated Mining Group Proprietary Limited transaction. This gain amounting to US$28.0 million is excluded
from HEPS
• Profit for the reporting period increased by 211.8% to a record US$147.8 million (FY25H1: US$47.4 million)
• The Group has now substantially degeared its balance sheet, with a reduction in net debt of 69.3% to US$46.2 million, compared to US$150.5 million at 30 June 2025.
At the prevailing gold prices, the Group expects to be in a net cash position by the end of February 2026. The improvement has been achieved notwithstanding the
payment of a record final dividend to shareholders in December 2025
• Available cash and undrawn facilities at period-end of US$158.9 million (FY25H1: US$32.3 million).
INTERIM DIVIDEND FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
• The board has approved an interim gross cash dividend of ZAR280.0 million (approximately US$17.4 million) (FY25H1: Nil), equal to ZA 12.00000 cents per share (or
US 0.74488 cents per share based on an exchange rate of US$/ZAR:16.11 or 0.54745 pence per share based on an exchange rate of GBP/ZAR:21.92).
Interim dividend salient dates
Conversion date Monday, 16 February 2026
Declaration date Wednesday, 18 February 2026
Last date to trade on the JSE Tuesday, 10 March 2026
Last date to trade on the LSE Wednesday, 11 March 2026
Ex-dividend date on the JSE Wednesday, 11 March 2026
Ex-dividend date on the LSE Thursday, 12 March 2026
Record date on the JSE and LSE Friday, 13 March 2026
Payment date Tuesday, 17 March 2026
Notes
• No transfers between the South African and United Kingdom (UK) registers, between the commencement of trading on Wednesday, 11 March 2026 and close of
business on Friday, 13 March 2026 will be permitted
• No shares may be dematerialised or rematerialised between Wednesday, 11 March 2026 and close of business on Friday, 13 March 2026, both days inclusive
• The interim dividend per share was calculated on 2,333,671,529 total shares in issue, equating to ZA 12.00000 cents per share or 0.54745 pence per share or US
0.74488 cents per share
• The South African dividend tax rate is 20% per share for shareholders who are liable to pay the dividends tax, resulting in a net dividend of ZA 9.60000 cents per share,
0.437960 pence per share and US 0.59590 cents per share for these shareholders. Foreign investors may qualify for a lower dividend tax rate, subject to completing a
dividend tax declaration and submitting it to Computershare Investor Services Proprietary Limited or Link Group who manage the South African and UK registers,
respectively
• The Company's South African income tax reference number is 9154588173
• The interim dividend will be distributed from the Company's South African income reserves/retained earnings, without drawing on any other capital reserves.
FUTURE PRODUCTION GROWTH
• At Tennant Mines, the earn-in exploration joint venture with Australian Securities Exchange-listed Emmerson Resources Limited, on which the White Devil project and
others are located, was successfully concluded during September 2025
– Ongoing exploration on the Group's wholly owned mining leases at Nobles, Juno and Warrego confirmed extensions to the known mineralised zones. These projects
target increasing overall Australian Group production to approximately 100,000oz of gold per year and 10,000t to 15,000t of copper per year over a life-of-mine of
more than 10 years
– Regional exploration programmes comprising magnetotelluric geophysical surveys and remote sensing have identified more than 10 new prospective targets for
exploration
• A feasibility study to process the Group's Soweto Cluster tailings storage facilities at a stand-alone operation was successfully completed during the reporting period
(announced on the Stock Exchange News Service (SENS) and the Regulatory News Service on 27 November 2025). The definitive feasibility study for a plant with
expected annual gold production of 30Koz to 35Koz for a life of approximately 15 years is expected to be completed by June 2026
• Other shortlisted internal organic growth projects include:
– Fast-tracking development of the Royal Sheba deposit at Barberton Mines, a near-surface, large-scale, free-milling orebody containing Mineral Resources of 6.9Mt at
3.24g/t (0.7Moz gold), extending over a strike length of 800m and a width of 15m. Importantly, the orebody remains open both at depth and along strike, indicating the
potential for further resource delineation and future growth
– Contract mining specialists have been shortlisted, and processing of Royal Sheba ore at the BTRP is expected to commence during this calendar year
– The development of the Royal Sheba project requires a relatively minimal upfront capital investment of approximately US$11 million in its first year, with the project
expected to be self-funding thereafter
– A feasibility study is being conducted for the installation of a flotation section at the BTRP which has the potential to deliver an additional 7,500oz of gold production
over the next three years
– At Evander Mines, the Poplar project, containing Mineral Resources of 28.7Mt at 6.99g/t for 6.46Moz gold, is located within the approved Evander Mines mining
right. The Kimberley Reef at Poplar has been intersected from as shallow as 500m below surface and dips moderately to a maximum depth of around 1,200m. The
Group has commenced with an updated prefeasibility study (PFS) at Poplar to determine the optimal access and extraction methods for a 100,000oz per year shallow
underground mine. This PFS will inform the basis of a feasibility study.
EXPECTED FY26 PRODUCTION FORECAST
The Group is expected to continue to deliver significant growth in gold production, with production ranges adjusted in line with FY26H1 performance as follows:
Operation Production range oz
Elikhulu 54,000 – 56,000
MTR 48,000 – 52,000
BTRP 13,000 – 15,000
Tennant Mines 46,000 – 50,000
Barberton Mines underground 66,000 – 69,000
Evander Mines underground 48,000 – 50,000
Total production guidance 275,000 – 292,000
ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE INITIATIVES
• Expansion of total solar generation capacity at Evander Mines from 10MW to 30MW is in progress, with construction of the additional capacity on schedule to
commence by June 2026
• The Group has entered into a 10-year power purchase agreement (PPA) with NOA Group Holdings Proprietary Limited (NOA), a renewable energy independent
power producer and energy trader. NOA's initial portfolio comprises renewable energy assets of 1,252MW, which is expected to generate 3,160GWh per annum.
Pan African will receive 388GWh from NOA in terms of the PPA, estimated to result in Eskom power savings of approximately US$6 million in year one. The renewable
energy supplied in terms of this agreement will increase Pan African's renewable energy penetration to approximately 60% within two to three years
• Construction of two water treatment plants is at an advanced stage. Phase 2 of the 3ML/day Evander Mines water treatment plant is nearing completion, with first
water expected in late March 2026. At MTR, construction of a 3ML/day water treatment plant to treat acid mine drainage water commenced in November 2025, with
commissioning on track by May 2026
• The MTR operation was awarded the 'Best ESG Initiative by a Mining Company' at the International Resourcing Tomorrow conference held in December 2025. The
judging panel recognised the immediate positive impacts of Pan African's activities on the environment and local communities, following years of neglect in the area.
CHIEF EXECUTIVE OFFICER'S STATEMENT
Pan African's chief executive officer, Cobus Loots, commented:
"Pan African's safety, operational and financial performance in the first half of the financial year, together with the boon of record gold prices, has positioned us to deliver
outstanding results for the full year. During the reporting period, the Group degeared its balance sheet and is also now further boosting cash returns to shareholders, with the
Company initiating an attractive interim dividend payment.
The half-year results demonstrate the success of our strategy of focusing on high-margin, long-life tailings retreatment operations and also the acquisition of the very
prospective Tennant Mines in Australia.
Lower-cost operations, accounting for 88% of Group production, delivered at an AISC of US$1,700/oz – a very compelling margin at prevailing gold prices.
Despite our continued focus on cost control, all-in sustaining unit costs were higher than guided for the reasons detailed in this release. However, we believe that the expected
increased gold production in FY26H2 will assist with reducing unit costs, and in terms of AISC, Pan African remains competitive relative to other producers.
The Group's focus on sustainable and value-enhancing environmental, social and corporate governance initiatives has again delivered tangible benefits, with our PPA with
NOA, together with additional investments into renewable energy projects at Evander Mines, MTR and Tennant Mines, resulting in a likely renewable penetration of more than
60% over the next two years.
Pan African has the ability to continue to deliver very attractive production growth over the next years, specifically internal expansions in Australia and around our MTR
operation, which will not only add mine life but also significant additional production ounces. Pan African will continue to capitalise on the very favourable current environment
to position the Group to keep on 'Mining for a Future' for many more years."
DIRECTORS' RESPONSIBILITY
The information in this announcement has been extracted from the unaudited interim financial results for the six months ended 31 December 2025. This short-form
announcement has not been reviewed by the Company's auditors. The unaudited interim financial results have been prepared in compliance with, inter alia, the JSE Listings
Requirements and LSE Listings Requirements, under the supervision of the financial director, Marileen Kok. This short-form announcement is the responsibility of the
directors of Pan African and is only a summary of the information contained in the full announcement, which was released on SENS on 18 February 2026.
Any investment decisions should be based on the full announcement and the Group's detailed operational and financial summaries, as the information in this short-form
announcement does not provide all of the details.
AVAILABILITY OF THE FULL ANNOUNCEMENT
The full announcement is accessible via the JSE link at https://senspdf.jse.co.za/documents/2026/jse/isse/pan/INT2025.pdf and via the Company's website at
https://www.panafricanresources.com/wp-content/uploads/Pan-African-Resources-interim-results-SENS-announcement-2026.pdf
Copies of the full announcement may also be requested by emailing ExecPA@paf.co.za and electronically via the sponsor (sponsor@questco.co.za) at no charge during
business hours.
The Company has a dual primary listing on the JSE Limited in South Africa and the Main Market of the London Stock Exchange, a secondary listing on the A2X Market, as
well as a sponsored Level 1 American Depository Receipt programme in the United States of America through the Bank of New York.
For further information on Pan African, please visit the Company's website at www.panafricanresources.com
Rosebank
18 February 2026
CORPORATE OFFICE
The Firs Building
2nd Floor, Office 204
Corner Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: +27 (0) 11 243 2900
Email: info@paf.co.za
REGISTERED OFFICE
107 Cheapside, 2nd Floor
London EC2V 6DN
United Kingdom
Office: +44 (0) 20 3869 0706
Email: jane.kirton@corpserv.co.uk
CHIEF EXECUTIVE OFFICER
Cobus Loots
Office: +27 (0) 11 243 2900
FINANCIAL DIRECTOR AND DEBT OFFICER
Marileen Kok
Office: +27 (0) 11 243 2900
COMPANY SECRETARY
Jane Kirton
St James's Corporate Services Limited
Office: +44 (0) 20 3869 0706
JSE SPONSOR AND JSE DEBT SPONSOR
Ciska Kloppers
Questco Corporate Advisory
Proprietary Limited
Office: +27 (0) 63 482 3802
JOINT BROKERS
Ross Allister/Georgia Langoulant
Peel Hunt LLP
Office: +44 (0) 20 7418 8900
Thomas Rider/Nick Macann
BMO Capital Markets Limited
Office: +44 (0) 20 7236 1010
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG
Office: +44 (0) 20 3207 7800
HEAD: INVESTOR RELATIONS
Hethen Hira
Office: +27 (0) 11 243 2900
Email: hhira@paf.co.za
Date: 18-02-2026 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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