JSE-listed miner Pan African Resources boasted a significantly healthier balance sheet, boosted by record gold prices, in its latest operational update.
The group paid off $72m (R1.3bn) in debt in the year to end-June, taking its net debt burden to about $155m (R2.75bn), down 32% from the previous year. At prevailing record gold prices, the company expects to pay off all its debt during the 2026 financial year.
Investors in the group are also sitting pretty as it announced a share buyback scheme to purchase up to R200m of ordinary shares. Pan African CEO Cobus Loots said the buyback programme, which had received board approval, demonstrated the group’s confidence in its prospects.
“Increased cash flow generation and degearing is allowing our business to continue to invest and grow, while also increasing cash returns to shareholders,” Loots said.
The book balancing and buyback scheme come as record gold prices continue to free up capital for SA’s largest mining companies, with recent trading statements published by Gold Fields, AngloGold Ashanti and Harmony Gold all reflecting healthier balance sheets.
Pan African reported a stronger operational performance in the second half, with gold production reaching a record high of 112,000oz, up 32% from the first six months.
The group attributed the improvement to the successful ramp-up at its Mogale tailings retreatment operation and “much improved” output from its Barberton underground operations after restructuring efforts.
In May, the Barberton mines retrenched 244 workers, shedding about 20% of their overall workforce, after operating costs at some of the business units became unsustainable over an extended period.
Further support came from improved grades and tonnages from the Evander operation, following “substantial investments in infrastructure and underground development” in recent years, including the commissioning of the Evander subvertical shaft.
The miner expects full-year gold production to rise 6% this year to 197,000oz before soaring 40% in the 2026 financial year, with next year's production guidance set at 275,000oz-292,000oz.
“I believe the group has never been better positioned to take advantage of record gold prices, with record second half gold production being testament to that achievement,” Loots said.
Pan African plans to publish its final results for the year to end-June on September 10.
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