17th Dec 2025 13:55
(Alliance News) - Edison has upgraded Pan African Resources PLC after the gold producer announced plans to build a new Soweto cluster plant.
The investment research firm raised share price target to 124 pence, up from 109p estimated in September.
In London, shares in Pan African were up 3.1% at 113.80p each on Wednesday afternoon, leaving market capitalisation at around GBP2.31 billion. They were 2.0% higher at ZAR25.15 in Johannesburg.
Late last month, Pan African said it planned a 600,000 tonnes per month expansion circuit to be added to the existing Mogale tailings retreatment complex. The new facility would process Soweto Tailings Retreatment. The anticipated construction period of about 24 months.
This facility carries an estimated capital cost of USD160 million and is expected to produce 30,000 to 35,000 ounces of gold annually for around 15 years.
Combined production from the Mogale and Soweto clusters was originally presumed to stabilise around the 60,000 ounces a year. Edison now expects output to stabilise around the 80,000 ounces.
Edison also said Pan African remains cheap relative to its London- and Africa-listed gold mining peers, if consensus forecasts are used.
In the near term, Edison said Pan African should benefit from its main market listing on the London Stock Exchange and its confirmed inclusion into the UK 250 from Monday next week.
The gold producer first announced its plan to move its listing to the main board of the LSE from the AIM Market early in September.
By Artwell Dlamini, Alliance News senior reporter South Africa
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