18th Feb 2026 10:16
(Alliance News) - Pan African Resources PLC on Wednesday said it was on track for sustained growth, after profit multiplied in the first half thanks to "the very favourable current environment".
The Johannesburg-based gold producer's pretax profit surged to USD209.9 million, during the six months ended December 31 from USD58.8 million the year prior, with attributable profit up to USD148.0 million from USD48.2 million. Revenue more than doubled to USD487.1 million from USD189.3 million.
The company highlighted that the received gold price surged 62% to USD3,812 per ounce from USD2,359/oz a year ago.
Pan African's board has approved an interim dividend of 12 South African rand cents, which is about 0.74 US cents or 0.55 pence. This compares to no dividend a year prior.
The company's shares rose 3.8% to 151.60 pence on Wednesday morning in London, where they are up more than fourfold over the past year. The stock traded 7.4% higher at ZAR32.72 in Johannesburg.
According to Pan Africa, steady production and strong gold prices outpaced creeping costs in the first half, as cost of production ticked up to USD222.6 million from USD135.4 million, and other costs tripled to USD39.7 million from USD13.3 million.
All-in sustaining costs pushed ahead of guidance, averaging USD1,874 per ounce compared to the target range of USD1,525 to USD1,575. The company attributed this to "rand currency strength, an increase in employee share-based payment expenses and higher royalty costs". It stressed that it "remains competitive relative to other producers", with lower-cost projects comprising around 88% of the portfolio at an AISC of USD1,700 an ounce in the first half.
Still, the company has raised full-year cost guidance, with AISC now seen between USD1,820 and USD1,870 per ounce, assuming an exchange rate of ZAR17.00 to the dollar. Pan African sees the annual figure lower than in the first half, based on planned production increases and "continued focus on cost control".
Chief Executive Cobus Loots said the firm "will continue to capitalise on the very favourable current environment", noting: "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 Tenant Mines in Australia.
"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 [Mogale Tailings Retreatment] operation, which will not only add mine life but also significant additional production ounces."
The company is eyeing a 100% production increase to 100,000 ounces annually at the Tennant project, and is due to complete a feasibility study at MTR in the next few months.
"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," Loots added.
The firm's net debt stood at USD46.2 million at the end of December, reduced from USD150.5 million at June 30.
"At the prevailing gold prices, the group expects to be in a net cash position by the end of February 2026," Pan African said. Available cash and undrawn loans totalled USD158.9 million at December 31, up from USD32.3 million six months earlier.
By Holly Munks, Alliance News reporter
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