26th Jan 2026 08:05
(Alliance News) - Pan African Resources PLC on Monday declared a maiden interim dividend after delivering robust production, positioning the junior gold producer to post "outstanding" full-year financial results.
The Rosebank-headquartered gold producer plans to initiate interim dividend, declaring a 12 rand cents or 0.74488 US cents payout after cutting debt substantially.
The group reduced net debt by 67% to USD49.9 million as at December 31, from USD150.5 million as June 30, 2025, and expects to be fully de-geared by the end of February this year.
For the first half that ended December 31, gold production surged 51% to 128,296 ounces from 84,705 ounces a year earlier.
Production at Evander operations in Mpumalanga improved substantially to 21,640 ounces in the first half from 11,551 ounces, while Mogale Tailings Retreatment operations achieved steady state following ramp-up in the 2025 financial year.
Barberton Mines underground production in Mpumalanga was up 5% to 32,774 ounces from 31,142 ounces, and Tennant Mines in Australia also achieved a steady state throughput, with production of 15,560 ounces.
All in sustaining cost of production for the first six months is expected to rise to a range of between USD1,825 an ounce and USD1,875, compared to USD1,675 a year earlier.
Pan African said it is on track to meet its production guidance range of between 275,000 ounces and 292,000 for the financial year ending June 30, 2026, up from 196,527 ounces a prior year.
"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," Pan African Chief Executive Officer Cobus Loots said.
"During the reporting period the Group de-geared its balance sheet and is also now further boosting cash returns to shareholders, with our board set to approve an attractive proposed interim dividend payment," Loots said.
Pan African intends to release its interim financial results on February 18.
In Johannesburg, Pan African rose 5.8% to ZAR31.82 on Monday morning. Its hares in London opened 4.9% higher at 145.12 pence.
By Artwell Dlamini, Alliance News senior reporter South Africa
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