Wrap Text
Operational update ahead of year ending 30 June 2026
Pan African Resources PLC Pan African Resources Funding Company
(Incorporated and registered in England and Wales Limited
under the Companies Act 1985 with registered Incorporated in the Republic of South
number 3937466 on 25 February 2000) Africa with limited liability
Share code on LSE: PAF Registration number: 2012/021237/06
Share code on JSE: PAN Alpha code: PARI
ISIN: GB0004300496
ADR ticker code: PAFRY
('Pan African' or the 'Group' or the 'Company')
OPERATIONAL UPDATE AHEAD OF YEAR ENDING 30 JUNE 2026
Pan African is pleased to provide its shareholders and noteholders with an operational update ahead
of the financial year ending 30 June 2026 (FY26).
HIGHLIGHTS
• Improvement in safety statistics with continued focus on safety initiatives
• Record annual and half-year gold production
o Increase of ~40% in annual gold production to approximately 275,000oz, in line with
the lower end of FY26 production guidance of 275,000oz to 292,000oz (FY25:
196,527oz)
o Material increase in gold production in FY26H2 compared to FY26H1 (~14%
increase) to 147,000oz (FY26H1: 128,296oz)
o Excellent production performances from the Elikhulu Tailings Retreatment Plant
(Elikhulu) and Mogale Tailings Retreatment (MTR) surface operations and the
Evander and Barberton Mines underground operations offset slower than
anticipated ramp up of production from Tennant Mines
o Tennant Mines FY27 production expected to increase significantly as the operation
commences mining of the White Devil deposit
• Despite inflationary pressures, the Group is expected to achieve full-year all-in sustaining
cost (AISC) guidance of US$1,870/oz (at an exchange rate of US$/ZAR:17.00)
• Record operating cash flow generation with Group projected cash position of ~US$220
million at the end of FY26
o Impacted by strategic investment of US$10.3 million in CuFe Limited and securing
strategic cyanide supplies (US$7.0 million)
o The Group is now in a net cash position (net debt of US$46.2 million at 31
December 2025), with the only outstanding debt being the domestic medium-term
notes (DMTNs) of US$49.7 million
• Measures in place at all operations to mitigate potential fuel and reagent shortages resulting
from Middle East conflict
• FY27 production guidance of 280,000oz-302,000oz at an AISC of between US$2,075/oz
and US$2,175/oz (at an exchange rate of US$/ZAR:17.00)
o AISC estimates allow for above inflation increases for reagents, electricity and other
key inputs
o Further production increases are expected in later years, primarily driven by
production growth from Tennant Mines and the Mogale Tailings Retreatment (MTR)
surface operations
• The proposed acquisition of Emmerson Resources Limited (Emmerson) to consolidate the
Tennant Creek mineral field is expected to be concluded during July 2026.
PRODUCTION
• Record Group gold production
o Increased throughput and gold recoveries at MTR, an excellent production
performance from Elikhulu together with improved mining grades and orebody
accessibility at the Evander and Barberton Mines underground operations offset
lower than anticipated ramp-up of production from Tennant Mines
o At Tennant Mines in Australia, blending of open pit ore sources with historic Crown
Pillar Stockpile (CPS) material resulted in the head grade improving to ~1.5g/t
(FY26H1: 1.3g/t). During the last quarter of FY26 the operation is expected to
achieve annualised gold production of approximately 45,000oz
- Capital allocated to the Nobles plant for a fixed crusher circuit, secondary
mill and a belt filter for dry stack tailings as well as mining of the White Devil
deposit to improve future production, with forecast FY27 production
guidance of between 48,000-52,000oz.
Surface operations
• Production at MTR improved substantially in FY26H2. The previously reported calcine layer
identified in the source material continues to impact both grade and recoveries. The operational
plan, however, anticipates mining through the last of the calcine material during the FY27Q1
production period
o Production is expected to reach approximately 30,500oz for FY26H2, delivering an
estimated production of ~52,000oz for FY26
o The Soweto Cluster definitive feasibility study (DFS) is on track for completion by June
2026, with the study focusing on the option of constructing a new tailings processing
facility with a capacity of 600ktpm, adjacent to MTR, which would be a stand-alone
operation producing approximately 30,000oz to 35,000oz per annum with a life-of-mine
of 15 years
• Environmental approvals and processing of water use licence applications are
in progress. The Company is currently also in the process of identifying and
concluding the required pipeline servitudes from the Soweto Cluster tailings
storage facilities to the MTR plant site
o The study for the expansion of the MTR plant to include a separate circuit for the
treatment of hard rock ore from local surface material is being finalised and could
potentially further increase annual production from the MTR complex by 20,000oz to
30,000oz
• Elikhulu production is estimated at approximately 27,000oz for FY26H2, with the operation on
track for achieving gold production of more than 56,500oz for FY26 (FY25: 52,606 oz). This is
the highest production rate at Elikhulu since FY20, when production reached 59,616oz
• The Barberton Tailings Retreatment Plant (BTRP) is expected to achieve production of
approximately 5,500oz in FY26H2, with full year production of approximately 13,000oz (FY25:
15,224oz). The reduced production is in line with the mine plan
o The addition of a flotation circuit to improve recoveries has been approved at a cost of
~US$5.9 million. The project is anticipated to be completed by the end of calendar year
2026. This will also enable the BTRP to treat refractory ore types in future
o The Group is further advancing its studies and designs for the installation of a crusher
circuit at the BTRP to allow for the processing of hard rock from Royal Sheba
• Tennant Mines is expected to produce approximately 18,500oz in FY26H2, a 19% increase in
production from FY26H1 (15,560oz). Full-year production for FY26 is estimated at ~34,000oz
o In FY26H2 engineering works were completed on both the ball mill and the filter presses
at the Nobles plant, which enhanced throughput and improved efficiencies
o An increase in grade was achieved as the mining operations progressed from only
treating CPS material in FY26H1 at 1.3g/t to processing a blend of this material with
fresh ore from the Weaber's Find, Rising Sun and Nobles open pits in FY26H2 at ~1.5g/t
o The Group is planning increased capital expenditure in FY27 at Tennant Mines to
further enhance the Nobles plant efficiencies and increase throughput while also
expediting mining at the large-scale White Devil open pit, which contains Indicated
Mineral Resources of over 3Mt at 3.73g/t (378koz) in the current open pit envelope. The
White Devil orebody remains open at depth and on strike
o The Group will also commence with the development of two large, shallow and high-
grade underground sections at Juno (Indicated and Inferred Mineral Resource of
1.96Mt at 4.16g/t for 262koz) and Golden Forty (Indicated and Inferred Mineral
Resource of 0.5Mt at 7.25g/t for 114koz), which together with White Devil, will underpin
gold production at Tennant Mines over the next five years.
Underground operations
• FY26H2 gold production at Evander Mines' underground complex is estimated at 25,000oz, a
16% increase (FY26H1:21,640oz). Production of ~47,000oz is anticipated for the full year,
representing a 68% increase year-on-year. The substantial increase in production is attributed
to:
o Evander Mines' 8 Shaft underground development reaching the high-grade 24 Level B-
Raise line, resulting in the average recovered grade increasing to more than 11g/t in
FY26 (from 6.8g/t in FY25). Additionally, development has advanced to the adjacent 24
Level A-Raise line with persistent high-grade mineralisation. These two Raise lines will
continue to yield the bulk of the ore tonnage to be processed at Evander Mines in FY27
o Development on the 25 Level access haulage has commenced and is progressing
according to plan
o Increased sourcing of third-party surface material treated through a dedicated circuit
within Evander Mines' Kinross metallurgical plant will yield circa 3,000oz gold (170,000t
at 1.2g/t in FY26 (FY25: 34,411t at 1.1g/t)
• Barberton Mines
o FY26H2 production of approximately 39,500oz is expected for the Barberton Mines
underground operations (FY26H1: 32,774oz), with full year production of approximately
72,000oz (FY25: 68,550oz), an increase of 5%.
FINANCIAL
• The Group is now fully degeared from a net debt perspective, compared to net debt of US$46.2
million at 31 December 2025, with the only current outstanding debt being the DMTNs of
US$49.7 million
• Group AISC for FY26 is expected to be in line with the higher end of guidance at approximately
US$1,870/oz at an average exchange rate of US$/ZAR:17.00, excluding any year-end
adjustments for share-based payment liabilities and other accounting adjustments
• The Group remains fully unhedged
FY27 PRODUCTION GUIDANCE
Improved production contribution from Tennant Mines is expected following CIL plant infrastructure
upgrades and accelerated access and development plans at the White Devil open-pit and shallow
underground operations at Juno and Golden Forty deposits.
Group production for FY27 is expected to be between 280,000oz and 302,000oz as outlined below:
Operation Production range (oz)
Elikhulu 48,000-52,000
BTRP 12,000-14,000
MTR* 50,000-54,000
Tennant Mines 48,000-52,000
Evander Mines 50,000-55,000
underground
Barberton Mines 72,000-75,000
underground
Total 280,000-302,000
*Expected production from MTR takes into account treatment of final calcine elements, whereafter annual production is
forecast to increase to over 60,000oz/year
CAPITAL EXPENDITURE
Total capital expenditure for FY26 is forecast at US$180 million and now includes:
• US$10 million for expedited development of the White Devil deposit at Tennant Mines
• solar plant construction costs of ~US$8 million at Tennant Mines
• ~US$3 million to finalise feasibility studies for the Soweto Cluster DFS.
Given the sustained high gold price environment, the Group is expediting several initiatives to grow
gold production further and reduce AISC over the next years. The Group's capital expenditure
guidance for FY27 has been revised to US$324 million, as detailed in the table below (up from
US$267 million previously guided).
This increase is mainly driven by expediting the development of the White Devil open pit and the
installation of a fixed crusher circuit and filter belt at the Nobles plant to support current and future
production growths, as well as fast-tracking exploration. Additionally, construction costs for the
renewable energy projects have also been finalised and included in the revised capital expenditure.
Operation Expansion Sustaining capital
capital (US$ (US$ million)
million) (4)
Elikhulu 2 2
BTRP 8 1
MTR (1 46 4
Tennant Mines 140 7
Evander underground (2) 50 0
Barberton Mines underground (3) 20 28
Evander phase 2 and Tennant 16 0
Mines solar plants
Total 282 42
1 Includes capital to construct new tailings deposition capacity and install a mill to increase gold production further.
2 Includes capital for ongoing capital development, equipping of 25 Level and capitalised working costs.
3 Includes capital to construct new tailings deposition capacity as well as ongoing capital development (mainly for the
Fairview and Western Cross orebodies).
4 Excludes capital for the Soweto Cluster, Poplar, Royal Sheba and certain environmental, social and corporate governance
(ESG)-related projects.
CONTINGENCY PLANNING
In light of the continuing unrest in the Middle East, the Group has secured:
• a rolling three-month supply of cyanide at all South African operations
• one-month on-site storage of diesel fuel reserves at Tennant Mines.
EXPLORATION
The Group continues to advance its exploration strategy with a focus on converting Inferred Mineral
Resources into Mineral Reserves, identifying extensions at known deposits at Tennant Mines and
drill testing new targets
• At Tennant Mines, exploration will be directed towards more than 10 targets identified through
the regional geophysics programme completed in FY26, while the programme itself will be
further expanded. Key activities include:
o a regional soil sampling programme comprising approximately 6,000 samples
across up to 13 anomalous targets
o diamond and reverse circulation drilling programmes at Chariot, Golden Forty, Juno
and White Devil
o regional reverse circulation drilling across several additional targets
o advancing project studies and approvals for known deposits to support their
inclusion in the life-of-mine plan.
PROPOSED ACQUISITION IN AUSTRALIA OF EMMERSON RESOURCES LIMITED
(ASX:ERM) (EMMERSON)(1) AND ACQUISITION OF STRATEGIC STAKE IN CuFe LIMITED
(ASX:CUF) (CuFe)
• The acquisition of Emmerson consolidates the Group's position in the prospective Tennant
Creek mineral field in the Northern Territory, Australia. The successful conclusion of the
transaction will deliver 100%-ownership of a strategic asset and eliminates the complexity
associated with the existing joint venture arrangements
o As part of the transaction, Pan African will also undertake an Australian Securities
Exchange (ASX) listing, reflecting its long-term commitment to the Australian
market
o The Scheme Meeting of Emmerson shareholders to approve the Scheme will be
held on Monday, 15 June 2026. Subject to the conditions of the Scheme being
satisfied, or waived (as permitted), the Scheme is expected to be implemented in
accordance with the following indicative timetable:
Event Indicative dates*
Scheme meeting Monday, 15 June 2026
Second court date Friday, 19 June 2026
Effective date Monday, 22 June 2026
Scheme record date Wednesday, 24 June 2026
Implementation date Wednesday, 1 July 2026
*All stated dates are indicative only and subject to change. Any changes to the above timetable will be announced and will
be available under Pan African's and Emmerson's profiles on their relevant exchanges .
• On 19 May 2026, the Group acquired a 15% strategic investment in ASX-listed CuFe for
~A$15.35 million. CuFe's advanced Gecko and Orlando projects have synergies with the
Group's Warrego project, which is the largest copper and gold resource in Tennant Creek
and with historical production from these projects previously having been processed jointly.
In connection with the Group's investment, CuFe has committed to form a technical working
group, comprising representatives of Pan African, to investigate (amongst other things)
potential synergistic benefits associated with the development of these projects.
(1)Further details are included in the Stock Exchange News Service/Regulatory News Service announcements of 9
March 2026 and 8 May 2026
Cobus Loots, Pan African's chief executive officer, commented:
It has been an exceptional year for Pan African Resources, with the Group set to achieve its record
gold production target, increasing gold output by some 40% year-on-year. Financially, the Group
has never been in a stronger position, with the growth in gold production achieved in a sustained
high gold price environment, allowing us to accumulate a projected US$220 million of cash on the
balance sheet by financial year end, despite the significant investments into production growth and
dividends paid to shareholders. Our very robust financial position will allow us to continue our
considered growth trajectory, executing into initiatives to expand annual gold output to 300,000oz
and beyond, while also further increasing cash returned to shareholders.
The strong operational performance from our South African portfolio offset the slower-than-
anticipated production ramp-up from Tennant Mines. In the next financial year, we expect a much
improved performance from Tennant Mines, with a full year of mining from the high-grade White
Devil deposit, and a clear pathway to growing Australian gold production to ~100,000oz per annum
in the next three years. In addition, we anticipate increasing gold production from MTR in the next
years, with the Soweto Cluster DFS now nearing completion.
Despite inflationary pressures, costs remain well managed. We are in a fortunate position in South
Africa, with stable grid power to all our operations, and an accelerating renewable energy portfolio
being rolled out to maintain this supply and reduce the impact of Eskom cost increases. In Australia,
while diesel price increases have had an impact on production costs, sufficient storage facilities are
now in place to minimise risks associated with potential fuel supply shortages. We are also investing
in a large renewable energy solution for Tennant Mines, which will include battery storage, to reduce
future operating costs.
The conclusion of the Emmerson transaction will see Pan African consolidate the Tennant Creek
goldfield, and we look forward to welcoming the Emmerson shareholders onto our register as we
also complete our listing on the Australian Stock Exchange, subject to the implementation of the
transaction.
We also look forward to reporting our final results for the year ended 30 June 2026 on or about 16
September 2026, where additional details on progress with our growth projects and ESG initiatives
will be presented.
Competent Person
The competent person for Pan African, Hendrik Pretorius, the executive for technical services and
new business, signs off the Mineral Resources and Mineral Reserves for the Group. He is a member
of the South African Council for Natural Scientific Professions (SACNASP 400051/11 –
Management Enterprise Building, Mark Shuttleworth Street, Innovation Hub, Pretoria, Gauteng
Province, South Africa), as well as a fellow in good standing of the Geological Society of South
Africa (GSSA – CSIR Mining Precinct, Corner Rustenburg and Carlow Roads, Melville, Gauteng
Province, South Africa). Hendrik has 23 years' experience in economic geology, mineral resource
management (MRM) and mining (surface mining and shallow to ultra-deep underground mining).
He is based at The Firs Office Building, 2nd Floor, Office 204, Corner Cradock and Biermann
Avenues, Rosebank, Johannesburg, South Africa. He holds a BSc (Hons) degree in Geology from
the University of Johannesburg as well as a Graduate Diploma in Mining Engineering from the
University of the Witwatersrand. Hendrik has reviewed, and approved, in writing the information
contained in this announcement as it pertains to Mineral Resources and Mineral Reserves.
The information contained in this announcement is the responsibility of the board and has not been
reviewed or reported on by the Group's external auditors.
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part
of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement via the Regulatory Information Service and SENS, this inside information is
now considered to be in the public domain.
Johannesburg
1 June 2026
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate office Registered office
The Firs Building 107 Cheapside, 2nd Floor
2nd Floor, Office 204 London, EC2V 6DN
Corner Cradock and Biermann Avenues United Kingdom
Rosebank, Johannesburg Office: + 44 (0)20 3869 0706
South Africa jane.kirton@corpserv.co.uk
Office: + 27 (0)11 243 2900
info@paf.co.za
Chief executive Officer Financial director and debt officer
Cobus Loots Marileen Kok
Office: + 27 (0)11 243 2900 Office: + 27 (0)11 243 2900
Head: Investor relations Website: www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company secretary Joint broker
Jane Kirton Ross Allister/Georgia Langoulant
St James's Corporate Services Limited Peel Hunt LLP
Office: + 44 (0)20 3869 0706 Office: +44 (0)20 7418 8900
JSE sponsor and JSE debt sponsor Joint broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
Office: + 27 (0) 63 482 3802 Office: +44 (0)20 7236 1010
Joint broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG
(Berenberg)
Office: +44 (0)20 3207 7800
Date: 01-06-2026 08:00:00
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