Pan African Resources shares sink as annual production disappoints

Pan African Resources PLC reported on Monday its annual gold production is at the lower end of its guidance, as Tennant Consolidated Mining Group Pty Ltd weighed.

The Rosebank-headquartered gold producer expects output for the financial year ending June 30 to rise 40% to about 275,000 ounces from 196,527 ounces a year earlier, coming in at the lower end of its estimate of between 275,000 ounces and 292,000.

Its shares slumped 13% to 120.32 pence on Monday morning in London. The stock traded 13% lower at R 25.90 in Johannesburg.

The junior gold miner said ‘excellent’ production performances from the Elikhulu Tailings Retreatment Plant and Mogale Tailings Retreatment surface operations, and the Evander and Barberton Mines underground operations, offset slower than anticipated ramp up of production from Tennant Mines. Pan African acquired the rest of Tennant mine in November 2024.

For the second half to June 30, production is likely to rise 14% to 147,000 ounces from 128,296.

Pan African said it has put in place measures at all its operations to mitigate potential fuel and reagent shortages resulting from Middle East conflict.

It expects full-year all-in sustaining cost at $1,870 per ounce from $1,600, excluding any year-end adjustments for share-based payment liabilities and other accounting adjustments

Pan African guides for 2027 production guidance of between 280,000 ounces and 302,000, with an AISC of between $2,075 an ounce and $2,175.

The group said it remains fully unhedged, and noted that it is now fully degeared from a net debt perspective, compared to net debt of $46.2 million at December 31, 2025.

Pan African plans to release its annual financial results on or about September 16.

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