Pan African Resources (PAF) H1 2026 earnings summary

Executive summary

• Achieved record gold production of 128,296oz in FY26H1, up over 51% year-over-year, driven by strong operational performance and commissioning of new projects.

• Revenue surged 157% to $487.1 million, supported by a 62% increase in average gold price and higher production volumes.

• Net profit rose 212% to $147.8 million, with EPS up 192% to US 7.30 cents; interim dividend of US$17.4m declared.

• Net debt reduced by 80% to $46.2 million, reflecting robust cash flow and improved financial position.

• Transitioned to the London main market, included in the FTSE 250, and now one of the largest gold miners listed in London.

Financial highlights

• Adjusted EBITDA increased 323% to $245.2 million; headline earnings up 512% to US 7.34 cents per share.

• Group AISC rose 12% to $1,874/oz, with 88–90% of production at $1,700/oz.

• Cash flow from operations before dividends, tax, royalties, and finance costs grew 588% to $260 million.

• Interim dividend of US 0.75cps (ZAR280m) paid, reflecting sector-leading shareholder returns.

• Net asset value per share increased 62.2% to US 33.9 cents.

Outlook and guidance

• FY26 gold production guidance set at 275,000–292,000oz, with H2 expected at 145,000–155,000oz.

• Next financial year production expected to approach 300,000oz, with growth targeted to 400,000oz by FY 2029.

• Group AISC for FY26 revised to $1,820–$1,870/oz, expected to decrease as production increases.

• Group forecast to be net cash by February–March 2026, with significant free cash flow generation expected.

• No current plans for hedging; shareholders prefer full gold price exposure.