Pan African Resources (PAF) H2 2024 TU earnings summary

Executive summary

• Full year gold production rose 6.2% year-over-year to 186,039oz, meeting guidance and marking operational consistency across all sites.

• Record average gold price achieved at $2,021/oz for the period.

• Industry-leading safety improvements with significant reductions in injury frequency rates.

• Board change announced: Deon Louw to retire as financial director, succeeded by Marileen Kok.

Financial highlights

• Net debt increased to $106.4 million from $22.0 million, mainly due to MTR Project construction and other capital expenditures.

• All-in sustaining costs (AISC) expected at approximately $1,350/oz.

• Major capital outlays: $71.5 million for MTR Project, $23.8 million for Evander 8 Shaft and Elikhulu tailings, $9.9 million for Fairview solar plant.

Outlook and guidance

• FY2025 production guidance reiterated at 215,000–225,000oz.

• MTR Project commissioning and first gold production expected ahead of schedule in October 2024, with steady state by December 2024.

• MTR Project forecast to produce ~60koz/year over 21 years at AISC below $900/oz.