Pan African Resources (PAF) H2 2025 TU earnings summary

Executive summary

• Record half-year gold production in FY25H2 at approximately 112,000oz, up 32% from FY25H1, with full-year FY25 production estimated at 197,000oz, a 6% increase year-over-year.

• Tennant Mines processing plant in Australia commissioned on time and within budget, marking successful expansion outside South Africa.

• Substantial reduction in net debt to approximately $155 million as of June 2025, down 32% from December 2024, with full degearing expected in FY26.

• Board approved a share buyback programme of up to ZAR200 million (approx. $11.1 million) to enhance shareholder value.

• A fatal accident occurred at Sheba Mine in June 2025, prompting renewed safety initiatives.

Financial highlights

• FY25H2 group all-in sustaining costs (AISC) estimated at $1,525–$1,550/oz, with full-year FY25 AISC at $1,550–$1,575/oz, higher than previous guidance due to lower production and hedge losses.

• Realised losses on zero cost collar hedges negatively impacted AISC by about $25/oz in FY25H2.

• Group will be unhedged from July 2025, allowing full exposure to gold prices.

Outlook and guidance

• FY26 production guidance set at 275,000–292,000oz, up ~40% from FY25, with AISC expected to improve to $1,475–$1,525/oz.

• Cost improvements anticipated from increased lower-cost surface operations, higher Evander output, Barberton restructuring, and renewable energy savings.