Pan African Resources (PAF) H2 2025 earnings summary

Executive summary

• Achieved record profits, headline earnings per share, and proposed record dividends, with a nearly 80% increase in USD dividend year-over-year.

• Group gold production reached 196,527oz, up 6% year-over-year, with record second half output and successful ramp-up at MTR and Tennant Mines.

• Commissioned MTR and Tennant Mines ahead of schedule and below budget, expanding production base and geographic diversification.

• Transitioned to a portfolio with 60% of production from long-life, low-cost surface remining assets.

• Announced intention to move to the Main Market in London, reflecting increased scale and investor appeal.

Financial highlights

• Revenue increased by 45% to $540 million, driven by a 36% higher average gold price and increased production.

• Adjusted EBITDA rose 60%, earnings up 78% to $142 million, and headline earnings up 47% to $117 million.

• EPS increased 73% to US7.16cps; headline earnings up 47% to $116.6m.

• Operating cash flows grew over 70% to $155 million, with CapEx of $158 million, raising net debt by 41% to $151 million.

• Net debt at year-end was $150.5m, down from $228.5m at FY25H1, with net debt to equity at 20% as of June 2025.

• Proposed record dividend of $0.37/share, up 77% in USD terms, with a payout ratio of 38% of cash flow.

Outlook and guidance

• FY26 gold production guidance set at 275,000–292,000oz, with H1 expected at 130,000–137,000oz and H2 at 145,000–155,000oz.

• FY2026 all-in sustaining cost (AISC) guidance set at $1,525-$1,575/oz, with unit costs expected to decrease as new projects reach full production.

• Group expected to be net debt-free before the end of FY2026 at current gold prices.

• Sustaining CapEx guidance for FY2027 and beyond is $40-$50 million, with growth CapEx dependent on project pipeline.