JSE- and ASX-listed Pan African Resources has delivered record financial results for the financial year ended June 30, on the back of a 38.6% year-on-year increase in gold production to 272 000 oz for the year.

Group revenue increased by 114% to $1.15-billion and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) by 168.9% to $609-million. Profit for the year increased to $356-million and headline earnings to $358-million.

Pan African’s headline earnings per share (HEPS) increased by 199% to $0.17 while earnings per share (EPS) increased by 145% to $0.17.

“Financially, the group has never been in a stronger position, with the growth in gold production achieved in a sustained high gold price environment, allowing us to accumulate $246.2-million in cash and short-term investments on the balance sheet by financial year-end, despite the significant investments in production capacity and dividends paid to shareholders.

“Our stated financial position is now completely de-geared as anticipated with an attractive and growing net cash balance on hand,” says Pan African CEO Cobus Loots.

The company has also reported a strong production performance for the Elikhulu Tailings Retreatment Plant, in Mpumalanga, achieving production of 56 000 oz for the 2026 financial year, with all-in sustaining costs of $1 231/oz.

The expanded Mogale Tailings Retreatment surface operations were successfully commissioned in December 2025, with production of 51 927 oz and Tennant Mines – the company’s operation in Australia – has produced 32 124 oz for the 2026 financial year following a slower-than-anticipated ramp-up of the Nobles operation.

Meanwhile, underground production at Barberton Mines, in Mpumalanga, has increased by 5.6% to about 72 000 oz, assisted by improved mining flexibility, with multiple platforms on the high-grade Main Reef Complex (MRC) and Rossiter orebodies supplying the bulk of the high-grade tonnes to the Fairview biological oxidation processing plant.

Production at Pan African’s Evander Mines’ operations increased substantially by 68.4% to 46 800 oz compared to 27 800 oz in the previous financial year as the average underground recovered grade increased to more than 11 g/t.

The company also highlights that Fairview’s high-grade Rossiter orebody development is progressing and provides additional mining flexibility and access to future production areas as Barberton Mines advances its mineral reserve replacement and life-of-mine extension strategy.

At Tennant Mines, the White Devil operation is emerging as the cornerstone of the medium-term production profile, with the first blast completed in August and the three-million-tonne, 3.8 g/t orebody expected to support production of about 50 000 oz/y before underground developments lift output towards 100 000 oz/y.

Further, the company notes that the Soweto Cluster tailings retreatment definitive feasibility study has outlined a potential 600 000 t a month operation producing 35 000 oz/y to 40 000 oz/y over about 15 years, with a $216-million capital cost and estimated post-tax net present value of about $109-million.

The Royal Sheba development is advancing at Barberton Mines, targeting the near-surface mineralised zone, with future ore production to be processed through the Barberton Tailings Retreatment Plant.

This project is expected to increase the plant’s production profile and support a current project mine life of at least 11 years, producing about 40 000 oz at steady state. The company says the mining development has been awarded, with the first blast scheduled for early 2027.

On safety, the company’s lost-time injury frequency rate has improved to 1.4 per million man hours from about 1.6-million in the previous financial year, and the total recordable injury frequency rate improved to 5.5 per million man hours from 6.5 in the previous financial year.

Additionally, Pan African’s surface remining operations have again achieved zero lost-time injuries and zero reported injuries, but the group suffered one fatal accident at its underground operations.

The company’s production guidance for the 2027 financial year has been set at about 302 000 oz, owing to the increase in plant capacity at the Mogale Tailings Retreatment project facility, and an improved production contribution from Tennant Mines expected following carbon-in-leach plant infrastructure upgrades and accelerated access and development plans at the White Devil openpit.

Further production increases are expected in later years from organic growth projects, including Royal Sheba, Soweto Cluster Tailings Retreatment and Poplar.

The Pan African board has proposed a final gross cash dividend of R1.5-billion for the 2026 financial year, equating to about $0.04 per share. The dividend is subject to approval by shareholders at the company’s AGM, which is set for November 19.

“We are very comfortable that Pan African has sufficient available liquidity after payment of the attractive dividend to fund operations, together with further renewable-energy initiatives and our very attractive growth projects,” Pan African FD and executive director Marileen Kok says.