Pan African Resources has four major producing precious metals assets in South Africa: Barberton (target output 95koz Au pa), the Barberton Tailings Retreatment Project, or BTRP (20koz), Elikhulu (55koz) and Evander underground, incorporating Egoli (currently 45koz, rising to >75koz).

Prior to FY22 results, our core valuation of PAF was 44.67c/share (37.18p/share), based on projects either already in production or sanctioned. However, this rose by a further 15.67–20.69c (13.04–17.22p) once other assets (eg Egoli) were also taken into account. Alternatively, if PAF’s historical average price to normalised EPS ratio of 8.9x is applied to our FY23 forecast, it implies a share price of 40.78p. In the meantime, it is cheaper than its peers on 69% of valuation measures and remains among the top 15 yielding precious metals companies globally.