Pan African Resources (AIM: PAF)

Currency in GBP

Last close As at 22/09/2023

GBP0.16

−0.22 (−1.36%)

Market capitalisation

GBP346m

Pan African Resources (PAF) 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 30koz, rising to >100koz).

Our core valuation of PAF is 34.24 cents per share (26.86p/share), based on projects either already in production or sanctioned. However, this rises by a further 17.47–22.49c (13.70–17.64p) once other assets (eg Egoli) are taken into account. Alternatively, if the company’s historical average price to normalised headline EPS ratio of 8.6x is applied to our forecasts, it implies a share price of 23.51p in FY23.

Latest Insights

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Metals & Mining | Update

Pan African Resources — Taking the rough with the smooth

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Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director, Energy & Resources

Key Management

  • Cobus Loots

    CEO

  • Deon Louw

    FD

  • Keith Cousens Spencer

    Chairman

Balance Sheet

Forecast net debt (US$m)

76.8

Forecast gearing ratio (%)

21

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 23.1 26.6 (2.7)
Relative 16.7 24.9 (7.3)
52 week high/low 20.2p/12.0p

Financials

Pan African Resources’ (PAF’s) FY23 results, announced on 13 September, were closely in line with our forecasts. Barberton underground, Evander underground and the Barberton Tailings Retreatment Project (BTRP) all recorded higher throughputs at slightly lower grades than we had been expecting, but also lower unit cash costs in ZAR/t terms. Elikhulu performed in line with our expectations in terms of output, albeit at slightly higher unit costs, owing to continued electricity supply disruptions and unfavourable weather. Overall, earnings for H123 and FY23 were US$2.5m higher than our prior forecasts, translating into 8.5% outperformance and 4.3% outperformance, respectively. EPS was in the top half of the consensus forecast range.

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2022A 376.4 147.8 117.2 4.44 4.6 2.7
2023A 321.6 121.9 92.9 3.54 5.7 2.9
2024E 359.0 165.1 136.7 5.40 3.8 3.4
2025E 395.1 180.5 141.7 5.69 3.6 2.3

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Pan African Resources – executive interview

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Pan African Resources — Back to where it belongs

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Pan African Resources — Roundabouts and swings

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Pan African Resources — H120 confirms FY20 forecasts

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Pan African Resources — Entering harvest mode

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Pan African Resources — Solid push towards year end

Outlook

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Pan African Resources — Elikhulu underpins recovery

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Pan African Resources — On track for 170koz in FY19

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Pan African Resources — EGM’s Parthian shot

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Pan African Resources — Finishing unfinished business

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Pan African Resources — A second glance at the first half

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Pan African Resources — FY17 results in line

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Pan African Resources — Disposals hone investment case

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Pan African Resources — Canning coal

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Pan African Resources — Tails wagging

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Pan African Resources — Update 13 December 2016

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Pan African Resources — Update 28 September 2016

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Pan African Resources — Update 18 August 2016

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Pan African Resources — Update 15 March 2016

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Pan African Resources — Update 24 February 2016

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Pan African Resources — Update 10 February 2016

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Pan African Resources — Update 9 December 2015