Runaway gold prices and a sharp rise in production have put gold mining company Pan African Resources in a robust financial position, aiming to clear debt by February.
The group produced 51% more gold in the six months to December 2025, at 128 296 ounces.
This surge in production, combined with favourable gold prices, has boosted cash generation and assisted Pan African in reducing net debt by more than 65% to $49.9-million (about R799-million) compared to the $150.5-million in June 2025.
Gold also surged to over $5 000 per ounce for the first time on Monday. Pan African reported that they then expect to be fully debt-free by the end of February 2026.
Pan African CEO Cobus Loots said the current gold price environment had played a major role in the group’s turnaround.
Full-year results outstanding
“Pan African’s safety, operational and financial performance in the first half of the financial year, together with the boon of record gold prices, has positioned us to deliver outstanding results for the full year.
“During the reporting period, the group de-geared its balance sheet and is now further boosting cash returns to shareholders, with our board set to approve an attractive proposed interim dividend payment.
“The half-year results demonstrate the success of our strategy of focusing on high-margin, long-life tailings retreatment operations, as well as the acquisition of the very prospective Tennant Mining in Australia,” said Loots.
The board has also gained confidence to propose an interim dividend of 12 cents a share, marking a step up in cash returns to shareholders after the payment of a record final dividend in December.
Evander Gold Mine ramped up production by 87% as underground operations stabilised and higher-grade ore was mined.
“We also wish to commend the Evander management team for the successful turnaround of the underground operation, with further improvements expected in the period ahead,” said Loots.
Elikhulu Tailings Retreatment Plant also delivered solid growth of 14% to 29 450 ounces, while Barberton Mines reported a modest underground production increase of 5% to 32 774 ounces compared to 31 142 ounces in the first half of the 2025 financial year.
The Mogale Tailings Retreatment operation, however, fell short of expectations, showing approximately a 10% drop.
This was due to mining grades and recoveries affected by the current mining area.
Focused on expanding tailings operations
Pan African said higher production levels in the months ahead should also help bring down unit costs, which were affected during the period by currency movements, higher royalties linked to gold prices, and increased share-based payments.
The company said it remains focused on expanding long-life, high-margin tailings operations and using the strong gold market to fund future growth while improving returns for investors.
“Despite our continued focus on cost control, all-in sustaining unit costs were higher than guided for the reasons detailed in this release.
“We believe the expected increased gold production in H2 of the financial year will assist with reducing unit costs.
“We are excited about the further production growth opportunities within our asset portfolio.
“Pan African is capitalising on the very favourable current environment to position the Group to continue ‘Mining for a Future’ for many more years,” Loots said.
