Pan African Resources posts strong FY25 growth, record production, dividend hike

Pan African Resources reported a 5.6% increase in group gold production to 196,527oz in FY25, with a record FY25H2 production of 111,822oz, up 28% from FY24H2. This growth was driven by the successful ramp-up of the Mogale Tailings Retreatment (MTR) operation, producing 22,063oz in FY25H2, and the inaugural gold pour from Tennant Mines in May 2025. The company projects FY26 production guidance of 275,000oz to 292,000oz.

Financially, revenue surged by 44.5% to $540.0m, and profit for the year increased by 78.4% to a record $140.6m. Earnings per share (EPS) rose by 72.9% to 7.16 cents per share, and headline earnings per share (HEPS) increased by 41.9% to 5.89 cents per share. The company proposes a final gross dividend of ZA 37.00000 cents per share, a 68% increase from the prior year.

All-in Sustaining Costs (AISC) for FY25 were $1,600/oz, above guidance, attributed to negative impacts on unit costs at underground operations and inflationary increases. However, AISC for lower-cost operations, which constitute over 85% of annual production, stood at $1,425/oz. The Group is forecasting a reduction in total capital spend to $146.7m in FY26.