Pan African Resources Targets Record Gold Production in 2026

Pan African Resources is signalling a material step-up in scale, guiding for record 2026 financial year output of about 275,000 ounces of gold, roughly 40% higher year on year, while still holding the line on cost guidance for its operations. This profile now combines higher volumes, disciplined all-in sustaining costs and a stronger balance sheet, positioning the mid-tier producer for the next leg of growth.

Record output with costs under control

Chief executive Cobus Loots said in an operational update that group gold production for the year to 30 June 2026 is expected to rise about 40% to around 275,000 ounces, at the lower end of guidance of 275,000–292,000 ounces. Second-half production increased to roughly 147,000 ounces, up from 128,296 ounces in the first half, as South African operations delivered strongly.

The Elikhulu Tailings Retreatment Plant and Mogale Tailings Retreatment surface operations, together with the Evander and Barberton underground mines, offset a slower-than-planned ramp-up at Tennant Mines in Australia. Elikhulu is on track to produce more than 56,500 ounces in 2026, up from 52,606 ounces in 2025, its best performance since 2020. Barberton Tailings Retreatment Plant is expected to produce about 13,000 ounces for the year, in line with its mine plan.

At Evander Mines, annual production is expected to reach about 47,000 ounces, some 68% higher than the previous year, after underground development at 8 Shaft lifted the recovered grade to more than 11 grams per tonne from 6.8 grams per tonne in 2025. Meanwhile, Barberton Mines is expected to lift full-year production to about 72,000 ounces from 68,550 ounces in 2025.

The group expects to meet its full-year all-in sustaining cost guidance of US$1,870 per ounce, based on an average exchange rate of R17 to the US dollar. Management projects cash flow generation of about US$220 million for the year, underpinning both shareholder returns and growth capital.

Loots said the group’s very robust financial position allows it to plan a further increase in annual gold output to 300,000 ounces and beyond, while also raising cash returns to shareholders. The company reports a net cash position, with only US$49.7 million outstanding in domestic medium-term notes, after funding an investment in CuFe Limited, securing three months of strategic cyanide supplies for US$7 million and purchasing a month’s diesel reserve for Tennant Mines.

Tennant Mines ramps up as growth pipeline builds

The Tennant Mines operation in Australia remains a growth project rather than a major near-term earnings driver, but trends are improving. Blending open-pit ore with historic Crown Pillar Stockpile material lifted the head grade to 1.5 grams per tonne from 1.3 grams per tonne. Management expects annualised gold production of approximately 45,000 ounces in the last quarter of the current financial year.

Pan African has guided 2027 financial year production from Tennant Mines of 48,000–52,000 ounces, as the White Devil deposit moves into the plan. The White Devil open pit currently contains indicated mineral resources of more than three million tonnes at 3.73 grams per tonne within the pit envelope, supporting a step-up in volumes. Capital is being deployed at the Nobles plant for a fixed crusher circuit, a secondary mill and a belt filter for dry stack tailings, together with accelerated mining of White Devil.

The group also expects to conclude the proposed acquisition of Emmerson Resources around July 2026, a deal that would consolidate its position across the Tennant Creek mineral field. Loots said the transaction should coincide with a planned listing on the Australian Securities Exchange, subject to implementation. For Pan African gold investors, this adds a second platform for growth alongside the established South African tailings and underground assets.

Meanwhile, production at Mogale Tailings Retreatment improved markedly in the second half, even as a previously reported calcine layer continued to weigh on grade and recoveries. The company plans to mine through the last of this material in the first quarter of the 2027 financial year, which should support more stable performance thereafter.

For investors, the story now rests on visible delivery against production and cost guidance, rising free cash flow and a balance sheet with capacity for further accretive growth. The next phase to watch is whether Tennant Mines and the Emmerson transaction can lift group output towards and beyond the 300,000 ounce mark without eroding the cost discipline that has underpinned this year’s step-change in scale.

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