Miner Pan African Resources FY26 revenue jumps on higher gold prices

By Reuters News


Overview

  • UK-South Africa gold miner's FY26 revenue more than doubled, driven by higher gold prices and sales

  • FY26 EPS rose 146% yr/yr, with headline EPS up 200%

  • Company proposed record dividend and announced US$30.4 mln share buy-back programme


Outlook

  • Pan African sees FY27 gold production between 280,000oz and 302,000oz

  • Company guides FY27 all-in sustaining costs at US$2,075/oz to US$2,175/oz

  • Pan African expects higher output from Tennant Mines and cost savings from renewable energy projects


Result Drivers

  • RECORD GOLD PRODUCTION - Co said gold output rose 39% yr/yr to 272,310oz, supporting revenue and profit growth

  • HIGHER GOLD PRICE - Co said average gold price received rose 55% yr/yr to US$4,235/oz, boosting revenue

  • OPERATIONAL PERFORMANCE - Co cited strong performance at South African mines, offsetting slower ramp-up at Tennant Mines


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Net Income

$356.9 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the gold peer group is "buy"

  • Wall Street's median 12-month price target for Pan African Resources PLC is GBp172.50, about 50.5% above its September 15 closing price of GBp114.60

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago


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