Pan African Resources CEO: Record year sets up 'healthy' balance sheet for growth push

Yeah, so our target or guidance for the year ahead is 280 to 300, just over 300,000 ounces. And it's really sort of a combination of the South African portfolio doing what it, uh, what it has done in the last year, plus a bit of of increased production from tenant. So it's not um, it's not a massively sort of it's not a massive stretch in terms of a a target for production in the next year.

Hello, you're watching Proactive. I'm joined by Cobus Loots. He is the CEO of Pan African Resources. Cobus, very good to speak with you. You've just delivered record production and earnings. What stands out most from full year 2026?

Thanks, Stephen. Yeah, it was a a a from our view a great sort of result. Obviously on the back of tailwinds uh, in terms of gold price, but then also we managed to increase production by 40%. And that was uh, attributable to obviously a full year of production from Australia tenant, full a full year of production from our MTR asset. But then also excellent performances from the rest of the South African portfolio, which includes Elukulu, uh Evander and Barberton. So, um, yeah, that it's a a sort of good performance uh all round, I would say. Um and then also the fact that we managed to de-gear the balance sheet completely. Uh we were net debt last year and um and now we have a really healthy cash balance. So, um that's it's a great position to be in.

Uh Cobus, Tenant mines were slower to ramp up than expected. What what gives you confidence White Devil can change that in full year 2027?

Yeah, well, I mean, the sort of the the slow ramp up was attributable to the plant, um, number one and some fixed fixes that we needed to to do and implement. Some improvements and then also, obviously, as I said, I mean, we were mining mostly crown pillar stockpile. Um, and uh, and we now have started uh mining White Devil. Um, so the capital we're spending this year uh on the plant, um will stand us in good stead. We already had a 90, 95% sort of throughput in terms of plant capacity. So that's a good place to be. Uh, but then White Devil's a great deposit. Um, it's one of the highest grading uh deposits in Australia as a matter of fact, it's so some three and a half grams per ton, um, and still open a depth and on strike. So, um, it's it's it's really is exciting for us and demonstrates the potential of the tenant goldfield. So, you might remember it's only been about 18 months or so since we concluded that transaction. So, to have found and and and and be in the position of developing an asset like that is great.

Uh you're targeting 300,000 ounces of annual production. What what's the key projects that that will get you there?

Yeah, so our target or guidance for the year ahead is 280 to 300, just over 300,000 ounces. And it's really sort of a combination of the South African portfolio doing what it, uh, what it has done in the last year, plus a bit of of increased production from tenant. So it's not, um, it's not a massively sort of it's not not a massive stretch in terms of a a target for production in the next year.

Uh the Soweto cluster DFS points to 35,000 to 40 40,000 ounces a year. How important is this project to your growth plan, Cobus?

Well it's it's the next logical step for us on the West Rand and MTR has been a fantastic success and it again demonstrated that you can uh conceptualize it, build and then operate world-class projects in South Africa. So, um currently MTR, as you know, going forward will do about 60,000 ounces of gold a year. Very good uh competitive cost also. Uh, but then Soweto, um it makes all the sense in the world. Uh it's obviously still subject to permitting and a couple of other boxes to be ticked on servitudes and the like. Um but I mean we like the returns. Um, it's very much in line with what with what we've delivered before. uh at a conservative in our view gold price of say just over 300, 3 and a half thousand dollars, you can still get your money back in in three years, which is similar to what we've delivered elsewhere. So, um I I just think it makes sense for us if we can get all the the other sort of permitting and and and and um and ancillary issues out of the way.

Uh you mentioned that strong balance sheet, Cobus, and your net cash position. Uh how do you balance investing in growth with further shareholder returns?

Yeah, well it's um it's always a balance that one needs to to think about. But um we've managed to to to I guess um do that balancing quite successfully over the years. Um an attractive and and um and sector leading dividend to our shareholders which is very much uh um we're very much able to maintain and sustain. and then just look at the the growth and production over the last years and having no debt. So, um, I think we've managed to do so that balancing act successfully and we will continue to to do so.

And looking ahead, the the biggest milestones investors should watch for across Pan African over the next 12 months?

Well, it's sort of I'd say just delivering, um, you know, on on guidance within um, the cost profile that we've guided also. Um, generating great cash, uh, excellent returns to shareholders, and then, um, some exciting growth, MTR expansion at tenant, hopefully exploration success at tenant, which is just a huge goldfield, 1700 square kilometers that we own now. We're very excited about that. And then, yeah, sort of Barberton, Evander continue to to tick along as always.

Cobus, congratulations on a great set of results. Good, good speaking with you.

Thank you so much.

That's Pan African Resources CEO, Cobus Lets.