Pan African Resources — Bringing Soweto to the fore

On 27 November, Pan African Resources (PAF) announced that it had completed two studies on its Soweto tailings storage facilities near the MTR/Mogale plant, namely a 1Mtpm standalone carbon-in-leach plant, for which a definitive feasibility study (DFS) was completed, and a 600ktpm expansion circuit to be added to the existing MTR/Mogale operation, for which a pre-feasibility study (PFS) was completed. Of the two, the 600ktpm option is favoured and has therefore progressed to DFS level, expected to be completed in June. In the meantime, the PFS posits annual gold production of c 30–35koz for 15 years at an all-in sustaining cost (AISC) of US$1,000–1,200/oz. At a gold price of US$2,800/oz, this generates a post-tax net present value (NPV13.3) of US$129.7m (6.4 US cents per share). At a gold price of US$3,500/oz, it generates one of US$235.4m (11.6c/share). In the near term, PAF should also benefit from its main market listing on the LSE from the end of October and its confirmed inclusion into the UK 250 from 22 December.