Pan African Resources - Building steam

On 30 June 2022, Pan African announced that it had successfully completed a definitive feasibility study (DFS) on the Mogale assets that it is in the process of acquiring. Highlights from the DFS were that the project has the potential to increase the group’s gold production by c 50koz pa (or c 25% of current group production) over a 13-year life at a capital cost of ZAR2.5bn (US$157.8m) and an all-in sustaining cost US$914/oz, to result in a pre-tax project NPV9.5 of ZAR1,006m (US$64.9m, or 3.3c or 2.8p per share) and a real internal rate of return of 20.1% at a gold price of US$1,750/oz and a forex rate of ZAR15.50/US$. We have now incorporated the results of the DFS into our model, as well as updating our forecasts to reflect recent moves in the gold price and forex rates (only).