Pan African Resources (PAF) AI Stock Analysis

• Market Cap: £1.76B
• Dividend Yield: 1.08%
• Average Volume (3M): 6.70M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.10
• Revenue Growth: 40.46%
• EPS Growth: 66.57%
• Country: UK
• Employees: 2,700
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.04
• Shares Outstanding: 2,027,313,500
• 10 Day Avg. Volume: 11,737,059
• 30 Day Avg. Volume: 6,698,015
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £83.00
• Price Target Upside: -6.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: 87.00p ▼(-1.92% Downside)

Pan African Resources demonstrates strong financial performance and technical momentum, supported by record earnings and strategic project developments. However, challenges in cash flow management and safety issues slightly offset these strengths. The stock's valuation is reasonable, but not particularly compelling, which tempers the overall score.

Pan African Resources Business Overview & Revenue Model

Company Description

Pan African Resources PLC engages in the mining, extraction, production, and the sale of gold in South Africa. Its flagship projects include the Barberton gold project that consists of three underground mines, including Fairview, Sheba, and New Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. The company was incorporated in 2000 and is based in Johannesburg, South Africa.

How the Company Makes Money

Pan African Resources generates revenue primarily through the sale of gold produced from its mining operations. The company operates several mines and processing facilities, where it extracts gold ore, processes it, and sells the refined gold. Key revenue streams include the direct sale of gold bullion to international markets and agreements with gold refineries. Additionally, PAF may benefit from fluctuating gold prices, which can significantly impact earnings. The company also engages in various cost-saving initiatives and operational efficiencies to enhance profit margins. Partnerships with local communities and stakeholders help secure operational licenses and support, contributing to the company's stability and growth in the competitive mining sector.

Pan African Resources Financial Statement Overview

Summary

Pan African Resources shows strong revenue growth and profitability with a robust income statement. The balance sheet is solid, but the significant decline in free cash flow is a concern, indicating a need for improved cash management.

Income Statement

Pan African Resources has demonstrated strong revenue growth with a 46.21% increase in the latest annual report. The company maintains robust profitability with a gross profit margin of 41.82% and a net profit margin of 26.22%. The EBIT and EBITDA margins are also healthy at 40.28% and 46.65%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.35, suggesting a balanced approach to leveraging. The return on equity is impressive at 25.80%, indicating effective use of equity to generate profits. The equity ratio stands at 54.64%, reflecting a solid equity base relative to total assets. While the company is well-capitalized, the increase in total debt over recent years should be monitored.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which has seen a significant decline, resulting in a negative free cash flow growth rate of -96.72%. The operating cash flow to net income ratio is 0.88, indicating that operating cash flow is slightly below net income. The negative free cash flow to net income ratio highlights potential issues in cash generation relative to profits. Improving free cash flow generation will be crucial for future financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	274.57M	540.03M	373.80M	321.61M	376.37M	368.91M
Gross Profit	83.36M	225.85M	131.37M	102.42M	121.40M	124.57M
EBITDA	146.55M	251.91M	143.01M	115.17M	105.22M	144.90M
Net Income	82.27M	141.60M	79.38M	61.14M	75.14M	74.69M
Balance Sheet
Total Assets	848.88M	1.00B	686.07M	500.94M	457.09M	483.09M
Cash, Cash Equivalents and Short-Term Investments	17.16M	49.53M	26.33M	34.77M	26.99M	35.13M
Total Debt	241.54M	193.63M	130.73M	56.84M	38.96M	58.69M
Total Liabilities	429.19M	457.84M	321.97M	206.34M	162.48M	199.46M
Stockholders Equity	421.54M	548.83M	365.22M	295.12M	294.78M	283.63M
Cash Flow
Free Cash Flow	-114.53M	-3.76M	-75.44M	-12.70M	27.32M	37.80M
Operating Cash Flow	79.35M	154.86M	90.80M	100.12M	110.01M	82.24M
Investing Cash Flow	-187.32M	-149.85M	-169.38M	-112.73M	-81.39M	-44.15M
Financing Cash Flow	95.13M	17.46M	68.98M	24.87M	-32.36M	-44.47M

Pan African Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PAF, the sentiment is Positive. The current price of 88.7 is above the 20-day moving average (MA) of 75.09, above the 50-day MA of 64.82, and above the 200-day MA of 47.48, indicating a bullish trend. The MACD of 6.57 indicates Negative momentum. The RSI at 79.94 is Negative, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PAF.

Pan African Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALTN	81 Outperform	220.30M	10.64	32.16%	―	45.63%	126.68%
SRB	79 Outperform	186.31M	6.40	26.70%	―	46.55%	237.48%
PAF	76 Outperform	£1.76B	15.68	31.72%	1.08%	40.46%	66.57%
HOC	74 Outperform	1.75B	15.29	15.88%	0.45%	35.83%	397.32%
MTL	64 Neutral	373.07M	-11.90	19.22%	―	26.71%	-119.70%
AAZ	49 Neutral	231.34M	-17.20	-25.98%	―	-16.52%	29.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Pan African Resources Corporate Events

Pan African Resources CEO Sells Shares and Settles CFDs

Pan African Resources announced that its CEO, Cobus Loots, has disposed of 100,000 ordinary shares and settled 150,000 long contracts for difference (CFDs) in the company. Additionally, LTS Ventures, associated with Loots, sold 500,000 shares. These transactions reflect a significant change in Loots’ shareholding, impacting his direct and indirect beneficial interests in the company.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £87.00 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.

Pan African Resources Reports Strong Earnings Growth for 2025

Pan African Resources has announced a significant increase in its earnings per share (EPS) and headline earnings per share (HEPS) for the year ended 30 June 2025, with EPS expected to rise by 68% to 78% and HEPS by 37% to 47% compared to the previous year. This growth is attributed to a 44.5% increase in revenue driven by higher gold prices and increased gold sales. The company anticipates further production growth in the coming year due to contributions from new operations, despite some hedging-related opportunity costs impacting current profits.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £54.00 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.

Public Investment Corporation Increases Stake in Pan African Resources

Pan African Resources PLC has announced a change in its major holdings, with the Public Investment Corporation SOC Limited of South Africa increasing its voting rights in the company to 13.396% from a previous 12.882%. This acquisition of voting rights signifies a strengthened position for the Public Investment Corporation in Pan African Resources, potentially impacting the company’s strategic decisions and influence within the mining sector.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £0.35 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.

Pan African Resources Executes Share Buyback Program

Pan African Resources announced the purchase of 583,416 of its own ordinary shares as part of a share buyback program initiated on June 30, 2025. These shares will be canceled and delisted from the AIM and JSE markets, reducing the total number of shares in circulation. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £0.35 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.

Pan African Resources Executes Share Buyback

Pan African Resources PLC has announced the purchase of 150,000 ordinary shares as part of its share buyback program. The shares, acquired on 7 July 2025, will be cancelled and delisted from both the AIM and JSE markets. This move is part of the company’s efforts to manage its share capital and potentially enhance shareholder value.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £0.35 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.

Pan African Resources Executes Share Buyback to Boost Shareholder Value

Pan African Resources has executed a share buyback program, purchasing 450,002 ordinary shares on July 3, 2025, as part of its strategy to enhance shareholder value. These shares will be cancelled and delisted from both the AIM and JSE markets, reducing the total number of shares in circulation and potentially increasing the value of remaining shares.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £0.35 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.

Pan African Resources Executes Share Buyback Programme

Pan African Resources announced a share buyback transaction, purchasing 400,000 ordinary shares on the London Stock Exchange as part of its share buyback programme. The shares will be cancelled and delisted, reducing the total number of shares in issue, which may affect shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:PAF) stock is a Buy with a £0.35 price target. To see the full list of analyst forecasts on Pan African Resources stock, see the GB:PAF Stock Forecast page.