Update shared on06 Oct 2025
Fair value Increased 17%Analysts have raised their price target for Pan African Resources from £0.75 to £0.88, citing stronger projected revenue growth, which outweighs modest increases in the discount rate and a shift in expected profit margins.
What's in the News
- New production guidance for 2026 projects output of 130,000oz to 137,000oz in the first half, increasing to 145,000oz to 155,000oz in the second half, as a result of upgrades at MTR and growth at Tennant and Evander Mines (Corporate Guidance).
- Expected full year 2026 gold production is forecast at 275,000oz to 292,000oz, supported by contributions from new operations at MTR and Tennant Mines (Corporate Guidance).
- Full year 2026 All-In Sustaining Cost (AISC) guidance is set between USD 1,525/oz and USD 1,575/oz, assuming an exchange rate of USD/ZAR:18.50 (Corporate Guidance).
- Record gold production reported for the second half of fiscal 2025 reached 111,822oz, a 28% increase over the same period in 2024 (Operating Results Announcement).
Valuation Changes
- Fair Value per share has increased from £0.75 to £0.88, reflecting a positive reassessment of the company's intrinsic worth.
- Discount Rate has risen slightly from 11.09% to 11.24%, indicating a modest uptick in perceived risk or required return.
- Revenue Growth projections have improved substantially from 20.3% to 27.8%.
- Net Profit Margin expectations have fallen from 33.8% to 28.2%, reflecting lower anticipated profitability as a percentage of revenue.
- Future P/E (Price-to-Earnings ratio) estimate has increased from 6.6x to 10.4x, suggesting a higher valuation relative to future earnings forecasts.
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