Update shared on 18 Nov 2025
Narrative Update on Pan African Resources
Analysts have raised their price target for Pan African Resources from £0.83 to £1.12, citing continued strong company performance and positive outlooks.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight the upward revision in the price target as evidence of confidence in the company’s operational performance and execution.
- Continued strong results are viewed as supporting a robust growth trajectory and favorable investor sentiment.
- The maintained Buy rating underscores positive expectations for future earnings and value creation.
- Analysts see resilience in the company’s business model, which supports an improved valuation outlook.
Bearish Takeaways
- Some caution remains around the ability to sustain growth rates in evolving market conditions.
- There is close attention to potential execution risks that could impact the company's ability to meet higher expectations.
- Analysts note that a higher share price target raises the bar for future performance and may limit further near-term upside.
What's in the News
- Record gold production reported for the second half of fiscal year 2025, with output rising 28% year-over-year to 111,822 ounces (Key Developments).
- Production guidance for the first half of 2026 announced at 130,000 to 137,000 ounces, with ramp-up at Tennant Mines and increases at Evander Mines underground (Key Developments).
- Production expected to further increase in the second half of 2026 as the MTR plant expands capacity and higher-grade ore is processed; guidance raised to 145,000 to 155,000 ounces (Key Developments).
- Full-year 2026 group production guidance set at 275,000 to 292,000 ounces, supported by contributions from new MTR and Tennant Mines operations; AISC projected between USD 1,525/oz and USD 1,575/oz (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at £1.01 per share.
- The Discount Rate has risen slightly, from 11.40% to 12.15%, reflecting modestly higher perceived risk.
- Revenue Growth forecasts are steady at approximately 31.3% year-over-year.
- Net Profit Margin projections remain effectively unchanged at 34.2%.
- The future P/E ratio has increased modestly from 8.92x to 9.13x, suggesting a slightly higher valuation multiple on future earnings.
Disclaimer
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