Gold miner Pan African Resources produced 128 296 oz gold for the six months ended December 31, 2025 – the first half of the company’s 2026 financial year.

Production was 51% higher than the 84 705 oz of gold produced in the six months to December 31, 2024.

A further production increase is expected in the second half of the 2026 financial year, with the group saying it is on track to meet full-year production guidance of between 275 000 oz and 292 000 oz of gold.

Production at the Evander operations increased by 87% to 21 640 oz for the six months under review, from 11 551 oz in the prior comparable period, with the subvertical hoisting shaft operating at capacity and mining taking place in the high-grade Kinross Channel of the Kimberley Reef.

Production in the second half is expected to increase further with higher mined tonnages.

Further, Elikhulu’s production increased by 14% year-on-year to 29 450 oz, while the Mogale Tailings Retreatment (MTR) operations were at steady state following ramp-up in full-year 2025. MTR’s production of 21 729 oz for the six months under review was about 10% lower than expected, as a result of mining grades and recoveries impacted by the current mining area.

The MTR expansion was successfully commissioned in December 2025, with increased capacity and improved recoveries expected to increase gold production in the second half of the financial year.

Barberton Mines’ underground production, meanwhile, increased by 5% to 32 774 oz and the Barberton Tailings Retreatment Project’s production remained stable at 7 143 oz.

Tennant Mines achieved steady state throughput, with production of 15 560 oz (including gold equivalent ounces from the sale of copper concentrate). 

Production in the second half is expected to increase to about 30 000 oz as higher-grade ore from openpits replaces lower-grade feed from the Crown Pillar Stockpile.

Meanwhile, Pan African made strides with de-gearing its balance sheet, with a reduction in net debt of over 65% to $49.9-million, compared with $150.5-million as at June 30, 2025.

Given the prevailing high gold prices, the group expects to be fully de-geared (in terms of net debt) by the end of February, despite a record final dividend payment in December 2025.

An interim cash dividend of 12c apiece is intended to be approved by the board, together with the interim results for the six months ended December 31, 2025.

All-in sustaining cost (AISC) of production for the first half of 2026 is expected in the range of $1 825/oz to $1 875/oz at an exchange rate of R17.37 to the dollar, negatively impacted by the strengthening of the rand, the increase in employee share-based payment expenses and third-party material processed at the Evander and MTR operations during the period contributing to higher costs, as well as increased royalty payments owing to the higher gold price received.

Increased gold production guided for the second half of the year is expected to reduce unit costs of production.

A feasibility study to process the group’s Soweto Cluster tailing storage facility was successfully completed during the reporting period.

An integrated 600 000 t a month Soweto Tailings Retreatment (STR) circuit at MTR was identified as the preferred option to process the Soweto Cluster.

The definitive feasibility study for this option is expected to be completed by June, with a final board decision to start project construction shortly thereafter.

At Tennant Mines, the earn-in exploration joint venture with ASX-listed Emmerson Resources on which the White Devil project and others are located was successfully concluded during September 2025.