JSE- and LSE-listed gold producer Pan African Resources has achieved a 322% year-on-year increase in its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) to $245-million for the six months ended December 31, 2025.

This compares with the adjusted Ebitda of $58-million reported for the six months ended December 2024.

The company’s Ebitda margin also increased to 50.3% in the period under review, compared with 30.6% in the prior comparable period.

Interim profit increased by 211% year-on-year to a record $147-million, compared with a profit of $47-million in the prior comparable period.

Having increased headline earnings a share by 511% year-on-year to $0.07 and generated net cash of $170-million, Pan African Resources has substantially de-geared its balance sheet with a reduction in net debt of almost 70% to $46-million.

At current gold prices, the company expects to be in a net cash position by the end of February.

The board has declared an interim gross cash dividend of R280-million, or $17.4-million, which amounts to 12c, or $0.07, apiece.

The earnings boost in the half-year under review was owing to a 5.2% year-on-year increase in production from the Barberton Mines, a 14.5% year-on-year increase in production from the Elikhulu tailings retreatment plant and a substantial 87% year-on-year improvement in output from the Evander Mines.

The Barberton Mines produced 32 774 oz while Elikhulu produced 29 450 oz. The Barberton tailings retreatment plant also produced 7 143 oz, in line with the prior corresponding period.

Production at Evander Mines reached 21 640 oz, with production expected to increase further over the remainder of the financial year to June 30.

Moreover, Pan African’s Mogale tailings retreatment operation performed at steady-state following a ramp-up in the 2025 financial year, with production of 21 729 oz in the six months under review. This was about 10% lower than expected as a result of lower mine grades and recoveries.

Pan African’s mines are all based in South Africa barring the newly acquired Tennant Mines in Australia.

The Tennant Mines also achieved steady-state throughput with production of 15 560 oz in the six months under review. Production from this operation is expected to increase to 30 000 oz over the remainder of the financial year as higher-grade ore from openpits replaces lower-grade feed from the Crown Pillar stockpile.

The company advises that its all-in sustaining cost (AISC) for the first half of the year was higher than expected at $1 874/oz owing to the stronger rand, an increase in employee share-based payment expenses and higher costs from third-party material processed at Evander Mines.

Pan African Resources revised its full-year AISC guidance to between $1 820/oz and $1 870/oz, which is lower than the interim AISC as higher production volumes will help contain cost increases in the second half of the year.

Looking ahead, Pan African expects to produce between 275 000 oz and 292 000 oz of gold for the full-year.

Further, with $158-million of available cash and undrawn facilities on hand, the company will continue exploration on the Nobles, Juno and Warrego prospects at Tennant Mines, as well as advance a feasibility study for the Royal Sheba deposit and processing plant at Barberton Mines.

The group also targets a definitive feasibility study on the Soweto Cluster tailings storage facilities as a standalone operation, which could produce 30 000 oz/y for 15 years. Completion of the study is anticipated by June.

Additionally, Pan African Resources is progressing an expansion of solar generation capacity at Evander Mines from 10 MW to 30 MW while construction of two water treatment plants is at an advanced stage at Evander Mines and Mogale.

The group has entered into a ten-year power purchase agreement with NOA Group Holdings, which will deliver 388 GWh of clean energy to Pan African Resources and realise $6-million of Eskom power savings.

The power supplied in terms of this agreement will increase Pan African Resources’ renewable-energy penetration to about 60% within two to three years.

The group is targeting 85 MW of added solar capacity in the next 24 months, including a 20 MW solar plant at Mogale.

CEO Cobus Loots says the company’s operational and financial performance in the first half of the financial year, together with the boon of record gold prices, has positioned it to deliver outstanding results for the full-year.

“Pan African has the ability to continue delivering very attractive production growth over the next years, specifically internal expansions in Australia and around our Mogale operation, which will not only add mine life but also additional production ounces.

“We will continue to capitalise on the very favourable current environment to position the group to keep on ‘mining for a future’ for many more years.”