JOHANNESBURG (miningweekly.com) – Financial year 2025 has been a year of records for South African gold mining company Pan African Resources, which on Wednesday reported record profits, record headline earnings, record proposed dividends, and record second-half production.

A nigh 80%-higher dollar dividend has been proposed by the Johannesburg- and London-listed underground and surface gold operator, which expects to be de-geared from debt before the end of financial year 2026.

In the six months to June 30, debt of nearly $80-million was repaid amid focus starting to turn towards the option of constructing a new processing facility for the Soweto Cluster, west of Johannesburg, where the low-cost, long-life Mogale Tailings Retreatment operation is extending the gold mining horizon of a region in need of employment creation.

What is enticing is that the Soweto Cluster's 130-million tons of tailings host more than 500 000 oz of recoverable on-surface gold at a time of sky-high gold price.

“We believe we have enough gold reserves at the Soweto Cluster to sustain a standalone operation treating one-million tons a month over a ten-year life-of-mine,” Pan African CEO Cobus Loots reported during the latest presentation of results covered by Mining Weekly. (Also watch attached Creamer Media video.)

“The feasibility on this option will be concluded by the end of this month. Given our presence in the area, there's definitely also scope for the consolidation of tailings facilities we do not already own,” Loots revealed.

Enough cannot be said about the socioeconomic and environmental benefits of these surface gold project, which rehabilitate the mining-scared area while profitably recovering gold.

“We’re uplifting local communities, providing much needed economic and employment opportunities, and working with law enforcement to eradicate illegal mining,” Loots pointed out.

Pan African’s gold production guidance for financial year 2026 now stands at 275 000 oz compared with 2025’s nigh 200 000 oz, which was, in turn, 6% higher than the previous year.

The very high grade 24 level B line of the Evander underground mine in South Africa’s Mpumalanga province is now firmly established while higher grades are also being mined within opencast operations.

The lower-cost operations, which account for more than 85% of annual production, recorded an all-in sustaining cost (AISC) of $1 425/oz, compared with what has become the highest gold price ever at $3 650/oz plus. Guided for 2026 is an AISC of up to $1 575/oz.

Regrettably, the group suffered two fatal accidents during the year and one shortly after financial year-end.

Regarding the surface operations, Mogale’s plant expansion from 800 000 t a month to one-million tons a month, at a total cost of $6.5-million, has begun, with the inclusion of two more carbon-in-leach tanks. Installation of reactors is also improving recoveries in the form of an additional 10 000 oz. Output is thus expected to rise to 60 000 oz a year during the course of financial year 2026.

Moreover, the nearby Soweto Cluster’s possible new processing facility has the potential to contribute yet another 60 000 oz/y.

Further, regarding the Elikhulu Tailings Retreatment Plant, next year’s remining infrastructure at the Winkelhaak tailings storage facility will allow production there to potentially hit the 51 000 oz/y mark.

Regarding underground operations, the subvertical hoisting shaft commissioning at Evander Mines’ 8 Shaft has provided the ability to deliver annual production of about 50 000 oz/y going forward. Gold production up to 60 000 oz/y for another 11 years has come with the development of the 24 and 25 Level mining areas being fast-tracked there.

When it comes to the Barberton Mines, mining is under way within Fairview's high-grade Main Reef Complex orebody, where optimisation of the Rossiter Reef mining methodology has led to improved production, reduced dilution and higher ore grades. At Barberton's Consort mine, a revised mine plan has been implemented to access higher-grade mining areas below 37 Level, which significantly enhanced operational performance.

Pan African FD Marileen Kok, delivering her first set of full-year financial results, pointed out the positive impact of increased production boosted by an increase of 36% in the average dollar gold price received, which lifted revenue by 45% to $540-million.

The revenue rise resulted in 60% higher earnings before interest, taxes, depreciation and amortisation and an increase in earnings of 78% to $142-million.

The green loan facility, dedicated to the funding of the group's renewable-energy projects, has been settled in full and the net debt-to-equity ratio of 20% leaves the company with “very significant headroom”, Kok pointed out.

The completely unhedged Pan African now has tailwinds from the high gold price and is heading for zero net debt before the end of end of June next year.