South African mid-tier gold producer Pan African Resources PLC reported what it described as record results for the year to 30 June 2025, as it benefited from soaring bullion prices and higher output from new projects.

CEO Cobus Loots said gold has experienced a “historic rally” over the past two years, supported by central bank buying, geopolitical risk and supply constraints, and that Pan African is “well positioned to benefit” from prevailing prices in FY2026.

“The perceived safe-haven status of gold is likely to persist amid global geopolitical uncertainty and a shifting world order, with seemingly continued momentum for a reallocation towards alternatives to the US$ as the global reserve currency, and increasing central bank gold reserves in many countries,”  he commented.

“Tariff turmoil and market volatility have exacerbated investor uncertainty, with inflationary fears also adding to the rationale to preserve purchasing power via holding real assets,” Loots added.

The Johannesburg- and London-listed company (JSE: PAN; AIM: PAF) said it is using the windfall to strengthen its balance sheet, raise dividends and expand operations in South Africa and Australia. The company is also considering moving its AIM listing to the main market of the London Stock Exchange to broaden its investor base.

In annual terms, Pan African Resources’ revenue rose 44.5% in FY2025 to $540mn and profit grew 78% to $140.6mn, according to the company’s audited financials. Adjusted EBITDA increased 60.5% to $226.6mn, while EPS climbed 72.9% to ZAR 7.16 cents. ($0.39c, GBP 0.30 pence). Net cash from operating activities rose to $154.9mn from $90.8mn.

Group gold output grew 5.6% to 196,527oz, including 111,822oz in H2, driven by the ramp-up of Mogale Tailings Retreatment (MTR), which produced 22,063oz and is on track for 50,000oz in FY2026. Tennant Mines in Australia achieved its first gold pour in May and is expected to contribute 46,000–50,000oz annually over the next three years. Production guidance for FY2026 is 275,000–292,000oz.

All-in sustaining costs rose to $1,600/oz from $1,354/oz, above guidance, due to higher underground unit costs, input inflation and hedge losses. Lower-cost operations, representing 85% of output, reported AISC of $1,425/oz. The group guided FY2026 costs of $1,525–1,575/oz.

The board proposed a final dividend of ZAR37/share, up 68% from the prior year, equal to a $48.7mn payout, and approved a share buyback programme of up to ZAR200mn ($11.1mn). Net debt stood at $150.5mn at year-end, down from $228.5mn in December 2024, with the company targeting zero net debt by June 2026.

Operational projects include MTR’s expansion to 1mtpm capacity, due in FY2026, and a feasibility study underway at the Soweto Cluster, which could add 50,000–60,000oz/y. Evander Mines’ 8 Shaft ramp-up secured 50,000–60,000oz annually for another 11 years, while restructuring at Barberton improved grades and reduced dilution.