Latest news with #SouthAfrica-focused
IOL News
11-06-2025
- Business
- IOL News
Pan African Resources achieves record gold production while significantly reducing debt
Pan African Resources on Wednesday reported record second-half gold production and a sharp reduction in debt for the 2025 financial year, as the miner looks to ramp up output by more than 40% in the coming year. The announcement, however, was overshadowed by a fatal accident at its Barberton operation earlier this month. The South Africa-focused gold producer said one employee lost their life at the Sheba Mine on June 6. The company said it will continue efforts to achieve 'zero harm' across its operations. Despite the tragedy, operationally the company ended the fiscal year on a strong note. Gold production for the second half of 2025 is estimated at approximately 112 000 ounces, a 32% increase from the first half (84 705 ounces), driven by improved grades, stronger performance from underground operations, and the ramp-up of tailings retreatment projects. Full-year production is expected at about 197 000 ounces, a 6% increase year-on-year. Cobus Loots, Pan African's CEO, said, "I believe the Group has never been better positioned to take advantage of record gold prices, with record second half gold production being testament to that achievement. Increased cashflow generation and de-gearing is allowing our business to continue to invest and grow, whilst also increasing cash returns to shareholders. The share buy back programme approved by our board demonstrates our confidence in the Group and its prospects." Loots said the commissioning during May 2025 of the processing plant at Tennant Mines in Australia is a significant achievement for the group and maintains its track record of delivering new mining projects on time and within budget. "We have also now demonstrated our ability to commission large scale projects outside of South Africa," he said. In addition to a notable immediate increase in Pan African's production capacity, Loots said Pan African's investment in Tennant also provides for exciting growth in a Tier-1 mining jurisdiction, with some 1700 square kilometres of prospective exploration ground, and our newly established processing plant at Tennant Mines being the only such facility in the region. Debt Falls Sharply, Share Buyback Announced Pan African reduced its net debt by 32% to approximately $155 million (R2.8 billion) as of June 30, 2025, from $228.5m at the end of December. The company expects to be fully degeared during 2026 at current gold prices. The miner also plans to be fully unhedged from July, having exited its final zero-cost collar positions and synthetic forward contracts. In a move to return value to shareholders, Pan African's board has approved a share buyback programme of up to ZAR200 million, starting June 17. "The board believes that at the current share price, the company's shares offer significant value, given the quality and profitability of the group's existing operations and growth projects. The board has, therefore, taken the decision to implement the programme as part of the company's broader strategy to deliver value to shareholders," it said. Cost Guidance Rises The company acknowledged that full-year output fell short of guidance primarily due to slower-than-expected commissioning at two key projects: the Evander sub-vertical shaft and the tailings filter press section at the new Tennant Mines plant. Tennant, which achieved its first gold pour in May, is expected to reach steady-state production of around 50 000 ounces per annum by the first quarter of 2026. Pan African's all-in sustaining costs (AISC) for the second half of 2025 are now forecast between $1 525 and $1 550 per ounce, above prior guidance. For the full year, AISC is expected to range between $1 550 and $1 575/oz, impacted by lower-than-planned production and a $25/oz loss from expired hedge positions. Looking ahead, the company projects 2026 gold production between 275,000 and 292000 ounces - a 40% year-on-year increase - with group AISC expected to fall to between $1 475 and $1 525/oz. Growth will be supported by full-year contributions from the Mogale Tailings Retreatment (MTR) plant, higher production at Evander and Tennant Mines, and improved operating efficiencies at Barberton following a recent restructuring. At midday the share price was up 0.99% at R11.26 on the JSE. BUSINESS REPORT Visit:
Reuters
10-04-2025
- Business
- Reuters
South African rand regains some ground after US pauses tariffs
JOHANNESBURG, April 10 (Reuters) - South Africa's rand firmed in early trade on Thursday, recouping some of its recent loss as investors took a breather after U.S. President Donald Trump announced an immediate 90-day tariff pause for many countries. At 0631 GMT, the rand traded at 19.25 against the U.S. dollar , about 0.4% stronger than its previous close. The local currency hit a record low of 19.9325 on Wednesday, the day Trump's country-specific import tariffs kicked in. Trump said he would temporarily lower tariffs imposed on dozens of countries including South Africa but kept a 10% blanket duty on almost all U.S. imports. In addition to Trump's tariffs, local politics have also weighed on the risk-sensitive rand, after a contentious budget vote last week threatened the future of the ruling coalition. The second-biggest party in the coalition, the pro-business Democratic Alliance, voted against key legislation in the budget and challenged the budget process in court. South Africa-focused investors on Thursday will look out for February domestic manufacturing (ZAMAN=ECI), opens new tab data due at 1100 GMT for clues on the health of the economy. Benchmark 2030 government bonds were stronger in early deals, with the yield down 15.5 basis points at 9.15%.
Reuters
04-04-2025
- Business
- Reuters
South African rand extends drop on tariffs and local politics
JOHANNESBURG, April 4 (Reuters) - The rand fell further on Friday as investors worried about the impact of U.S. President Donald Trump's sweeping tariffs and the future of South Africa's coalition government. At 0840 GMT, the rand traded at 19.1225 against the dollar , down about 2% on Thursday's closing level and its weakest since mid-January. The South African currency has fallen more than 3% against the dollar this week, with bigger losses against currencies like the euro and pound. Trump's 10% baseline tariff on all imports to the United States and higher duties for dozens of countries like South Africa, has sent shockwaves through markets. Investors have dumped riskier currencies like the rand and sought safety in assets like bonds and gold, fearing that a full-blown trade dispute could trigger a sharp global economic slowdown and fuel inflation. The tariffs could hurt South Africa's economy by denting exports like vehicles and auto parts, metals and citrus fruit. An added worry for South Africa-focused investors is that the pro-business Democratic Alliance (DA) party could leave the coalition government after a dispute over the budget. The DA voted against the budget's fiscal framework and revenue proposals in parliament this week after failing to reach an agreement with the biggest party in the coalition, the African National Congress (ANC). It is now considering its future in the coalition, with some in the ANC also pushing for it to exit government. Johannesburg-listed stocks and government bonds also fell on Friday. The local bourse's Top-40 index (.JTOPI), opens new tab was down 2.5%, while the yield on the benchmark 2030 government bond rose 9.5 basis points to 9.32%.
