Pan African Resources cuts full-year guidance despite record first half

(Sharecast News) - Pan African Resources has scaled back its production guidance for the full year despite record output in the first half, but announced a new share buyback plan. The company said that a slower-than-expected ramp-up of the Evander underground subvertical shaft project, which is now fully commissioned and operational, and delays with at the Tennant Mines plant mean production will be 197,000oz for the 12 months to 30 June.

This is up 6% on last year but below the current guidance of 205,000oz to 215,000oz.

Nevertheless, for the second half, output was up 32% over the first half of the year at 112,000oz - a new record for the company.

Meanwhile, PAF reported a substantial reduction in gearing with net debt expected to fall to $155m by the end of the month, down 32% over just six months. "The group is expected to be fully degeared during FY26 at prevailing gold prices," it said.

The company also announced on Wednesday that the board has approved a $11.1m share buyback plan, starting next week.

"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," PAF said.

Shares were down 1.5% at 46.8p by 1138 BST.