Pan African Resources (PAF) AI Stock Analysis

• Market Cap: £943.63M
• Dividend Yield: 2.06%
• Average Volume (3M): 3.56M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.23
• Revenue Growth: 0.07%
• EPS Growth: 6.71%
• Country: UK
• Employees: 2,700
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): <0.01
• Shares Outstanding: 2,029,317,300
• 10 Day Avg. Volume: 3,105,615
• 30 Day Avg. Volume: 3,559,577
• PEG Ratio: 1.53
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -40.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £57.00
• Price Target Upside: 22.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: 55.00p ▲(18.28%Upside)

The overall score is driven by strong financial performance and technical analysis indicators. The positive corporate event also adds to the confidence in the stock, although it is not weighted in the final score due to the redistribution. Valuation is reasonable, offering a balanced growth and income potential.

Pan African Resources Business Overview & Revenue Model

Company Description

Pan African Resources PLC engages in the mining, extraction, production, and the sale of gold in South Africa. Its flagship projects include the Barberton gold project that consists of three underground mines, including Fairview, Sheba, and New Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. The company was incorporated in 2000 and is based in Johannesburg, South Africa.

How the Company Makes Money

Pan African Resources generates revenue primarily through the extraction and sale of gold, which is its core business. The company operates several gold mining projects, including underground and surface mining operations, which yield gold bullion and other gold products. Revenue is derived from selling these products to various customers, including international gold buyers and local refineries. The company also has interests in platinum group metals and coal, contributing to its revenue diversification. Strategic partnerships, cost-efficient mining practices, and continuous exploration activities play a significant role in maintaining and enhancing profitability. Additionally, Pan African Resources focuses on optimizing production processes and reducing operational costs to maximize its earnings.

Pan African Resources Financial Statement Overview

Summary

Pan African Resources is financially stable with strong profitability and a solid balance sheet. Revenue and profit growth are healthy, though some volatility exists. The company maintains a conservative debt level, but recent increases warrant monitoring. Cash flow management needs improvement, especially regarding free cash flow.

Income Statement

Pan African Resources has demonstrated a commendable revenue growth rate of 16.22% in the latest year, with a strong net profit margin of 21.23%. The gross profit margin is at 35.15%, indicating efficient cost management relative to revenue. However, revenue has shown volatility over the years, notably decreasing from 2022 to 2023. The EBIT and EBITDA margins are strong, reflecting healthy operating and overall profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.36, which suggests a conservative level of leverage. The return on equity (ROE) is robust at 21.73%, indicating effective use of equity to generate profits. The equity ratio stands at 53.23%, showing a balanced use of debt and equity in financing assets. However, the increase in total debt in recent years poses a potential risk if not managed properly.

Cash Flow

Operating cash flow covers net income well, with an operating cash flow to net income ratio of 1.14. However, the company has experienced negative free cash flow growth due to significant capital expenditures, which can strain liquidity if it continues. The free cash flow to net income ratio is negative, indicating cash outflows exceeding the net income, which could be concerning if sustained.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
435.09M	373.80M	321.61M	376.37M	368.91M	274.11M
	Gross Profit
150.13M	131.37M	102.42M	121.40M	124.57M	93.67M
	EBIT
153.41M	115.59M	95.19M	112.67M	112.51M	65.45M
	EBITDA
170.13M	143.01M	115.17M	105.22M	144.90M	69.36M
	Net Income Common Stockholders
90.43M	79.38M	61.14M	75.14M	74.69M	44.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
―	26.33M	34.77M	26.99M	35.13M	33.53M
	Total Assets
498.20M	686.07M	500.94M	457.09M	483.09M	368.62M
	Total Debt
182.71M	130.73M	56.84M	38.96M	58.69M	89.25M
	Net Debt
178.11M	104.40M	22.07M	11.97M	23.55M	55.72M
	Total Liabilities
285.32M	321.97M	206.34M	162.48M	199.46M	185.00M
	Stockholders Equity
212.88M	365.22M	295.12M	294.78M	283.63M	183.62M
Cash Flow		Free Cash Flow
10.63M	-75.44M	-12.70M	27.32M	37.80M	19.10M
	Operating Cash Flow
164.79M	90.80M	100.12M	110.01M	82.24M	53.83M
	Investing Cash Flow
-150.32M	-169.38M	-112.73M	-81.39M	-44.15M	-30.64M
	Financing Cash Flow
-15.49M	68.98M	24.87M	-32.36M	-44.47M	3.34M

Pan African Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PAF, the sentiment is Positive. The current price of 46.5 is above the 20-day moving average (MA) of 46.46, above the 50-day MA of 45.27, and above the 200-day MA of 37.54, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 72.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PAF.

Pan African Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRB	82 Outperform	£155.42M	4.96	30.73%	―	42.36%	270.33%
ALTN	81 Outperform	£113.43M	5.51	34.04%	―	45.63%	126.68%
HOC	76 Outperform	£1.60B	21.11	15.70%	0.48%	31.84%	―
PAF	76 Outperform	£943.63M	13.92	21.65%	2.06%	0.07%	6.71%
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%
AAZ		£186.21M	―	-22.65%	―	―	―
MTL		£221.19M	11.78	19.64%	―	―	―

Pan African Resources Corporate Events

Pan African Resources Sees Change in Major Shareholder Holdings

Pan African Resources PLC has announced a change in its major holdings, with Allan Gray Proprietary Limited adjusting its voting rights in the company. As of May 6, 2025, Allan Gray’s voting rights have decreased from 13.8166% to 12.9544%, which reflects a disposal of shares. This change in holdings may impact the company’s shareholder dynamics and influence future decision-making processes.

Pan African Resources Sees Increased Stake by Public Investment Corporation

Pan African Resources PLC, a UK-based company, has announced a significant change in its voting rights structure. The Public Investment Corporation SOC Limited, based in Pretoria, South Africa, has increased its stake in Pan African Resources to 14.815% from a previous 13.884%, as of April 29, 2025. This acquisition of voting rights could potentially impact the company’s decision-making processes and influence its strategic direction.

Allan Gray Adjusts Stake in Pan African Resources

Allan Gray Proprietary Limited has adjusted its holdings in Pan African Resources PLC, reducing its voting rights from 14.97% to 13.82% as of April 11, 2025. This change in shareholding could impact the company’s governance dynamics and influence within the market, as it reflects a shift in stakeholder engagement and investment strategy.

Van Eck Associates Boosts Stake in Pan African Resources

Pan African Resources PLC has announced a change in its major holdings, with Van Eck Associates Corporation increasing its voting rights from 4.765% to 6.799%. This acquisition of additional voting rights signifies a strengthened position for Van Eck in the company, potentially impacting the company’s strategic decisions and market influence.

Public Investment Corporation Increases Stake in Pan African Resources

Public Investment Corporation SOC Limited has increased its stake in Pan African Resources PLC, crossing the 13% threshold of voting rights. This acquisition signifies a notable shift in shareholder composition, potentially impacting the company’s strategic decisions and signaling confidence in its market position.