Pan African launches R200m share buyback as stock scales record high

Pan African Resources launched a share buyback programme worth up to R200m on 1 July 2025, authorising the repurchase of as many as 144.4 million shares. The move came as the stock traded around R11 on the JSE, having recently pulled back from an all-time high of R12.64, after gaining roughly 80% over the previous 12 months on the back of a gold price that pushed past $3,400/oz in April.

Chief executive Cobus Loots said the buyback reflected "significant value, given the quality and profitability of Pan African's existing operations and growth projects," framing it as a capital return made possible by a strengthening balance sheet rather than a signal that growth spending would slow.

Debt coming down fast

The company said it expected net debt to fall by $72m, a 32% reduction, by the end of June compared with December, and projected it would be fully debt-free during the 2026 financial year. That deleveraging trajectory gave the board room to return cash to shareholders alongside continued investment in growth projects such as the Mogale Tailings Retreatment plant and the ramp-up of the newly acquired Australian assets.

Part of a broader re-rating

The buyback capped a run of good news for Pan African shareholders through 2025, following record gold prices, the commissioning of new surface retreatment capacity, and improving underground performance at Evander. Rather than compete only on dividend yield, management signalled it would use a mix of tools — dividends, debt reduction and now buybacks — to convert a stronger balance sheet into shareholder returns, while keeping capital available for its growth pipeline in South Africa and abroad.

The buyback launch came a little over two months before Pan African released its full FY2025 results in September, which confirmed record annual production and profit and set the stage for the company's decision, later that year, to move its primary listing to London's Main Market.

Sources

• Miningmx: Pan African launches buyback despite scaling record high, 30 Jun 2025

Photo: The Johannesburg Stock Exchange building, where Pan African Resources shares trade. Andres de Wet, Wikimedia Commons, CC BY-SA 3.0.