Pan African deepens Aussie expansion with A$15m CuFe stake

PAN African Resources surged into net cash in the second half of its 2026 financial year amid record gold production and despite mining inflation and dealmaking.The JSE and London-listed miner said in an operational update ahead of its June 30 financial year-end that it projected total cash of $220m, though it didn’t disclose its actual net cash position. It reported net debt of about $46.2m at the same time last year.Dealmaking included the announced buyout of its partner in Tennant Creek, Pan African’s Australian expansion and a previously undisclosed deal for a 15% stake in CuFe, a company with neighbouring properties in Australia, for A$15.35m.CuFe’s Gecko and Orlando projects have potential synergies with Warrego, which is the largest copper and gold resource in Tennant Creek, said Pan African. The properties had operated jointly in the past.“CuFe has committed to form a technical working group, comprising representatives of Pan African, to investigate (amongst other things) potential synergistic benefits associated with the development of these projects,” said Pan African in its update.In March, Pan African said it would offer shares worth £163m (A$311m) for the 25% balance of Tennant Creek that is owned by Emmerson Resources. Pan African also said it would list on the Australian Securities Exchange. The purchase of Emmerson Resources was expected to be completed in July, Pan African said.Commenting in its update, Pan African said it expected to produce at the lower end of revised guidance of around 275,000 ounces, owing to the slower-than-expected ramp-up of production at Tennant Creek. All-in sustaining costs came in at $1,870/oz, the upper end of guidance, also reflecting mining cost pressures.For the 2027 financial year, Pan African significantly hiked its cost forecast: AISC has been guided to between $2,075 and $2,175/oz owing to above-inflation increases for reagents and electricity along with other “key inputs”, it said. In the period under review, the company also spent $7m securing cyanide, hinting at the pressure being placed on supply chains amid Middle East tensions.“Given the ongoing Middle East war, Pan African has imposed mitigation measures to offset potential supply shocks/cost escalation including a rolling three-month supply of cyanide at all South African operations and one-month on-site storage of diesel at Tennant Mines,” said BMO Capital Markets today.Offsetting this was a healthy increase in production guided to between 280,000 and 302,000 oz for the 2027 financial year. For 2026, assuming revised guidance is met, that would represent 40% year-on-year growth.Further production increases are expected “in later years”, said Pan African, owing to the ramp-up and expansion of Tennant Mines and increases from its Soweto tailings retreatment operation, Mogale Tailings Retreatment (MTR).“We expect a much improved performance from Tennant Mines, with a full year of mining from the high-grade White Devil deposit, and a clear pathway to growing Australian gold production to about 100,000 oz per annum in the next three years,” said Cobus Loots, CEO of Pan African in comments to the operational update.The post Pan African deepens Aussie expansion with A$15m CuFe stake appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com