Pan African Resources has completed the definitive feasibility study (DFS) for its Soweto Tailings Retreatment (STR) project on South Africa's West Rand, setting up a potential final investment decision (FID) in December 2026.
The gold producer said the project, adjacent to its existing Mogale Tailings Retreatment (MTR) complex, would process tailings acquired through the Mintails transaction, holding mineral reserves of approximately 108 million tonnes at 0.28g/t for roughly 0.98 million ounces of gold.
The DFS outlines a 600,000-tonne-per-month retreatment operation designed to run alongside MTR's existing elution, carbon regeneration, electrowinning and smelting infrastructure, an approach the company says cuts capital intensity versus a standalone build.
Annual production is guided at 35,000 to 40,000 ounces, with life-of-mine output of approximately 561,000 ounces over roughly 15 years, at an all-in sustaining cost of $1,750 to $1,800 per ounce.
Project capital is estimated at approximately 3.68 billion rand ($216 million), down from an initial 4.40 billion rand after a value-engineering review found 718 million rand in savings.
At a $3,550 per ounce gold price, the project generates a post-tax net present value of approximately 1.85 billion rand ($109 million) and a real ungeared internal rate of return of 29.55%, with payback in roughly three years post-commissioning.
The company expects the principal environmental authorisations during its 2027 financial year, with permitting, optimisation and financing workstreams continuing through that period.
"The STR project has the potential to increase annual gold production from the MTR complex to approximately 100,000 ounces per annum at peak production, while simultaneously addressing historical environmental liabilities on the West Rand," said chief executive Cobus Loots.
FID remains subject to board approval, project financing and statutory authorisations.
News Intelligence what this means for the company
Pan African has completed the definitive feasibility study for Soweto Tailings Retreatment, a 600,000-tonne-per-month gold retreatment project targeting FID in December 2026. The project is anchored to existing infrastructure at its Mogale complex, carries a capital cost of 3.68 billion rand ($216 million), and is modeled to generate a 29.55% real ungeared IRR and 1.85 billion rand NPV at $3,550/oz gold—payback in roughly three years post-commissioning. This de-risks a material production growth vector: at peak, STR would lift annual output from the MTR complex to ~100,000 ounces, nearly doubling current guidance.
The completed DFS removes technical uncertainty from a high-return, near-term production growth project that leverages existing infrastructure and addresses West Rand environmental liabilities. FID timing in December 2026 aligns with Pan African's June 2026 FTSE 250 admission, potentially improving financing access and valuation multiples as the company enters a major index.
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