Pan African Resources gave guidance for FY2027 group production between 280,000oz and 302,000oz, at an all-in-sustaining-cost (AISC) of US$2,075/oz to US$2,175/oz.
It follows a roughly 40% increase in FY26 production to approximately 275,000oz, in line with the lower end of prior FY26 guidance. The group added that it expects FY26 AISC of approximately US$1,870/oz and flagged that FY27 AISC allows for above-inflation increases in reagents, electricity and other inputs.
In London, Pan African Resources shares fell nearly 17% following the release on Monday, changing hands at 114.4p.
Slower than expected ramp at Tennant
Pan African Resources said strong performances at Elikhulu, Mogale Tailings Retreatment (MTR), Evander and Barberton offset a slower-than-expected ramp at Tennant Mines.
Tennant Mines is expected to lift output materially in FY27 as mining commences at the White Devil deposit, with Tennant guidance of 48,000-52,000oz for FY27.
The company projected record operating cash flow and a year-end cash position of ~US$220m after FY26 investments including US$10.3m in CuFe and US$7m for cyanide supplies.
Group net debt was US$46.2m at 31 December 2025 and the company said it is now in a net cash position, with only US$49.7m of DMTNs outstanding.
Capital expenditure guidance for FY27 has been revised up to US$324m from US$267m, driven by accelerated White Devil development, Nobles plant upgrades and renewable projects.
Contingencies
Pan African said contingency measures are in place, including three-month cyanide supply at South African sites and one-month diesel storage at Tennant Mines.
The proposed acquisition of Emmerson Resources to consolidate the Tennant Creek mineral field is expected to be concluded during July.
