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Pan African Resources


uncle arthur
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Hi all new member here thats very happy to have been allowed to register. :)

I've been reading the latest story on paf from the mainpage and have been wondering about making a small investment what with them seeming very cheap for a profitable gold mining company.

I know that Metorex their largest investor has had a lot of issues with finance but they appear to be sorting their way through it all with the share issue they've pulled off and the refinancing so I'm not at all sure they'll be wanting to sell off their holding in paf (they have called them a core part of their business several times recently) but wanted the views of others on it all before betting the farm so to speak.

Would love some opinions if theres anyone else thats had enough of xmas already, bull or bear I don't mind just good old honest advice as though I like what I read ( at these levels anyway) I'd still respect the views of other goldies.

thanks and happy new year all. :D

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Hi all new member here thats very happy to have been allowed to register. :)

I've been reading the latest story on paf from the mainpage and have been wondering about making a small investment what with them seeming very cheap for a profitable gold mining company.

I know that Metorex their largest investor has had a lot of issues with finance but they appear to be sorting their way through it all with the share issue they've pulled off and the refinancing so I'm not at all sure they'll be wanting to sell off their holding in paf (they have called them a core part of their business several times recently) but wanted the views of others on it all before betting the farm so to speak.

Would love some opinions if theres anyone else thats had enough of xmas already, bull or bear I don't mind just good old honest advice as though I like what I read ( at these levels anyway) I'd still respect the views of other goldies.

thanks and happy new year all. :D

 

If I remember correctly there were two different mining companies called pan african:

 

One called pan african mining was listed on a canadian exchange, run by irwin olian and taken over by asia thai mining co on 27/06/2008. Share holders got $4 odd a share and issued with new shares in a new spin off company called african quuen i believe. I think this is the one being discussed on the mainpage?

 

The other is called pan african resources and is listed on the london exchange - haven't seen this one discussed on the main page but i may be wrong.

 

Just thought I would point out the potential for confusing the two in case that was what was happening.

 

Cheers

 

 

 

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eric,

 

Metorex holds close to 55% of Pan African Resources and regards that holding as a core asset. Although in a recent minesite article Charles Wyatt thought they may sell I think they will try to keep them. In the event of a sale I don't think there would be a shortage of buyers particularly with PAF being a profitable producer and grossly undervalued along with many gold juniors. There would also be a possibility for a bid for the whole company if Metorex put all of that stake up for sale, however, it is a bit of a side show when you look at the fundamentals and expansion potential of PAF.

 

minesite article extract:--

'No great loss to Pan African if they have to resign their non-executive roles, but with Metorex writhing around looking for money it is likely that the shareholding in Pan African will be put up for sale. This overhang probably accounts for the current rating, but Minews is confident that once the shares are placed the company could accelerate progress with Metorex no longer acting as a sheet anchor. The alternative is that an acquisitor with cash under its belt could see Pan African as an ideal stepping stone to production. Jan Nelson anticipated this outcome some weeks ago when he brought in RBC Capital Markets as broker and nominated advisor as this gives him considerably more muscle in defence or attack.'

 

 

A few comments I put up on the 'Devastated miners with cash' thread on Nov 18th

 

Pan African Resources - PAF - AIM and AltX

 

It acquired the majority, 74%, of the producing gold mine ( just under 100,000 oz pa ) at Barberton in South Africa last year and results to Jun 30th 2008 came up with just under £12 million pre tax profit, healthy cash balance -- current mkt cap of £24 million.

 

Manica project PFS due very soon - 1.7m oz in Mozambique.

 

Current value of reserves/resources is about $11 per ounce including Barberton and Manica

 

Futher gold projects in CAR and Ghana

 

Metorex listed on LSE and JSE is a major shareholder

 

http://www.panafricanresources.com/

 

.

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  • 2 months later...

Recent results headlines:--

 

 

Headline Unaudited Interim Results Released 26 February 2009

Pan African Resources PLC

(Incorporated and registered in England and Wales under Companies Act 1985 with

registered number 3937466 on 25 February 2000)

 

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

 

Unaudited Interim Results

For the six months ended 31 December 2008

 

Pan African Resources PLC (AIM: PAF, Altx: PAN), the African gold mining

company, is pleased to report its unaudited interim results for the six-months

ended 31 December 2008.

Highlights

* Gross gold production up 7.8% to 51,186 oz (2007: 47,486 oz)

* Cash-flow positive with gold sales of £24.9m up 71%.

* EBITDA up 114% to £8.5 million (2007: £4.0m)

* Headline earnings of £3.9 million (2007: £1.29m), an increase of 202%

* Headline EPS 0.36 pence (2007: 0.13 pence), an increase of 173%

* Total cash cost of US$451/oz sold (2007: US$514/oz sold), down 12%

* Significant improvement in safety

* Total Manica resource increased to 2.571Moz (2007 : 1.701Moz), an increase

of 51%

* Dividend of 0.2555 pence per share declared

 

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