By: Miningmx

Pan African Resources has been admitted to the FTSE 250 index following its recent move to the London Stock Exchange's main board, a development analysts say will raise its profile among UK and international investors. This milestone coincides with the company's announcement to fast-track a R2.8 billion expansion of its Mintails Tailings Retreatment (MTR) project in Johannesburg.

The expansion aims to boost annual gold output by 30,000–35,000 ounces, targeting total production of 100,000 ounces from the site. This would be achieved by expanding the existing plant, an option viewed as lower-risk. The project, set for a final investment decision in June, further shifts Pan African's production mix toward surface mining, which is expected to account for 58% of its 2026 output, thereby diversifying away from a heavier reliance on underground operations at its Barberton and Evander mines.

Analysts point to several growth drivers, including the MTR expansion, the transition to fresh ore mining at the newly acquired Tennant Creek mine in Australia, and increased output from the Evander mine's new shaft. Berenberg Bank has set a target price of £1.12 per share, noting the company’s attractive growth and shareholder return potential.