By: IOL

Pan African Resources has announced its intention to transfer its listing from the Alternative Investment Market (AIM) to the main market of the London Stock Exchange (LSE). The move is intended to access a larger pool of investors and improve the stock's liquidity.

The decision coincides with a period of elevated gold prices, which are benefiting producers. On Monday, gold prices rose above $3,600 per ounce, a new high for the precious metal. Reflecting this positive sentiment, shares in Pan African Resources surged over 9% on the Johannesburg Stock Exchange (JSE).

CEO Cobus Loots stated that the strong gold price environment is expected to enable the company to become completely debt-free by the 2026 financial year. He added that the main market listing will support the company's "ambitious growth" strategy.

Greg Davies, head of wealth at Cratos Capital, noted the transition would also "enhance its corporate profile." The move, expected before the end of the year pending regulatory approvals, will not involve raising new capital. The company will maintain its existing JSE listing, resulting in a dual primary listing.

Production Growth and Strategy

Pan African Resources is poised for significant production growth. The company forecasts its annual gold production for the financial year ending June 2026 to reach between 275,000 and 292,000 ounces—an increase of approximately 40% compared to the previous year.

The company has diversified its portfolio from older underground mines to a more balanced mix of surface and underground assets. A key project, the Mogale Tailings Retreatment (MTR) operation, was commissioned ahead of schedule and is expected to produce around 50,000 ounces of gold annually for at least 20 years.

Critically, the company's production is "completely unhedged," meaning it can fully benefit from the current record-high gold prices.