Pan African Resources has announced the successful approval for the listing of R840 million in sustainability-linked notes, known as the PARS03 Notes.
This development comes in response to strong investor interest, highlighted by an oversubscribed book build for the senior, second-ranking secured notes.
The company is strategically positioning itself to leverage robust market conditions, as gold prices have surged to their highest levels in recent years.
This uptick offers a favourable backdrop for the company, which has been actively investing in various projects aimed at increasing production output.
“Following an oversubscribed bookbuild for senior second ranking secured sustainability-linked notes, it will issue and list PARS03 Notes to the value of R840 million with effect from Tuesday, 22 October 2024,” said Pan African Resources yesterday.
As Pan African Investments progresses, it appears well poised to continue growing its footprint in the competitive gold mining sector.
Last week, Pan African Resources said it was set to benefit from years of investment into alternative electricity, which would lower production costs, as the South Africa’s mining sector investment climate has improved.
Pan African Resources has solar power plants and has a renewable power supply agreement for another, and was the first miner to commission large scale solar mine at Evander Gold Mine in Mpumalanga while other miners have been slow to deepen investment over the past few years due to elevated uncertainty.
The JSE has already provided the necessary approvals under Pan African Resources’ R5 billion domestic medium-term note programme initiated in October 2023, facilitating this latest financial endeavour.
As part of this arrangement, several subsidiaries including Evander Gold Mine, Barberton Mines, and Evander Solar Solutions, Pan African Resources SA Holdings, Evander Solar Solutions and Mogale Tailings Retreatment Propriety have joined as guarantors to ensure a strong backing for this venture.
Mogale Gold and Mintails SA Soweto Cluster were also listed as guarantors.
In a recent appointment that reinforces the company’s strategic leadership, Marileen Kok has been named the new finance director for Pan African Resources.
“Marileen will also be appointed as a director of Pan African Resources Funding Company and as the debt officer,” said the company.
A chartered accountant with extensive experience in the mining industry with specific focus on financial reporting, corporate finance, governance and regulatory compliance and various other commercial matters, Kok joined Pan African Resources financial manager in January 2020 and holds 25 000 ordinary shares in the company.
Analysts from Edison Investment Research are optimistic about the company’s future, projecting that gold production will exceed 250 000 ounces annually by 2026.
They have also forecast that normalised headline earnings per share will surpass 7 cents this year, supported by a 6.2% increase in bullion output to 186 039 ounces for the financial year ending June 2024.
The prospect of production reaching between 215 000 to 225 000 ounces in the current financial year is largely attributed to substantial contributions from new projects like the Mogale Tailings Retreatment.
BUSINESS REPORT