Operational Update ahead of year ending 30 June 2026

Pan African Resources PLC (Incorporated and registered in England and Wales under the Companies Act 1985 with registered number 3937466 on 25 February 2000) Share code on LSE: PAF Share code on JSE: PAN ISIN: GB0004300496 ADR ticker code: PAFRY (‘Pan African’ or the ‘Group’ or the ‘Company’)

Pan African Resources Funding Company Limited Incorporated in the Republic of South Africa with limited liability Registration number: 2012/021237/06 Alpha code: PARI

 

OPERATIONAL UPDATE AHEAD OF YEAR ENDING 30 JUNE 2026    

 

Pan African is pleased to provide its shareholders and noteholders with an operational update ahead of the financial year ending 30 June 2026 (FY26).

 

HIGHLIGHTS

• Improvement in safety statistics with continued focus on safety initiatives
• Record annual and half-year gold production
  • Increase of ~40% in annual gold production to approximately 275,000oz, in line with the lower end of FY26 production guidance of 275,000oz to 292,000oz (FY25: 196,527oz)
  • Material increase in gold production in FY26H2 compared to FY26H1 (~14% increase) to 147,000oz (FY26H1: 128,296oz)
  • Excellent production performances from the Elikhulu Tailings Retreatment Plant (Elikhulu) and Mogale Tailings Retreatment (MTR) surface operations and the Evander and Barberton Mines underground operations offset slower than anticipated ramp up of production from Tennant Mines
  • Tennant Mines FY27 production expected to increase significantly as the operation commences mining of the White Devil deposit
• Despite inflationary pressures, the Group is expected to achieve full-year all-in sustaining cost (AISC) guidance of US$1,870/oz (at an exchange rate of US$/ZAR:17.00)
• Record operating cash flow generation with Group projected cash position of ~US$220 million at the end of FY26
  • Impacted by strategic investment of US$10.3 million in CuFe Limited and securing strategic cyanide supplies (US$7.0 million)
  • The Group is now in a net cash position (net debt of US$46.2 million at 31 December 2025), with the only outstanding debt being the domestic medium-term notes (DMTNs) of US$49.7 million
• Measures in place at all operations to mitigate potential fuel and reagent shortages resulting from Middle East conflict
• FY27 production guidance of 280,000oz-302,000oz at an AISC of between US$2,075/oz and US$2,175/oz (at an exchange rate of US$/ZAR:17.00)
  • AISC estimates allow for above inflation increases for reagents, electricity and other key inputs
  • Further production increases are expected in later years, primarily driven by production growth from Tennant Mines and the Mogale Tailings Retreatment (MTR) surface operations

• The proposed acquisition of Emmerson Resources Limited (Emmerson) to consolidate the Tennant Creek mineral field is expected to be concluded during July 2026.

 

PRODUCTION

• Record Group gold production
  • Increased throughput and gold recoveries at MTR, an excellent production performance from Elikhulu together with improved mining grades and orebody accessibility at the Evander and Barberton Mines underground operations offset lower than anticipated ramp-up of production from Tennant Mines
  • At Tennant Mines in Australia, blending of open pit ore sources with historic Crown Pillar Stockpile (CPS) material resulted in the head grade improving to ~1.5g/t (FY26H1: 1.3g/t). During the last quarter of FY26 the operation is expected to achieve annualised gold production of approximately 45,000oz
    • Capital allocated to the Nobles plant for a fixed crusher circuit, secondary mill and a belt filter for dry stack tailings as well as mining of the White Devil deposit to improve future production, with forecast FY27 production guidance of between 48,000-52,000oz.

 

Surface operations

• Production at MTR improved substantially in FY26H2. The previously reported calcine layer identified in the source material continues to impact both grade and recoveries. The operational plan, however, anticipates mining through the last of the calcine material during the FY27Q1 production period
  • Production is expected to reach approximately 30,500oz for FY26H2, delivering an  estimated production of ~52,000oz for FY26
  • The Soweto Cluster definitive feasibility study (DFS) is on track for completion by June 2026, with the study focusing on the option of constructing a new tailings processing facility with a capacity of 600ktpm, adjacent to MTR, which would be a stand-alone operation producing approximately 30,000oz to 35,000oz per annum with a life-of-mine of 15 years
    • Environmental approvals and processing of water use licence applications are in progress. The Company is currently also in the process of identifying and concluding the required pipeline servitudes from the Soweto Cluster tailings storage facilities to the MTR plant site
  • The study for the expansion of the MTR plant to include a separate circuit for the treatment of hard rock ore from local surface material is being finalised and could potentially further increase annual production from the MTR complex by 20,000oz to 30,000oz
• Elikhulu production is estimated at approximately 27,000oz for FY26H2, with the operation on track for achieving gold production of more than 56,500oz for FY26 (FY25: 52,606 oz). This is the highest production rate at Elikhulu since FY20, when production reached 59,616oz
• The Barberton Tailings Retreatment Plant (BTRP) is expected to achieve production of approximately 5,500oz in FY26H2, with full year production of approximately 13,000oz (FY25:  15,224oz). The reduced production is in line with the mine plan
  • The addition of a flotation circuit to improve recoveries has been approved at a cost of ~US$5.9 million. The project is anticipated to be completed by the end of calendar year 2026. This will also enable the BTRP to treat refractory ore types in future
  • The Group is further advancing its studies and designs for the installation of a crusher circuit at the BTRP to allow for the processing of hard rock from Royal Sheba
• Tennant Mines is expected to produce approximately 18,500oz in FY26H2, a 19% increase in production from FY26H1 (15,560oz). Full-year production for FY26 is estimated at ~34,000oz
  • In FY26H2 engineering works were completed on both the ball mill and the filter presses at the Nobles plant, which enhanced throughput and improved efficiencies
  • An increase in grade was achieved as the mining operations progressed from only treating CPS material in FY26H1 at 1.3g/t to processing a blend of this material with fresh ore from the Weaber’s Find, Rising Sun and Nobles open pits in FY26H2 at ~1.5g/t
  • The Group is planning increased capital expenditure in FY27 at Tennant Mines to further enhance the Nobles plant efficiencies and increase throughput while also expediting mining at the large-scale White Devil open pit, which contains Indicated Mineral Resources of over 3Mt at 3.73g/t (378koz) in the current open pit envelope. The White Devil orebody remains open at depth and on strike
  • The Group will also commence with the development of two large, shallow and high-grade underground sections at Juno (Indicated and Inferred Mineral Resource of 1.96Mt at 4.16g/t for 262koz) and Golden Forty (Indicated and Inferred Mineral Resource of 0.5Mt at 7.25g/t for 114koz), which together with White Devil, will underpin gold production at Tennant Mines over the next five years.

 

Underground operations

• FY26H2 gold production at Evander Mines’ underground complex is estimated at 25,000oz, a 16% increase (FY26H1:21,640oz). Production of ~47,000oz is anticipated for the full year, representing a 68% increase year-on-year. The substantial increase in production is attributed to:
  • Evander Mines’ 8 Shaft underground development reaching the high-grade 24 Level B-Raise line, resulting in the average recovered grade increasing to more than 11g/t in FY26 (from 6.8g/t in FY25). Additionally, development has advanced to the adjacent 24 Level A-Raise line with persistent high-grade mineralisation. These two Raise lines will continue to yield the bulk of the ore tonnage to be processed at Evander Mines in FY27
  • Development on the 25 Level access haulage has commenced and is progressing according to plan
  • Increased sourcing of third-party surface material treated through a dedicated circuit within Evander Mines’ Kinross metallurgical plant will yield circa 3,000oz gold (170,000t at 1.2g/t in FY26 (FY25: 34,411t at 1.1g/t)
• Barberton Mines
  • FY26H2 production of approximately 39,500oz is expected for the Barberton Mines underground operations (FY26H1: 32,774oz), with full year production of approximately 72,000oz (FY25: 68,550oz), an increase of 5%.

 

FINANCIAL

• The Group is now fully degeared from a net debt perspective, compared to net debt of US$46.2 million at 31 December 2025, with the only current outstanding debt being the DMTNs of US$49.7 million
• Group AISC for FY26 is expected to be in line with the higher end of guidance at approximately US$1,870/oz at an average exchange rate of US$/ZAR:17.00, excluding any year-end adjustments for share-based payment liabilities and other accounting adjustments
• The Group remains fully unhedged

 

 

FY27 PRODUCTION GUIDANCE

Improved production contribution from Tennant Mines is expected following CIL plant infrastructure upgrades and accelerated access and development plans at the White Devil open-pit and shallow underground operations at Juno and Golden Forty deposits.

 

Group production for FY27 is expected to be between 280,000oz and 302,000oz as outlined below:

 

Operation	Production range (oz)
Elikhulu	48,000-52,000
BTRP	12,000-14,000
MTR*	50,000-54,000
Tennant Mines	48,000-52,000
Evander Mines underground	50,000-55,000
Barberton Mines underground	72,000-75,000
Total	280,000-302,000

*Expected production from MTR takes into account treatment of final calcine elements, whereafter annual production is forecast to increase to over 60,000oz/year

 

CAPITAL EXPENDITURE

Total capital expenditure for FY26 is forecast at US$180 million and now includes:

• US$10 million for expedited development of the White Devil deposit at Tennant Mines

• solar plant construction costs of ~US$8 million at Tennant Mines
• ~US$3 million to finalise feasibility studies for the Soweto Cluster DFS.

 

Given the sustained high gold price environment, the Group is expediting several initiatives to grow gold production further and reduce AISC over the next years. The Group’s capital expenditure guidance for FY27 has been revised to US$324 million, as detailed in the table below (up from US$267 million previously guided).

 

This increase is mainly driven by expediting the development of the White Devil open pit and the installation of a fixed crusher circuit and filter belt at the Nobles plant to support current and future production growths, as well as fast-tracking exploration. Additionally, construction costs for the renewable energy projects have also been finalised and included in the revised capital expenditure.

 

Operation	Expansion capital (US$ million)4	Sustaining capital (US$ million)
Elikhulu	2	2
BTRP	8	1
MTR1	46	4
Tennant Mines	140	7
Evander underground2	50	0
Barberton Mines underground3	20	28
Evander phase 2 and Tennant Mines solar plants	16	0
Total	282	42

 

1Includes capital to construct new tailings deposition capacity and install a mill to increase gold production further.

2Includes capital for ongoing capital development, equipping of 25 Level and capitalised working costs.

3Includes capital to construct new tailings deposition capacity as well as ongoing capital development (mainly for the Fairview and Western Cross orebodies).

4Excludes capital for the Soweto Cluster, Poplar, Royal Sheba and certain environmental, social and corporate governance (ESG)-related projects.

 

CONTINGENCY PLANNING

In light of the continuing unrest in the Middle East, the Group has secured:

• a rolling three-month supply of cyanide at all South African operations
• one-month on-site storage of diesel fuel reserves at Tennant Mines. 

 

EXPLORATION

The Group continues to advance its exploration strategy with a focus on converting Inferred Mineral Resources into Mineral Reserves, identifying extensions at known deposits at Tennant Mines and drill testing new targets

• At Tennant Mines, exploration will be directed towards more than 10 targets identified through the regional geophysics programme completed in FY26, while the programme itself will be further expanded. Key activities include:
  • a regional soil sampling programme comprising approximately 6,000 samples across up to 13 anomalous targets
  • diamond and reverse circulation drilling programmes at Chariot, Golden Forty, Juno and White Devil
  • regional reverse circulation drilling across several additional targets
  • advancing project studies and approvals for known deposits to support their inclusion in the life-of-mine plan.

PROPOSED ACQUISITION IN AUSTRALIA OF EMMERSON RESOURCES LIMITED (ASX:ERM) (EMMERSON)1 AND ACQUISITION OF STRATEGIC STAKE IN CuFe LIMITED (ASX:CUF) (CuFe)

• The acquisition of Emmerson consolidates the Group’s position in the prospective Tennant Creek mineral field in the Northern Territory, Australia. The successful conclusion of the transaction will deliver 100%-ownership of a strategic asset and eliminates the complexity associated with the existing joint venture arrangements
  • As part of the transaction, Pan African will also undertake an Australian Securities Exchange (ASX) listing, reflecting its long-term commitment to the Australian market
  • The Scheme Meeting of Emmerson shareholders to approve the Scheme will be held on Monday, 15 June 2026. Subject to the conditions of the Scheme being satisfied, or waived (as permitted), the Scheme is expected to be implemented in accordance with the following indicative timetable:

 

Event	Indicative dates*
Scheme meeting	Monday, 15 June 2026
Second court date	Friday, 19 June 2026
Effective date	Monday, 22 June 2026
Scheme record date	Wednesday, 24 June 2026
Implementation date	Wednesday, 1 July 2026

*All stated dates are indicative only and subject to change. Any changes to the above timetable will be announced and will be available under Pan African’s and Emmerson’s profiles on their relevant exchanges.

 

• On 19 May 2026, the Group acquired a 15% strategic investment in ASX-listed CuFe for ~A$15.35 million. CuFe’s advanced Gecko and Orlando projects have synergies with the Group’s Warrego project, which is the largest copper and gold resource in Tennant Creek and with historical production from these projects previously having been processed jointly. In connection with the Group’s investment, CuFe has committed to form a technical working group, comprising representatives of Pan African, to investigate (amongst other things) potential synergistic benefits associated with the development of these projects.

 

1 Further details are included in the Stock Exchange News Service/Regulatory News Service announcements of 9 March 2026 and 8 May 2026

 

Cobus Loots, Pan African’s chief executive officer, commented:

It has been an exceptional year for Pan African Resources, with the Group set to achieve its record gold production target, increasing gold output by some 40% year-on-year. Financially, the Group has never been in a stronger position, with the growth in gold production achieved in a sustained high gold price environment, allowing us to accumulate a projected US$220 million of cash on the balance sheet by financial year end, despite the significant investments into production growth and dividends paid to shareholders.  Our very robust financial position will allow us to continue our considered growth trajectory, executing into initiatives to expand annual gold output to 300,000oz and beyond, while also further increasing cash returned to shareholders. 

 

The strong operational performance from our South African portfolio offset the slower-than-anticipated production ramp-up from Tennant Mines.  In the next financial year, we expect a much improved performance from Tennant Mines, with a full year of mining from the high-grade White Devil deposit, and a clear pathway to growing Australian gold production to ~100,000oz per annum in the next three years.  In addition, we anticipate increasing gold production from MTR in the next years, with the Soweto Cluster DFS now nearing completion.  

 

Despite inflationary pressures, costs remain well managed. We are in a fortunate position in South Africa, with stable grid power to all our operations, and an accelerating renewable energy portfolio being rolled out to maintain this supply and reduce the impact of Eskom cost increases. In Australia, while diesel price increases have had an impact on production costs, sufficient storage facilities are now in place to minimise risks associated with potential fuel supply shortages.  We are also investing in a large renewable energy solution for Tennant Mines, which will include battery storage, to reduce future operating costs.

 

The conclusion of the Emmerson transaction will see Pan African consolidate the Tennant Creek goldfield, and we look forward to welcoming the Emmerson shareholders onto our register as we also complete our listing on the Australian Stock Exchange, subject to the implementation of the transaction.

 

We also look forward to reporting our final results for the year ended 30 June 2026 on or about 16 September 2026, where additional details on progress with our growth projects and ESG initiatives will be presented.

 

 

Competent Person

The competent person for Pan African, Hendrik Pretorius, the executive for technical services and new business, signs off the Mineral Resources and Mineral Reserves for the Group. He is a member of the South African Council for Natural Scientific Professions (SACNASP 400051/11 – Management Enterprise Building, Mark Shuttleworth Street, Innovation Hub, Pretoria, Gauteng Province, South Africa), as well as a fellow in good standing of the Geological Society of South Africa (GSSA – CSIR Mining Precinct, Corner Rustenburg and Carlow Roads, Melville, Gauteng Province, South Africa). Hendrik has 23 years' experience in economic geology, mineral resource management (MRM) and mining (surface mining and shallow to ultra-deep underground mining). He is based at The Firs Office Building, 2nd Floor, Office 204, Corner Cradock and Biermann Avenues, Rosebank, Johannesburg, South Africa. He holds a BSc (Hons) degree in Geology from the University of Johannesburg as well as a Graduate Diploma in Mining Engineering from the University of the Witwatersrand. Hendrik has reviewed, and approved, in writing the information contained in this announcement as it pertains to Mineral Resources and Mineral Reserves.

 

 

The information contained in this announcement is the responsibility of the board and has not been reviewed or reported on by the Group’s external auditors.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service and SENS, this inside information is now considered to be in the public domain.

 

 

Johannesburg

 

1 June 2026

 

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

 

Corporate information
Corporate office The Firs Building 2nd Floor, Office 204 Corner Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 [email protected]	Registered office 107 Cheapside, 2nd Floor London, EC2V 6DN United Kingdom Office: + 44 (0)20 3869 0706  [email protected]
Chief executive Officer  Cobus Loots      Office: + 27 (0)11 243 2900	Financial director and debt officer Marileen Kok Office: + 27 (0)11 243 2900
Head: Investor relations Hethen Hira Tel: + 27 (0)11 243 2900 E-mail: [email protected]	Website: www.panafricanresources.com
Company secretary Jane Kirton St James's Corporate Services Limited Office: + 44 (0)20 3869 0706	Joint broker Ross Allister/Georgia Langoulant Peel Hunt LLP Office: +44 (0)20 7418 8900
JSE sponsor and JSE debt sponsor Ciska Kloppers Questco Corporate Advisory Proprietary Limited Office: + 27 (0) 63 482 3802	Joint broker Thomas Rider/Nick Macann BMO Capital Markets Limited Office: +44 (0)20 7236 1010
	Joint broker Matthew Armitt/Jennifer Lee Joh. Berenberg, Gossler & Co KG (Berenberg) Office: +44 (0)20 3207 7800