Pan African Resources launches $200 million share buyback program

JOHANNESBURG - Pan African Resources PLC (AIM:PAF)(JSE:PAN) announced Monday it will commence a ZAR 200 million (approximately £8.2 million) share buyback program effective July 1, 2025, with purchases to be conducted on both the London Stock Exchange (LON:LSEG) and Johannesburg Stock Exchange.

The gold mining company’s board approved the buyback program earlier this month, citing significant value in its shares given the quality and profitability of its existing operations and growth projects.

CEO Cobus Loots highlighted the company’s improved financial position, noting a substantial reduction in gearing with net debt of $155 million expected as of June 30, 2025, representing a 32% reduction compared to December 2024 levels.

"From this position of strength, we feel it is appropriate to return additional capital to our shareholders," Loots said in the press release, adding that the company expects to be fully de-geared during fiscal year 2026.

The buyback will be conducted under the authority granted by shareholders at the company’s 2024 annual general meeting, which permits the purchase of a maximum of 144,486,033 shares.

Pan African has appointed Peel Hunt LLP to carry out the purchases, with the investment firm granted authority to make trading decisions independently of the company during closed periods or if Pan African possesses inside information.

The company intends to cancel all shares acquired through the program. Purchases on both exchanges will comply with relevant trading conditions, including price restrictions that ensure shares are not acquired at prices exceeding the last independent trade or highest current independent bid.

The program is part of Pan African’s broader strategy to deliver value to shareholders, according to the company statement.

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