Pan African Resources (PAF): Everything falling...

Edison Investment Research Limited Pan African Resources (PAF): Everything falling into place 29-Oct-2021 / 07:00 GMT/BST London, UK, 29 October 2021 Pan African Resources (PAF): Everything falling into place Pan African's FY21 results were closely in line with our expectations. Mining profit for the full 12-month period was US$128.0m (cf our estimate of US$132.7m - see Exhibit 2), profit after tax US$74.7m (cf our estimate of US$75.1m) and EPS 3.87c per share (cf our estimate of 3.90c). Most striking, however, was the 28.5% increase in the proposed final dividend to ZAR402.2m, or 1.26671cps at the prevailing forex rate. This was above the company's dividend policy guidelines, but reflected management's increasing confidence in the outlook for its operations. Pan African has also announced a share buyback programme to add to investors' returns. Pan African is cheap relative to both its historical trading record and its peers. Our core valuation of the company is 41.79c/share (30.42p/share) cum-div. However, this stands to rise by an additional 13.5%, to 47.43c/share (34.53p/share), in the event of the successful development of Mintails/Mogale in particular. To this must then be added the value of c 19.2m underground Witwatersrand ounces, which we estimate could lie anywhere in the range of 0.22-5.24c to take the total to 47.65-52.67c/share (34.69-38.34p/share). Alternatively, if Pan African's historical average price to normalised EPS ratio of 8.9x in the period FY10-21 is applied to our FY22 and FY23 forecasts, it implies a share price of 32.15p in FY22, followed by 32.99p in FY23.  Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Lord Ashbourne (formerly Charles Gibson) [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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1244551 29-Oct-2021