Pan African Resources, a gold mining company listed on both the Johannesburg and London stock exchanges, has joined Harmony Gold, DRDGOLD, Gold Fields, and AngloGold Ashanti in the Van Eck Gold Miners’ GDX index, a US-managed exchange-traded fund. The GDX aims to mirror the price and yield performance of the New York Stock Exchange’s Arca Gold Miners Index, which tracks the overall performance of gold mining companies.
“This is an exciting milestone for Pan African to be recognized and included,” said Hethen Hira, head of investor relations at Pan African, in a statement to Mining Weekly.
The company qualifies for inclusion in the GDX due to its market capitalization exceeding $700 million and an improved liquidity rate of $1 million a day. The fund acquired its current holding through the Johannesburg Stock Exchange.
For the upcoming financial year, Pan African has set its production guidance between 215,000 oz and 225,000 oz, largely driven by increased output from the Mogale Tailings Retreatment plant, which is set to open next week. The R2.5-billion Mogale operation, located in Gauteng’s West Rand (Krugersdorp and Kagiso areas), is expected to produce 50,000 oz annually over its 20-plus year lifespan.
Revenue for the company increased by 16.8% to $373.8 million, driven by a 4.9% rise in gold sales to 184,885 oz, up from 176,216 oz in 2023, and an 11.3% increase in the average dollar gold price received during the period.
The additional production from Mogale is strengthening Pan African’s status as a midtier gold producer, with a 25% growth in output and a corresponding reduction in production unit costs. However, the company’s all-in sustaining costs (AISC) for the 12 months ending June 30 were $1,354/oz, slightly above the guidance range of $1,325/oz to $1,350/oz, due to delays in commissioning the subvertical hoisting shaft at Evander Mines.
AISC for the 2025 financial year is expected to range between $1,350/oz and $1,400/oz, with Mogale’s low-cost production helping to counteract inflationary pressures. The delay in Evander’s subvertical shaft commissioning, expected to be completed in September, may reduce production by around 5,000 oz, but earlier output from Mogale and ongoing underground operations at Evander could mitigate this impact.
