Pan-African Resources. Watchlist please!

Crystaline Gold

Pan-African Gold. On the up?

Yes in our endeavours to research and source information on companys that could provide investors with real growth we now focus on a gem of a company currently way under-value in our opinion.

Pan-African Resources are a precious metals miner trading at a ridiculous level given what the company have already achieved and are about to achieve. With an annual production of over 100,000 ounces of gold per annum under their belt Pan-African look set to steadily rise through-out this year. The interims released last month make interesting reading, revenue increased by a staggering 32% netting the company a mouth-watering  £38.33 million pounds,the EBITDA was 51% higher at approx £13 million pounds. The company are debt-free and have an excellent cash generating asset known as the Barberton Mines these three mines have resources indicated at 100,000 ounces of gold per year for the next 15 years. Now with the company busily working to increase production up to 125,000 ounces of gold per year by 2015 Pan-African should only go one way and that is upward over time.

The last RNS announced the start of  Pan Africans’ Bulk Earthworks programme ( a grand title which basically means they’re getting the site ready and cleaning it up)  at its Phoenix Platinum Project  in the North West Province of South Africa. And as you all should know Platinum is more valuable than gold. Plant construction is scheduled to start in mid-May 2011 with plant commissioning planned for October 2011. The CTRP full production rate of 20,000 tons per month is expected to be achieved in the first quarter of 2012. The Phoenix project is expected to be producing at least 12,000 ounces of Platinum per annum by year-end 2011.  But Investors should take note that this figure will in all probability be improved upon given Pan Africans record of past performance. So that’s two mining projects that are triple AAA rated by this Blog. But there’s a third.The third new project on the cards is Manica in Mozambique which has a 2.5 million ounces plus gold resource. There is an opportunity here at some stage but  the company have to await the report from a Bankable Feasibility Study (BFS).  In the next couple of months an announcement is expected on this BFS followed by a production decision to be taken by the year-end which could see Manica coming on stream in 2014/2015. There has been site visits by analysts this year, a sure sign that they are coming on the radar. They are  much focused on further productivity and cost improvements. And I have spoken to the company and sources re’ the potential. The top man Jan Nelson has worked wonders here and believe me Pan-African are on the up this year. There are research notes out there but I wouldn’t put too much emphasise on them as caution seems to be their word. They have the potential to double or triple on further good news and I expect that this news is just a question of time. Research this company as it is now on the most favoured list.

Viva!

Daniel

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  1. stevie says:

    Danny boy, sooooo SQZ drilling sumatra in summer, slam dunk ;))
    broker gave us heads up on that SYNC 2 days ago and seems rumours hit the boards, but I was told 53p and mid of next week. Quid pro quo an that could you have a burrow around see if its got legs mate, cheers

  2. Andy T says:

    Dan, some very useful info on Pan African. I can also confirm the company pays dividends which seem to be increasing year after year. it’s just a case of waiting and I am sure the share price is only going to go one way. Many thanks for all the info you are providing us with.

  3. Deano says:

    Ha like the April Fools (sorry I’m commenting gere but there’s no comments on that!)

  4. kennyb says:

    Hi Dan

    If you want to do private investors a massive favour,please go and create a username on the Cockney Rebel thread on ADVFN where some experts working for the mm’s are trapping loads of pi’s,please just go on it and post a few tricks of the mm’s it won’t take you long and you might save loads of folk,at least just take a look