http://moneyam.uk-wire.com/cgi-bin/articles/20050126070000PE650.html

I also own PAF.

COMPLETION OF THE ACQUISITION OF BLUE FALCON 232 TRADING PROPRIETARY LIMITED ("UITKOMST COLLIERY") FROM OAKLEAF INVESTMENT HOLDING 109 PROPRIETARY LIMITED AND SHANDUKA RESOURCES PROPRIETARY LIMITED.

Pan African shareholders are referred to the initial Transaction announcement published by the Company on 8 June 2015, regarding the acquisition of Uitkomst Colliery by the Company.

Pan African is pleased to advise shareholders that the Transaction has become unconditional, and that Pan African assumed effective control of Uitkomst Colliery on 1 April 2016. Pan African settled the Transactions revised purchase consideration of R176 million in full in cash on 31 March 2016. The total net purchase consideration (inclusive of working capital acquired) amounts to approximately R150 million, compared to the R200 million previously announced.

The Uitkomst Colliery will be implementing a BEE transaction similar in nature to those currently in place at Pan Africans Barberton and Evander mining operations. The BEE transaction will result in an additional 9% historically disadvantaged on-mine ownership in the Uitkomst Colliery. This 9% ownership will be held by broad-based trusts and by a strategic entrepreneurs trust. The BEE transaction will be financed by the Uitkomst Colliery on a notional basis, with this notional funding accruing interest linked to the prime interest rate. The Transaction results in limited dilution to Pan African and 80% of dividends issued to the BEE shareholders will be retained to repay the notional funding over a period of 10 years.

A production update for Uitkomst Colliery for the period 1 July 2015 29 February 2016 is as follows:

Run-of-mine coal mined : 412 kt
Saleable coal produced : 278 kt
Wash yield : 67.5%
The life of mine of the operation is estimated at 28 years.

BDO Corporate Finance Proprietary Limited (Expert), who were appointed as the independent expert by Pan African, have concluded that the terms of the Transaction are fair in so far as Pan African shareholders are concerned. A copy of the Experts opinion is available for inspection at the Corporate Offices of the Company for a period of 28 days from the date of this announcement.

Cobus Loots, CEO of Pan African commented: We are pleased to have finalised the Transaction and we welcome the Uitkomst Colliery employees to the Group. The Transaction is expected to be value accretive to Pan African, as previously communicated.

For further information on Pan African, please visit the Companys website at http://www.panafricanresources.com/

StockMarketWire.com
Pan African, the African-focused precious metals producer, has appointed BMO Capital Markets Limited as joint broker alongside Numis Securities Limited and Peel Hunt LLP with immediate effect.

Peel Hunt today reaffirms its buy investment rating on Pan African Resources PLC (LON:PAF) and raised its price target to 26p (from 17p).

Bought some @ 18.75p

Gold prices on the up and is share price after reaching on what it seems lows lately. Profitable company that lately has been moving uptrend. Order book stronger on the bid side, though there is a seller on the order book at 18.75p, that keeps adding stock once is taken by ATs.
Currently the seller or order book hiding the sell amount, added 100K, after all the once before where taken by ATs once again

All the Indicators at oversold and just on the right place for the bounce

First purchase 18.6 time will tell if timing correct!

A very large trade at middle price, signs of overhand being cleared, always happen at the bottom of the cycle ( was down now moving up )

12:54:59
18.875p
9,919,463

Updating some old news

Performance by Sector By the Telegraph

http://shares.telegraph.co.uk/sectors/?context=broker-recs&sector=1770
------------------
London Alliance PAF news 2nd Aug
Pan African Resources PLC Tuesday said earnings in the recently
ended financial year are expected to be substantially higher following robust operating
performances from its Barberton Mines and Evander Mines and a boost in gold prices.
The South African­based precious metals mining group said earnings per share in the financial
year to the end of June should be in the region of 29.47 cents to 31.77 cents, a huge lift from the
11.48 cents reported in the previous year.
Headline earnings per share should be between 29.45 to 31.79 cents per share, also a large
increase from 11.67 cents last year.
In sterling, EPS and HEPS will both be within a range of 1.37 to 1.50 pence per share in the
recently­ended financial year, compared to 0.65 pence last year.
Excluding exceptional items, EPS is expected to have risen to a range of 43.10 to 45.50 cents
from the 11.48 cents last year and HEPS will have increased to 43.08 to 45.42 cents from 11.67
cents the previous year.
In sterling, EPS and HEPS before exceptional items will be between 2.0 to 2.13 pence compared
to 0.65 pence last year.
The significant improvement in earnings during the year are a result of improved performances
from Baberton Mines and Evander Mines, both subsidiaries of the company producing gold in
South Africa.
Gold prices were also considerably higher in the period, with Rand prices averaging 22% higher
year­on­year. The spot gold price on Tuesday in dollar terms was USD1,359 per ounce, 28%
higher than the start of 2016 as prices have particularly rallied since the start of the year.
Gold production from Baberton Mines was up 7.0% in the year to 113,281 ounces from 105,776
ounces and production from Evander Mines was up 31% to 91,647 ounces from 70,081 ounces.
Pan African Resources said it also benefited by consolidating the Uitkomst Colliery's results in
the last quarter of the financial year that started in April. That contributed production of 136,102
tonnes of coal in the financial year.
However, the company's platinum production declined in the year because it was adversely
impacted by a lack of feedstock to its operation after London­listed International Ferro Metals
Proprietary Ltd entered into a business rescue plan.
Pan African's platinum operation is situated on the same property that was owned by
International Ferro Metals, which recently sold its troubled South African subsidiary that held the
asset after entering into business rescue proceedings.
International Ferro Metals' distressed subsidiary was hit by a wave of factors last year that led
ultimately led to its demise, but that left Pan African's operations without the feedstock that it was
being supplied by International Ferro's processing operations. Pan African was not reliant on the
feedstock, but it also sourced electricity, water and "certain other services" from the nearby
operation.

19.12.5p +0.625p

A very strong results and a much increase dividend

"The ... group delivered an outstanding set of results for the 2016 financial year. These results include a year of record gold production and profits and the largest dividend payment to date," said CEO Cobus Loots in a statement.

profit after taxation increased by 117.9%
EPS increased by 120.3%
final dividend 0.82338 pence per share (2015: 0.53108 pence per share)

20p +0.75p

Peel Hunt today reaffirms its buy investment rating on Pan African Resources PLC (LON:PAF) and raised its price target to 27p (from 26p).
------------
FLIGHT TO GOLD: Are these two small-caps ready to take-off?
13:40 22 Sep 2016
The British small-caps “have lagged significantly", according to Peel Hunt. But two may be ready to outperform.
Could you make a mint on these two?

Pan African Resources plc (LON:PAF) and Shanta Gold Ltd (LON:SHG) are the two UK top picks in gold mining, according to the broker Peel Hunt, which has released a 41-page update on the sector.

Pan African, which reported stellar results on Wednesday, offers investors income, as it boasts a dividend yield of 4.5%, while Shanta is a ‘deep value play’.

“Its position in the lowest quartile of the cost curve should see it attract attention, but this has historically been overshadowed by the level of debt and concerns over a short mine life,” said analysts Michael Stoner and Peter Malin-Jones of Shanta.

“This has now all been addressed with re-financing and better than expected operational performance bringing the debt to sustainable levels.”

They reckon Shanta, currently changing hands for 10.5p, is worth 21p a share.

20.25p +1p

Pan African Resources: Record production behind a doubling in earnings

proactiveinvestors - 21 Sep 2016
The industry has benefited from a rise in the value of the yellow metal of almost US$200 an ounce in the past 12 months, although self-help has been the major driver for the AIM-listed digger.

Shares in Pan African Resources plc (LON:PAF) advanced 4% in early afternoon trade after the South Africa-focused gold miner posted a more than doubling in full-year earnings on the back of record production.

Profit after tax grew 118% to £25.5mln, though in rand terms it was up 160%.

Investors will feel the benefit of Pan African’s success with the final payout earmarked to grow by £6.3mln to £16mln.

The industry has benefited from a rise in the value of the yellow metal of almost US$200 an ounce in the past 12 months, although self-help has been the major driver for the AIM-listed digger.

The firm, which owns the Evander and Barberton mines in South Africa, reported its output hit a record 205,000 ounces of gold in the year to June 30, up 16.5%.

All-in sustaining costs, meanwhile, were marginally ahead in rand terms, but were down in dollar terms from US$1,093 an ounce to US$870.

Pan African concluded the deal to acquire the Uitkomst Colliery in March for around £8mln (which takes it into coal) and a portion of Shanduka Gold for around £10mln.

The latter transaction allows Pan African to “preserve and protect its black economic empowerment status on an earnings accretive basis”, according to chief executive Cobus Loots.

“Our robust financial position, well-established cash-generative operations, decentralised hands-on management structure and cost-conscious culture differentiate us from our peers,” he added.

“These attributes give Pan African Resources a competitive advantage for further growth through our project pipeline and also position the group to capitalise on potential acquisition opportunities.”

The shares, up 175% in the last year, valuing the miner at £375mln, were up 0.75p at 19.25p in early afternoon trade.

These were “good financial results” that revealed “excellent” cash generation, according Yuen Low, of City broker Shore Capital. There stock is yielding a “reasonably attractive” 4.4%, he also pointed out.

In a separate announcement, Pan African unveiled a 9.4% increase in its gold resource, which rose 3mln ounces to 34.9mln ounces.

The company, which also owns tailings treatment facilities at its key sites, said its gold reserve fell marginally (3.8%) to 10mln ounces.

A high-grade extension to one to the main reef complex at the Fairview operation has extended the life of the Barberton mines out to 22 years. The Evander mines, meanwhile, have enough ore to last 16 years, Pan African said.

There was “no material change” to the resource for the platinum group elements, which stands at 600,000 ounces, while the reserve number fell 300,000 ounces to 200,000 ounces.

The Uitkomst Colliery, in South Africa’s North West Province, is thought to be host to 23.3mln tonnes of coal.

Finally, a definitive feasibility study on the Elikhulu tailings retreatment project will be completed in November. This followed a “positive” pre-feasibility report.
SA quote 355.00ZAC +10.00 (2.90%)... SA quote - jse

a delayed trade just reported paying large premium at the time 20.89p for 100K buy

09:18:03
20.8916p
100,000
£20.89k

gone to 21p and the order book still very strong on the bid side

DEPTH 28 v 13
----------
SA

362.00ZAC
Price increase 17.00 (4.93%)

Slightly up considering the peers are on the red

http://m.4-traders.com/PAN-AFRICAN-RESOURCES-PLC-4002023/

21.125p +0.375p

Can it be right such a rise on Profits and EPS for 2017? I suspect is up to Gold prices

From IC today with a buy tip
target profit of £68.8m and 3.1p eps.
Forward pe of 6-7.
This can double and still remain cheap.
Income and growth.
The dividend next year should rocket as 40% of profits back in dividends.

10 of the best mining stocks right now stock screen mining commodities winners

There have been some stunning changes of fortune in the stock market since the European Union (EU) referendum. Not only was the initial shock of volatility quickly replaced with a surging run in index prices, but previously unpopular sectors suddenly found themselves in fashion. Nowhere was that swing in sentiment quite so stark than in the mining sector.

Mining stocks enjoyed a fabulous run during the first 10 years of this century. Booming global demand pushed a wide range of commodity prices to racy levels. Investors simply couldn't get enough of miners, ranging from the mega-caps of the Alternative Investment Market (AIM)

By mid-2011, the price of gold had stretched to just over $1,800 per ounce, but it turned out to be a high water mark.
Since 2011, mining stocks have been on their knees, as slowing demand and falling prices forced them into swingeing write-downs, cutbacks and profit warnings. Many of the exploration minnows on AIM have long since gone.

And, despite regular calls by some market-watchers that commodities are due to bounce off the bottom, nobody has wanted to own them...until now.

Commodities stage a comeback
The price of gold was already showing signs of a sustained mini-recovery when the EU referendum was held in June. So it was no surprise on the day of the result that it was mining stocks that enjoyed some of the biggest gains, and they've continued to surge ever since

Part of the appeal of mining shares, particularly among the large caps, is that they offer investors comfort in times of domestic economic uncertainty. For a start, commodities are global in nature and almost always priced in dollars. Plus, of course, these firms earn large proportions of their revenues from foreign markets.

We screened for stocks with the best blend of high quality, appealing value and positive momentum. In terms of the falling value of sterling, UK quoted mining stocks whose shares are priced in pounds are theoretically now more attractively priced for foreign investors.

For the companies themselves, though, a slump in sterling may not necessarily make a difference.
Many of them hedge their commodity exposure to take account of price fluctuations. So, a rising gold price may not have an immediate effect on the earnings for some of them.

With all this in mind, we had a look for some of the most potentially interesting mining stocks around right now. We used the StockRank to look for those with the strongest blend of high quality, appealing value and positive momentum.
We also looked for stocks where earnings are forecast to grow next year and where brokers have upgraded their earnings forecasts in the past three months.

more...........

Name	Mkt Cap £m	Stock Rank	PE Rolling	Yield %	3m EPS Upgrades %	Forecast EPS Growth %
Centamin	1,694	96	10.2	2.3	30.2	134.8
Pan African Resources	403.2	96	11.0	4.3	12.5	110.3
Rio Tinto	47,050	89	15.7	4.2	22.7	44.0
Ferrexpo	618.1	87	5.8	4.0	45.0	1,144
Anglo American	14,436	81	13.1	-	111.7	43.1
Fresnillo	12,048	75	50.4	1.0	22.2	337
Antofagasta	5,151	67	39.9	0.9	43.2	1,242
BHP Billiton	64,508	66	15.8	2.3	41.1	-31.8
Hochschild Mining	975.1	60	38.4	-	120.2	-
Kaz Minerals	1,197	55	33.6	-	585.1	1,674

Centamin Those with the highest combined quality, value and momentum are Egypt-focused gold miner

Pan African Resources. But what's striking about the list is the forecast data, which includes some very substantial percentage earnings increases for next year. It's worth remembering that in some cases, these increases are flattered as a result of starting from a low level. But even so, there is a consistent trend towards a much brighter financial performance from these firms next year. There are also notable yields of more than 4.0% on offer at the like of Pan African,

Ferrexpo It would be foolhardy to try and predict a cyclical upturn in the mining sector, but there's no doubt that in the circumstances these firms have suddenly become much more appealing among investors. How quickly the price of security rises and falls over time. A highly volatile share can be risky for short-term investors who stand a greater chance of buying at a peak and selling in a trough at a loss. in this sector can be severe and unpredictable, so careful investigation is needed. But in the search for ideas after several years of poor performance for natural resources companies, mining stocks could be an interesting place to start.

Bought some

spread 20.125p ( 20/20.25p)

Had a good marked down today, though the gold price is only slightly lower. Order book weaker earlier is gaining pace on the bid side. Paying good dividend 0.87822p and going X next month 08 December
Good points
Substantial percentage earnings increases for next year 110% and a very low PE of 6.5, yield of 4.4%
SA quote ... SA quote - jse

A turning point for South African mining?
Sector Focus

The slow re-setting of commodity prices since Chinese demand peaked at the start of the decade has been painful for most economies that rely on metal exports. But even against that backdrop, the South African mining industry has had a torrid few years. The darkest pall may have been cast by the 2012 killings at Lonmin 's (LON) Marikana mine, but the sector can count a litany of issues - from job losses, economic strife and power shortages to regulatory uncertainty and political interference - that have discouraged investment, precipitated corporate collapse and prompted asset sales.

But now, as the country inches towards a new mining charter, and following this week's news of wage settlement at the largest platinum mines, we ask whether investors can expect anything approaching stability from the most volatile of industries in an, at times, unpredictable nation.

The possibility of a downgrade to South Africa's credit rating remains”

South Africa's mining industry currently accounts for around 7 per cent of the country's gross domestic product. Not only did this figure used to be much higher, but because much of the industry's output is exported, the long fall in demand in recent years has resulted in a disproportionate effect on the country's economy. Worse still, collapsing demand has often correlated with the rand. For example, the decision by the People's Bank of China in June 2015 to devalue the yuan by 2 per cent - which international markets took as a sign that Chinese growth and resource consumption were both slowing - led to a 26 per cent drop in the value of the rand against the dollar in just six months. And the fall only accelerated last December when South Africa's president, Jacob Zuma, fired his finance minister Nhlanhla Nene, in a decision that shocked markets and rocked confidence in the government's management of the economy.

Currency falls and wage inflation
The rand's devaluation - which in recent months has softened - has had a mixed impact on miners' costs. Pan African Resources (PAF), which operates in the historic gold mining region of Mpumalanga, has certainly benefited. Financial results for the year to June show that all-in sustaining costs - the most comprehensive measure of a miner's outgoings - were essentially flat in rand terms at ZAR405,847 per kilogramme. However, those costs were a fifth lower when priced in dollars, which for a gold producer is probably a fairer yardstick. That's all the more impressive given that rand-denominated labour and energy costs edged up 12.5 per cent and 16.8 per cent during the year, neither of which was solely down to increased production.

Others less buffeted by 2016's ballooning gold price have found the rand's depreciation a more complicated factor. Desperate to avoid a repeat of a 2014 strike that crippled production, yet hamstrung by domestic inflation, the country's three dominant platinum miners - Lonmin, Impala Platinum (SA:IMP) and the Anglo American (AAL)-owned Amplats (SA:AMS) - have been under considerable pressure to settle a wage negotiation with the Association of Mineworkers and Construction Union (AMCU) this year. That's despite next to no support from platinum prices, which remain subdued thanks to surplus production and tepid demand for catalytic converters.

This week, the AMCU and Lonmin reached a three-year wage settlement at an average annual salary increase of 7.6 per cent. Impala and Amplats are both in the process of striking similar deals. But while the rhetoric from both sides of the negotiating table suggests peace has broken out, the possibility of a downgrade to South Africa's credit rating remains. Were that to occur, the inflationary challenges would be likely to test any agreement in its current form, and could yet haunt a key chuck of the country's mining industry.
To add to the concern, few platinum watchers are predicting a strong rebound in prices in the next three years.

Legal shifts and human rights
Despite this, platinum group metals remain a central component of Anglo American's rationalised strategy which, alongside the cash-generating power of diamond miner De Beers, represents something of a retrenchment to the Johannesburg-headquartered group's roots. However, the company's commitment to platinum may soon face a significant test, in the shape of a long-overdue revision to the mining charter. At present, any mining operation must be at least 26 per cent owned by a black economic empowerment partner, as part of legislation to address historic disadvantages faced by black South Africans. That 12-year-old law and its implementation have faced criticism, particularly over the interpretation of mining company equity, and whether an operation can divest its empowerment stake.
In the case of Amplats, empowerment deals involving some of its older divisions were based on units of production rather than equity, which some analysts think may be challenged under a new charter. And following Amplats' sale of its Rustenburg mines - which completed this week - there could be complications if courts rule that mining companies must be empowered in perpetuity. While these questions appear to be a matter of legal debate, South Africa's department of mineral resources will be aware of the trade-offs in asking any company to relinquish equity, given the need for desperately-sought investment.

Toxic waste dumps from mines around Johannesburg - a region dominated by gold production - has led to a human rights crisis for locals suffering the effects of contaminated water”

The government is also facing repeated calls to address the environmental and social impact of parts of the industry. A recent report by Harvard Law School found that toxic waste dumps from mines around Johannesburg - a region dominated by gold production - has led to a human rights crisis for locals suffering the effects of contaminated water. Investors should always consider the ethical trade-offs involved in mining, which in South Africa have sometimes proved enormous.

Favourites
The pains of South Africa's platinum industry are well-known, but for one recent debutante to London's market weak prices have been made much more comfortable thanks to low costs and chrome by-products. Tharisa (THS), which completed its secondary listing in June and is on track to issue a maiden dividend in 2017, is currently benefiting from a surge in chrome prices. That jump represents a clear vindication of the group's decision to more than double speciality chrome concentrate production during the 12 months to September 2016. Throw in excellent recent platinum group metals recovery rates in excess of 80 per cent, and the rally in Tharisa's share price since the company made its shares available to UK investors looks set to continue.

Outsiders
Less than a year after a heavily dilutive rights issue, platinum miner Lonmin remains in a pickle. Despite boasting some of the highest recovery rates in the industry, the company has laid off swathes of its workforce in efforts to bring down unit costs, which in the three months to June stood at ZAR10,596 an ounce, just 11 per cent below the average selling price. Unsurprisingly, such a tightrope walk is eating into the funds raised in the re-capitalisation; indeed cash had fallen to $91m by the middle of 2016. Consequently, Lonmin is somewhat reliant on - and operationally leveraged to – a recovery in platinum prices, which few in the industry are expecting any time soon.

The broker's view:
Exposure to iron ore and coking coal has been crucial to Anglo American's rally this year. But while bearish sentiment towards the stock has undoubtedly weakened it, there are still fundamental reasons why the company and investors should not want to be long of some of its higher-cost mines.

The Kumba iron ore stake, for example, is always going to be a tough asset to manage. Kumba's flagship mine at Sishen has done very well this year, thanks in part to improving prices, but this has also been due to some pretty drastic changes to the mine plan. Cash flows have been placed ahead of all other concerns, which has resulted in a deferral to stripping and a sharp decrease in the projected life of the mine. It's a decision that will come back to haunt the company.

Then there are labour costs and efficiency. It takes around 11 times the manpower to take a tonne of ore out of the ground at Kumba's mines than it does at Fortescue Metals ' (Au:FMG) operations in Western Australia, which is far more automated. What's more, the best wage negotiation a miner can hope for in South Africa is an annual increase of around 7 per cent, compared with Australia where wage inflation is currently non-existent. The South African unions' resistance to automation and the job losses they entail, make it very hard for a commodity like iron ore to remain profitable, at least against global competitors.

Consequently, it is not going to be easy for Anglo to dispose of its South African assets, although given how well the iron ore and coking coal divisions have done this year it is somewhat fortunate that the company failed to sell them straight away. Meanwhile copper, diamonds and platinum - Mark Cutifani's areas of long-term focus - have all been flat.