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PAN...Where from here.

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jago
Contributor
Pan is a pretty unique business, which is on an uptrend. Manica, should be a catalyst for a leg-up in April, maybe a special dividend??? Also, PAN are presenting at the Proactive Investors event on the 18th April at 6pm. This event is suitable for the following: Sophisticated & private investors, private client brokers, fund managers, financial institutions, hedge funds, buy & sell side analysts and journalists. http://www.proactiveinvestors.co.uk/register/event_details/142 Harmony held a site visit to its Doornkop mine, there's a 45 page visit brochure on their site, could they be looking to sell this too and did PAN attend? http://www.harmony.co.za/im/press_display.asp?pressId=360
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7 REPLIES 7
cheapcheap
Regular Contributor
i'm with you on this one,been one of my best picks...bought at 109cents,i'm holding long term,i don't like gold miners but it's like you say,they are a bit unique.the company says that they will only hold i think 20% of manica,so definately the shareholders should derive some sort of value there. they will be ramping up production,albeit not at the same cost.i've mentioned it before on the forum,the interview i watched ,where they interviewed the ceo,he spoke to soon and said they they were busy with 3 deals,evander is one,we will have to wait and see what the others are.....
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klapka
Super Contributor
Graham Briggs was interviewed around November and asked if they were considering selling Doornkop and he said definitely not. It was in the same interview he was asked "What about Evander?" He said, "No comment." That coincided with the cautionaries from PAN and WGR. I heard that PAN are going to retain 35% of Manica. If they want to concentrate on local mines, I wonder why?
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platau
Occasional Contributor
CEO of PAN another one of ZBS(VIL) prodigee's. Good buy - will run soon
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Not applicable
Personally, I don't like this kind of finite term investment. The value in PAN, at current levels, comes from whatever deal they are able to strike in the future, growth won't come from their current assets, unless there is an adjustment in the commodities prices, in which case you get a pretty decent gearing effect with miners. But you have the flip side too (as is the case with gearing). Not saying it isn't a quality company though, just that it doesn't fit with my investment style.
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jago
Contributor
In less than five year Pan African Resources (PAF:AIM) has transformed itself from being a junior exploration company into a mid-tier South African-focused precious metals producer. Unique as a primary producer of gold and platinum, the company is positioned to capitalise on further opportunities within the precious metals sector. Pan AfricanÂ’s strengths are its high cash generation and low capital overrun risk. With Barberton underground, Evander being free cashflow generative and the two tailings processing projects set to follow, Pan African is primed to produce 170,000 ounces of gold and 12,000 ounces of PGMÂ’s from 2014, delivering around $175m in annual free cashflow at current metal prices and operating costs. With a dividend yield of just under 4%, the company is the highest yielding gold play in the sector and also offers investors significant growth potential. http://www.mrqonline.co.uk/article/view/id/33/title/07-Feature-Pan-African-Resources The above is an insert from an article from the Mining and Resource Quarterly. I appreciate that this is your investment strategy skaaptjop, but I do not agree that the current levels come from prospective future deals. PAN is a quality security, with real high yielding profits, that does give merit to its current levels. In addition, yes!... the possibility of future lucrative deals does add lustre to the appeal of PAN, but that an added prospect of future yield.
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THRESHOLD
Super Contributor
PAN has acquired an expensive (perhaps), old and largely played out asset from Harmony in the form of EVANDER. The market needs to see how the payment mechanics will work ie. will there be a dilutive rights issue, an onerous hedge placed to cover borrowings etc...... In any event - this company has changed in one fell swoop from a one-of-a-kind unhedged, high-value, dividend paying play on the Rand Gold Price into a traditional South frican-type gold play.
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partridge
Super Contributor
This is not a mature business and it could look very different in 5 years time. Of course it could be a one trick pony- it could have only one strategy - but that would be reflected in in a passive management. This is not a passive team.So WHILE I doubt that this is only a five year hold we will have to see what the next two or so years bring.
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