Pan African Pan African Resources Funding
Resources PLC Company Limited
(Incorporated Incorporated in the Republic of
and South Africa with limited
registered in liability
England and
Wales under Registration number:
the Companies 2012/021237/06
Act 1985 with
registered Alpha code: PARI
number
3937466 on 25
February
2000)
Share code on
LSE: PAF
Share code on
JSE: PAN
Share code on
ASX: PAF
ISIN:
GB0004300496
ADR ticker
code: PAFRY
(`Pan African
Resources' or
the `Group'
or the
`Company')
PAN AFRICAN COMPLETES DEFINITIVE FEASIBILITY STUDY (DFS) ON THE SOWETO TAILINGS
RETREATMENT (STR) PROJECT, DELIVERING A ROBUST LONG TERM GROWTH PATHWAY FOR THE
MOGALE TAILINGS RETREATMENT (MTR) COMPLEX
Further to the announcement published on 27 November 2025, Pan African is
pleased to advise shareholders and noteholders that the Company has successfully
completed the DFS for the STR project, located adjacent to the Group's MTR
operations on the West Rand of Gauteng, South Africa.
The STR project encompasses the retreatment of the Soweto Cluster tailings
storage facilities (TSFs), acquired as part of the Mintails transaction, and
comprises Mineral Reserves of approximately 108Mt at 0.28g/t containing
approximately 0.98Moz of gold.
The DFS evaluated the construction of a 600,000 tonnes per month (600ktpm)
tailings retreatment operation adjacent to the existing MTR processing facility.
The project has been designed to leverage the existing MTR elution, carbon
regeneration, electrowinning and smelting infrastructure, significantly reducing
capital intensity and improving project economics relative to a standalone
development.
DFS HIGHLIGHTS
· Annual gold production of 35,000oz to 40,000oz from STR, with Life of
Mine (LOM) production of approximately 561,000oz over a project life of
approximately 15 years
· LOM all-in sustaining cost (AISC) of approximately US$1,750-1,800/oz,
excluding cost savings from renewable energy supply
· Value-engineered project capital estimate of approximately ZAR3.68
billion (US$216 million at ZAR:US$=17.00), which now takes into account the
dedicated new TSF and associated remining infrastructure
· Using a gold price of US$3,550/oz the project returns
· Post-tax NPV\13\ of approximately ZAR1.85 billion (US$109 million)
· Real ungeared internal rate of return (IRR) of approximately 29.55%
· Payback period of approximately three years, post-commissioning
· Construction period of approximately 28 months from Final Investment
Decision (FID)
· Dedicated new TSF incorporated into the project design
· Synergies with existing MTR infrastructure for elution, carbon
regeneration, electrowinning and gold smelting
PROJECT OVERVIEW
The STR project will comprise a dedicated 600ktpm tailings retreatment circuit,
together with associated hydraulic mining infrastructure, pumping stations,
overland slurry and water pipelines of approximately 18km, process water
infrastructure and a new modern GISTM compliant tailings deposition facility.
The project has been designed to operate in conjunction with the existing MTR
operation and will materially increase gold production from the MTR complex to
approximately 100,000oz/year at peak production, while accelerating the
rehabilitation of historical tailings facilities and surrounding areas on the
West Rand.
A comprehensive value engineering programme was undertaken by the Group
following completion of the base case DFS. This review identified potential
capital savings of approximately ZAR718 million, reducing estimated project
capital from approximately ZAR4.40 billion to ZAR3.68 billion while maintaining
project throughput, production and operational performance.
ENVIRONMENTAL AND PERMITTING
The Environmental Impact Assessment and permitting process is well advanced,
including approvals for pipeline servitudes, while the Water Use Licence
application has been submitted and is in progress. The Group currently
anticipates receipt of the principal environmental authorisations during FY27,
supporting the targeted project development schedule.
FINAL INVESTMENT DECISION
The Group intends to complete the remaining permitting, optimisation and
financing workstreams during FY27.
Subject to board approval, project financing and receipt of the required
statutory authorisations, a FID is anticipated in December 2026.
Pan African Resources CEO Cobus Loots commented:
"The completion of the STR DFS marks another important milestone in the
evolution of the MTR complex. By leveraging the substantial infrastructure
already established at MTR and Pan African's track record of optimally
delivering tailings retreatment projects, we have been able to define a project
that delivers attractive returns, meaningful production growth and accelerated
environmental rehabilitation.
The STR project has the potential to increase annual gold production from the
MTR complex to approximately 100,000 ounces per annum at peak production, while
simultaneously addressing historical environmental liabilities on the West Rand.
We look forward to advancing the remaining permitting and financing workstreams
ahead of a targeted Final Investment Decision during December 2026."
COMPETENT PERSON
The competent person for Pan African, Hendrik Pretorius, the executive for
technical services and new business, signs off the Mineral Resources and Mineral
Reserves for the Group. He is a member of the South African Council for Natural
Scientific Professions (SACNASP 400051/11 - Management Enterprise Building, Mark
Shuttleworth Street, Innovation Hub, Pretoria, Gauteng Province, South Africa),
as well as a fellow in good standing of the Geological Society of South Africa
(GSSA - CSIR Mining Precinct, Corner Rustenburg and Carlow Roads, Melville,
Gauteng Province, South Africa). Hendrik has 23 years' experience in economic
geology, mineral resource management (MRM) and mining (surface mining and
shallow to ultra-deep underground mining). He is based at The Firs Office
Building, 2nd Floor, Office 204, Corner Cradock and Biermann Avenues, Rosebank,
Johannesburg, South Africa. He holds a BSc (Hons) degree in Geology from the
University of Johannesburg as well as a Graduate Diploma in Mining Engineering
from the University of the Witwatersrand. Hendrik has reviewed, and approved, in
writing the information contained in this announcement as it pertains to Mineral
Resources and Mineral Reserves.
The information contained in this announcement is the responsibility of the
board and has not been reviewed or reported on by the Group's external auditors.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European
Union (Withdrawal) Act 2018. Upon the publication of this announcement via the
Regulatory Information Service in the UK, the stock exchange news service of the
JSE and the Australian Stock Exchange, this inside information is now considered
to be in the public domain.
Johannesburg
11 September 2026
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate Office Registered Office
The Firs Building 107 Cheapside, 2nd Floor
2nd Floor, Office 204 London, EC2V 6DN
Corner Cradock and Biermann Avenues United Kingdom
Rosebank, Johannesburg Office: + 44 (0)20 3869
0706
South Africa
Office: + 27 (0)11 243 2900
info@paf.co.za
Chief Executive Officer Financial Director and debt
officer
Cobus Loots
Marileen Kok
Office: + 27 (0)11 243
2900 Office: + 27 (0)11 243 2900
Head: Investor Relations Website:
www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company Secretary Joint Broker
Jane Kirton Ross Allister/Georgia
Langoulant
St James's Corporate Services Limited
Peel Hunt LLP
Office: + 44 (0)20 3869 0706
Office: +44 (0)20 7418 8900
JSE Sponsor & JSE Debt Sponsor Joint Broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary BMO Capital Markets Limited
Limited
Office: +44 (0)20 7236 1010
Office: + 27 (0) 78 286 9556
Joint Broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler &
Co KG (Berenberg)
Office: +44 (0)20 3207 7800
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/pan-african-resources-plc/r/pan-african-completes-definitive-feasibility-study--dfs--on-the-soweto-talings-retreatment--str--pro,c4394605
