Pan African Resources (PAF)

Up
Share Price:
122.60p
Market Cap:
£2,861.08m
Change Today:
4.20p
Sector:
Mining

Berenberg raises target price on Pan African Resources

By Iain Gilbert

Date: Tuesday 12 Nov 2024

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on Pan African Resources from 34.0p to 45.0p on Tuesday after the group announced that it had agreed to acquire Australia's Tennant Consolidated Mining Group.
Pan African Resources will acquire TCMG for $54.2m, split between an initial cash investment of $3.4m, with the balance due in PAF shares. Berenberg noted that first production from the group's Nobles gold project in Australia was expected in Q225 and has calculated an all-in sustaining cost of $1,242 per ounce, which, given a high gold price of roughly $2,610 per ounce, points to "attractive margins".

The German bank, which reiterated its 'buy' rating on Pan African, expects the site's potential life to be extended to eight years, roughly 100,000 ounces of gold per year, approximately 10,000-15,000 tonnes of copper, and "other upside opportunities".

"We update our model for the TCMG transaction, which is due to close on 18 December, plus our revised gold price deck. We calculate a valuation of the acquisition of $71.0m," said Berenberg. "While the jurisdiction was not expected by the market (given that PAF has focused on Africa as its core market), we think the deal is sensible, and uses its paper as a currency when the shares are at their highs. We also think that as PAF integrates the assets into its business model, more upside will be realised."







Reporting by Iain Gilbert at Sharecast.com

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

PAF Market Data

Currency UK Pounds
Price 122.60p
Change Today 4.20p
52 Week High 182.60p
52 Week Low 61.80p
Volume 3,545,813
Shares Issued 2,333.67m
Market Cap £2,861.08m

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. empty sector
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Price Trend
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. full market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Income
Not Available
Growth
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. full market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
P/E
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
PEG
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. empty sector
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Dividend Yield
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
EPS Growth
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
Operating Margin
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star