**Summary of Pan African Resources PLCs Half-Year Report (Unaudited) for the Six Months Ended December 2025**
**Financial Highlights**
**Revenue Growth** Revenue surged by 157.3% to US$487.1 million, driven by a 51.5% increase in gold production to 128,296 ounces and a 61.6% rise in the average gold price received to US$3,812/oz.
**Profit Increase** Profit for the period rose by 211.9% to a record US$147.8 million.
**Cash Generation** Net cash generated from operating activities increased significantly to US$170.9 million, leading to a 69.3% reduction in net debt to US$46.2 million.
**Earnings Per Share (EPS)** EPS increased by 192.0% to US 7.30 cents per share, while Headline EPS (HEPS) rose by 511.7% to US 7.34 cents per share.
**Operational Performance**
**Gold Production** Gold production increased by 51.5% to 128,296 ounces, with the Group on track to meet its full-year production guidance of 275,000 to 292,000 ounces.
**Safety Improvements** Overall safety performance improved, with a substantial reduction in the total recordable injury frequency rate to 4.74 per million man-hours.
**Cost Management** All-in sustaining costs (AISC) for the period were US$1,874/oz, impacted by currency fluctuations and higher employee share-based payment expenses. Lower-cost operations, accounting for 88% of production, recorded AISC of US$1,700/oz.
**Strategic Developments**
**Listing Upgrade** The Groups shares were moved from the AIM to the Main Market of the London Stock Exchange (LSE) in October 2025 and included in the LSE FTSE250 Index in December 2025.
**Dividend Payment** A board-approved interim cash dividend of ZAR 12,000.00 cents per share was declared.
**Growth Projects**
**Tennant Mines** Expected to double gold production to approximately 100,000 ounces per annum over the next three years.
**Mogale Tailings Retreatment (MTR)** The Soweto Cluster bankable feasibility study is nearing completion, with expected annual gold production of 30,000 to 35,000 ounces.
**Barberton Mines Royal Sheba Project** Scheduled for expedited execution, with a mineral resource of 6.9Mt at 3.24g/t for 714Koz.
**Evander Mines Poplar Project** An advanced prefeasibility study is underway to assess potential access approaches for this shallow deposit with 6.46Moz in mineral resources.
**EnvironmentalSocialand Governance (ESG) Initiatives:**
**Renewable Energy** Expansion of solar generation capacity at Evander Mines from 10MW to 30MW, with a 10-year power purchase agreement (PPA) with NOA Group Holdings.
**Water Management** Construction of two water treatment plants at Evander Mines and MTR, with commissioning expected in March and May 2026, respectively.
**Community Development** The MTR operation was awarded Best ESG Initiative by a Mining Company for its positive environmental and community impacts.
**Outlook**
The Group is positioned for continued production growth, with a focus on internal expansions and cost control.
Expected FY26 production ranges are adjusted to 275,000 to 292,000 ounces, with a revised AISC guidance of US$1,820/oz to US$1,870/oz.
The Group aims to maintain its trajectory of near-term, sector-leading, and fully funded production growth, supported by sustainable ESG practices.
**Conclusion**
Pan African Resources PLC demonstrated strong financial and operational performance in the first half of FY26, marked by significant revenue and profit growth, improved safety metrics, and strategic advancements in production and sustainability. The Group is well-positioned for future growth, with a focus on expanding production, enhancing ESG initiatives, and delivering value to shareholders.