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Video http://www.miningweekly.com/article/tailings-tailwind-major-boon-for-pan-african-as-rand-gold-price-falls-2018-02-13 The tailings retreatment tailwinds blowing strongly into Pan African Resources are poised to ameliorate the blow that the low rand gold price is delivering to the company's more cost-intensive underground operations. Coming in brilliantly ahead of schedule and below budget is the Elikhulu tailings retreatment project, which will ensure that more than a third of Pan African's yearly gold production arises from low-cost, low-risk tailings businesses, which have long lives ahead of them. (Also watch attached Creamer Media video). The Evander Tailings Retreatment Plant (ETRP), which paid for its initial capital outlay in less than three years and produces 20 000 oz/y and still has 14 years ahead of it, may be folded into Eiikhulu, which will begin churning out 56 000 oz a year from August for the first eight years. On its initial capital estimate of R1.74-billion, Elikhulu's payback is forecast at four years post commissioning. In addition, a regrind mill being installed at the Barberton Tailings Retreatment Plant, which achieved 18-month payback of initial capital outlay and which has 14 years ahead of it, is set to take the plant back to 20 000 oz of gold a year at an all-in sustaining cost (AISC) of $650/oz. This adds up to the London- and Johannesburg-listed gold-mining company producing 100 000 oz of gold a year from the tailings operations, at an AISC of below $700/oz, which is exceptional. "To our shareholders we're saying that our current operations are receiving all of our focus and attention," Pan African CEO Cobus Loots told Creamer Media's Mining Weekly Online after the company presented financial results for the six months to December 31.

Ramaphosa dedicated part of SONA to the Mining Charter in which he pledged to �� intensify engagement on South Africa�s Mining Charter � to ensure that it is truly and effectively an instrument to sustainably transform the face of mining in South Africa�. Ramaphosa, recently appointed South African president, said that South African mining had an �� unrealised massive potential for job and growth potential in our country�. He said it ought to be �� a sunrise industry, rather than a sunset industry�. Said Ramaphosa: �We will revitalise our mining sector [and] with a revival in commodity prices, we are determined to work with mining companies and with unions and communities, to grow this sector to attract new investment to create jobs and set the industry on a new path of transformation and sustainability�. http://www.miningmx.com/news/markets/31752-mining-charter-high-court-review-postponed-ramaphosa-makes-good-sona-promise/

Evander in particular looks low margin/possibly loss making at current rates so possibility of production cut - even though this would increase profitability - would be seen as -ve by the market.

50,000 oz p.a. @ cash cost $550/oz [Baberton $953/oz; Evander $1679/oz] Current gold price $1350/oz Margin at Elikhulu could be as high as $800/oz 50000 production x $800 = $40M profit per year/�28.6M Combined profit last year was �18M Elikhulu alone could make more than this equating to EPS of 1.5p. Am I missing something here?

Strange drop because ZAR gold price is actually up today.

Trading below book price/NAV Very solid balance sheet Growth P/E around 12

Just an update on the book price - it is closer to 9.7p actually (after inclusion of the extra shares from the placing for Elikhuku). Still trading below this though.

Farmertally at least some private investors are not simply passive sheep who do not question the merits or legitimacy of a share price and huge fall. Fair price? Has been comfortably above 200p since the IPO so lets start with that 15x EPS 14p = 210p

This equates to EPS around 25p so as you say P/E is just 5 now which is super low.

Looks like final dividend is to be maintained at 8.4p and profits a little higher than expected.

That's the uncrossing trade Merlin!

Cobus gave an interview after results saying he is very mindful of shareholders and the share price. From memory he has been buying quite a lot himself in the last year at prices much higher than now. One would think M&A is a lot more likely now Zuma is gone but the current SP reflects the low ZAR gold price and prospect of another reduction in production pre-Elikhulu which will add 50K from September 2018. I suspect the SP will turbulent until then.

Centrica (owner of BG) � the UK utility has had a horrendous 12 months with the share price halving. Think too much bad news is factored in the share price with the company yielding >9% and the shares on a P/E ratio of approximately 7. This seems excessive � much of the sharp fall can be attributed to possible fears of nationalisation if Labour form the next government. The company has been touted a bid target over the last few years from a foreign predator. Company currently has turnover that is 4 times its market cap of 7 billion GBP. The company�s share price is hovering around a 15 year low. The rewards exceed the risks at the current share price. http://www.corelondon.tv/centricas-looking-appealing-stock-buy/

http://www.corelondon.tv/centricas-looking-appealing-stock-buy/ Centrica�s share price has fallen steadily over the past year and the yield is now very, making it look attractive says Ronnie Chopra, chief global strategist at Horizon Stockbrokers. Annual revenue at �28Bn is now staggeringly 4x the current market cap.

According to MorningStar Batchelor was paid a total of �5.3M as salary/compensation/bonus in 2015 �1.6M in 2016 & another �2.2M in 2017 Compensation and 'bonus/reward' for what exactly? Driving his company's share price 50% lower? Obscene amounts of money - it should be the shareholders being compensated for such a pathetic performance and carefree attitude.

It really fell away in the last hour but alas this is the rogue market we are in not just AIM but FTSE also. Volume higher than usual. The big EPS downgrades spooked investors as has the strong ZAR with some experts predicting the more expensive operations at Evander +/- Baberton that are barely making a profit may need to be suspended. Weak USD not helping but should strengthen in the near future. EPS in H1 of 0.2p surprised most as projection was at least 0.5p. I make the book price to be close to 12p here with minimal intangibles/goodwill. Equity ratio >3. Long term any buys around 9p should do well one would think. I wonder now that a more business friendly president is in place PAF may attract takeover interest. After all the market cap of ~ �200M is pocket change for someone like Anglo or Glencore. Thoughts?

What does it say about the markets?

There will almost certainly be news in this weekends papers about results next week and whether the dividend will be maintained or not.

Is that what you posted earlier that has now been removed?

Ramaphosa needs to help the gold mining sector in particular as a stronger rand does not help them. USD ZAR is at the highest level for 2 years. Whilst Elikhulu and Sheba are ultra low cost Evander and Baberton are not as highlighted in H1 results - barely breaking even with those 2 projects. He must introduce some tax breaks for the gold miners and smooth over wage discussions. A higher gold price and weaker rand would also help of course. On the plus side the controversial mining charter/nationalisation risks should be a thing of the past now.