Pan African Resources (LON:PAF) Trading 9.9% Higher – Time to Buy?

Pan African Resources PLC (LON:PAF)’s stock price traded up 9.9% on Wednesday . The company traded as high as GBX 160.40 and last traded at GBX 160.20. 8,635,302 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 23,019,322 shares. The stock had previously closed at GBX 145.80.

Pan African Resources News Summary

Here are the key news stories impacting Pan African Resources this week:

• Positive Sentiment: Company reported a very strong H1 performance — management highlighted record first-half results driven by higher production and the recent surge in the gold price, supporting improved earnings and margins. Pan African Resources CEO on record H1 performance on soaring gold price and production
• Positive Sentiment: Unaudited interim results and an interim dividend were announced for the six months to 31 Dec 2025 — the dividend signal and reported operational/financial outturns reinforce cash generation and shareholder returns. PAN AFRICAN RESOURCES PLC – Unaudited Interim Financial Results and Declaration of Interim Dividend for the six months ended 31 December 2025
• Positive Sentiment: Analyst/commentary coverage upgraded the outlook and described the company’s prospects as brighter, which likely lifted sentiment among investors and funds looking for leveraged exposure to a rising gold price. Pan African’s prospects brighten
• Neutral Sentiment: Technical/context: market cap ~£3.25bn, 50-day SMA ~GBX 128.7 and 200-day SMA ~GBX 99.1; the shares are trading near their 12‑month high — momentum is supportive but could invite some short-term profit-taking.
• Negative Sentiment: Balance-sheet and liquidity flags: reported debt-to-equity ~35.8 and a current ratio below 1 (0.78), quick ratio 0.74 — while earnings/cashflow have improved, leverage and sub‑1 liquidity metrics remain risks if metal prices or production slip.
• Negative Sentiment: Valuation considerations: P/E ~22.4 and a high PEG (~8.95) suggest the share price already discounts strong growth; downside could occur if growth or gold prices disappoint.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Berenberg Bank restated a “buy” rating and issued a GBX 154 target price on shares of Pan African Resources in a research note on Monday, February 9th. Canaccord Genuity Group increased their price objective on Pan African Resources from GBX 135 to GBX 160 and gave the company a “buy” rating in a report on Thursday, February 5th. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of GBX 157.

Pan African Resources Price Performance

The stock’s 50 day simple moving average is GBX 128.71 and its 200-day simple moving average is GBX 99.13. The firm has a market cap of £3.25 billion, a price-to-earnings ratio of 22.37, a price-to-earnings-growth ratio of 8.95 and a beta of 0.89. The company has a debt-to-equity ratio of 35.80, a quick ratio of 0.74 and a current ratio of 0.78.

About Pan African Resources