RBC Capital starts coverage of Pan African Resources at 'outperform'
By Michele Maatouk
Date: Friday 07 Aug 2026
(Sharecast News) - RBC Capital Markets initiated coverage of mid-tier gold producer Pan African Resources on Friday with an 'outperform' rating and 155p price target.
"Pan African has been transformed from a conventional South African gold miner into a mid-cap gold producer with a clear path to 350kozpa Au," it said.
The bank said it was "the new kid on the block" on the FTSE 250. It pointed to best-in-class volume growth, EBITDA lifting to $1.2bn by FY29 and positive free cash flow generation, and said the company is on track to return around $0.8bn in ordinary dividends over FY26-30e, with scope for supplementary returns taking the dividend yield ahead of peers.
RBC noted the shares have underperformed the GDX - an exchange-traded fund tracking gold miners - by 11% year-to-date and are trading at 0.70x P/NAV and 3.2x 2026-27e EV/EBITDA. The current share price implies exposure to a solid South African gold business with a free option on Australia growth, it said.
At 1215 BST, the shares were up 7.5% at 109.80p.
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