Gold miner eyes LSE promotion after broker upgrade as prices soar

AIM-listed Pan African is hoping to be promoted to the London Stock Exchange’s main market as the gold miner capitalises on record high prices. Pan African, which is also listed on the main market of the Johannesburg Stock Exchange, operates gold mines in South Africa and Australia.

The group’s value has more than doubled since the start of the year as it has cashed-in on record high gold prices while making efforts to significantly ramp-up production. London’s main market has seen a number of gold miners exit in recent years, including Acacia in 2019, Polymetal & Petropavlovsk in 2022 and Centamin last year. Pan African told shareholders on Monday its proposed move to the LSE’s main market could ‘enhance the company’s corporate profile’ and broaden its access to a wider pool of investors to support its next phase of growth.

It said it was ‘currently progressing workstreams to facilitate’ its admission to the main market after formal applications to the Financial Conduct Authority and London Stock Exchange Group.

Boss Cobus Loots added the move ‘represents a natural continuation of Pan African’s growth’, with the group currently ‘benefitting from the strong gold price environment which we expect will enable us to be fully de-geared (from a net debt perspective)’ in financial year 2026.

Pan African Resources shares were up 6.6 per cent to 75.24p in early trading, taking 2025 gains to around 111 per cent. They have returned more than 150 per cent over the last 12 months and and over 200 per cent over the last five years. It came as gold prices hit yet another record high on Monday above $3,610 an ounce, taking 2025 gains to almost 40 per cent.

Pan African’s potential promotions to the main market also followed a broker upgrade over the weekend, with analysts at Peel Hunt hiking their target price on the group’s shares by 15p to 76p. 

Peel Hunt said: ‘Over time, as volumes increase further, we can see a longer-term value of c.130p/share at our long-term gold price assumption of US$2,500/oz and historic average 5.6x.

‘The combination of higher output… plus better realised gold prices now the hedges have unwound, means we expect a significant jump in EBITDA (and with that, cash generation) in FY26E.

‘Combined with the expectations for rising output from Tennant Creek as higher-grade mines are opened up, we see further EBITDA growth.’