Interview with Cobus Loots, CEO of Pan African Resources (AIM:PAF).
We don't tend to like investing in gold producers as they rarely perform for shareholders. But we like this one, a lot. The CEO is brutally and refreshingly honest. He spends lot of time pointing out the difficulties in mining and operating in mining and mining in South Africa. See the company Presentation and he spells it out there too.
However, they make it work. They have a long track record of producing gold and paying dividends. Last year they suspended the dividend payments their debt borrowing for the new plant was the focus, however, they are planning to pay a dividend (subject to shareholder vote in November!). The Audit Results are out today. The numbers are extremely encouraging and show a tremendous growth across the company. Cobus Loots talks about how they have done it and what the growth targets are in the short term. We were impressed about the way they think about capital allocation. Investing in their assets, they want to repay the debt on balance sheet, paying a dividend and how to deliver growth.
They still have a lot to do but think this team is rigorous in its planning and methodical is how it delivers its projects.
Company page: https://www.panafricanresources.com
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