Pan African eyes LSE main market promotion as gold rallies to record highs

Pan African, the AIM-listed gold miner, said Monday it is progressing workstreams to facilitate a promotion to the London Stock Exchange's main market after submitting formal applications to the Financial Conduct Authority and the London Stock Exchange Group.

The company, which also trades on the Johannesburg Stock Exchange's main market and operates gold mines in South Africa and Australia, said the move could "enhance the company's corporate profile" and broaden access to a wider pool of investors to support its next phase of growth. Chief executive Cobus Loots described the proposal as "a natural continuation of Pan African's growth," and said the group is "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's market value has surged in 2025 as gold set successive records. The company's shares rose about 6.6% to 75.24 pence in early trading on Monday, taking gains for the year to roughly 111%. Over the last 12 months the shares have climbed more than 150%, and they are up more than 200% over five years, the company reported.

The share rally comes as gold traded above $3,610 an ounce on Monday, extending a 2025 gain of almost 40% and delivering what the company described as an improved pricing environment. Peel Hunt, which raised its target price for Pan African by 15 pence to 76p over the weekend, said the combination of higher output and better realised gold prices following an unwind of hedges should drive a significant jump in EBITDA in fiscal 2026.

"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," Peel Hunt wrote, noting additional expected EBITDA growth from rising output at Tennant Creek as higher-grade mines are brought into production.

Pan African has been increasing production and targeting stronger cash generation as the gold rally eases pressure on its balance sheet. The company said it expects the improved price backdrop to help reduce net debt levels toward a fully de-geared position by FY2026, subject to operational performance and commodity-market conditions.

A move to the LSE's main market would reverse a trend in recent years in which several London-listed gold miners left the market, including Acacia in 2019, Polymetal and Petropavlovsk in 2022, and Centamin in 2024. Pan African said a main-market listing would "enhance the company's corporate profile" and could broaden its access to institutional investors in the UK and internationally.

Pan African did not give a timeline for completion of the admission process. The company said it was "currently progressing workstreams to facilitate" its admission, and that any final outcome would be subject to regulatory approval and customary admission requirements. Peel Hunt's upgrade and the recent rally in gold prices were cited by analysts and company executives as supporting factors for the application.

Investors and analysts will watch upcoming operational updates and Pan African's financial results for indicators of production growth and cash generation that could underpin a successful transition to the London main market. The company's statements and broker commentary framed the proposed move as part of a broader strategic plan to capitalise on higher prices and rising output while strengthening access to capital.