Pan African Resources (LON:PAF) Stock Price Up 9.9% – Time to Buy?

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

Key Headlines Impacting Pan African Resources

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.

Analyst Upgrades and Downgrades

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

Pan African Resources Stock Performance

The company has a current ratio of 0.78, a quick ratio of 0.74 and a debt-to-equity ratio of 35.80. The firm has a market cap of £3.12 billion, a price-to-earnings ratio of 21.51, a price-to-earnings-growth ratio of 8.95 and a beta of 0.89. The stock has a fifty day moving average price of GBX 128.71 and a 200 day moving average price of GBX 99.13.

About Pan African Resources