Pan African Resources (PAF) is to buy another stake in Shanduka Gold, the black economic empowerment shareholder whose sole asset is a 23.8 per cent stake in the South African gold miner.
In February, Pan African moved to purchase the 16.9 per cent interest in Shanduka owned by Standard Bank of South Africa, although this has now been extended to a 33.6 per cent interest owned by fellow investor Jadeite. To fund the purchase - which is being made to address dilution risks "presented by the possible dilution of its black economic empowerment ownership" - Pan African will stump up £23.9m, with the balance being funded by a vendor placing with new institutional investors at 14.25p a share, which constitutes a 5 per cent premium to the 30-day volume weighted average price.
Analysts at Peel Hunt are forecasting adjusted pre-tax profit of £38.4m for the June year-end, leading to EPS of 1.6p, against £15.9m and 0.7p in 2015.
