Cobus Loots
CEO: Pan African Resources
‘Opportunities like Nobles don’t come along very often. Too small for the majors, too large for juniors’
FINALLY, at long, long last, the Pan African share price has started to respond positively after years of underperformance against its peers despite the firm’s management doing many of the right things required of a developing gold miner. Amid a doubling in value, Pan African cracked the influential GDX index for the first time in September after New York fund manager VanEck took a 5.9% stake. Obviously, the surging gold price has provided gale-force tailwinds but Pan African management also helped itself by returning production to its previous record levels, which were set in 2022.
Key among this achievement was the Mogale Tailings Retreatment Project on the West Rand, brought online in October ahead of schedule and below its R2.5bn budget. That not only pushed extra production into the soaring gold market but underlined management’s abilities to deliver. So far so good, but let’s hope Pan African does not get ahead of itself. In November, Loots announced the all-share $54.2m acquisition of the Nobles gold project in Australia, which he said would increase group production close to 300,000 ounces a year, potentially introduce copper into the portfolio and diversify risk away from the ageing Barberton Mines in Mpumalanga province. The project will require an initial capital outlay of $35.7m.
Operating Down Under is very different to South Africa and brings a new range of challenges, so this is one to watch. An earlier strategy to explore Sudan for gold, which is renowned for artisanal production, was shelved amid a civil war that shows no signs of abating.
LIFE OF COBUS
Loots is a chartered accountant by training. He worked for Cyril Ramaphosa’s Shanduka Resources, which was the black economic empowerment partner in Pan African. Loots was appointed a director at Pan African in 2009 and became CFO in 2013. He was made CEO in 2015. He’s a runner of marathons with a sure and steady approach to race day which has been reflected in the slow-burn success of his company.
