UBS Prefers Gold Over Platinum After Second Straight Quarterly Surplus

Nativo Resources has signed a conditional letter of intent with Chancery Royalty for project finance and an equity subscription to complete construction and commissioning of phase one of the La Patona Gold Ore Processing Plant in Acarí, Peru. Under the terms, Nativo is expected to receive $3.5m, or £2.62m, in project finance paid through seven equal monthly instalments of $500,000 each, with the first instalment due no later than 31 December 2026 subject to definitive documentation. A separate equity subscription valued at £600,000 will be completed in two stages: a first tranche of 142,857,143 new ordinary shares at 0.21p each to raise £300,000, expected to complete 60 days after the agreement, and a second tranche of an identical number of shares to be settled by the end of September 2026, together granting the new investors a combined 17.4% stake in Nativo's enlarged issued share capital. In return, Chancery will receive a 6% gross revenue share on gold produced at La Patona until receipts equal 3,034 troy ounces of gold. Nativo CEO Stephen Birrell said the agreement provides a clear and fully funded pathway to complete construction and commissioning of La Patona Phase 1, and the company expects the 70 tonnes per day plant to take approximately five to six months to build and commission once resumed, with commissioning targeted for the second quarter of 2027 and future expansions to 350 tonnes per day funded from phase one cash flow.

Pan African Resources PLC reported record gold production of just under 275,000 ounces for its 2026 fiscal year, up about 40% year-on-year, with a second-half annualized run-rate near 290,000 ounces. Revenue rose 114% to $1.1 billion, adjusted EBITDA climbed 169%, and headline earnings surged 207% to $358 million, or $0.1764 per share, as the average US dollar gold price received rose 55% and the group remained unhedged throughout the year. The company ended the year debt-free with $246 million in cash and short-term investments and $79 million in undrawn facilities, after repaying $149 million including $119 million voluntarily. The board proposed a record final dividend of ZAR0.65 per share plus a maiden interim dividend of ZAR0.12, for a total of ZAR0.77 per share, up 108% and worth roughly $113 million, and approved a share buyback of up to ZAR500 million, about $30 million, commencing October 2026. For FY27, the company guided production to 280,000 to just over 300,000 ounces, skewed to the second half, with group capital spending of approximately $330 million.