Since my previous review of Pan African Resources (OTC:PAFRF), the company's share price has not changed at all (still £0.14 in London exchange) and the company still remains significantly undervalued. I believe investors are grouping Pan African together with junior gold miners, and therefore attach a far lower valuation to its reserves, cash flow and dividends. In this article, I will clarify why I think Pan African Resources should not be regarded as a junior miner, but rather as a developed gold producer. At the same time, I will argue that the company is significantly undervalued compared to large-cap, low-cost gold miners, particularly Yamana Gold (NYSE:AUY).
Not the usual junior gold miner
I tend to avoid...
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