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Pan African Resources had no difficulty raising R705m in a share placement with institutions last week despite political uncertainty in SA and recent problems at its Evander gold mine. Institutional investors are remaining loyal to its attractions as a defensive gold share. Out of the Bloomberg consensus of eight analyst ratings, five rate the shares a "buy". Shoaib Vayej, portfolio manager at Afena Capital, says Pan African remains one of the firm’s preferred gold stocks, though there have been some concerns about recent performance. The shares offer an above-average dividend yield and have previously always been defensive. They underperform their peers when gold is rising and outperform when gold is falling. But the greater contribution from Evander since Pan African acquired it in 2013 has exposed the group to the same risks as other SA deep-level gold miners. The share placement was to raise funds for the Elikhulu tailings treatment project at Evander, which will deliver about 5...

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