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Highlights:

  • WAF shares dropped 6.22% to AUD 2.26 on 9 July 2025 after Q2 production update.
  • West African Resources reported a 9% quarterly fall in gold output to 45,611 ounces.
  • WAF’s Kiaka project began operations with the first gold pour in June 2025.

West African Resources Ltd (ASX:WAF) shares declined sharply on Tuesday following the release of its June quarter (FY25) production report. By late morning on 9 July 2025, WAF shares were trading 6.22% lower at AUD 2.26, down from the previous close of AUD 2.41. Despite the one-day fall, the stock remains 63.4% higher than its level at the same time last year. For reference, the broader S&P/ASX 200 Index was down 0.3% on the day and has risen 9.4% over the past 12 months.

The share price decline follows the company’s announcement of a quarterly decrease in gold production. West African Resources reported total gold production of 45,611 ounces for the June quarter, compared to 50,033 ounces in the March quarter a 9% drop.

This output includes combined production from the Sanbrado Gold Operations and the recently operational Kiaka Gold Project, both located in Burkina Faso. The company attributed the production decline primarily to its Sanbrado underground operations, where mined ounces fell 13% quarter-on-quarter. This was driven by a 15% reduction in mined grade, slightly offset by a 3% increase in ore tonnes mined. Contained gold in the company’s ore stockpiles declined by 8%, or 8,348 ounces, over the same period.

Despite the dip in production, gold sales improved slightly. West African sold 49,840 ounces of gold during the June quarter at an average price of USD 3,282 per ounce. This compares to 48,338 ounces sold in the March quarter at an average price of USD 2,832 per ounce. Management reaffirmed that the Sanbrado mine remains on schedule to meet its 2025 guidance of 190,000 to 210,000 ounces of gold at a site sustaining cost below USD 1,350 per ounce.

The quarter also marked a milestone for the company, with the first gold pour from the Kiaka Gold Project completed in June 2025. Open-pit mining at Kiaka ramped up as planned during the quarter, and mill throughput is expected to increase during the third quarter once grid power becomes available. West African Resources has maintained its 2025 production guidance for Kiaka at between 100,000 and 150,000 ounces.

West African Resources CEO Richard Hyde stated that this has been a transformative quarter for WAF with our large, long-life, low-cost Kiaka gold project now operational alongside our Sanbrado gold operation, which continued its reliable performance in Q2 with gold production of 45,611 ounces. He confirmed that both the Sanbrado and Kiaka projects remain on track to achieve their 2025 production targets. The company is expected to release its full quarterly activities report later this month, which may provide further insight into financial and operational trends.

West African Resources is an Australia-headquartered gold mining company focused on operations in Burkina Faso. Its flagship project, the Sanbrado Gold Mine, entered commercial production in 2020, and the Kiaka Gold Project began initial production in June 2025. The company is listed on the S&P/ASX 200 Index and engages in both underground and open-pit mining.

As of July 2025, West African continues to expand production capacity across its assets while managing operational costs amid fluctuating market conditions.