Highlights

  • Canaccord Genuity sees 100% upside with a target price of AUD 4.70.

  • Macquarie assigns an ‘Outperform’ rating with a 40.43% upside to AUD 3.30.

  • WAF reports AUD 86 million in Q2 cash flow from operations and AUD 279 million cash balance.

West African Resources Limited (ASX:WAF) has received endorsements from leading investment banks Macquarie and Canaccord Genuity, both issuing BUY-equivalent ratings with significant upside potential, likely on the basis of the company’s June 2025 quarterly results and promising project developments.

Analyst Confidence 

Two prominent analysts — Paul Howard from Canaccord Genuity and Andrew Bowler from Macquarie Research — have reaffirmed their confidence in West African Resources' growth trajectory. Canaccord Genuity has issued a BUY rating, forecasting a price target of AUD 4.70, which represents a 100% increase from the current share price. Similarly, Macquarie Research maintained its OUTPERFORM rating with a target price of AUD 3.30, implying a 40.43% upside.

These optimistic assessments might stem from WAF’s resilient financials, effective project execution, and consistent production results.

Operational Quarter Underpins Analyst Optimism

In its Q2 FY25 report, WAF announced gold production of 45,611 ounces at an AISC of US$1,492/oz, with sales of 49,840 ounces at an average price of USD 3,282/oz — a notable selling price in a favourable gold market. The company remains unhedged, positioning itself to fully benefit from potential gold price surges.

Operationally, WAF reported AUD 86 million in operating cash flow, despite making AUD 42 million in tax payments, and closed the quarter with AUD 279 million in cash along with AUD 49 million worth of bullion on hand.

Kiaka Project Achieves Major Milestones

One of the most notable achievements this quarter was the early and under-budget delivery of the Kiaka Gold Project, which poured its first gold bars on 26 June 2025. The ramp-up to commercial production is already underway, with the grid power connection expected in Q3 2025. 

Meanwhile, at the Sanbrado Gold Operations, WAF is successfully transitioning to owner-operated open pit mining.

Exploration Success Adds Further Growth Prospects

WAF also reported encouraging exploration results from resource definition drilling beneath the M1 South underground reserve. Standout intersections included 44m at 25.8 g/t gold and 44.5m at 17.1 g/t gold.

The company aims to release an updated Resource, Reserve, and 10-year production plan in the upcoming quarter.