Highlights

  • West African Resources shares rose 4.92% to AUD 3.20 on 31 March 2026, extending a strong 12-month gain of 37.93%.
  • The Company issued 2026 production guidance of 430,000 – 490,000 ounces of gold, a record for the Group.
  • Kiaka Gold Project is set to contribute its first full year of production, forecast at 240,000 – 280,000 ounces.
  • Group AISC is guided under US4,000/oz gold price and associated royalties.
  • WAF Board is considering a maiden dividend and/or share buybacks for the second half of 2026.

West African Resources Limited (ASX:WAF) shares advanced 4.92% to AUD 3.20 during the afternoon session on 31 March 2026. Today’s uptick follows the release of the Company's 2026 calendar year production guidance, which outlines a transformative year as the Kiaka project reaches full-scale operations.

The stock continues to be a top performer in the gold sector, with its price increasing by 37.93% over the past year, driven by steady execution in Burkina Faso and an unhedged exposure to record-high gold prices.

A Transformative Production Profile

The 2026 guidance marks an "inflection point" for WAF as it transitions from a single-mine producer to a multi-asset mid-tier gold company. The Group expects to produce between 430,000 and 490,000 ounces of gold, a massive step up from the 300,000 ounces produced in 2025.

  • Kiaka (Forecast: 240,000 - 280,000oz): In its first full year of operation, Kiaka will become the Group's primary production engine. The process plant has shown exceptional performance following its transition to stable grid power.
  • Sanbrado (Forecast: 190,000 - 210,000oz): The Company’s foundation asset remains a reliable performer, with high-grade ore from the M1 South underground and new feed from the Toega open pit expected in the second half of the year.

Disciplined Cost Management Amid High Gold Prices

The Group’s All-In Sustaining Cost (AISC) is guided at under US$1,900/oz. While this represents an increase from 2025 levels, the move is largely driven by external factors and strategic investments:

  • Royalties: WAF’s guidance assumes an average gold price of US$4,000/oz. Under Burkina Faso’s sliding scale, this results in a 10% royalty rate, contributing roughly US$440/oz to the AISC.
  • Operational Costs: Costs are also impacted by deeper mining at M1 South (longer haulage) and a conservative placeholder for potential fuel price fluctuations.
  • Grid Power Synergy: A major cost-saving driver is the use of national grid power at Kiaka, which is estimated to reduce site sustaining costs by approximately US$300/oz compared to diesel generation.

Aggressive 100,000m Drilling Program

WAF intends to invest US20 million in exploration during 2026, targeting more than 100,000 meters of drilling. The primary goal is to extend the mine life of Sanbrado beyond 10 years and upgrade the inferred resources at Kiaka.

  • Sanbrado: 65,000m of surface and underground drilling.
  • Kiaka: 7,500m focused on conversion of mineral resources.
  • Regional: Over 35,000m of regional exploration across existing permits.

Investor Takeaway

West African Resources (ASX:WAF) is successfully navigating the transition to a 500,000-ounce annual producer. The 2026 guidance provides a clear roadmap for record cash flow generation, backed by a significant exploration budget to ensure long-term sustainability. For shareholders, the most compelling news is the Board’s potential pivot toward capital management.

With a debt repayment schedule on track and a maiden dividend or share buyback under consideration for late 2026, WAF is positioning itself not just as a growth story, but as a high-yield producer in a buoyant gold market.