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Highlights

  • Multiple brokerages including Macquarie and Canaccord Genuity reaffirm BUY ratings on West African Resources

  • Target prices suggest potential share price upside of up to 77.78%

  • Recent production update supports 2025 gold output guidance of up to 360,000 oz

West African Resources Limited (ASX:WAF), an unhedged Australian gold producer operating in Burkina Faso, has received renewed BUY ratings from leading research firms, underpinned by positive quarterly production results and the successful commencement of operations at its flagship Kiaka Gold Project.

Macquarie Research and Canaccord Genuity are among several institutions maintaining a BUY stance on the company. Macquarie has set a price target of AUD 3.75 per share, implying a 59.91% upside from the current share price of AUD 2.35, while Canaccord has set a bullish target of AUD 4.00, reflecting a potential gain of 77.78%. 

June Quarter Update Supports Full-Year Guidance

West African Resources reported gold production of 45,611 ounces in the June 2025 quarter (Q2 FY25), bringing its year-to-date output to 95,644 ounces. The company sold 49,840 ounces at an average price of US$3,282 per ounce, resulting in strong cash generation despite a planned mill shutdown during the quarter.

At its Sanbrado operations, underground mining at the M1S deposit delivered 153kt of ore at a grade of 6.0 g/t for 29,320 mined ounces. Meanwhile, open-pit ore mining delivered 11,795 ounces. The company is on track to restart open-pit operations under its owner-mining model at both Sanbrado and the Toega deposit by late Q3 2025.

Sanbrado remains on pace to meet its 2025 production guidance of 190,000 to 210,000 ounces at a site sustaining cost of less than US$1,350/oz.

Kiaka Project Commissioned, Production Ramp-Up Underway

The Kiaka Gold Project achieved its first gold pour in June 2025, marking a pivotal milestone in WAF’s multi-asset growth strategy. With all major construction and commissioning works complete, excluding the grid power connection, Kiaka is now transitioning into full production mode. The processing plant delivered stable throughput and metallurgical recoveries above expectations during commissioning.

At the end of Q2 FY25, ore stockpiles at Kiaka stood at 945kt at 0.6 g/t, representing 19,200 ounces of gold available for processing. Production guidance for Kiaka in 2025 remains 100,000 to 150,000 ounces, which could take WAF’s total annual production close to 360,000 ounces once both sites are fully operational.

Strategic Positioning and Broker Outlook

WAF’s ramp-up at Kiaka alongside stable operations at Sanbrado positions the company as one of the leading mid-tier gold producers in West Africa. The successful transition to owner-mining and rcontrol add to the company’s strategic appeal.

Analysts from Macquarie Research, Canaccord Genuity, and Shaw and Partners have reaffirmed their bullish outlooks, with consensus targets ranging between AUD 3.40 and AUD 4.00. These targets translate to upside potentials of 45% to nearly 78% based on the latest share price.