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Highlights

  • Q1 gold production reaches 50,033 ounces at Sanbrado Gold Operations

  • Gold sold at an average price of US$2,832/oz, boosting revenue confidence

  • FY25 guidance reaffirmed: 190,000–210,000 oz at sub-US$1,350/oz costs

West African Resources Ltd (ASX:WAF) shares surged 4.3% on Tuesday to AU$2.17, following the company’s upbeat first-quarter production report from its flagship Sanbrado Gold Operations in Burkina Faso.

The company delivered a positive start to the year with Q1 gold production of 50,033 ounces, placing it firmly on track to meet its full-year guidance of 190,000 to 210,000 ounces in 2025. Investors welcomed the positive update, especially amid a buoyant gold price environment and growing appetite for resilient, low-cost producers.

Gold sales for the quarter totalled 48,338 ounces, achieving an average realised price of US$2,832 per ounce. This favourable pricing significantly enhances West African’s revenue base and underpins its continued cash generation capabilities.

Operationally, the company maintained a steady performance from its open-pit operations, with mined ounces in Q1 consistent with the previous quarter. Notably, underground mined ounces increased by 7%, demonstrating growing efficiency and ore access at depth.

Another positive indicator for future production is the build-up in ore stockpiles. West African reported a 34% increase in contained gold within ore stockpiles, adding around 20,600 ounces over the quarter. This also provides flexibility and operational headroom for the quarters ahead.

In a statement to the ASX, management reaffirmed their confidence in meeting 2025 guidance. The company is targeting total production between 190,000 and 210,000 ounces for the year at a site sustaining cost (SSC) below US$1,350 per ounce. With gold prices hovering near record highs and costs well-contained, margins remain robust, attracting attention from growth-focused and value-oriented investors alike.

The Sanbrado project, which commenced commercial production in 2020, continues to serve as a cornerstone for West African’s operations. It boasts an efficient blend of open-pit and underground mining, giving the company agility in its mining approach and strategic cost management.

Looking beyond Sanbrado, the company is also progressing development activities at its Kiaka Gold Project, also located in Burkina Faso. Once operational, Kiaka is expected to significantly increase West African’s production profile, with potential to deliver over 200,000 ounces annually on its own.