Highlights

  • West African Resources met full-year 2025 gold production and cost guidance for the fifth year.
  • December quarter gold production totaled 112,019 oz with group AISC of USD 1,561/oz.
  • Cash, bullion, and liquidity increased materially by the end of the December quarter.

West African Resources Limited (ASX:WAF) released its December 2025 quarterly report, outlining production, cost performance, and operational updates across its Sanbrado and Kiaka gold operations in Burkina Faso. The group confirmed that 2025 production and cost guidance were achieved, marking the fifth consecutive year of meeting stated targets.

Group gold production for the December quarter reached 112,019 oz, while gold sales totaled 105,995 oz at an average realised price of USD 4,058/oz. The company remained fully unhedged during the period. All-in sustaining cost (AISC) for the quarter was USD 1,561/oz, with full-year AISC reported at USD 1,488/oz.

Sanbrado Operations
The Sanbrado gold production centre produced 49,732 oz during the quarter at a site sustaining cost of USD 1,399/oz. For the full year, Sanbrado delivered 205,228 oz at a site sustaining cost of USD 1,348/oz, aligning with annual guidance of 190,000–210,000 oz.

Open-pit mining at Sanbrado resumed under an owner-mining model, with ore sourced from the M5 North pit and stockpiles. Underground mining from M1 South produced 37,955 oz during the quarter, lower than the previous quarter due to reduced grade and throughput following a planned shutdown.

Sanbrado ended the quarter holding 11,627 oz of unsold gold bullion, valued at approximately USD 51 million.

Kiaka Ramp-Up Phase
The December quarter represented the first full operational quarter for Kiaka following construction completion. Kiaka produced 62,287 oz at a site sustaining cost of USD 1,649/oz. Gold sales reached 56,293 oz at an average realised price of USD 4,039/oz.

Mining and processing activity increased materially as additional equipment and power capacity were commissioned. Ore throughput rose alongside higher head grades, contributing to a quarter-on-quarter increase in production. Kiaka closed the quarter with 15,468 oz of unsold bullion, valued at approximately USD 68 million.

Financial Position and Cash Flow
Operating activities generated AUD 389 million in cash during the quarter, after AUD 48 million in income tax payments. Cash and cash equivalents at quarter end totaled AUD 584 million, with additional bullion awaiting settlement valued at USD 118.3 million.

Notional net cash improved to USD 209.7 million by the end of December, compared with USD 33.1 million at the start of the quarter. Non-sustaining capital expenditure of AUD 159 million was mainly linked to Kiaka construction completion, owner-mining equipment, and Toega site development.

Growth and Outlook
Drilling beneath the M5 North open-pit reserve confirmed mineralisation below current reserves, supporting further technical evaluation. At Toega, site establishment and pre-stripping activities progressed, with ore delivery to the Sanbrado plant targeted for early Q3 2026.

In my view, the December quarter data highlights operational consistency and balance-sheet improvement, while also showing higher exposure to gold-linked royalties as prices rise. Attention in upcoming quarters may center on how capital management priorities are articulated alongside updated production guidance.

Share perfromacne
WAF traded at AUD 3.82, up 2.83% today at the time of writing.