Highlights

  • WAF produced 206,622 ounces of gold in FY24, hitting the upper guidance range.
  • WAF closed 1HFY24 with AUD 425 million in cash reserves.
  • Kiaka Project is on track for its first gold production by Q3 2025.
  • The company aims to average 420,000 ounces annually, peaking at 494,000 ounces in 2030.

West African Resources Limited (ASX:WAF) is an ASX-listed company with a focus on the exploration, advancement and acquisition of gold projects in West Africa. The company targets gold production of nearly 4 million ounces in the next 10 years with annual production expected to reach 494k ounces in 2030.

In the financial year 2024 (FY24), the company achieved full-year gold production of 206,622 ounces, which is at the upper end of its FY24 guidance range of 190,000 to 210,000 ounces.

Recent financial performance

In the half-year ended 30 June 2024 (1HFY24), the company reported a revenue of AUD 344.4 million, reflecting an 11% YoY increase compared to AUD 309.7 million in the corresponding period last year. Profit after tax in 1HFY24 surged to AUD 92.2 million, marking a 12% growth YoY, while operating cash flow rose by 6% YoY to AUD 116.3 million.

During the period, WAF achieved gold production of 107,644 ounces at an all-in sustaining cost (AISC) of USD 1,223 per ounce, contributing to a pre-tax profit of AUD 133 million. The company ended the half-year with a robust cash balance of AUD 425 million. Its mineral resources were reported at 12.8 million ounces, with ore reserves totalling 6.4 million ounces of gold.

Recent Business Update

In its latest business update for the December quarter of 2024, WAF reported the production of 51,178 ounces of gold, with 47,953 ounces sold at an average price of USD 2,690 per ounce. For the full year 2024, the company’s total gold production stood at 206,622 ounces, while sales totaled 199,550 ounces at an average price of USD 2,391 per ounce.

Outlook

The construction of WAF’s flagship Kiaka gold project is progressing as planned, with first gold production expected in the third quarter of 2025.

Looking forward, WAF has announced an ambitious exploration drilling campaign for 2025. The company plans to undertake 45,000 metres of underground diamond drilling, 30,000 metres of surface diamond drilling, 15,000 metres of regional reverse circulation drilling, and 35,000 metres of auger drilling. These exploration activities are expected to expand mineral resources and support future production growth.

Share performance of WAF

WAF shares closed 2.82% higher at AUD 1.64 apiece on 21 January 2025. Over the past year, WAF’s share price has increased by almost 74%, while in a month, it has surged by nearly 10.44%.

52-week high of WAF is AUD 1.87, recorded on 31 October 2024 and 52-week low is AUD 0.795, recorded on 6 February 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 January 2025. The reference data in this report has been partly sourced from EODHD/Others.