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Highlights

  • West African Resources targets annual gold production of over 450,000 ounces over the next decade, with a peak of 494,000 ounces in 2030.
  • In 1HFY24, revenue rose 11% YoY to AUD 344.4 million, while profit after tax increased 12% YoY to AUD 92.2 million.
  • The company plans its largest-ever exploration program in 2025.

West African Resources Ltd (ASX:WAF) is a West Africa-focused company that acquires, explores and develops gold projects. Over the next decade, the company targets gold production of over 450,000 ounces every year with peak production of 494,000 ounces in 2030.

The 10-year production forecast of WAF includes an average of 420,000 ounces annually from 2024 to 2033 and 480,000 ounces between 2026 and 2031. This guidance is based on 83% of its ore reserves, employing a conservative gold price assumption of USD 1,400 per ounce.

Recent financial performance

In the first half of the financial year 2024 (1HFY24), group revenue jumped 11% YoY to AUD 344.4 million, and profit after tax grew by 12% YoY to AUD 92.2 million. During the period, gold production stood at 107,644 ounces with an AISC of AUD 1,223 per ounce while gold sales declined by 6% YoY to 101,954 ounces.

In the latest quarter (3QFY24), total production of 47,799 ounces was reported with an AISC of USD 1,296 per ounce and unhedged gold sales reached 49,643 ounces, securing an average price of USD 2,493 per ounce.

Outlook

The company is on track to achieve the upper end of FY24 gold production guidance, ranging from 190,000 to 210,000 ounces with an AISC of less than USD 1,300 per ounce.

In 2025, the company has planned to undertake its largest-ever exploration drilling, including around 45k metres of underground diamond drilling, 30k metres of surface diamond drilling, 35k metres of auger drilling and 15k metres of regional RC drilling.

Share performance of WAF

WAF shares closed 1.72% higher at AUD 1.45 apiece on 3 December 2024. Over the last one year, WAF’s share price has increased by 51.79% and in the last three months, it has recorded a rise of around 7.25%.

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 03 December 2024. The reference data in this report has been partly sourced from EODHD/Others.