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Highlights

  • In 1HFY24, revenue increased by 11.20% YoY to AUD 344.40 million and profit after tax (PAT) rose by 11.89% YoY to AUD 92.20 million.
  • Total gold production in 1HFY24 reached 107,644 ounces, with 101,954 ounces sold at an AISC of USD 1,223 per ounce.
  • WAF aims to achieve annual gold production of 450,000 ounces over the next decade.

West African Resources (ASX:WAF) is an ASX-listed gold exploration and production company. The flagship project of the West African-focused company is the Sanbrado Gold Project in Burkina Faso.

1HFY24 Financial Performance

In the first half of the financial year 2024 (1HFY24), ending 30 June 2024, revenue and profit after tax (PAT) marked substantial year-on-year improvements.

During the reported period, revenue surged by 11.20% to AUD 344.40 million compared to AUD 309.70 million in 1HFY23. The company reported 11% YoY increase in gold revenue from Sanbrado, driven by a 17% rise in average gold prices in AUD, despite a 6% decline in gold ounces sold. Meanwhile, PAT rose by 11.89% in 1HFY24, reaching AUD 92.20 million (1HFY23: AUD 82.40 million).

Total gold production for the period stood at 107,644 ounces, with 101,954 ounces sold at an all-in sustaining cost (AISC) of USD 1,223 per ounce. The company generated AUD 116 million in cash flow.

Recent business update

Through an ASX update dated 5 November 2024, WAF shared encouraging updates on its Kiaka Gold project located in Burkina Faso.

The maiden grade control drilling program at the project returned 18m at 6.3 g/t gold. Pre-production grade control drilling is on schedule and within budget, with mining operations at Kiaka expected to commence in the first quarter of 2025.

Outlook of WAF

WAF aims to record annual gold production of 450,000 ounces over the next decade.

Between 2024 and 2033, the company projects an average annual production of 420,000 ounces, peaking at 480,000 ounces per year between 2026 and 2031.

Over the 10-year period, WAF plans to produce 4.2 million ounces of gold, leveraging 83% of its ore reserves. These projections are based on a conservative gold price assumption of USD 1,400 per ounce.

Top 10 shareholders of WAF

The top 10 shareholders of WAF have around 47.79% shareholding in the company. L1 Capital Pty Ltd. has the highest stake in the company with a shareholding of 8.88%, followed by Van eck Associates Corporation with nearly 8.75% shareholding.

Share performance of WAF

WAF shares closed 1.39% higher at AUD 1.46 per share on 27 December 2024. Over the past year, the share price has increased by 48.22% and in three months, it has dropped by 18.21%.

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