West African Resources Limited (ASX:WAF) operates the Sanbrado and Kiaka gold production centres in Burkina Faso. The June 2026 quarter delivered record group production and substantial cash generation as both operations contributed to output. However, outstanding approvals at Sanbrado and explosives constraints at Kiaka remain operational considerations as the company works toward its 2026 production and cost guidance.

Quarterly Production Reaches a Record

Group gold production reached 125,179 ounces in the June quarter.

Sanbrado contributed 57,608 ounces, while Kiaka produced 67,571 ounces.

First-half production reached 232,905 ounces.

WAF maintained full-year 2026 production guidance of 430,000 to 490,000 ounces, meaning delivery during the second half remains important to achieving the annual range.

Gold Sales Generate Higher Cash Flow

WAF sold 110,737 ounces during the June quarter at an average realised gold price of US$4,556 per ounce.

First-half sales totalled 214,883 ounces at an average realised price of US$4,744 per ounce.

Operating Cash Flow reached approximately A$249.4 million during the quarter.

The company ended June with A$876.3 million in cash and approximately A$247 million of unsold gold bullion.

Group AISC Comes in at US$1,730 an Ounce

Group All-In Sustaining Cost was US$1,730 per ounce during the June quarter.

First-half AISC averaged US$1,823 per ounce.

WAF maintained its 2026 guidance for AISC below US$1,900 per ounce.

The cost outcome, together with higher realised gold prices, supported cash generation during the period, although future margins will continue to depend on production, costs and realised gold prices.

Sanbrado Production Rises

Sanbrado produced 57,608 ounces during the quarter, up 37% from the March quarter.

The operation processed approximately 787,000 tonnes at an average grade of 2.4 grams per tonne and achieved recovery of 93.7%.

Higher mill grades contributed to the production increase.

Underground Mining remains an important source of higher-grade ore as WAF progresses Sanbrado’s longer-term production plan.

M5 South Approval Remains Outstanding

WAF continues to seek approval to incorporate M5 South Underground into Sanbrado’s life-of-mine plan.

Management expected approval during the second half of 2026 but has shifted the planned start of underground mining at M5 South to early 2027, subject to government approval.

The company said it retains sufficient flexibility in the existing mine plan to maintain its 2026 production target.

Kiaka Delivers 67,571 Ounces

Kiaka produced 67,571 ounces during the June quarter.

Approximately 2.49 million tonnes were processed at an average grade of 0.9 grams per tonne, with recovery of 92.9%.

Production increased 3% from the previous quarter, supported by higher processing throughput.

Kiaka poured first gold in June 2025 and is now a major contributor to WAF’s group production profile.

Explosives Availability Affects Mining

Mining activity at Kiaka was constrained by limited explosives availability while approval for an on-site explosives Manufacturing and storage Facility remained outstanding.

WAF sourced supplies through alternative channels and adjusted the mine plan to focus on areas requiring less blasting.

Waste stripping was also reduced to prioritise available explosives for ore production.

Continued constraints could influence mine sequencing and future access to ore.

State Ownership at Kiaka Could Increase

Burkina Faso’s state-owned mining company, SOPAMIB, has been authorised to acquire an additional 25% interest in Kiaka SA.

The proposed consideration is CFA70 billion, approximately A$175–176 million.

Before the transaction, WAF owns 85% of Kiaka SA and the Burkina Faso Government holds 15%.

If completed on the proposed basis, WAF’s interest would decline to 60%, while state ownership would rise to 40%.

Longer-Term Production Profile Expands

WAF’s updated 10-year production outlook targets average annual group production of approximately 533,000 ounces from 2026 to 2035.

Production is expected to remain above 500,000 ounces annually from 2027 to 2035 and peak at 596,000 ounces in 2030.

The outlook incorporates Sanbrado, Kiaka and future ore sources, although actual outcomes remain dependent on operating performance, permitting and mine development.

Toega Adds Another Ore Source

The Toega deposit is located approximately 13 kilometres from Sanbrado and is being developed as a satellite source of ore for the existing processing plant.

Open-pit production is scheduled to commence in 2026.

WAF expects Toega to provide higher-grade material that can progressively replace lower-grade feed from M5 North.

Its development should broaden the number of available ore sources across the Sanbrado production centre.

Key Risks and Areas to Watch

WAF remains concentrated in Burkina Faso, making government policy, permitting and state participation important risks.

Explosives availability and mine sequencing at Kiaka can affect production and stripping schedules.

Gold prices remain another major Earnings variable.

The key indicators for the remainder of 2026 are group production and AISC, approval for M5 South, resolution of Kiaka’s explosives permit and finalisation of the SOPAMIB transaction.