Key Highlights

• In the September 2026 quarter the company reported a realised price of US$4,240 per ounce, and US$4,550 per ounce across the year to date.

• According to the company's production update dated 8 October 2026, group production was 127,950 ounces for the quarter and 360,857 ounces for the year to date.

• Group sales were 135,245 ounces in the quarter and 350,127 ounces year to date.

• Management described the quarter as a record, and said annual output is running above 500,000 ounces.

What did West African Resources (ASX:WAF) report in its September 2026 quarter update, and why does it matter? The gold producer said it poured 127,950 ounces in the quarter, with Kiaka lifting output while Sanbrado slipped. It matters because the company is now running two Burkina Faso operations at once, and the balance between them, along with a few operational bottlenecks, will shape whether it reaches its 2026 guidance.

What the company does

West African Resources is a gold producer with operations in Burkina Faso. It operates two mines: Sanbrado, which combines open-pit and underground mining, and Kiaka, a large open-pit operation with a lower head grade.

Its Revenue is almost entirely gold. Earnings therefore move with two things: the number of ounces produced and sold, and the gold price realised. In the September 2026 quarter the company reported a realised price of US$4,240 per ounce, and US$4,550 per ounce across the year to date.

The September 2026 quarter

According to the company's production update dated 8 October 2026, group production was 127,950 ounces for the quarter and 360,857 ounces for the year to date. Group sales were 135,245 ounces in the quarter and 350,127 ounces year to date.

Management described the quarter as a record, and said annual output is running above 500,000 ounces. That label is the company's own, and annualising the quarter implies roughly 510,000 ounces, consistent with that claim, although a single quarter is not a forecast.

Costs, All-In Sustaining Cost and cash balances were not in the production update.

Kiaka and Sanbrado

Kiaka was the more encouraging contributor. It produced 76,030 ounces for the quarter and 209,305 ounces year to date. Production rose 13 per cent on the previous quarter, driven by 15 per cent higher throughput. The mill processed 2,871 thousand tonnes at a head grade of 0.9 grams per tonne and recovery of 93.1 per cent. Mined ounces rose 11 per cent, from 3,214 thousand tonnes mined at 0.8 grams per tonne, which feeds the mill at lower grade but very large scale.

Sanbrado produced 51,920 ounces for the quarter and 151,552 ounces year to date. Production fell 10 per cent, with throughput 9 per cent lower. The mill processed 716 thousand tonnes at 2.4 grams per tonne and recovery of 94.7 per cent.

Underground Mining at the M1 South deposit delivered 35,898 mined ounces, 18 per cent below the June quarter, as grade declined. The company reported that approval from the Government of Burkina Faso for a life-of-mine update covering M5 South had been received, with stoping scheduled to start in early 2027's second half. Management said it expects minimal impact on 2027 output.

Guidance

For 2026, WAF's guidance is 430,000 to 490,000 ounces of gold, as issued on 31 March 2026. With 360,857 ounces produced after nine months, the company needs between about 69,000 and 129,000 ounces in the final quarter to land within that range. The company said it is on track.

Guidance can be revised, and fourth-quarter output depends on the same operational factors discussed below.

The industry backdrop

Gold producers have benefitted from a encouraging gold price, reflected in the realised prices above. That helps when prices rise and hurts when they fall.

Among ASX-listed gold producers, WAF is a mid-sized operator whose distinguishing feature is its concentration in West Africa. That brings exposure to a single Jurisdiction rather than the Diversification some peers enjoy.

Risks and what to watch

Explosives Supply is the clearest operational bottleneck. The update said improvements followed engagement of a second supplier, but the permit for the on-site explosives Facility at Kiaka was still pending. Any delay can restrict mining rates and, in turn, mill feed.

Grade variability is another issue. Sanbrado's underground grade fell sharply in the quarter, and the company is relying on additional underground sources and the pre-strip at Toega to support future production.

Jurisdictional risk is material. Mining in Burkina Faso involves regulatory change, permitting dependence and security considerations. Government approvals, such as the M5 South life-of-mine update, matter to the production profile.

Commodity price risk is the largest swing factor, given the lack of hedging. Cost inflation, currency movements and power or fuel supply can also affect margins.

Upcoming developments include the full Quarterly Report with cost and cash data, the final quarter production result, a possible guidance outcome for 2026, and the progress of the Kiaka explosives permit.

Takeaway

WAF's latest update shows a company with two producing mines, a encouraging realised gold price and a guidance range it says is on track. The key questions are operational: explosives supply, Sanbrado's grade and the permitting environment in Burkina Faso.