This report is an updated version of the report published on of 7 August 2025 at 11:55 AM AEST.

West African Resources Limited (ASX: WAF) 

West African Resources Ltd is an Australian-based gold mining company focused on the acquisition, exploration, development, and operation of gold projects in West Africa. The company’s primary assets include the Sanbrado Gold Project and the Kiaka Gold Project, both located in Burkina Faso. 

Recommendation Rationale – SELL at AUD 2.70

• Technical Standpoint: WAF’s share price has surpassed the R1 level recommended on 15 July 2025. The 14-day RSI is now around 66.29, moving towards overbought territory. This upward movement raises the likelihood of a near-term pullback as profit-taking sets in, increasing the slight risk of short-term consolidation or downside retracement.
• All-In Sustaining Cost (AISC) Up: Q2 FY25 AISC increased to US$1,492/oz, which is 18% higher than the previous quarter. This reflects increased operating costs, higher royalty rates, and the impact of a mill reline shutdown.
• Decline in Production: Q2 FY25 gold production at Sanbrado was 45,611oz, down 9% from the previous quarter, due to lower grades, recoveries, and reduced throughput during the planned shutdown. Underground gold production fell by 13% in Q2 FY25 compared to Q1 FY25 due to a 15% drop in the mined grade.
• Higher Net Debt: Notional net debt rose to US$72m at the end of Q2 FY25, up from US$36m the previous quarter, as a result of substantial capital investment, especially in the Kiaka project.

Daily Price Chart 

(Source: REFINITIV; Analysis by Kalkine Group) 

Valuation Methodology: Price/Cash Flow Approach (FY Dec'26E) (Illustrative)

The stock might trade at a slight premium to peers considering its 10% YoY revenue growth and 49% increase in net profit in FY24, early completion of Kiaka construction, and a 10-year production outlook with peak output expected in 2029.

For conducting the valuation, the following peer companies have been considered: Regis Resources Ltd (ASX: RRL), Westgold Resources Ltd (ASX: WGX), and Resolute Mining Ltd (ASX: RSG).

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 2.70, as of 7 August 2025 at 11:35 AM AEST. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

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

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 7 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.