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Highlights
- WAF’s FY24 revenue rose 10.4% YoY to AUD 729.98 million and profit after tax surged 49.41% YoY to AUD 246.22 million.
- Mitsubishi UFJ Financial Group became a 6.39% substantial shareholder.
- In FY25, the company expects to deliver gold production of 290,000–360,000 ounces.
West African Resources Limited (ASX:WAF) is an unhedged gold mining company with operations in Burkina Faso. With active operations at the Sanbrado Gold project and ongoing developments at its Kiaka and Toega projects, WAF is steering toward its long-term goal of producing over 500,000 ounces annually by 2030.
Financial Performance in FY24
In the financial year ended 31 December 2024, the company recorded gold production of 206,622 ounces at an AISC of USD 1,240 per ounce. Unhedged gold sales amounted to 199,550 ounces, generating an average price of USD 2,391 per ounce. Sanbrado’s production contributed AUD 723 million in revenue from these gold sales alone.
Overall, WAF posted revenue of AUD 729.98 million, a 10.4% YoY increase from FY23. Profit after tax surged 49.41% YoY to AUD 246.22 million, while operating cash flow rose by 20.63% YoY to AUD 251.64 million.
Recent Business Developments
In recent updates, the company informed that Mitsubishi UFJ Financial Group, Inc. became a substantial shareholder, acquiring a 6.39% voting power as of 31 March 2025.
Meanwhile, the company reported encouraging results from scoping studies for the underground expansion at Toega, beneath the existing open pit at Sanbrado. The maiden underground Mineral Resource Estimate for Toega stands at 4.9 million tonnes at 3.5 g/t, containing 560,000 ounces of gold. The scoping study outlines an average production of 81,000 ounces annually from years 2 to 6, contributing an additional 515,000 ounces over a seven-year mine life. Pre-production capital expenditure is projected at USD 42 million.
Outlook
Looking ahead to FY25, WAF expects gold production between 290,000 and 360,000 ounces, underpinned by the continued development of its gold assets. The company’s vision for sustainable growth includes achieving over 500,000 ounces in annual gold production by 2030 through low-cost, long-life operations.
The Kiaka Gold Project remains central to this vision. With construction progressing on schedule, the company expects to achieve first gold production in the third quarter of 2025. Once operational, Kiaka is expected to significantly boost output, contributing to a projected annual production of over 420,000 ounces from WAF’s two core assets.
Share performance of WAF
WAF shares closed 7.96% lower at AUD 2.08 per share on 7 April 2025. In the past 12-months, WAF’s share price has increased by approximately 58.17%, while in the last three months, it has increased by around 40.54%.
52-week high of WAF is AUD 2.43, recorded on 28 March 2025 and 52-week low is AUD 1.18, recorded on 7 October 2024.
Support and Resistance Summary
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 07 April 2025. The reference data in this report has been partly sourced from EODHD/Others.
Technical Indicators Defined:
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Disclaimer
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