West African Resources (ASX:WAF) rides gold price rally, share price more than doubles in a year

4 min read | November 05, 2024 06:11 PM AEDT | By Team Kalkine Media

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West African Resources (ASX:WAF) rides gold price rally, share price more than doubles in a year — Image source: Shutterstocks

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Highlights

WAF's share price has climbed by over 114% in the past year and rose nearly 27.27% in the last three months.

Revenue increased by 11% YoY to AUD 344.4 million in 1HFY24, with profit after tax growing 12% YoY to AUD 92.2 million.

1HFY24 gold production stands at 107,644 ounces, with year-to-date production at 155,443 ounces.

In FY24, the company targets gold production of 190,000 – 210,000 ounces

West African Resources Limited (ASX:WAF) is an Australian company focused on acquisition, discovery and development of gold projects in West Africa. The company targets gold production of over 4.0Moz in 2024-2033 with gold production peaking in 2030 with 494,000oz of production. The unhedged mineral resources of WAF stand at 12.8Moz, while ore reserves stand at 6.4Moz gold.

WAF’s share price has recorded a rise of over 114% in the past one year and in the last three months, the share price has increased by nearly 27.27%. Here’s what happened in the company recently.

Financial performance in 1HFY24

During the first half of the financial year 2024 (1HFY24), the company’s revenue increased by 11% YoY to AUD 344.4 million with 12% YoY growth in profit after tax to AUD 92.2 million. Operating cash flow during the period jumped 6% YoY to AUD 116.3 million.

Gold production in 1HFY24 reached 107,644 ounces at AISC of USD 1,223 per ounce and unhedged gold sales touched 101,954 ounces at average price of USD 2,199 per ounce.

Gold production in recent quarter

In the 3QFY24 ending 30 September 2024, the company recorded gold production of 47,799 ounces with AISC of USD 1,296 per ounce. The quarter saw unhedged gold sales of 49,643 ounces at an average price of USD 2,493 per ounce.

Year-to-date production stood at 155,443 ounces at an AISC of USD 1,248 per ounce.

Outlook

In FY24, the company seeks to achieve gold production of 190,000 – 210,000 ounces with AISC of less than USD 1,300 per ounce.

In the upcoming quarter, drilling results from the ongoing programs are expected. Meanwhile, in the December quarter, the company intends to maintain the operation and construction readiness of the Kiaka project on schedule and share the scoping study for the Toega underground mining project.

Recent business update

Today (5 November 2024), the company shared the promising outcomes from the maiden grade control drilling at the Kiaka Gold Project, located in Burkina Faso. The drilling confirmed more than 200m of gold mineralisation from surface.

The company also informed that the pre-production grade control program is in line with the plan, supporting the planned commencement of mining in the first quarter of 2025 (1Q 2025). Furthermore, construction and operational readiness are on track and the first equipment from the owner mining fleet is now on site.

Share performance of WAF

WAF shares closed 3.05% lower at AUD 1.75 apiece on 5 November 2024. 52-week high of WAF is AUD 1.87, recorded on 31 October 2024 and 52-week low is AUD 0.785, recorded on 21 November 2023.

WAF Daily Technical Chart, Source: EODHD/Others

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

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