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West African Resources Ltd
(Sydney:WAF)
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Rating:79Outperform
Price Target:
AU$3.50
â–²(25.00% Upside)
Action:Upgraded
Date:08/06/26
Overall score reflects strong financial and operating momentum with high profitability and rapid 2025 revenue growth, supported by a constructive technical uptrend and a low P/E valuation. The score is tempered by historically volatile free cash flow and earnings-call risks around power reliability at Kiaka and ongoing government/royalty negotiations.
Positive Factors
Accelerating revenue and profitability
Strong revenue expansion and high margins indicate effective scaling across Sanbrado and Kiaka. If production remains steady, the enlarged operating base should support durable earnings and internal funding capacity.
Negative Factors
Kiaka power reliability and cost risk
Unreliable grid supply can constrain Kiaka throughput, raise fuel and maintenance costs, and complicate ramp-up execution. Until permanent power solutions are established, production economics and the mine's expansion potential remain exposed.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and profitability
Strong revenue expansion and high margins indicate effective scaling across Sanbrado and Kiaka. If production remains steady, the enlarged operating base should support durable earnings and internal funding capacity.
Read all positive factors
West African Resources Ltd (WAF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.96B
Dividend YieldN/A
Average Volume (3M)9.26M
Price to Earnings (P/E)6.9
Beta (1Y)1.03
Revenue Growth111.74%
EPS Growth100.58%
CountryAU
Employees1,850
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.54
Shares Outstanding1,143,753,000
10 Day Avg. Volume9,733,267
30 Day Avg. Volume9,255,588
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.99
Price to Sales (P/S)2.23
P/FCF Ratio11.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.70Price Target Upside67.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.85
Revenue Forecast (FY)AU$2.92B
West African Resources Ltd Business Overview & Revenue Model
Company Description
West African Resources Limited engages in the mining, mineral processing, acquisition, exploration, and project development of gold projects in West Africa. The company has 85% interests in the Sanbrado Gold and Kiaka Gold projects located in Burk...
How the Company Makes Money
WAF primarily makes money by producing and selling refined gold from its mining operations. Revenue is generated when gold dore (unrefined gold bars produced on site) is sold to external counterparties (typically refiners or bullion traders) at pr...
West African Resources Ltd Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational and financial quarter driven by successful Kiaka ramp-up, robust production (Q4 and full-year), high realized gold prices, strong cash flow and a solid liquidity position. Exploration results indicate meaningful reserve upside and Toega development is progressing on schedule. Key challenges highlighted include localized grade and production declines at M1 South, short-term power instability at Kiaka requiring diesel backup and planned HFO investment, and unresolved government discussions over Kiaka ownership/royalty matters which present execution and political risk. Overall, positives (strong production, revenue, cashflow, low AISC, exploration upside) materially outweigh the operational and political risks discussed.Positive Updates
Strong Quarterly and Annual Production
Total gold production of just over 112,000 ounces in Q4 2025 and a calendar year 2025 total of just over 300,000 ounces, in line with guidance. Sanbrado produced 205,228 ounces for the year (achieving the upper end of its 190,000–210,000 oz guidance).
Negative Updates
M1 South Underground Production and Grade Decline
Mined ounces from M1 South underground were 37,955 oz in Q4, which was 16% below the previous quarter. This decline was driven by a 14% drop in mined grade plus slightly lower ore tonnes mined.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Annual Production
Total gold production of just over 112,000 ounces in Q4 2025 and a calendar year 2025 total of just over 300,000 ounces, in line with guidance. Sanbrado produced 205,228 ounces for the year (achieving the upper end of its 190,000–210,000 oz guidance).
Read all positive updates
Company Guidance
Management said formal 2026 annual production guidance and a capital management strategy will be released later in Q1 2026, with a new 10‑year plan due in late March that targets ~500,000 ozpa; priority in the near term is reducing debt before considering buybacks or dividends. By way of context, Q4 production was ~112,000 oz (Kiaka 62,287 oz, Sanbrado just under 50,000 oz), full‑year 2025 production was just over 300,000 oz (Sanbrado 205,228 oz; Kiaka ~95,000 oz), Q4 sales were 105,995 oz at an average realized price of USD 4,058/oz (AUD 662m revenue; FY revenue >AUD 1.5bn), Q4 operating cash flow was AUD 389m after AUD 48m of income tax, cash at 31 Dec 2025 was AUD 584m plus AUD 177m of unsold bullion, and all‑in sustaining costs averaged USD 1,561/oz. Capital and project metrics: Q4 capital investing was AUD 113m (AUD 89m Kiaka, AUD 23m Toega), financing used AUD 23m, Toega pre‑stripping has moved 250,000 BCM and haul road delivery to Sanbrado is on schedule for early Q3 2026, mining equipment is expected fully operational by the end of this quarter with steady‑state ramp by end Q1 2026. On power and throughput, Kiaka ran 30,000–35,000 t/day during stable grid periods, is capable of processing >10 Mtpa with full power, has added ~30 MW of diesel capacity and is planning an HFO plant to reduce fuel costs; exploration drilling continues (e.g., 16 m @ 11.2 g/t and 45 m @ 1.9 g/t at M5 North) with 13,500 m infill and 6,600 m grade‑control programs underway.West African Resources Ltd Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
79
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.53B | 724.37M | 658.82M | 606.13M | 711.54M |
| Gross Profit | 860.40M | 421.81M | 354.73M | 340.45M | 461.97M |
| EBITDA | 913.20M | 421.01M | 329.81M | 319.37M | 437.83M |
| Net Income | 473.90M | 223.84M | 146.87M | 164.44M | 188.96M |
Balance Sheet | |||||
| Total Assets | 2.72B | 1.97B | 1.22B | 878.71M | 804.25M |
| Cash, Cash Equivalents and Short-Term Investments | 592.00M | 391.67M | 135.08M | 173.39M | 183.41M |
| Total Debt | 453.10M | 425.97M | 149.15M | 22.18M | 25.80M |
| Total Liabilities | 957.40M | 660.42M | 315.01M | 138.14M | 249.84M |
| Stockholders Equity | 1.72B | 1.25B | 861.20M | 700.50M | 525.05M |
Cash Flow | |||||
| Free Cash Flow | 304.00M | -235.71M | -21.14M | 108.92M | 294.40M |
| Operating Cash Flow | 734.00M | 251.64M | 207.19M | 223.80M | 349.66M |
| Investing Cash Flow | -530.70M | -489.34M | -228.34M | -180.79M | -107.96M |
| Financing Cash Flow | -17.60M | 512.72M | -23.18M | -15.71M | -154.56M |
West African Resources Ltd Technical Analysis
Positive
2.80
Price Trends
3.01
Positive
3.10
Positive
3.14
Positive
Market Momentum
0.16
Negative
63.22
Neutral
70.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAF, the sentiment is Positive. The current price of 2.8 is below the 20-day moving average (MA) of 3.16, below the 50-day MA of 3.01, and below the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 70.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WAF.
West African Resources Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$1.75B | 10.56 | 24.45% | ― | 82.68% | 26.56% | |
79 Outperform | AU$3.96B | 6.86 | 39.02% | ― | 111.74% | 100.58% | |
75 Outperform | AU$5.66B | 12.52 | 27.80% | 3.29% | 31.42% | ― | |
74 Outperform | AU$2.46B | 17.30 | 17.01% | ― | 10.67% | ― | |
67 Neutral | AU$7.39B | 22.32 | 12.39% | 2.08% | 16.69% | 3.17% | |
67 Neutral | AU$5.53B | 22.74 | 12.35% | 0.65% | 101.97% | 237.66% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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West African Resources Ltd Corporate Events
Aigle Royal Group Ceases to Be Substantial Holder in West African Resources
Aug 11, 2026
A group of entities associated with Aigle Royal Group, including Aigle Royal Superannuation Pty Ltd and related capital and consolidated vehicles, has lodged a notice that it has ceased to be a substantial holder in West African Resources Ltd. The...
West African Resources Maps Path as Growing Mid Tier Gold Producer
Aug 4, 2026
West African Resources has released a presentation outlining its status as a growing mid tier gold producer in West Africa, with a strategic focus on expanding production toward more than 500,000 ounces of gold annually from 2027. The company expl...
West African Resources Posts Strong Cash Flows and Builds Liquidity
Jul 28, 2026
West African Resources reported strong operating cash flows for the quarter ended 30 June 2026, with net cash from operations of A$249.4 million and A$689.8 million year-to-date, driven by customer receipts of more than A$712.8 million in the quar...
West African Resources Sets Record Quarter as Burkina Faso Gold Output Surges
Jul 28, 2026
West African Resources reported record quarterly gold production of 125,179 ounces in the June 2026 quarter, driven by stronger output from its Sanbrado and Kiaka operations in Burkina Faso. Group year-to-date production reached 232,905 ounces at ...
West African Resources to Host Investor Call on June Quarter Results
Jul 27, 2026
West African Resources Limited has scheduled an investor webinar and conference call for Wednesday, 29 July 2026, to review and discuss its June 2026 quarterly report with Executive Chairman and CEO Richard Hyde. The event, which will be accessibl...
West African Resources drilling boosts reserve growth prospects at Sanbrado
Jul 13, 2026
West African Resources has reported strong diamond drilling results from the M5 deposit at its Sanbrado Gold Operations in Burkina Faso, highlighting thick zones of high-grade gold mineralisation beneath existing underground and open-pit reserves....
West African Resources lifts output, stays on track for 2026 guidance amid permitting delays
Jul 6, 2026
West African Resources reported June quarter group gold production of 125,179 ounces and sales of 110,737 ounces at a realised price of US$4,556 per ounce, bringing year-to-date output to 232,905 ounces. Management said the performance of the Sanb...
West African Resources Seeks ASX Quotation for Additional Shares
Jul 6, 2026
West African Resources Ltd has applied for quotation of 190,445 additional ordinary fully paid shares on the Australian Securities Exchange. The new securities, issued on 3 July 2026 following the exercise or conversion of existing options or othe...
Citi Group Entities Exit Substantial Holder Status in West African Resources
Jul 3, 2026
Citigroup Global Markets Australia Pty Limited and related Citi group entities have disclosed that they ceased to be a substantial holder in West African Resources Ltd as of 30 June 2026. The change stems from a series of securities lending and co...
West African Resources director trims indirect shareholding
Jun 29, 2026
West African Resources has disclosed a change in the holdings of director Rodney L Leonard, who holds his interest indirectly via Caddy Fox Pty Ltd on behalf of a family account. The filing shows a reduction in his indirect stake through the sale ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.