West African Resources Ltd (AU:WAF)
ASX:WAF
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West African Resources Ltd
(Sydney:WAF)
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Rating:67Neutral
Price Target:
AU$3.00
▼(-11.76% Downside)
Action:DowngradedDate:03/18/26
The score is supported by strong recent financial performance and an inexpensive P/E, reinforced by a generally positive earnings call emphasizing production, cash generation, and growth progress. These are tempered by weak technical momentum and key execution/political risks plus historically inconsistent free cash flow.
Positive Factors
Production scale & ramp-up
Achieving >300k ozpa in 2025 with Kiaka ramping to ~95k oz and Sanbrado ~205k oz establishes a larger, diversified production base. Durable scale reduces unit fixed-cost risk, supports steady revenue generation and underpins capacity to fund projects, deleverage, and sustain operations over the medium term.
Negative Factors
Free cash flow volatility
Persistent FCF volatility and prior negative years indicate inconsistent ability to convert earnings into discretionary cash. Over the medium term this constrains capacity to sustainably reduce debt, return capital or fund aggressive growth without raising external financing, increasing operational and financing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Production scale & ramp-up
Achieving >300k ozpa in 2025 with Kiaka ramping to ~95k oz and Sanbrado ~205k oz establishes a larger, diversified production base. Durable scale reduces unit fixed-cost risk, supports steady revenue generation and underpins capacity to fund projects, deleverage, and sustain operations over the medium term.
Read all positive factors
West African Resources Ltd (WAF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.88B
Dividend YieldN/A
Average Volume (3M)9.26M
Price to Earnings (P/E)7.2
Beta (1Y)0.90
Revenue Growth23.87%
EPS Growth92.57%
CountryAU
Employees729
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.25
Shares Outstanding1,142,490,200
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$5.05Price Target Upside48.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.98
Revenue Forecast (FY)AU$3.07B
West African Resources Ltd Business Overview & Revenue Model
Company Description
West African Resources Limited engages in the acquisition, exploration, and development of gold projects in West Africa. The company has 90% interests in the Sanbrado Gold Project covering an area of 116 square kilometers located in Burkina Faso; ...
How the Company Makes Money
WAF primarily makes money by producing and selling gold. Revenue is generated when gold doré (a semi-refined gold product) produced from its processing plant is sold to third-party buyers (e.g., refiners or bullion counterparties), with sales proc...
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
3.40
Price Trends
3.35
Positive
3.20
Positive
2.97
Positive
Market Momentum
-0.04
Negative
59.22
Neutral
88.12
Negative
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 3.4 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 3.35, and above the 200-day MA of 2.97, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 88.12 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | AU$1.66B | 26.43 | ― | ― | ― | ― | |
75 Outperform | AU$5.40B | 4.43 | 27.80% | 0.65% | 30.46% | ― | |
67 Neutral | AU$3.88B | 7.22 | 23.72% | ― | 23.87% | 92.57% | |
67 Neutral | AU$7.32B | 11.53 | 12.40% | 1.32% | 23.35% | 15.96% | |
67 Neutral | AU$5.94B | 7.97 | 12.35% | 0.46% | 89.86% | -81.65% | |
64 Neutral | AU$3.18B | 22.93 | 17.03% | ― | 42.75% | -5.56% | |
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
West African Resources Seeks Quotation for Additional ASX Shares
Mar 23, 2026
West African Resources Ltd has applied for quotation of 76,075 new ordinary fully paid shares on the Australian Securities Exchange, with an issue date of March 23, 2026. The additional securities, arising from the exercise or conversion of existi...
West African Resources Updates Director Rodney Leonard’s Equity Holdings
Mar 20, 2026
West African Resources Limited has disclosed changes to non-executive director Rodney L Leonard’s indirect interests in the company, reflecting the issue of ordinary shares following the exercise of existing performance rights and the grant ...
West African Resources Seeks ASX Quotation for Additional Shares
Mar 20, 2026
West African Resources Limited has applied for quotation on the ASX of 85,335 new ordinary fully paid shares, issued on 20 March 2026 following the exercise or conversion of existing options or other convertible securities. The modest increase in ...
West African Resources Issues 55,508 Unquoted Performance Rights Under Incentive Scheme
Mar 20, 2026
West African Resources Limited has notified the market of the issue of 55,508 unquoted performance rights under its employee incentive scheme, effective 20 March 2026. These performance rights, which are subject to transfer restrictions and will n...
West African Resources Sets Date for 2026 AGM and Director Nomination Deadline
Mar 19, 2026
West African Resources Limited has scheduled its next Annual General Meeting for Friday, 8 May 2026, in line with ASX Listing Rule obligations. The announcement provides key timing for shareholders and potential board candidates, confirming that n...
West African Resources Outlines Position as Growing Mid-Tier Gold Producer in Investor Presentation
Mar 17, 2026
West African Resources has released an investor presentation dated 17 March 2026 that provides a high-level overview of its operations, financial metrics, and status as a growing mid-tier gold producer in West Africa. The document emphasises that ...
West African Resources lodges updated ASX corporate governance disclosures
Mar 16, 2026
West African Resources has lodged its updated corporate governance statement for the financial year ended 31 December 2025, confirming it is available on the company’s website as required under ASX rules. The board-approved statement, curren...
West African Resources Posts A$567m Profit as Kiaka Ramp-Up Boosts 2025 Results
Mar 16, 2026
West African Resources reported a strong 2025 financial performance, generating A$1.54 billion in revenue, A$808 million profit before tax, and A$567 million net profit after tax. The company produced 300,383 ounces of gold at an all-in sustaining...
West African Resources Details Corporate Structure in 2025 Annual Report
Mar 16, 2026
West African Resources Limited is an Australian-listed mining company focused on gold exploration and production in West Africa, with principal operations and offices in Burkina Faso. The company is headquartered in Subiaco, Western Australia, and...
West African Resources Reports Lapse of Performance Rights
Mar 12, 2026
West African Resources Ltd has reported the cessation of 59,887 performance rights, identified under the ASX security code WAFAA. These rights lapsed because the conditions attached to them were not met or became incapable of being satisfied, resu...
Citigroup Ceases to Be Substantial Holder in West African Resources
Mar 5, 2026
Citigroup Global Markets Australia and related Citi entities have notified West African Resources that they have ceased to be a substantial holder in the company as of 3 March 2026. The change reflects a series of adjustments to Citi’s relev...
West African Resources Addresses Burkina Faso’s Move to Lift Stake in Kiaka
Feb 22, 2026
West African Resources has responded to media reports on the Burkina Faso Government’s interest in increasing its equity stake in Kiaka SA by up to an additional 25%. The company confirmed that a draft decree authorising such a move has been...
Mitsubishi UFJ Exits Substantial Holder Status in West African Resources
Feb 9, 2026
Mitsubishi UFJ Financial Group, Inc. has lodged a notice with West African Resources stating it has ceased to be a substantial shareholder in the gold miner as of early February 2026. The change follows a series of transactions on 3 February 2026 ...
West African Resources outlines investor presentation under strict caveats
Feb 8, 2026
West African Resources has released an investor presentation dated 9 February 2026 outlining high-level information about the group and its operations, framed as “Flight to 500” to underscore its growth ambitions as a mid-tier gold pro...
Mitsubishi UFJ Exits Substantial Holder Position in West African Resources
Feb 4, 2026
Mitsubishi UFJ Financial Group has filed a Form 605 noting that it and related First Sentier and Morgan Stanley-controlled entities purchased multiple small parcels of West African Resources shares on 29 January 2026 before ceasing to be a substan...
First Sentier Group Ceases to Be Substantial Holder in West African Resources
Feb 3, 2026
First Sentier Group Limited and a wide network of its related entities, ultimately linked to Mitsubishi UFJ Financial Group, have filed a notice that they have ceased to be substantial shareholders in West African Resources Ltd as of 30 January 20...
Morgan Stanley Ceases to Be Substantial Holder in West African Resources
Feb 3, 2026
Morgan Stanley and certain subsidiaries have notified West African Resources Limited that they have ceased to be a substantial holder in the company as of 29 January 2026. The filing details a series of on-market purchases of ordinary shares by Mo...
West African Resources Delivers Strong Operating Cash Flow and Boosts Liquidity in December Quarter
Jan 27, 2026
West African Resources reported strong operating cash flow for the quarter ended 31 December 2025, generating A$388.6 million in net cash from operating activities and A$789.7 million year-to-date, driven by A$663.1 million in quarterly customer r...
West African Resources Hits Guidance for Fifth Straight Year as Kiaka Ramp-Up Boosts Output
Jan 27, 2026
West African Resources reported that it met its 2025 production and cost guidance for the fifth consecutive year, underlining consistent operational performance at its Sanbrado and newly commissioned Kiaka gold mines. Group gold output reached 300...
Mitsubishi UFJ Exits Substantial Holder Position in West African Resources
Jan 27, 2026
Mitsubishi UFJ Financial Group, Inc. has lodged a notice stating it has ceased to be a substantial holder in West African Resources Limited, indicating its voting power has fallen below the regulatory disclosure threshold. The change in substantia...
Morgan Stanley Ceases to Be Substantial Shareholder in West African Resources
Jan 27, 2026
Morgan Stanley and certain subsidiaries have notified West African Resources Ltd that they have ceased to be a substantial shareholder in the company as of 22 January 2026. The change in status follows a series of on-market trades in the company&#...
West African Resources Sets Investor Call to Discuss December Quarter Results
Jan 22, 2026
West African Resources Limited will host an investor webinar and conference call on 28 January 2026, led by Executive Chairman and CEO Richard Hyde, to discuss its December 2025 quarterly report. The event, accessible via Zoom and telephone with a...
Mitsubishi UFJ Exits Substantial Holder Position in West African Resources
Jan 21, 2026
Mitsubishi UFJ Financial Group, Inc. has lodged a notice stating it has ceased to be a substantial holder in West African Resources Limited as of mid-January 2026, following a series of transactions involving fully paid ordinary shares. The filing...
Morgan Stanley Ceases to Be Substantial Holder in West African Resources
Jan 21, 2026
Morgan Stanley and certain subsidiaries have notified West African Resources that they have ceased to be a substantial holder in the company as of 16 January 2026, following a series of trades in the company’s ordinary shares. The change in ...
First Sentier Group Ceases to Be Substantial Shareholder in West African Resources
Jan 20, 2026
First Sentier Group Limited and a wide network of its related entities and associates, ultimately connected to Mitsubishi UFJ Financial Group, have lodged a regulatory notice confirming they have ceased to be a substantial shareholder in West Afri...
Mitsubishi UFJ Exits Substantial Holder Position in West African Resources
Jan 9, 2026
Mitsubishi UFJ Financial Group has lodged a notice that it has ceased to be a substantial shareholder in West African Resources Limited, after a series of trades in the company’s fully paid ordinary shares executed through entities controlle...
Morgan Stanley Ceases to Be Substantial Holder in West African Resources
Jan 9, 2026
Morgan Stanley and its listed subsidiaries have lodged a notice that they have ceased to be a substantial holder in West African Resources Limited as of 6 January 2026. The filing details numerous on-market purchases of ordinary shares by Morgan S...
First Sentier Group Ceases to Be Substantial Holder in West African Resources
Jan 8, 2026
West African Resources Ltd has disclosed that First Sentier Group Limited and a broad group of its related entities and associates, ultimately linked to Mitsubishi UFJ Financial Group, have ceased to be substantial shareholders in the company as o...
West African Resources Hits Record 300,000oz Gold Output in 2025, Meeting Guidance
Jan 6, 2026
West African Resources reported record 2025 group gold production of 300,383 ounces from its Sanbrado and Kiaka operations in Burkina Faso, achieving its annual guidance range of 290,000 to 360,000 ounces and marking the fifth consecutive year it ...
Mitsubishi UFJ Ends Substantial Holding in West African Resources
Dec 29, 2025
Mitsubishi UFJ Financial Group Inc has lodged a notice that it has ceased to be a substantial holder in West African Resources Ltd as of 24 December 2025, under Australian Corporations Act disclosure rules. The filing details multiple small on-mar...
Morgan Stanley Ceases to Be Substantial Holder in West African Resources
Dec 28, 2025
Morgan Stanley and its listed subsidiaries have notified West African Resources Ltd that they have ceased to be a substantial shareholder in the company as of 22 December 2025. The change in status follows a series of transactions in the company&#...
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.