West African Resources Ltd (WAF) AI Stock Analysis

• Market Cap: AU$3.29B
• Dividend Yield: N/A
• Average Volume (3M): 8.10M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.67
• Revenue Growth: 23.87%
• EPS Growth: 92.57%
• Country: AU
• Employees: 729
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.16
• Shares Outstanding: 1,142,008,700
• 10 Day Avg. Volume: 24,308,113
• 30 Day Avg. Volume: 8,102,704
• PEG Ratio: 0.14
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 2.15
• P/FCF Ratio: -6.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.21
• Price Target Upside: 14.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): AU$2.26B

• Rating: 67 Neutral
• Price Target: AU$3.00 ▲(6.76% Upside)

West African Resources Ltd demonstrates strong financial performance with robust revenue and profit growth, but faces challenges in cash flow management. The technical analysis indicates weak momentum, while the valuation suggests the stock is undervalued. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial health.

Profitability

Improved profitability reflects efficient cost management and robust operational performance, enhancing the company's financial stability.

Balance Sheet Strength

A moderate debt-to-equity ratio indicates a balanced approach to leveraging, ensuring financial flexibility and reducing risk.

Negative Factors

Cash Flow Challenges

Negative cash flow suggests potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives.

Cash Generation

Declining cash generation may impact the company's capacity to invest in new projects and manage financial obligations effectively.

Cash Flow Management

Inadequate cash flow management could affect operational sustainability and limit strategic opportunities in the long run.

West African Resources Ltd Business Overview & Revenue Model

Company Description

West African Resources Ltd (WAF) is a gold exploration and development company focused on advancing its projects in West Africa, particularly in Burkina Faso. The company is engaged in the acquisition, exploration, and development of mineral properties, primarily gold, and aims to become a leading gold producer in the region. WAF's flagship project is the Sanbrado Gold Project, which is designed to produce high-quality gold at competitive costs.

How the Company Makes Money

West African Resources Ltd generates revenue primarily through the extraction and sale of gold. The company has established a revenue model that includes the production of gold from its mining operations, which is then sold in the global market. Key revenue streams include the direct sale of gold bullion and potentially gold concentrates. The company also benefits from strategic partnerships with local and international mining contractors and suppliers, which enhance operational efficiency and reduce costs. Additionally, fluctuations in gold prices significantly impact the company's earnings, making it essential for WAF to effectively manage its production costs and maintain high-grade ore reserves to maximize profitability.

West African Resources Ltd Financial Statement Overview

Summary

West African Resources Ltd has shown strong revenue and profit growth, supported by efficient cost management and a robust balance sheet. The company's improved profitability and stable equity base reflect a well-managed financial position. However, challenges in cash flow generation pose potential risks that need addressing.

Income Statement

West African Resources Ltd has demonstrated strong revenue growth over the years, with a significant increase from $658.8 million in 2023 to $724.4 million in 2024, representing a growth rate of approximately 9.95%. The company's gross profit margin remains robust at approximately 58.2% in 2024, indicating efficient cost management. However, the EBIT margin could not be assessed for 2024 due to unavailable data. The net profit margin improved to 30.9% in 2024 from 22.3% in 2023, showcasing enhanced profitability.

Balance Sheet

The company exhibits a solid equity base with stockholders' equity rising to $1.25 billion in 2024. The debt-to-equity ratio remains moderate at approximately 0.34, indicating a balanced approach to leveraging. The equity ratio is strong at 63.2%, reflecting financial stability and a low reliance on debt financing. Return on equity improved to 17.9% in 2024, signaling effective use of equity to generate profits.

Cash Flow

While operating cash flow data is missing for 2024, the free cash flow situation appears concerning, with a negative free cash flow of $235.7 million in 2024. This marks a significant decline compared to a negative $21.1 million in 2023, indicating potential challenges in cash generation relative to past performance. The company may need to enhance its cash flow management to support ongoing operations and investment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	860.62M	724.37M	658.82M	606.13M	711.54M	310.31M
Gross Profit	452.52M	421.81M	354.73M	340.45M	461.97M	189.15M
EBITDA	530.70M	421.01M	329.81M	319.37M	437.83M	191.69M
Net Income	327.47M	223.84M	146.87M	164.44M	188.96M	89.36M
Balance Sheet
Total Assets	2.27B	1.97B	1.22B	878.71M	804.25M	530.71M
Cash, Cash Equivalents and Short-Term Investments	279.24M	391.67M	135.08M	173.39M	183.41M	95.07M
Total Debt	430.90M	425.97M	149.15M	22.18M	25.80M	242.14M
Total Liabilities	806.24M	660.42M	315.01M	138.14M	249.84M	358.45M
Stockholders Equity	1.45B	1.25B	861.20M	700.50M	525.05M	165.23M
Cash Flow
Free Cash Flow	-287.39M	-235.71M	-21.14M	108.92M	294.40M	38.47M
Operating Cash Flow	267.90M	251.64M	207.19M	223.80M	349.66M	147.92M
Investing Cash Flow	-558.28M	-489.34M	-228.34M	-180.79M	-107.96M	-116.90M
Financing Cash Flow	116.04M	512.72M	-23.18M	-15.71M	-154.56M	-21.11M

West African Resources Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAF, the sentiment is Neutral. The current price of 2.81 is below the 20-day moving average (MA) of 2.96, below the 50-day MA of 3.01, and above the 200-day MA of 2.60, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 53.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:WAF.

West African Resources Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOR	79 Outperform	―	―	16.83%	24.12%	46.42%	99.69%
RMS	76 Outperform	$6.81B	8.61	28.58%	2.26%	36.34%	110.55%
VAU	76 Outperform	AU$4.82B	20.40	13.09%	―	130.98%	―
EMR	73 Outperform	$3.42B	38.83	14.25%	―	17.59%	0.98%
WGX	70 Outperform	$5.56B	152.73	2.43%	0.51%	89.86%	-81.65%
WAF	67 Neutral	AU$3.29B	9.92	26.84%	―	23.87%	92.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

West African Resources Ltd Corporate Events

Van Eck Associates Corporation Ceases Substantial Holding in West African Resources Ltd

West African Resources Ltd has announced that Van Eck Associates Corporation has ceased to be a substantial holder in the company as of November 28, 2025. This change in substantial holding could impact the company’s market dynamics and investor relations, as Van Eck Associates Corporation was a significant stakeholder.

West African Resources Updates Director’s Shareholdings

West African Resources Limited has announced a change in the director’s interest, specifically regarding Richard Hyde’s holdings. The update reflects an acquisition of 484,949 ordinary shares, increasing his total holdings to 17,633,118 shares. This change in director’s interest signifies a potential strengthening of internal stakeholder confidence and could influence market perceptions of the company’s stability and growth prospects.

West African Resources Expands ASX Quotation with New Securities

West African Resources Limited has announced the quotation of additional securities on the Australian Securities Exchange (ASX). This move involves the issuance of a total of 944,544 fully paid ordinary shares, which could potentially enhance the company’s liquidity and provide more opportunities for investor engagement.

West African Resources Announces Investor Webinar

West African Resources Limited, an unhedged gold mining company, has announced an investor webinar and conference call scheduled for November 26, 2025. The event, led by Executive Chairman and CEO Richard Hyde, aims to provide updates on the company’s operations, potentially impacting its market positioning and stakeholder interests.

West African Resources Engages with Burkina Faso Government on Mining Equity and Growth

West African Resources Limited (WAF) is in discussions with the Burkina Faso Government regarding the government’s request to acquire an additional equity interest in Kiaka SA. The company has proposed increasing national participation and government revenue from new and previously closed mining projects as an alternative. These discussions aim to promote sustainable growth in Burkina Faso’s gold mining industry, with a focus on national participation, job creation, and social benefits. WAF’s operations at Sanbrado and Kiaka remain unaffected, and the company is on track to meet its gold production targets for 2025. The announcement also aims to lift the suspension of WAF’s securities from trading.

West African Resources Reports Strong Operating Cash Flow Amidst Investment and Financing Outflows

West African Resources Limited reported a net cash inflow from operating activities of $241.6 million for the current quarter, contributing to a year-to-date total of $401.1 million. Despite this positive cash flow from operations, the company experienced a net cash outflow in investing activities of $69.7 million and a significant outflow in financing activities amounting to $124.3 million, resulting in a decrease in cash and cash equivalents for the period.

West African Resources Reports Strong Q3 2025 Gold Production

West African Resources Limited reported a strong third quarter in 2025, with gold production totaling 92,721 ounces and sales of 75,892 ounces at an average price of US$3,396 per ounce. The company highlighted the performance of its Sanbrado and Kiaka operations, noting that Sanbrado produced 59,852 ounces at a sustaining cost of US$1,348 per ounce, while Kiaka contributed 32,869 ounces at a higher cost of US$1,921 per ounce. The transition of Kiaka from construction to operations phase is expected to reduce costs as full production is achieved. The company is also in discussions with the Burkina Faso government regarding potential changes in ownership of its Kiaka subsidiary.

West African Resources Ltd Releases New Presentation on Current Position and Future Outlook

West African Resources Ltd has released a presentation outlining its current position and future outlook. The presentation emphasizes that the company is not making any offers or financial product advice, and it includes non-IFRS financial measures to provide additional insights into its operations. The release highlights the company’s commitment to transparency and the provision of relevant information to stakeholders, although it does not guarantee future performance.