Want to see AU:WAF full AI Analyst Report?
Top Page
West African Resources Ltd
(Sydney:WAF)
Select Model
Select Model
Rating:67Neutral
Price Target:
AU$3.00
▼(-12.79% Downside)
Action:Downgraded
Date: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-up and diversification
The company has meaningfully scaled production with Sanbrado and the Kiaka ramp contributing to >300k oz in 2025. Durable higher output broadens the revenue base, creates operating scale, and reduces single-mine dependency, supporting sustainable cash generation and project funding over multi‑year horizons.
Negative Factors
Free cash flow volatility and inconsistency
Inconsistent free cash flow reduces financial flexibility for sustained capex, dividends or buybacks and increases reliance on external funding when cycles turn. Heavy reinvestment and working-capital swings mean the company must maintain strong operational performance to avoid leverage creep and preserve investment optionality over coming years.
Read all positive and negative factors
Positive Factors
Negative Factors
Production scale-up and diversification
The company has meaningfully scaled production with Sanbrado and the Kiaka ramp contributing to >300k oz in 2025. Durable higher output broadens the revenue base, creates operating scale, and reduces single-mine dependency, supporting sustainable cash generation and project funding over multi‑year horizons.
Read all positive factors
West African Resources Ltd (WAF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.09B
Dividend YieldN/A
Average Volume (3M)9.26M
Price to Earnings (P/E)5.1
Beta (1Y)0.91
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$4.73Price Target Upside37.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.87
Revenue Forecast (FY)AU$2.96B
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 makes money primarily by producing and selling gold from its mining operations. Its main revenue stream is gold sales, where mined ore is processed through a plant to recover gold and produce a gold-bearing product (commonly doré), which is th...
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
Negative
3.44
Price Trends
3.00
Negative
3.09
Negative
3.13
Negative
Market Momentum
-0.07
Negative
43.99
Neutral
47.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAF, the sentiment is Negative. The current price of 3.44 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 3.00, and above the 200-day MA of 3.13, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 47.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$4.27B | 8.72 | 27.80% | 0.65% | 31.42% | ― | |
71 Outperform | AU$1.43B | 10.42 | 21.51% | ― | 55.13% | 9.24% | |
67 Neutral | AU$3.09B | 5.13 | 42.00% | ― | 111.74% | 100.58% | |
67 Neutral | AU$6.17B | 17.05 | 12.39% | 1.32% | 16.69% | 3.17% | |
67 Neutral | AU$4.11B | 16.08 | 12.35% | 0.46% | 101.97% | 237.66% | |
64 Neutral | AU$1.91B | 12.13 | 17.01% | ― | 10.67% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
AU:WAF
West African Resources Ltd
2.77
0.37
15.42%
AU:PRU
Perseus Mining
4.64
1.04
29.07%
AU:RSG
Resolute Mining
0.92
0.26
39.39%
AU:RRL
Regis Resources Limited
5.65
1.35
31.49%
AU:WGX
Westgold Resources
4.44
1.60
56.50%
AU:ORE
Orezone Gold Corporation Registered Shs
2.14
0.98
84.48%
West African Resources Ltd Corporate Events
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 ...
West African Resources boosts director Richard Hyde’s performance rights
May 11, 2026
West African Resources has reported a change in the interests of director Richard Hyde, who received 352,296 additional performance rights at no cash consideration. The new allocation adds to his existing mix of ordinary shares and multiple tranch...
West African Resources Seeks Quotation for Additional ASX Shares
May 11, 2026
West African Resources has applied for the quotation of new ordinary fully paid shares on the ASX, expanding its listed capital base. The application covers 270,669 shares issued on May 6, 2026, and 281,642 shares issued on May 7, 2026, reflecting...
West African Resources Issues New Tranche of Unquoted Performance Rights
May 11, 2026
West African Resources Ltd has issued 665,028 unquoted performance rights under its employee incentive scheme, with an issue date of 8 May 2026. These performance rights, which will not be quoted on the ASX, are part of the company’s ongoing...
West African Resources Reports Voting Outcomes from 2026 AGM
May 8, 2026
West African Resources Limited has reported the outcomes of its 2026 annual general meeting of shareholders held on 8 May 2026. The chair exercised all undirected proxies in favour of each resolution except Resolution 18, which he voted against.Al...
West African Resources Issues Detailed Investor and Regulatory Disclaimers Ahead of AGM
May 8, 2026
West African Resources has released an AGM presentation dated 8 May 2026 that primarily comprises legal, financial and regulatory disclaimers around its communications to investors. The company reiterates that its materials are summaries only, may...
UBS Group AG exits substantial shareholder position in West African Resources
May 7, 2026
UBS Group AG and its related bodies corporate have ceased to be a substantial shareholder in West African Resources Ltd as of 5 May 2026. The change, formally notified to the company via an Australian Corporations Law Form 605 filing, indicates th...
West African Resources seeks ASX quotation for additional ordinary shares
May 1, 2026
West African Resources Ltd has applied for quotation on the ASX of 495,680 new ordinary fully paid shares, issued on 27 and 29 April 2026. The new securities, listed under code WAF, result from the exercise of options or conversion of other securi...
West African Resources Discloses Share Sale by Director Richard Hyde
May 1, 2026
West African Resources has reported a change in director Richard Hyde’s holdings, disclosing the sale of a total of 2.5 million ordinary shares in two transactions on 27 and 28 April 2026. Following these disposals, Hyde retains 15,133,118 o...
JPMorgan Ceases to Be Substantial Holder in West African Resources
Apr 22, 2026
JPMorgan Chase Co. and its affiliates have notified West African Resources that they have ceased to be a substantial holder in the company as of 20 April 2026. The change reflects a combination of securities lending activity, collateral movements...
West African Resources Posts Strong Quarterly Cash Flow and Builds Cash Reserves
Apr 22, 2026
West African Resources reported strong operating cash flows for the quarter ended 31 March 2026, generating A$440.3 million in net cash from operating activities on customer receipts of A$744.1 million. Payments to suppliers and employees totaled ...
West African Resources Posts Record Cash and Lifts Gold Reserves in Strong Q1
Apr 22, 2026
West African Resources reported a record cash balance of A$847 million for the March 2026 quarter, alongside unsold gold bullion worth A$213 million, as strong operations at its Sanbrado and Kiaka mines in Burkina Faso delivered 107,728 ounces of ...
West African Resources Sets Investor Call on March Quarterly Report
Apr 21, 2026
West African Resources will host an investor webinar and conference call on 23 April 2026 to discuss its March 2026 quarterly report, led by Executive Chairman and CEO Richard Hyde. The company will also make a recording of the event available onl...
Burkina Faso Moves to Take 25% Stake in West African Resources’ Kiaka Mine
Apr 20, 2026
West African Resources has announced that the Burkina Faso government, through state-owned SOPAMIB, has issued a decree to acquire an additional 25% stake in the company’s Kiaka SA gold operation for about A$175 million. The move formalises ...
West African Resources Flags Imminent Update on Burkina Faso Kiaka Stake
Apr 20, 2026
West African Resources Limited has updated the market on the timing of an expected announcement related to a decree issued by the Burkina Faso government concerning a potential additional 25% acquisition in the share capital of its subsidiary Kiak...
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.