West African Delivers 206,622oz Gold in 2024 at US$1,240/oz AISC
West African Resources delivered solid Q4 2024 gold production and maintained full-year guidance, while progressing the Kiaka project on schedule and budget. The company also earned national recognition for its community contributions in Burkina Faso.
- Q4 gold production of 51,178 ounces at AISC of US$1,216/oz
- Full-year 2024 production met guidance at 206,622 ounces
- Kiaka project construction over 80% complete, on schedule for Q3 2025 first gold
- Sanbrado awarded Burkina Faso National Order of Honor Medal
- Strong cash position with A$392 million and A$54 million in unsold gold bullion
Robust Production Performance
West African Resources Limited (ASX: WAF) reported a strong operational quarter ending December 2024, producing 51,178 ounces of gold at an all-in sustaining cost (AISC) of US$1,216 per ounce. This performance contributed to a full-year production tally of 206,622 ounces, comfortably within the company’s guidance range of 190,000 to 210,000 ounces at an AISC below US$1,300/oz. The company’s ability to consistently meet production and cost targets for four consecutive years underscores operational discipline and efficiency at its Sanbrado gold operations in Burkina Faso.
Financial Strength and Market Position
West African Resources ended the quarter with a robust cash balance of A$392 million and held A$54 million in unsold gold bullion, reflecting a strong liquidity position. The company remains unhedged, exposing it fully to gold price movements, with Q4 gold sales averaging US$2,690 per ounce. Operating cash flow was A$76 million after tax payments, supporting ongoing capital expenditure and development activities. Notably, the company’s Total Reportable Injury Frequency Rate (TRIFR) was 1.51, significantly lower than the Western Australian gold industry benchmark, highlighting a commendable safety record.
Kiaka Project Progress and Outlook
The Kiaka gold project, a key growth driver for West African Resources, advanced steadily with over 80% of construction complete by the end of 2024. Major milestones achieved include completion of critical infrastructure such as the crusher, mill components, tailings storage facility, and water storage dam. The project remains on schedule and budget, with first gold production targeted for Q3 2025. Preparations for operational readiness are well underway, including the completion of the maiden grade control drilling program, which returned promising thick zones of mineralisation, and the assembly of mining fleet and ancillary equipment.
Community Recognition and Social Investment
West African Resources’ Sanbrado operation received the Burkina Faso National Order of Honor Medal, recognising its significant contribution to local community development. The company’s social investment initiatives focus on health awareness, agricultural improvement, and educational support, aligning with sustainable development goals. These efforts reinforce the company’s commitment to responsible mining and positive stakeholder engagement in the region.
Exploration and Resource Development
Exploration drilling beneath existing ore reserves at M1 South underground returned high-grade intercepts, including intervals exceeding 30 g/t gold, supporting resource conversion and mine life extension. Meanwhile, the Toega deposit remains a focus for future development, although minimal activity was reported this quarter as resources are concentrated on Kiaka. The company’s ongoing exploration success underpins its long-term growth strategy.
Bottom Line?
With Kiaka nearing production and a strong balance sheet, West African Resources is poised for a transformative 2025.
Questions in the middle?
- How will gold price volatility impact West African’s unhedged exposure in 2025?
- What are the key risks that could affect the timely commissioning of the Kiaka project?
- How might further resource upgrades at M1 South influence production profiles and mine life?