WAF Reports Q3 Gold Production of 92,721 Oz at US$1,532/oz AISC
West African Resources reported robust Q3 gold production of 92,721 ounces at a competitive all-in sustaining cost, while navigating ongoing discussions with the Burkina Faso government over increased ownership in its Kiaka project.
- Q3 gold production of 92,721 ounces at US$1,532/oz AISC
- Sanbrado on track for 2025 guidance of 190,000–210,000 ounces
- Kiaka’s first operational quarter yields 32,869 ounces with costs expected to decline
- Burkina Faso government increased free carried interest to 15%, seeks additional 35% stake in Kiaka
- Updated Mineral Resources and Ore Reserves total 6.5 million ounces with production peaking in 2029
Robust Production Performance
West African Resources Limited (ASX – WAF) has reported a strong operational quarter for Q3 2025, producing 92,721 ounces of gold at an all-in sustaining cost (AISC) of US$1,532 per ounce. This output was driven by steady performance at the Sanbrado Gold Production Centre and the inaugural operational contribution from the Kiaka Gold Production Centre.
Sanbrado delivered 59,852 ounces at a sustaining cost of US$1,348/oz, maintaining its trajectory to meet the 2025 annual guidance range of 190,000 to 210,000 ounces at costs below US$1,350 per ounce. The underground M1 South mine showed a notable 53% increase in mined ounces compared to the previous quarter, reflecting improved grade and operational efficiency.
Kiaka’s Operational Debut and Cost Outlook
Kiaka transitioned from construction to operations on 1 August 2025, producing 32,869 ounces in its first quarter at a higher sustaining cost of US$1,921/oz. The plant faced power constraints during Q3, relying on diesel generators, but the completion of the grid power connection in late October is expected to reduce costs and support full production ramp-up in Q4.
Open pit mining at Kiaka ramped up significantly, with a 172% increase in mined gold ounces over the prior quarter, driven by increased tonnes moved and improved ore grade. The company holds approximately 12,310 ounces of unsold gold bullion at Kiaka, valued near US$47 million.
Financial Strength and Government Relations
West African Resources remains unhedged, selling 75,892 ounces in Q3 at an average price of US$3,396/oz, generating A$242 million in operating cash flow after tax payments. The group ended the quarter with a net cash position of US$33 million, a significant improvement from a net debt position at the start of the quarter.
Notably, the Burkina Faso government increased its free carried equity interest in WAF’s mining projects from 10% to 15% during Q3, aligning with the 2024 Mining Code. However, the government has also expressed interest in acquiring an additional 35% stake in WAF’s Kiaka subsidiary, Kiaka SA. This has led to a suspension of WAF’s securities on the ASX pending resolution, with ongoing discussions between the parties.
Long-Term Outlook and Growth Initiatives
WAF updated its Mineral Resources and Ore Reserves, reporting 6.5 million ounces of gold reserves and 12.2 million ounces of mineral resources. The company’s 10-year production outlook anticipates an average of 496,000 ounces annually from 2026 to 2034, peaking at 569,000 ounces in 2029.
Sanbrado’s production is expected to increase by 15% to an average of 243,000 ounces per annum through 2034, with mine life extended to 2035. Kiaka is forecast to average 248,000 ounces annually from 2026, supported by planned infrastructure upgrades.
Meanwhile, development at the Toega gold deposit is progressing, with resettlement completed and pre-stripping scheduled to commence by the end of Q4 2025. Environmental and social initiatives continue, including school construction, reforestation campaigns, and livelihood restoration programs, underscoring WAF’s commitment to sustainable operations.
Bottom Line?
As West African Resources advances production and navigates government ownership negotiations, investors will watch closely for how these dynamics shape the company’s growth trajectory and market position.
Questions in the middle?
- What are the potential impacts on WAF’s control and valuation if the Burkina Faso government acquires an additional 35% stake in Kiaka SA?
- How quickly will Kiaka’s operating costs decline following full grid power commissioning and production ramp-up?
- What are the risks to the 10-year production outlook given geopolitical and operational uncertainties in Burkina Faso?