West African Resources Q1 Gold Output Supports 2026 Guidance Amid Burkina Faso Equity Talks
West African Resources Limited reported first-quarter gold production of 107,728 ounces, maintaining momentum toward its 2026 guidance of 430,000 to 490,000 ounces. Concurrently, the company continues confidential discussions with the Burkina Faso government regarding an increased equity interest in its Kiaka operation.
- Q1 gold production of 107,728 ounces from Sanbrado and Kiaka
- Sanbrado open pit mining ramps up; underground production steady
- Kiaka sees 18% increase in mined ounces and improved processing throughput
- Group on track to meet 2026 annual guidance of 430,000–490,000 ounces
- Ongoing confidential talks with Burkina Faso government over Kiaka equity
Q1 2026 Gold Production Overview
West African Resources Limited (ASX:WAF) announced a combined gold production of 107,728 ounces for the March 2026 quarter from its Sanbrado and Kiaka gold production centres in Burkina Faso. The group sold 104,145 ounces at an average realised price of US$4,945 per ounce. This output positions the company well to meet its full-year guidance of 430,000 to 490,000 ounces for 2026.
Sanbrado Production Details
At the Sanbrado Gold Production Centre, open pit mining continued to ramp up, with the M5 North Pit delivering a 128% increase in mined ounces compared to the previous quarter. A total of 682,000 tonnes of ore were mined at an average grade of 0.8 grams per tonne, yielding 18,001 ounces of gold. Pre-stripping activities also commenced at the Toega open pit late in the quarter.
Underground mining at the M1 South delivered 114,000 tonnes at 7.4 grams per tonne for 27,320 ounces, aligning with the planned annual profile despite a 28% decrease in mined ounces from the prior quarter. This reduction was attributed to 19% lower tonnes and an 11% lower grade. The company expects underground mined ounces to increase in the remaining quarters as new stoping areas open.
The Sanbrado processing plant milled 715,000 tonnes of ore at a 2.0 grams per tonne head grade with a recovery rate of 93.4%, producing 42,024 ounces of gold. Production was 15% lower than the previous quarter, mainly due to a 12% lower mill grade driven by underground mining variations. Nevertheless, the quarterly output remains consistent with the planned annual production profile.
Kiaka Production and Operational Performance
Kiaka’s open pit mining showed an 18% increase in mined ounces quarter-on-quarter, supported by a 6% increase in ore tonnes and an 11% rise in grade. The operation mined 3.46 million tonnes at 0.9 grams per tonne, producing 97,906 ounces of gold. Mining activities focused on Kiaka Main Stage 1, with additional work at the South and Central pits.
The Kiaka processing plant improved throughput by 8%, processing 2.34 million tonnes at 0.9 grams per tonne with a recovery of 92.8%, resulting in 65,704 ounces of gold produced; a 6% increase over the previous quarter.
Government Equity Discussions at Kiaka
West African Resources continues confidential discussions with the Burkina Faso government regarding the State’s interest in acquiring an additional equity stake in Kiaka SA, the entity owning 100% of the Kiaka operation. Currently, West African Resources holds 85% ownership, with the State holding 15%. The government is represented by the state-owned Société de Participation Minière du Burkina Faso (SOPAMIB) in these talks.
These discussions follow earlier reports of the government seeking to increase its stake in Kiaka, as detailed in the company’s prior update on navigating Burkina Faso government’s push for a bigger Kiaka stake. The terms and timing of any potential transaction remain undisclosed, leaving uncertainty around the impact on ownership and operations.
Outlook and Commentary
Executive Chairman and CEO Richard Hyde highlighted the company’s strong start to 2026, stating that the quarterly production results from Sanbrado and Kiaka demonstrate that West African Resources is on track to meet its annual production guidance. He also indicated that a full quarterly activities report would be released in the coming weeks.
Bottom Line?
West African Resources’ solid first-quarter production supports its 2026 targets, but ongoing government equity talks at Kiaka introduce an element of uncertainty to ownership and future operations.
Questions in the middle?
- What are the potential terms and timeline for the Burkina Faso government’s increased equity interest in Kiaka?
- How might changes in underground mining grades at Sanbrado affect production in the latter half of 2026?
- What operational or financial impacts could arise if the government’s stake in Kiaka increases significantly?
