West African Resources delivered 125,179 ounces of gold in Q2 2026, maintaining momentum toward its full-year guidance amid ongoing permitting hurdles and a major equity transaction at Kiaka.
- Q2 gold production at 125,179 ounces
- Year-to-date production reaches 232,905 ounces
- SOPAMIB acquiring 25% stake in Kiaka for A$176 million
- Permitting delays impact Kiaka explosives supply and Sanbrado expansion
- On track for 2026 guidance of 430,000–490,000 ounces
Strong Q2 Production Keeps West African Resources on Track
West African Resources (ASX:WAF) reported a robust 125,179 ounces of gold produced in the June 2026 quarter, pushing year-to-date output to 232,905 ounces. The company remains confident of hitting its 2026 guidance range of 430,000 to 490,000 ounces, supported by solid performances at both its Sanbrado and Kiaka gold production centres in Burkina Faso.
Gold sales for the quarter totalled 110,737 ounces at an average realised price of US$4,556 per ounce, reflecting steady market conditions. Sanbrado contributed 57,608 ounces, while Kiaka delivered 67,571 ounces, with both sites showing operational improvements despite some challenges.
Sanbrado’s Underground Mining Drives Production Growth
At Sanbrado, underground mining from the M1 South pit surged, producing 43,644 ounces from 167kt of ore at an impressive 8.1 g/t grade, 60% higher than Q1. Open pit mining at M5 North remained steady, yielding 17,791 ounces. Pre-strip activity ramped up significantly at the Toega open pit, with the first ore mined from stage 1, indicating strong development progress.
The Sanbrado processing plant milled 787kt of ore at a 2.4 g/t head grade with a recovery rate of 93.7%, resulting in a 37% increase in gold output compared to the previous quarter. This performance was largely driven by increased underground tonnes and grade.
Kiaka Faces Mining Constraints but Maintains Output
Kiaka’s open pit mining saw an 18% decrease in ore tonnes and an 8% dip in grade, leading to a 24% drop in mined gold ounces to 74,134. These reductions were partly due to delayed government approval of an operational permit for the explosives manufacturing and storage facility, forcing the company to rely on alternative explosives supply and adjust its mine plan to focus on free dig areas.
Despite these constraints, Kiaka’s processing plant increased throughput by 6%, producing 67,571 ounces at a 0.9 g/t grade and 92.9% recovery, a 3% rise in gold production from the prior quarter.
Strategic Equity Transaction Advances with SOPAMIB
West African Resources is progressing the sale of a 25% stake in Kiaka SA to Burkina Faso’s state-owned Société de Participation Minière du Burkina Faso (SOPAMIB) for 70 billion CFA francs, approximately A$176 million. This transaction reflects the government’s increasing involvement in the project, where WAF currently holds an 85% interest.
The deal is a continuation of ongoing negotiations that have been shaping the ownership structure of Kiaka, aligning with broader government participation in the country’s mining sector.
Permitting Delays Affect Expansion Plans but Production Guidance Holds
WAF’s application to update the Sanbrado life of mine plan to include the M5 South underground awaits government approval, delaying development activities expected to start in early 2027. The company reports sufficient flexibility in its mine plan to maintain 2026 production targets despite this setback.
Similarly, the lack of explosives permit approval for Kiaka’s facility has constrained open pit mining, leading to reduced waste stripping and a focus on ore production areas that do not require explosives. These operational adjustments have so far not derailed the company’s annual production outlook.
Executive Chairman and CEO Richard Hyde highlighted the company’s strong year-to-date results and reiterated confidence in meeting full-year guidance, with a detailed quarterly report forthcoming.
Bottom Line?
West African Resources navigates permitting hurdles and strategic shifts while maintaining steady gold output, with key regulatory approvals and the SOPAMIB deal set to shape its near-term trajectory.
Questions in the middle?
- How will the timing of governmental approvals for Sanbrado and Kiaka affect production beyond 2026?
- What operational adjustments will WAF implement if explosives supply issues persist at Kiaka?
- How might SOPAMIB’s stake influence future investment and governance at Kiaka?