West African Resources first-half profit rockets 133% as gold prices soar

The news: Gold miner West African Resources delivered first-half net profit of $214.6 million, up 133% on the prior corresponding period, as the company's average sales price lifted 39% year on year.

The numbers: West African grew its first-half revenue 39% to $477.3 million, even as gold sales slipped 4% to 98,178 ounces and the company's all-in sustaining cost rose 12% to USD1,374 ($2,119) per ounce.

The context: The miner said the increase in mining costs during the period was primarily driven by higher royalties from higher gold revenue and a 1% uplift in the Burkina Faso's government's gold royalty rate, effective from April this year.

The company was also impacted during the year after Burkina Faso's government increased its equity interest in West African's Sanbrado, Kiaka and Toega projects from 10% to 15%, with the miner's stake reducing from 90% to 85%. West African received no proceeds for the 5% equity transfer, resulting in a $33.4 million decrease in retained profits.