West African Resources shares gain after tracking top end of guidance
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More news: Shares in West African Resources advanced in morning trade on the ASX after the gold miner said it was on track to achieve the upper end of its full-year production guidance.
West African shares rose 2.98% to $1.47 by 11:25am AEST.
West African Resources on track for FY guidance despite Q2 production dip
The news: West African Resources said it is on track to achieve the upper end of its full-year production guidance, despite a 10% dip in Q2 production compared to the previous quarter.
The numbers: The Perth-based gold miner posted production of 51,049 ounces for the June quarter, compared to 56,595 in the prior three months. However, production was 10% below (56,701 ounces) on a year-on-year basis
Despite the quarter-on-quarter drop, West African said its half-year gold production of 107,644 ounces at all-in sustaining costs (AISC) of USD1,223 ($1,850) per ounce leaves the company on track for its full-year production guidance of 190,000 to 210,000 ounces at an AISC of less than USD1,300 per ounce.
Compared to the previous year, it will be below its 2023 production of 226,823 ounces and at a higher cost compared to USD1,136 AISC per ounce during the prior year.
In the June quarter, West African sold 52,445 ounces of gold at an average price of USD2,314 per ounce. This represented a 5.9% higher sales volume quarter on quarter, while the AISC per ounce of $1,158 was 10% lower than the previous quarter.
The context: West African said the construction of its Kiaka gold project in Burkina Faso remains on track for first gold to be poured in Q3 2025, which would see the company become a "plus 400,000 ounce per year gold producer".
Earlier this month, West African shares plunged on the ASX after the miner announced a $150 million placement to progress the development of Kiaka.
The source: ASX announcement
