West African Resources shares rise on full-year profit lift

The news: Gold miner West African Resources has reported a sharp lift in full-year profit on the back of increased production at its Sanbrado mine in Burkina Faso.

The numbers: The company reported a net profit of $246.2 million for the year to December, up from $164.8 million a year earlier. Full-year output totalled 206,622 ounces, near the upper end of its production guidance of 190,000 to 210,000 ounces. It did not declare any dividend for the period.

The context: WAF reported annual revenue of $730 million, with its gold sales averaging a price of USD2,391 per ounce. It improved output in the December quarter despite facing a lower head grade and recovery during the preceding quarter and a spell of uncertainty over the future of its gold projects in Burkina Faso after the country's military junta briefly said it planned to withdraw mining permits from some foreign companies.

CEO Richard Hyde said its Kiaka mine construction in that country remains on schedule and on-budget for first gold in Q3 2025. “With Kiaka construction nearing completion, we are on the cusp of having two long-life, low-cost gold production centres in operation in 2025, which will see WAF more than double annual gold production to over 420,000 ounces per year.”