West African Resources Q1 2024 Report

West African Resources Limited (ASX: $WAF) has released its activity report for the quarter ended 31 March 2024. The company reported Q1 gold production of 56,595 ounces at an AISC of US$1,291/oz, tracking well to achieve the 2024 annual guidance of 190,000 to 210,000 ounces at an AISC of less than US$1,300/oz. The company also sold 49,509 ounces in the quarter at an average realized price of US$2,078/oz, with a cash balance of A$342 million and A$41 million unsold gold bullion at the end of Q1.

Executive Commentary

West African Executive Chairman and CEO Richard Hyde expressed, 'Sanbrado delivered another solid quarter of low-cost gold production and WAF is on track to achieve annual guidance of 190,000 to 210,000 ounces of gold at an AISC of less than US$1,300 per ounce. Drilling results at M1 South underground in the quarter has confirmed the potential for an additional mining area that we are working to bring into the mining plan this year.'

Summary

West African Resources reported a solid Q1 with gold production of 56,595 ounces at an AISC of US$1,291/oz, in line with the company's annual guidance of 190,000 to 210,000 ounces at an AISC of less than US$1,300/oz. The company remains fully unhedged and has a cash balance of A$342 million with A$41 million unsold gold bullion at the end of Q1. The Kiaka construction is progressing on schedule and budget, with first gold expected to be poured in Q3 2025, positioning WAF to become a plus-400,000 ounce per year gold producer. The company's 2024 Mineral Resource and Ore Reserve update highlights forecast production of 4.03 Moz gold from 2024 to 2033, with mineral resources increased by 181,000 ounces to 12.8 Moz gold, net of 2023 mining depletion. Additionally, the Toega mining permit has been approved, with production from this deposit expected to commence in H2 2025. The company's executive chairman and CEO expressed deep sadness over the fatality of a contractor in January and emphasized the company's commitment to learning from the incident and improving safety across the business.