PRECIOUS METALS

Stellar gold quarter for West African Resources

Sanbrado operation in Burkina Faso delivering a treat

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Preliminary numbers released by the company show the key to the output in the September quarter was open pit production of 68,300oz, with the high grade M1 South underground mine yielding 28,060oz.

Costs will be reported later this month with the release of the full September quarter report.

Investors will also be keen to see the cash generated and debt position of West African Resources, with the company previously flagging an expectation of being debt-free by early next year.

Dividend payments or a share buy-back will then likely be initiated.

West African Resources borrowed US$200 million to develop Sanbrado.

Capital markets firm Argonaut believes the gold miner could bank A$85 million this quarter, putting the company in a net cash position for the first time.

Shares in West African Resources were trading this month at 97c, capitalising the company at $866 million.

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