PRECIOUS METALS

Some cost creep but all well at West African's Sanbrado gold project

WEST African Resources has confirmed production this year from its Sanbrado operation in the order of 220,000-240,000 ounces, with all-in sustaining costs put at US$1040-1100 per ounce.

Some cost creep but all well at West African's Sanbrado gold project

The production is unhedged.

Executive chairman Richard Hyde said costs had been rising across the board but suggested some costs this year were transitory such as the $25 million final cut-back of the M5 pit and processing and power plant upgrades.

The cut-back adds about $60-70/oz to AISC in 2022.

Meanwhile, the addition of the Toega deposit takes Sanbrado's mine life out to 2034, with annual production to average 198,000oz in the period 2022-2031.

With regards last year's Kiaka acquisition, Hyde suggested future annual production above 200,000oz was the target, with the possibility it could go up to 300,000oz upon an expansion 12 million tonnes per annum.

A feasibility update is on schedule for next quarter.

Regarding the coup, Hyde said there had been no impact, with "business as usual".

Shares in WAF were down 2.5% to A$1.09 in afternoon trade, capitalising the company at $1.11 billion.

 

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