PRECIOUS METALS

West African on track for gold guidance and new mine in Burkina

WEST African Resources has reported A$80 million in cashflow from gold operations in Burkina Faso during the June quarter as 56,701 ounces were produced at all-in sustaining costs of US$1166 per ounce and nearly 60,000oz were sold at a price of just under $2000/oz.

 Kiaka camp, Burkina Faso

Kiaka camp, Burkina Faso

The 113,009oz produced in the half year put the company on track to meet guidance of 210,000-230,000oz at AISC of less than $1175/oz.

WAF spend A$43 million of capex at the Kiaka development during the quarter, after expending $39 million in the March period.

As of June 30, WAF had $167 million cash and $24 million of unsold gold.

WAF is finalising a US$265 million debt facility for Kiaka, with feasibility numbers a year ago estimating pre-production capital costs of $430 million.

Kiaka will see WAF become a plus-400,000oz per annum producer.

WAF currently has resources of 12.6 million ounces, reserves of 6.4Moz and, at a share price of A92c, a market capitalisation of $943 million. 

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