West African meets guidance as Kiaka construction continues

Subiaco-based West African Resources announced on Friday it had met the upper tier of its full year 2023 production guidance, as construction plans at the company's Kiaka gold project in Burkina Faso continue. 

The gold miner produced 226,823 ounces of gold at an all-in sustaining cost of US$1126 per ounce, meeting its 210,000-230,000 oz guidance target. 

Despite this, overall production was down from 2022, in which 229,224 oz was produced with an ASIC of US$1,086/oz. 

West African executive chairman and chief executive officer Richard Hyde told the market that the company's flagship Sanbrado gold mine in Burkina Faso continued to deliver solid quarters of low-cost gold production. 

"This was the third consecutive year that WAF has fully achieved cost and production guidance and we look forward to releasing our 2024 guidance in the coming weeks," Mr Hyde said.

“Following the end of the quarter, WAF made its first drawdown of US$100 million, under the US$265 million loan facility with Sprott and Coris. These funds strengthen the company’s cash position for the construction of Kiaka and other corporate purposes. A total of A$50 million of capex was invested in the development of Kiaka during the fourth quarter of 2023 - and the project remains on budget and schedule to pour first gold in the second half of 2025.

"Kiaka will be a long-life low-cost mine, averaging 219,000 oz of gold production per annum for 18.5 years at AISC of US$1,052/oz."

Long-term, Mr Hyde said West African's annual gold production could reach more than 400,000 oz by 2025 - once operations at Kiaka, located 45km south of Sanbrado, begin in earnest. 

"Our unhedged 10-year production outlook estimates production of more than 200,000 ounces of gold per annum in 2023 and 2024, and more than 400,000 ounces of gold per annum from 2025 to 2032," he said. 

The company accquired a 90 per cent stake in Kiaka, a deal worth A$133 million, during October 2021. 

West African last traded at 93.8 cents per share, down 1 per cent, as of 2.43pm AEDT.