- West African Resources (WAF) announces record annual gold production of 288,719 ounces in 2021 at its 90-per-cent-owned Sanbrado project in Burkina Faso
- The company reports gold sales for the full year were 295,215 ounces with an all-in sustaining cost (AISC) per ounce of US$796 (A$1107)
- The average gold price per ounce was US$1808 (A$2516) for the year
- The company finished the quarter with a cash balance of $183 million
- Shares are trading down 3.02 per cent at $1.28 each
West African Resources (WAF) has announced record annual gold production of 288,719 ounces in 2021 at its 90-per-cent-owned Sanbrado project in Burkina Faso
The company was expecting to produce between 250,000 and 280,000 ounces in 2021, according to its annual guidance.
In the December quarter, WAF produced 87,324 ounces at the project: a seven per cent increase from the previous quarter.
West African Resources reported gold sales for the full year were 295,215 ounces, with 86,516 ounces being sold in the fourth quarter.
The all-in sustaining cost (AISC) per ounce for the year was US$796 (A$1107), which is within the company’s guidance range. For the December quarter, AISC was US$721 (A$1003), representing a 4.4 per cent increase compared to the previous quarter.
The company’s gold sales price per ounce averaged US$1812 (A$2521) in the December quarter and US$1808 (A$2516) for the year.
The company generated $139 million from its operating activities, with $183 million cash on hand at the end of the quarter.
According to the WAF report, the company spent $64 million on investing activities over the December quarter — most of which was for the acquisition of the Kiaka and Toega projects.
Looking ahead, the company is in the process of providing an update on feasibility work conducted at the Kiaka gold project, which it expects to be completed by the end of the second quarter. WAF is planning to begin the mobilisation for the commencement of site works at the project during this quarter.
The company is currently completing a feasibility study at the Toega gold project. It expects this to be reported during this quarter.
Chairman and Chief Executive Officer Richard Hyde said he was thrilled with West African Resources’ latest results.
“Sanbrado had another outstanding quarter, producing a record 87,320 ounces at an all-in sustaining cost of US$721/oz in Q4 and reaching full-year 2021 production guidance with a record 288,719 gold ounces produced at an average AISC/oz of US$796 versus the upper guidance of 280,000 ounces at an AISC/oz of US$800,” he said.
“With our acquisition of the advanced Kiaka gold project, WAF aims to be a +400,000-ounce-per-year producer by 2025.”
Shares in WAF were trading down 3.02 per cent at $1.28 each at 1:02 pm AEDT.