Join our daily newsletter At The Bell to receive exclusive market insights
- West African Resources (WAF) sets an unhedged gold production target of 220,000 to 240,000 ounces of gold for 2022, a drop from 2021 gold production of 288,719
- The guidance comes with an all-in sustaining cost of between US$1040 and US$1100 (A$1447 and A$1531) per ounce, up from $US796 (A$1,100) an ounce in 2021
- Due to the completion of the high-grade M1 open-pit in 2022 at its Sanbrado gold mine, gold output in 2022 is expected to be lower than in 2021 due to lower average open-pit grade
- As a result of decreased gold output, a projected pit cutback at M5 open-pit, capital improvement projects, and inflation, the all-in sustaining cost per ounce is expected to be higher than in 2021
- West African Resources is down 2.68 per cent on the market this morning and trading at $1.09 per share
West African Resources (WAF) has set an unhedged gold production target of 220,000 to 240,000 ounces of gold for 2022, a drop from 2021 gold production of 288,719.
The unhedged gold production guidance comes with an all-in sustaining cost of between US$1040 and US$1100 (A$1447 and A$1531) per ounce, up from $US796 (A$1,100) an ounce in 2021.
Due to the completion of the high-grade M1 open-pit in 2022 at its Sanbrado gold mine, gold output in 2022 is expected to be lower than in 2021 due to lower average open-pit grade.
As a result of decreased gold output, a projected pit cutback at M5 open-pit, capital improvement projects, and inflation, the all-in sustaining cost per ounce is expected to be higher than in 2021.
The purchase of Kiaka Gold Project has increased the company’s resources 127 per cent to 11.6 million ounces of gold.
Sanbrado’s ore reserves are up 13 per cent on the prior year to 302 million tonnes at 2 grams per tonne for 1.7 million ounces of gold.
Sanbrado will enter its third year of operation and Chairman and CEO Richard Hyde believes that the “strong performance is set to continue in 2022”.
“Exploration drilling in 2022 will test targets along strike underground at M1 South and within trucking distance of Sanbrado and Kiaka, as we look to underpin long term production at both projects,” he said.
Drilling for the year is expected to cost around US$10 million (A$13.92 million) and includes three programs.
“West African Resources is entering a significant growth phase, as we aim to a be a over 400,000 ounces per annum gold producer by 2025.” Mr Hyde said.
The Kiaka feasibility study is on track to be completed in the second quarter of 2022 and is expected to result in a substantial increase in the company’s ore reserves.
On the market this morning, West African Resources was down 2.68 per cent and is trading at $1.09 per share at 11:15 am AEDT.
