West African Resources Posts A$86M Operating Cash Inflow, Invests A$126M in Exploration
West African Resources Limited reported a robust quarter with strong operating cash inflows and significant investment in exploration, ending June 2025 with A$279 million in cash. The company’s strategic financing and spending patterns highlight its commitment to growth in West Africa’s gold sector.
- A$86.4 million net cash inflow from operating activities
- A$125.9 million invested in exploration and evaluation
- Quarter-end cash and cash equivalents of A$279.2 million
- Secured loan facilities totaling A$412.3 million with A$303.5 million available
- Payments to related parties totaled A$814,000
Strong Operating Cash Flow
West African Resources Limited has delivered a solid financial performance for the quarter ending 30 June 2025, reporting net cash inflows from operating activities of A$86.4 million. This positive cash flow underscores the company’s operational strength amid ongoing exploration and development efforts in West Africa’s gold mining sector.
Heavy Investment in Exploration
The company’s investing activities reveal a substantial outflow of A$125.9 million, primarily directed towards exploration and evaluation. This level of investment signals West African Resources’ aggressive approach to expanding its resource base and advancing its projects, positioning the company for future growth despite the short-term cash outflows.
Robust Cash Position and Financing Facilities
Ending the quarter with A$279.2 million in cash and cash equivalents, West African Resources maintains a strong liquidity position. The company also benefits from secured loan facilities totaling A$412.3 million, with approximately A$303.5 million still available. These facilities, arranged through partners such as Sprott Resource Lending Corp and Coris Bank International SA, provide financial flexibility to support ongoing operations and capital expenditure.
Governance and Related Party Payments
Payments to related parties, including executive and non-executive directors, amounted to A$814,000 for the quarter. This disclosure aligns with governance standards and provides transparency around executive remuneration and related transactions.
Looking Ahead
While the company’s cash flow report does not include forward guidance or production updates, the significant exploration expenditure combined with a strong cash buffer suggests West African Resources is positioning itself for growth. Market watchers will be keen to see how these investments translate into operational milestones and resource expansions in the coming quarters.
Bottom Line?
West African Resources’ strong cash flow and hefty exploration spend set the stage for a pivotal growth phase in West Africa’s gold mining landscape.
Questions in the middle?
- How will the recent exploration investments impact resource estimates and project timelines?
- What are the company’s plans for utilising the remaining available financing facilities?
- Will operational cash flows sustain at current levels amid ongoing capital expenditure?
