Rising State Equity Stakes Pose New Dynamics for West African Resources

Robust Production and Financial Performance

West African Resources Limited (ASX – WAF) reported a steady quarter for its Sanbrado gold operations in Burkina Faso, producing 45,611 ounces of gold at an all-in sustaining cost (AISC) of US$1,492 per ounce. This performance aligns with the company’s 2025 guidance, with Sanbrado on track to deliver between 190,000 and 210,000 ounces for the year at a site sustaining cost below US$1,350 per ounce. The company sold 49,840 ounces at an average realised price of US$3,282 per ounce, remaining fully unhedged and benefiting from strong gold prices.

Financially, WAF generated A$86 million in operating cash flow after paying A$42 million in income taxes, ending the quarter with a robust cash balance of A$279 million and holding A$49 million in gold bullion. This liquidity supports ongoing growth and operational initiatives.

Kiaka Project – Early Completion and Ramp-Up

The Kiaka gold project marked a significant milestone by completing construction ahead of schedule and under budget, pouring its maiden gold bars on 26 June 2025. The project has transitioned from construction to operations, with ramp-up to commercial production underway. Currently operating on backup diesel generators, Kiaka is set to connect to Burkina Faso’s national power grid in Q3 2025, which will enable higher capacity and more efficient operations.

Ore stockpiles at Kiaka have been steadily building, with 945,000 tonnes at a grade of 0.6 g/t containing approximately 19,200 ounces ready for processing. The smooth handover from construction to operations and the timely power connection are critical to meeting production targets and underpin the company’s growth ambitions.

Resource Expansion at M1 South Underground

West African Resources continued to advance its resource base with high-grade drilling results beneath the current ore reserves at the M1 South underground mine. Notable intercepts included 44 meters at 25.8 grams per tonne and 44.5 meters at 17.1 grams per tonne of gold. These wide zones of mineralisation are being incorporated into an updated resource and reserve estimate, expected in Q3 2025, which will inform a refreshed 10-year production plan.

This drilling success reinforces the long-life potential of the Sanbrado operation and supports WAF’s strategic goal of increasing annual gold production to 500,000 ounces by 2030, leveraging its portfolio of low-cost, unhedged assets.

Regulatory Alignment and Corporate Developments

In line with Burkina Faso’s new mining code, WAF has adjusted equity ownership structures, increasing the State’s free carried interest from 10% to 15% in its Kiaka and Toega projects, with a similar adjustment expected for Sanbrado in the coming quarter. While this aligns the company with local regulatory requirements, the impact on project economics will be closely monitored.

On the corporate front, Jayde Webb, an experienced mining engineer, joined the board as a Non-executive Director, succeeding Nigel Spicer. This appointment strengthens the company’s governance as it navigates growth and operational milestones.

Sustainability and Community Engagement

WAF maintained its commitment to environmental stewardship and social investment. Both Sanbrado and Kiaka operations progressed environmental management plans and community programs, including local procurement policies, educational initiatives, and sustainable waste recycling efforts. These programs are integral to maintaining strong community relations and operational licenses in Burkina Faso.