Can West African Resources Sustain Profit Growth Amid Gold Market Volatility?
West African Resources has reported a robust first half of 2025, delivering A$215 million in net profit after tax on the back of strong gold production and sales.
- Gold production of 95,644 ounces at US$1,374 per ounce AISC
- Gold sales totalled 98,178 ounces at an average price of US$3,049 per ounce
- Revenue reached A$477 million with a profit before tax of A$295 million
- Cash flow from operations stood at A$159 million
- Company ended H1 2025 with A$279 million in cash and A$49 million in unsold gold bullion
Strong Half-Year Performance
West African Resources Limited (ASX, WAF) has delivered an impressive financial performance for the first half of 2025, reporting a net profit after tax of A$215 million. This result reflects the company’s effective operational execution and favourable gold market conditions during the period.
The company produced 95,644 ounces of gold at an all-in sustaining cost (AISC) of US$1,374 per ounce, while selling 98,178 ounces at an average price of US$3,049 per ounce. These figures underscore the company’s ability to generate strong margins despite the volatility often seen in commodity markets.
Robust Financial Metrics
Revenue for the half year reached A$477 million, with profit before tax standing at A$295 million. Operating cash flow was a healthy A$159 million, providing the company with solid liquidity to support ongoing operations and potential growth initiatives. At the end of June 2025, West African Resources held A$279 million in cash alongside A$49 million in unsold gold bullion, reflecting a strong balance sheet position.
Strategic Position and Outlook
Executive Chairman and CEO Richard Hyde highlighted the company’s unhedged position, which allows it to fully benefit from rising gold prices. He also pointed to the substantial gold resources and ore reserves, with 12.2 million ounces in resources and 6.5 million ounces in reserves, underpinning the company’s medium to long-term production potential.
While the company did not provide detailed forward guidance in this release, the strong half-year results and robust resource base suggest West African Resources is well positioned to capitalise on favourable market conditions. Investors will be watching closely for updates on production targets and cost management as the year progresses.
Bottom Line?
West African Resources’ strong half-year results set a confident tone, but future gold price movements and operational execution will be key to sustaining momentum.
Questions in the middle?
- How will West African Resources manage cost pressures amid fluctuating gold prices?
- What are the company’s production targets for the remainder of 2025 and beyond?
- Will the company consider hedging strategies to mitigate price volatility risks?
