- Semester production: 3.515 tonnes of gold
- Sales of 121.336 billion FCFA
- Average selling price per ounce at 1,929 USD
- However, the average production cost of each ounce, 1,169 USD
- Construction of Kiaka fully financed
In the first semester of 2023, West African Resources (WAF) produced 113,009 ounces of gold (approximately 3.515 tonnes of gold). WAF operates the SOMISA mine in Burkina Faso and is reportedly working on the construction of the Kiaka mine. This is according to the company’s financial report for the first semester of 2023, published on 28 August 2023. At the same time, it reports that sales of this production generated revenue of 309.7 million Australian dollars (around 121.336 billion FCFA), with an average selling price per ounce of 1,929 USD. However, the average production cost per ounce was 1,169 USD. This produced a margin of 760 USD. These good figures were favourable to the company’s profitability, with profit before tax of 125.6 million Australian dollars (about 49.160 billion FCFA) and profit after tax of 82.4 million Australian dollars (about 32.252 billion FCFA). Cash flow from operating activities for the semester was 109.9 million Australian dollars (approximately 43 billion FCFA). WAF states that during the period, it did not record any significant social, health or security incidents. The company says it has fully funded the Kiaka project through to first gold production via an approved 265 million US dollars credit facility.
Commenting on the strong results, West African’s Executive Chairman, Richard Hyde, said: “WAF delivered a strong result in the first semster of 2023 producing 113,009 ounces of gold at 1,169 USD per ounce, generating 110 million Australian dollars of operating cash flow, while investing 72 million Australian dollars in the growth of our 7.7 million ounce Kiaka gold project. Production and cost guidance for 2023 is maintained at 210,000 – 230,000 ounces of gold at an AISC of less than 1,175 USD/oz”. He added that mineral resources and ore reserves had been updated during the semester to 12.6 million ounces and 6.4 million ounces of gold respectively, following successful exploration and feasibility drilling programmes in 2022.
West African Resources is reportedly on track to become a gold producer of more than 400,000 ounces per year with the development of its second gold mine at Kiaka. The 10-year production outlook forecasts production of more than 200,000 ounces of gold per year in 2023 and 2024, and more than 400,000 ounces of gold per year from 2025 to 2032.
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