West African Resources, which operates the Sanbrado mine, published its report for the second trimester of 2023 on 25 July 2023.
Highlights of the report :
- No significant social, health or safety incidents
- Gold production in the second trimester: 56,701 oz at an average cost price of 1,166 USD/oz
- Gold sales: 59,965 oz at an average price of 1,969 USD/oz
- Cash flow from operating activities: 80 million Australian dollars
- Half-year gold production: 113,009 oz at an average price of 1,169 USD/oz
- 167 million Australian dollars in cash and 24 million Australian dollars in unsold gold bars
- On track to achieve the target of 210,000 – 230,000 oz of gold in 2023 at a CTA of <1,175 $US/oz
West African Resources says it is fully funding up to first gold production at Kiaka through an approved 265 million USD credit facility.
The Kiaka project is progressing on schedule and on budget. 43 million Australian dollars of investment in Kiaka was committed during the trimester.
For the next trimester, the company plans to progress the 265 million USD loan facility and security documents towards execution and drawdown, continue construction of Kiaka on schedule and on budget, report results from the M5 South (Sanbrado) drilling, and continue the scoping study for underground mining. R
Commenting on the results, West African Chief Executive Richard Hyde said: “Another strong trimester of low cost gold production from WAF’s highly successful Sanbrado operation, resulting in 113,009 ounces produced in the half year at an AISC of 1,169 USD/oz. Thanks to ROM stockpiling and the operational flexibility of three underground stopes, WAF is on track to meet its 2023 guidance of 210,000-230,000 ounces of gold at an AISC of less than 1,175 USD/oz. Our 7.7Moz Kiaka gold project progressed well during the trimester, with 43 million Australian dollars invested in construction activities and progress payments for major equipment. The development of Kiaka remains on budget and on schedule for first gold to be poured in the second semester of 2025. Kiaka will be a long-term, low-cost gold project that will produce an average of 219,000 oz of gold per year for 18.5 years at an AISC of 1,052 USD/oz. We were pleased to award the 265 million USD borrowing mandate to experienced mining financiers Sprott and Coris Bank on the basis of their committed and credit approved bids. Execution of the corporate loan documentation and drawdown of the facility is scheduled for the fourth trimester of 2023.” Richard Hyde said: “WAF’s Mineral Resources and Ore Reserves were updated during the trimester and now stand at 12.6 million ounces and 6.4 million ounces of gold, respectively, following successful exploration drilling and feasibility programmes in 2022. West African is on track to become a gold producer of over 400,000 ounces per annum with the development of our second gold mine at Kiaka. Our 10-year unhedged production guidance is as follows “
Summary of Mines_Actu_Burkina
