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West African Resources Ltd
(Sydney:WAF)
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Rating:76Outperform
Price Target:
AU$3.50
â–¼(-7.89% Downside)
Action:Reiterated
Date:10/09/26
The score is driven primarily by strong financial performance (rapid recent revenue/profit growth with reasonable leverage) and attractive valuation (very low P/E). These positives are tempered by uneven cash-flow consistency (volatile/often negative free cash flow historically) and only mixed technical momentum signals.
Positive Factors
Revenue and Profitability Growth
Rapid revenue expansion alongside strong gross and net margins indicates effective production and sales economics. If the company sustains operating performance, this profitability can fund mine development, exploration, and debt management while strengthening earnings resilience over the next several quarters.
Negative Factors
Volatile Free Cash Flow
Uneven free cash flow indicates that reported profitability does not consistently translate into discretionary funds available for shareholders or balance-sheet strengthening. Heavy reinvestment and working-capital swings can reduce flexibility, making sustained execution important when funding development and exploration commitments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Rapid revenue expansion alongside strong gross and net margins indicates effective production and sales economics. If the company sustains operating performance, this profitability can fund mine development, exploration, and debt management while strengthening earnings resilience over the next several quarters.
Read all positive factors
West African Resources Ltd (WAF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.86B
Dividend Yield5.68%
Average Volume (3M)5.06M
Price to Earnings (P/E)4.1
Beta (1Y)0.95
Revenue Growth194.08%
EPS Growth92.97%
CountryAU
Employees1,850
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.84
Shares Outstanding1,144,953,900
10 Day Avg. Volume4,826,506
30 Day Avg. Volume5,057,198
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.99
Price to Sales (P/S)2.23
P/FCF Ratio11.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.73Price Target Upside24.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.75
Revenue Forecast (FY)AU$3.00B
West African Resources Ltd Business Overview & Revenue Model
Company Description
West African Resources Limited engages in the mining, mineral processing, acquisition, exploration, and project development of gold projects in West Africa. The company has 85% interests in the Sanbrado Gold and Kiaka Gold projects located in Burk...
How the Company Makes Money
West African Resources makes money primarily by producing and selling gold. Revenue is generated when gold doré (a semi-refined gold-silver alloy produced at the mine site) is sold to refiners or commercial buyers at prices linked to prevailing ma...
West African Resources Ltd Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 24, 2027
Earnings Call Sentiment Positive
The call conveyed a strong operational and financial quarter driven by successful Kiaka ramp-up, robust production (Q4 and full-year), high realized gold prices, strong cash flow and a solid liquidity position. Exploration results indicate meaningful reserve upside and Toega development is progressing on schedule. Key challenges highlighted include localized grade and production declines at M1 South, short-term power instability at Kiaka requiring diesel backup and planned HFO investment, and unresolved government discussions over Kiaka ownership/royalty matters which present execution and political risk. Overall, positives (strong production, revenue, cashflow, low AISC, exploration upside) materially outweigh the operational and political risks discussed.Positive Updates
Strong Quarterly and Annual Production
Total gold production of just over 112,000 ounces in Q4 2025 and a calendar year 2025 total of just over 300,000 ounces, in line with guidance. Sanbrado produced 205,228 ounces for the year (achieving the upper end of its 190,000–210,000 oz guidance).
Negative Updates
M1 South Underground Production and Grade Decline
Mined ounces from M1 South underground were 37,955 oz in Q4, which was 16% below the previous quarter. This decline was driven by a 14% drop in mined grade plus slightly lower ore tonnes mined.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Annual Production
Total gold production of just over 112,000 ounces in Q4 2025 and a calendar year 2025 total of just over 300,000 ounces, in line with guidance. Sanbrado produced 205,228 ounces for the year (achieving the upper end of its 190,000–210,000 oz guidance).
Read all positive updates
Company Guidance
Management said formal 2026 annual production guidance and a capital management strategy will be released later in Q1 2026, with a new 10‑year plan due in late March that targets ~500,000 ozpa; priority in the near term is reducing debt before considering buybacks or dividends. By way of context, Q4 production was ~112,000 oz (Kiaka 62,287 oz, Sanbrado just under 50,000 oz), full‑year 2025 production was just over 300,000 oz (Sanbrado 205,228 oz; Kiaka ~95,000 oz), Q4 sales were 105,995 oz at an average realized price of USD 4,058/oz (AUD 662m revenue; FY revenue >AUD 1.5bn), Q4 operating cash flow was AUD 389m after AUD 48m of income tax, cash at 31 Dec 2025 was AUD 584m plus AUD 177m of unsold bullion, and all‑in sustaining costs averaged USD 1,561/oz. Capital and project metrics: Q4 capital investing was AUD 113m (AUD 89m Kiaka, AUD 23m Toega), financing used AUD 23m, Toega pre‑stripping has moved 250,000 BCM and haul road delivery to Sanbrado is on schedule for early Q3 2026, mining equipment is expected fully operational by the end of this quarter with steady‑state ramp by end Q1 2026. On power and throughput, Kiaka ran 30,000–35,000 t/day during stable grid periods, is capable of processing >10 Mtpa with full power, has added ~30 MW of diesel capacity and is planning an HFO plant to reduce fuel costs; exploration drilling continues (e.g., 16 m @ 11.2 g/t and 45 m @ 1.9 g/t at M5 North) with 13,500 m infill and 6,600 m grade‑control programs underway.West African Resources Ltd Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
79
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.78B | 1.53B | 724.37M | 658.82M | 606.13M | 711.54M |
| Gross Profit | 2.22B | 860.40M | 421.81M | 354.73M | 340.45M | 461.97M |
| EBITDA | 2.29B | 913.20M | 421.01M | 329.81M | 319.37M | 437.83M |
| Net Income | 959.25M | 473.90M | 223.84M | 146.87M | 164.44M | 188.96M |
Balance Sheet | ||||||
| Total Assets | 3.10B | 2.72B | 1.97B | 1.22B | 878.71M | 804.25M |
| Cash, Cash Equivalents and Short-Term Investments | 885.10M | 592.00M | 391.67M | 135.08M | 173.39M | 183.41M |
| Total Debt | 411.20M | 453.10M | 425.97M | 149.15M | 22.18M | 25.80M |
| Total Liabilities | 1.11B | 957.40M | 660.42M | 315.01M | 138.14M | 249.84M |
| Stockholders Equity | 1.96B | 1.72B | 1.25B | 861.20M | 700.50M | 525.05M |
Cash Flow | ||||||
| Free Cash Flow | 1.35B | 304.00M | -235.71M | -21.14M | 108.92M | 294.40M |
| Operating Cash Flow | 1.93B | 734.00M | 251.64M | 207.19M | 223.80M | 349.66M |
| Investing Cash Flow | -677.37M | -530.70M | -489.34M | -228.34M | -180.79M | -107.96M |
| Financing Cash Flow | -291.89M | -17.60M | 512.72M | -23.18M | -15.71M | -154.56M |
West African Resources Ltd Technical Analysis
Negative
3.80
Price Trends
3.54
Negative
3.20
Positive
3.15
Positive
Market Momentum
-0.06
Positive
36.09
Neutral
19.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAF, the sentiment is Negative. The current price of 3.8 is above the 20-day moving average (MA) of 3.48, above the 50-day MA of 3.54, and above the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WAF.
West African Resources Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | AU$7.81B | 13.01 | 18.90% | 2.38% | 12.65% | 11.08% | |
80 Outperform | AU$1.91B | 10.80 | 24.45% | ― | 82.68% | 26.56% | |
78 Outperform | AU$4.94B | 6.87 | 35.03% | 2.94% | 42.59% | 180.54% | |
76 Outperform | AU$3.86B | 4.12 | 52.15% | 5.68% | 194.08% | 92.97% | |
73 Outperform | AU$5.04B | 11.66 | 19.72% | 1.87% | 79.44% | 1173.17% | |
66 Neutral | AU$2.44B | 9.88 | 23.30% | 1.59% | 4.98% | 1498.82% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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West African Resources Ltd Corporate Events
West African Resources Schedules Investor Call on September Quarter Results
Oct 25, 2026
West African Resources Limited, an unhedged gold miner listed on the ASX as WAF, operates gold assets in West Africa and offers investors leveraged exposure to bullion prices through its production-focused portfolio. The company is led by Executiv...
BlackRock Ceases to Be Substantial Holder in West African Resources
Oct 21, 2026
BlackRock Group has lodged a statutory notice indicating it has ceased to be a substantial holder in West African Resources Ltd, under the disclosure requirements of the Corporations Act 2001. The change in BlackRock’s relevant interest in t...
West African Resources Q3 Gold Output Keeps 2026 Guidance on Track
Oct 7, 2026
West African Resources reported group gold production of 127,950 ounces and sales of 135,245 ounces in the September quarter, at a realised price of US$4,240 per ounce. Year to date, production reached 360,857 ounces and sales 350,127 ounces at US...
West African Resources Updates Dividend Notification with Final Payment Details
Oct 1, 2026
West African Resources Ltd has updated its previously announced dividend notification for its ordinary fully paid shares, adding the applicable exchange rate detail. The distribution does not relate to a specific financial period, with an ex-date ...
First Sentier Group exits substantial holding in West African Resources
Sep 29, 2026
First Sentier Group Limited and its related entities, including units of Mitsubishi UFJ Financial Group, have lodged a Form 605 notice stating they have ceased to be a substantial holder in West African Resources Ltd as of 25 September 2026. The c...
West African Resources outlines metrics and limits of investor presentation
Sep 29, 2026
The presentation outlines West African Resources’ status as a growing mid-tier gold producer in West Africa and explains its reliance on industry-standard non‑IFRS metrics such as cash costs and all‑in sustaining costs. It emphas...
JPMorgan Group Withdraws as Substantial Holder in West African Resources
Sep 17, 2026
JPMorgan Chase Co and a suite of its global subsidiaries have disclosed that they have ceased to be a substantial holder in West African Resources Ltd as of 15 September 2026. The change reflects a reduction in their aggregate relevant interest i...
West African Resources Updates Director Equity Holdings After Performance Rights Exercise
Sep 17, 2026
West African Resources has disclosed a change in director Lyndon Hopkins’ interests, with his direct holding in ordinary shares rising to 1,941,707, alongside unchanged indirect holdings of 32,250 shares. The increase stems from the acquisit...
West African Resources Adds 196,716 New Shares to ASX Quotation
Sep 17, 2026
West African Resources Ltd has applied for quotation of 196,716 new ordinary fully paid shares on the ASX, with an issue date of 16 September 2026. The application is made under the ASX Listing Rules Appendix 2A, covering securities issued as a re...
West African Resources Director Richard Hyde Increases Shareholding via Performance Rights
Sep 16, 2026
West African Resources Limited has reported a change in director Richard Hyde’s interests in the company’s securities, reflecting an increase in his direct holding of ordinary shares. Hyde’s stake rose to 15,984,276 ordinary shar...
West African Resources Lists Additional Shares Following Option Conversions
Sep 16, 2026
West African Resources has applied for quotation of 851,158 new ordinary fully paid shares on the ASX, with an issue date of September 15, 2026. The securities have been issued following the exercise of options or conversion of other convertible i...
West African Resources Seeks ASX Quotation for Additional Shares
Sep 11, 2026
West African Resources Ltd has lodged a new application with the ASX for the quotation of additional ordinary fully paid shares under its existing WAF ticker. The filing covers 153,002 new securities issued on 10 September 2026, expanding the comp...
West African Resources Director Boosts Shareholding Through Incentive Rights Exercise
Sep 11, 2026
West African Resources Ltd has reported a change in director Elizabeth Mounsey’s interests in the company’s securities, reflecting an increase in her ordinary shareholding and an adjustment to her performance rights. The company operat...
West African Resources Corrects Special Dividend Details Ahead of October Payout
Sep 10, 2026
West African Resources Ltd, an ASX-listed gold mining and exploration company trading under the code WAF, continues to use dividends as part of its broader capital management approach. Its ordinary fully paid shares are the vehicle through which t...
Mitsubishi UFJ Ceases to Be Substantial Holder in West African Resources
Sep 10, 2026
Mitsubishi UFJ Financial Group, Inc. has lodged a notice stating it has ceased to be a substantial holder in West African Resources Limited under Australia’s Corporations Act disclosure rules. The change follows a series of small share trans...
West African Resources Declares Special AUD 0.20 per Share Distribution
Sep 10, 2026
West African Resources Ltd has announced a new cash distribution to holders of its ordinary fully paid shares, set at AUD 0.20 per share. The distribution does not relate to a specific financial period and is structured as a special payment, highl...
West African Resources Posts Record Half-Year Profit and Announces Special Dividend
Sep 10, 2026
West African Resources reported a strong first half of 2026, driven by its first full six months of combined production from the Sanbrado and Kiaka gold operations. The company produced 232,905 ounces of gold and sold 214,883 ounces, generating ro...
West African Resources Affirms Stability of Gold Reserves and Exploration Data
Sep 10, 2026
West African Resources has released its half-year financial report alongside an update on Mineral Resources and Ore Reserves for its gold projects in West Africa. The company confirms that the assumptions and technical parameters supporting its pr...
Institutional Investor First Sentier Ceases Substantial Holding in West African Resources
Sep 2, 2026
First Sentier Group Limited and a broad network of related entities associated with Mitsubishi UFJ Financial Group have filed a notice that they have ceased to be substantial holders in West African Resources Ltd. The Form 605 lodging indicates th...
Mitsubishi UFJ Exits Substantial Holder Status in West African Resources
Aug 26, 2026
Mitsubishi UFJ Financial Group Inc. has lodged a formal notice that it has ceased to be a substantial holder in West African Resources Limited, signaling a reduction in its voting power below the regulatory threshold. The filing details a series o...
First Sentier Group Ends Substantial Holding in West African Resources
Aug 25, 2026
First Sentier Group Limited and its related entities have lodged a notice that they have ceased to be a substantial holder in West African Resources Ltd as of 21 August 2026. The change signals the exit or reduction of a major institutional invest...
Morgan Stanley Drops Below Substantial Holder Threshold in West African Resources
Aug 20, 2026
Morgan Stanley and certain subsidiaries have filed notice that they have ceased to be a substantial holder in West African Resources Ltd, indicating their stake has fallen below the regulatory threshold requiring substantial holding disclosure. Th...
Aigle Royal Group Ceases to Be Substantial Holder in West African Resources
Aug 11, 2026
A group of entities associated with Aigle Royal Group, including Aigle Royal Superannuation Pty Ltd and related capital and consolidated vehicles, has lodged a notice that it has ceased to be a substantial holder in West African Resources Ltd. The...
West African Resources Maps Path as Growing Mid Tier Gold Producer
Aug 4, 2026
West African Resources has released a presentation outlining its status as a growing mid tier gold producer in West Africa, with a strategic focus on expanding production toward more than 500,000 ounces of gold annually from 2027. The company expl...
West African Resources Posts Strong Cash Flows and Builds Liquidity
Jul 28, 2026
West African Resources reported strong operating cash flows for the quarter ended 30 June 2026, with net cash from operations of A$249.4 million and A$689.8 million year-to-date, driven by customer receipts of more than A$712.8 million in the quar...
West African Resources Sets Record Quarter as Burkina Faso Gold Output Surges
Jul 28, 2026
West African Resources reported record quarterly gold production of 125,179 ounces in the June 2026 quarter, driven by stronger output from its Sanbrado and Kiaka operations in Burkina Faso. Group year-to-date production reached 232,905 ounces at ...
West African Resources to Host Investor Call on June Quarter Results
Jul 27, 2026
West African Resources Limited has scheduled an investor webinar and conference call for Wednesday, 29 July 2026, to review and discuss its June 2026 quarterly report with Executive Chairman and CEO Richard Hyde. The event, which will be accessibl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.