West African Resources (WAF) Q2 2024 TU earnings summary

Executive summary

• Achieved Q2 2024 gold production of 51,049 ounces at an AISC of US$1,158/oz, with unhedged gold sales of 52,445 ounces at US$2,314/oz average price.

• First half 2024 gold production reached 107,644 ounces at an AISC of US$1,223/oz, tracking toward the higher end of annual guidance (190,000–210,000 ounces at AISC below US$1,300/oz).

• No significant health, safety, or social incidents recorded during the quarter; TRIFR at 1.14, well below industry average.

• Construction of the Kiaka mine surpassed 50% completion, with major milestones achieved and first production targeted for Q3 2025.

Financial highlights

• Quarterly gold sales generated A$184.1 million in revenue, up from A$156.4 million in Q1 2024.

• Operating cash flow for the quarter was A$75 million after paying A$13 million in taxes.

• Capital investing activities used A$132 million, mainly for Kiaka construction.

• Financing activities provided A$144 million, including a final loan drawdown of A$151 million (US$100 million).

• Quarter-end cash balance was A$425 million, excluding A$150 million raised post-quarter; cash and equivalents US$283.8 million.

Outlook and guidance

• On track to meet or exceed 2024 production guidance of 190,000–210,000 ounces, with AISC expected to remain below US$1,300/oz.

• Ten-year production plan forecasts 4.2 million ounces from 2024–2033, with annual output averaging 480,000 ounces (2026–2031) and peaking near 500,000 ounces in 2030.

• Kiaka construction on schedule and budget; first gold pour expected Q3 2025, targeting over 400,000 ounces/year from 2026.

• Anticipates cost savings and reduced carbon emissions by connecting Sanbrado to the national power grid within 12–18 months.