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 of 190,000–210,000 ounces at AISC below US$1,300/oz.

• Sanbrado operations are on track to produce their millionth ounce in the coming month.

• Construction at Kiaka mine surpassed 50% completion, with first production targeted for Q3 2025.

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

Financial highlights

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

• Closed the quarter with AUD 425 million in cash, excluding AUD 150 million raised post-quarter, and A$39 million in unsold bullion.

• Generated AUD 75 million in operating cash flow after paying AUD 13 million in taxes.

• Capital investment of AUD 132 million in Q2, mainly for Kiaka construction.

• Final drawdown of AUD 151 million (US$100 million) under the Sprott Coris loan facility completed.

Outlook and guidance

• 2024 production guidance set at 190,000–210,000 ounces at AISC below US$1,300/oz; tracking toward upper end.

• Ten-year production plan (2024–2033) forecasts 4.2 million ounces, with 480,000 ounces/year average from 2026–2031.

• Peak annual production expected in 2030, just under 500,000 ounces.

• Kiaka mine on schedule for first gold in Q3 2025, targeting over 400,000 ounces/year from 2026.