West African Resources (WAF) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 gold production was 47,799 oz at an AISC of US$1,296/oz, with gold sales of 49,643 oz at US$2,493/oz, keeping on track for annual guidance of 190,000–210,000 oz for 2024.

• Year-to-date gold production totaled 155,443 oz at AISC of US$1,248/oz, tracking toward the upper end of 2024 guidance.

• Construction at Kiaka advanced well, with key milestones met, 60% of the project complete, 85% of costs committed and fixed, and the project remaining on time and on budget.

• Updated ten-year production target set to average 480,000 oz per annum from 2026–2031, following a 4% increase in ore reserves.

• No significant social, health, or safety incidents reported; TRIFR at 1.08, well below industry average.

Financial highlights

• Q3 gold sales totaled 49,643 oz at an average price of US$2,493/oz, generating A$185.2m in revenue.

• Operating cash flow for the quarter was A$59m after paying A$18m in taxes; cash balance at quarter end was A$430m with A$34m in unsold bullion.

• Half-year profit reported at A$133m before tax, A$92m after tax.

• Q3 AISC per ounce was US$1,296, up 12% from the previous quarter due to lower sales and higher costs.

• Q3 net cash from operations was A$59m; net cash balance at quarter end was US$39.7m, up from US$30.9m at Q2 end.

Outlook and guidance

• On track to achieve mid to upper end of 2024 production guidance (190,000–210,000 oz at <US$1,300/oz AISC).

• All-in sustaining cost expected to be less than US$1,300/oz for 2024, with YTD AISC below US$1,250/oz.

• First gold at Kiaka expected in Q3 2025, with Toega project to enter production at end of 2025.

• 10-year production target set to average 275,000 oz pa (2024–2025), rising to 480,000 oz pa (2026–2031).