All tracking well for West African Resources

BUDDING new gold miner West African Resources generated positive cashflows totalling about US$12.5 million in April and May, a number that’s set to be dwarfed in the very near term.
All tracking well for West African Resources All tracking well for West African Resources All tracking well for West African Resources All tracking well for West African Resources All tracking well for West African Resources

Gold being produced 24/7 at Sanbrado, Burkina Faso

Production for the June quarter is tracking towards about 30,000oz, with that number expected to double in the September period as higher grade open pit and underground ore are fed to the Sanbrado plant in Burkina Faso.

Hartleys is forecasting earnings (EBITDA) this calendar year of about A$220 million and nearly $500 million in 2021.

Repayments of West African's fully drawn US$200 million debt facility are set to begin in March next year, with 16 quarterly repayments scheduled through to December 2024.

However, the miner has the flexibility to repay the facility early without penalty.

Meanwhile, West African expects to commence deep resource definition drilling of the key M1 South deposit this month.

Shares in West African were trading at A87.5c this week, capitalising the company at $761 million.

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