PRECIOUS METALS

Marginally lower gold expected this year by growth miner West African

GOLD growth company West African Resources is forecasting slightly softer production in 2023, with guidance of 210,000-230,000 ounces at all-in sustaining costs of less than US$1175/oz versus last year’s output of 229,224oz at AISC of $1086/oz.

Michael Quinn

Marginally lower gold expected this year by growth miner West African

WAF indicated the production forecast was function of modelling maintaining a conservative underground mining grade for the year ahead, while the AISC per ounce is forecast to be marginally higher than 2022 mainly due to the financial assumption that elevated fuel and explosive prices encountered in the second half of 2022 will persist.

Production from WAF's Sanbrado operation is unhedged.

WAF has begun a major growth phase with the development of a second mine in Burkina Faso called Kiaka set to make the company at plus-400,000oz per annum producer by 2025.

Kiaka, a large open cut development with pre-production capex estimated at $430 million, is at the financing stage.

The Richard Hyde-led WAF ended 2022 with A$173 million cash and no senior debt.

Shares in WAF were trading early this week at $1.11, capitalising the company at $1.14 billion.