Impressive numbers produced by West African Resources

WEST African Resources has signed off on a profit after tax of A$73.2 million for the half-year as its strong operational performance in Burkina Faso continues to ramp up post first gold being poured in March 2020.
Impressive numbers produced by West African Resources Impressive numbers produced by West African Resources Impressive numbers produced by West African Resources Impressive numbers produced by West African Resources Impressive numbers produced by West African Resources

Sanbrado, Burkina Faso

Operating cashflow for the half totalled $101 million and free cashflow $49 million.

WAF is aiming to produce 250,000-280,000 ounces for the full year, meaning 130,000-160,000oz is required in the current half after circa 64,000oz was poured last quarter.

Net debt at June 30 stood at $88 million.

Capital markets firm Argonaut suggested WAF was 2-3 quarters away from paying off the debt now and "remains discounted".

"If it keeps going like this WAF may have to pay dividends to get its share price up," Argonaut said.

WAF managing director Richard Hyde told MNN capital management initiatives would be looked at once the company was debt free.

"We have discussed a dividend or a buy back, (the latter) which may be more effective as a dividend won't be franked for Australian holders," Hyde said.

"North Americans seem to prefer buy backs. 

"We will have to take some advice next year."

Shares in WAF were down 2% to $1.01, capitalising the company at $888 million.