Join our daily newsletter At The Bell to receive exclusive market insights
- West African Resources (WAF) continues to ramp-up to full production at its Sanbrado gold mine in Burkina Faso
- Since beginning production in March, WAF has smelted almost 38,000 ounces and shipped over 35,000 ounces
- For a company that poured its first gold in mid-March, Sanbrado seems to be progressing well towards its targets
- The operation is already turning a tidy profit, as well as funding the next phases of development
- Stoping ore production from M1 South is due to commence in the September quarter, and resource drilling at Toega is slated to start by the end of the year
- West African Resources is trading 3.9 per cent higher today at 94 cents per share
West African Resources (WAF) continues to ramp-up to full production at its Sanbrado gold mine in Burkina Faso.
Strong production
The company reports it mined 242,905 tonnes of ore, yielding 13,933 ounces in the month of June.
With plant recovery operating at 94 per cent, the company recovered 13,094 ounces in total.
Since beginning production in March, WAF has smelted almost 38,000 ounces and shipped over 35,000 ounces.
While current figures fall short compared to the aimed first-year production of 300,000 ounces, operations are continuing to ramp up — and the M1 South and Toega deposits are yet to come online.
For a company that poured its first gold in mid-March, Sanbrado seems to be progressing well towards its targets.
Fully-funded
The operations at Sanbrado are already turning a tidy profit, as well as funding the next phases of development.
At the end of June, WAF reported it had US$65.6 million (around A$94.56 million) in cash and gold, while capex during the quarter for mine development and construction came in at US$19.3 million (around A$27.82 million).
Gold produced at Sanbrado also remains entirely unhedged, meaning the company is fully taking advantage of the current high spot price. With gold futures at a nine-year high, things are looking up even more.
Next steps
WAF has a few more milestones to attain before giving itself a big tick for 2020.
Stoping ore production from M1 South is due to commence in the September quarter, and resource drilling at Toega is slated to start by the end of the year.
The company also plans to issue its 2021 production guidance in the December quarter, based on 2020 production and progress at M1 South and Toega.
West African Resources is trading 3.9 per cent higher today at 94 cents per share as at 11:25 am AEST.
