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Why the West African Resources share price has soared 140% higher in 2020

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The West African Resources Ltd (ASX: WAF) share price has soared 141.86% in 2020, going from $0.43 at the beginning of January to close last week at $1.04 per share.

Why has the West African Resources share price performed well?

West African Resources has reached a number of milestones during 2020 which have supported a rising share price. 

In the March quarter, West African Resources completed construction of its Sanbrado gold project 10 weeks ahead of schedule and US$20 million under budget. Also during the March quarter, the company poured its first gold at the Sanbrado project.

In April, West Africa Resources acquired the 1.1 million ounce Toega gold deposit from B2Gold for US$45 million. The deposit is located within 14km of the Sanbrado project. 

At its AGM in May, the company reported that it was on track to produce 300,000 ounces of gold in its first full year of production at the Sanbrado project at a cost of less than US$500 per ounce. It also announced that it had a production target of 217,000 ounces per year in its first 5 years of production at a cost of less than US$600 per ounce. 

In the company’s production update for June, it announced that it had processed 937,108 tonnes at 1.46 grams per tonne gold in the year to June 30. It had recovered gold at 92% with 40,458 ounces recovered. It had cash and gold on hand of US$65.6 million compared to US$57.6 million at the end of the March quarter. Capital expenditure in the June quarter was US$19.3 million, down from US$25.2 million in the first quarter of the year.

The company is set to begin exploration at its Toega project in 2020.

About the West African Resources share price

West African Resources is a gold production and exploration company with projects in Burkina Faso, West Africa. It is currently producing gold at its Sanbrado project.

The company estimates that it has a total of 3,088,000 ounces of gold at the Sanbrado gold project and 1,130,o00 ounces of gold at its Toega project.

The West African Resources share price is up 209% from its 52-week low of $0.33 cents, and up 183% since this time last year.

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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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