Guess which ASX 200 gold stock just rocketed 11% on surging full-year profits

Shares in the ASX 200 gold miner have now surged 112% in a year. But why?

The S&P/ASX 200 Index (ASX: XJO) is down 0.6% today despite the best lifting efforts from this rocketing ASX 200 gold stock.

The surging gold miner in question is West African Resources Ltd (ASX: WAF).

West African Resources shares closed yesterday trading for $1.885 a share. In afternoon trade on Thursday, shares are swapping hands for $2.10 apiece, up 11.4%.

Today's outperformance is par for the course for the gold miner, with shares up 112.1% since this time last year.

That blows away the 4.7% one-year gains posted by the benchmark index.

And, in a better comparison of golden apples to golden apples, it's also more than double the 48.3% 12-month gains posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of the ASX 200 gold stocks.

Here's what's grabbing ASX investor interest today.

Rising gold share price represented by a green arrow on piles of gold block.

Image source: Getty Images

ASX 200 gold stock surges alongside profits

Investors are piling into West African Resources shares following the release of the miner's 2024 annual report.

Over the calendar year the ASX 200 gold stock produced 206,622 ounces of the yellow metal at an all in sustaining cost (AISC) of US$1,240 per ounce.

Unhedged gold sales came to 199,550 ounces at an average realised price of US$2,391 per ounce.

This drove full-year revenue of AU$730 million, with AU$252 million in cash flow from operating activities.

With costs coming in well below the realised gold sales price, West African Resources reported an after tax profit for the year of AU$246 million, up 49% from 2023.

Management said they intend to update the company's Mineral Resources in the second quarter of 2025. The current Mineral Resource estimate stands at 12.5 million ounces, with an ore reserve of 6.2 million ounces of gold.

Also likely spurring investor interest in the ASX 200 gold stock, the miner reported that its Kiaka project is "tracking to budget and schedule". Management expects the first gold from Kiaja in Q3 2025.

On the balance sheet, West African Resources had net assets of AU$1.3 billion at the end of 2024, including AU$392 million in cash.

What did management say?

Commenting on the strong results and outlook that's sending the ASX 200 gold stock flying higher today, West African Resources CEO Richard Hyde said:

WAF's Sanbrado production centre delivered another strong result in 2024 producing 206,622 ounces of gold at US$1,240 per ounce AISC, generating AU$252 million cashflow from operations and AU$246 million NPAT

Kiaka's construction remains on schedule and on-budget for first gold in Q3 2025.

With Kiaka construction nearing completion, we are on the cusp of having two long-life, low-cost gold production centres in operation in 2025, which will see WAF more than double annual gold production to over 420,000 ounces per year.

Stay tuned!

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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