S&P/ASX 200 Index (ASX: XJO) gold stock West African Resources Ltd (ASX: WAF) is shining bright today.
Again.
West African Resource shares closed yesterday trading for $2.24. In early afternoon trade on Tuesday, shares are changing hands for $2.36 apiece, up 5.4%.
That puts shares in the ASX 200 gold stock up 136.0% since this time last year and trading at new record highs.
The gold miner has certainly been benefiting from a soaring gold price. Bullion hit its own new record high earlier today, topping US$3,003.55 per ounce.
The gold price is now up 39% since this time last year. And it's helped send the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of the ASX 200 gold stocks – up 56.2% over the 12 months.
On a company-specific level, West African Resources has been grabbing investor attention amid rising production and surging profits.
Over calendar year 2024, the miner recently reported an after tax profit of $246 million, up 49% from 2023.
Here's what just sent the stock to new all-time highs today.
Image source: Getty Images
ASX 200 gold stock leaps to record on resource update
Investors are bidding up the West African Resources share price after the ASX 200 gold stock released a promising resource estimate update.
The miner said the results of its resource estimation and scoping studies for a potential underground development beneath the Toega open pit at its Sanbrado gold production centre in Burkina Faso were "positive".
The maiden underground Mineral Resource Estimate for Toega delivered 4.9 million tonnes (Mt) at 3.5 grams per tonne for 560,000 ounces of gold.
The Toega underground scoping study showed:
- Underground gold production averages of 81,000 ounces per year in years two to six
- 515,000 ounces of gold added to Toega life-of-mine production over a seven-year mine life
- Pre-production capital expenditure estimate of US$42 million
West African Resources noted that Toega resource remains open at depth, and the miner plans infill and extensional drilling with the aim of increasing the resource category and endowment.
With a secondary crushing study also aiming to increase the Sanbrado fresh ore throughput, the ASX 200 gold stock said the combination of Toega underground and secondary crushing at Sanbrado has the potential to increase the Sanbrado annual gold production by approximately 50% to around 300,000 ounces per year.
What did management say?
Commenting on the updates sending the ASX 200 gold stock to new all-time highs today, West African Resources chairman Richard Hyde said, "West African's projects are long-life with Sanbrado 10-plus years and Kiaka 20 years."
Hyde added:
We are actively looking at opportunities to reduce costs and increase gold production through targeted drilling and capital works programs, including connecting to grid power and secondary crushing at our projects as we aim to be a sustainable 500,000 plus ounces per annum gold producer within five years.
