West African Resources posts strong December quarter cash inflows

West African Resources boosted cash reserves in the December quarter, underlining strong operations and ongoing investment in its gold projects.

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The West African Resources Ltd (ASX: WAF) share price is in focus today after the gold miner reported operating cash inflows of $388.6 million for the December quarter and finished the year with $584.1 million in cash and cash equivalents.

What did West African Resources report?

  • Operating cash inflow: $388.6 million for the quarter; $789.7 million for the year to date
  • Ending cash and cash equivalents: $584.1 million at 31 December 2025
  • Payments to suppliers and employees: $229.3 million for the quarter; $616.7 million for the year to date
  • Capital expenditure (property, plant, equipment): $112.9 million for the quarter; $430.0 million for the year
  • Borrowings: $24.3 million proceeds raised; $27.9 million repayments in the quarter
  • No dividends announced during the quarter

What else do investors need to know?

West African Resources has a robust financial position, with total available funding of $584.1 million at quarter end. The group increased its cash balance significantly over the quarter, highlighting strong operating performance and ongoing cash generation.

The company continues to invest in property, plant, and equipment, supporting its production operations. Financing activity included both the drawing and repayment of borrowings during the quarter, with major secured loans arranged through Sprott Resource Lending Corp and Coris Bank International SA, as well as unsecured equipment finance.

What's next for West African Resources?

Looking ahead, West African Resources appears well-funded to support further production and possible expansion projects, with no indication of funding shortfalls. The company's consistent cash flows from its mining operations offer a foundation for ongoing site development and potential new exploration activities.

Investors will likely watch for future updates on production volumes, expansion projects, or any material changes in capital allocation as the company builds on its strong cash position.

West African Resources share price snapshot

Over the past 12 months, West African Resources shares have risen 132%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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