The West African Resources Ltd (ASX: WAF) share price is in focus today as the company announced record 2026 gold production guidance, targeting up to 490,000 ounces at an all-in sustaining cost (AISC) under US$1,900 per ounce.
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What did West African Resources report?
- 2026 group gold production guidance: 430,000–490,000 ounces (up from 300,000 ounces in 2025)
- Group AISC guidance: under US$1,900/oz
- Kiaka mine forecast: 240,000–280,000 ounces of gold
- Sanbrado mine forecast: 190,000–210,000 ounces of gold
- Planned exploration drilling: over 100,000 metres across key sites in 2026
- Potential dividend and/or share buybacks under consideration for H2 2026
What else do investors need to know?
West African Resources is forecasting 2026 to be its strongest year yet, following the first full year of Kiaka operations and ongoing strong output from Sanbrado. The company is planning significant investment in exploration, with more than US$15–$22 million allocated to expand resources and extend mine life across its sites.
Capital management is a focus, with the board considering options such as early debt repayments and returning capital to shareholders through dividends or share buybacks, depending on free cash flow generation. The company is also managing operating cost risks, including royalties linked to gold price and potentially higher fuel costs.
What did West African Resources management say?
Executive Chairman and CEO Richard Hyde said:
2026 is set to be a record production year for WAF as we will see a full year of operation from Kiaka for the first time, and another solid year of production from Sanbrado is expected. We are guiding WAF gold production from 430,000 to 490,000 ounces in 2026 at an AISC less than US$1,900/oz. WAF is on an exciting growth trajectory, and we continue to create value through the drill-bit with a US$20 million exploration budget and more than 100,000m of drilling planned at our Sanbrado and Kiaka production centres and surrounding exploration areas in 2026.
What's next for West African Resources?
Looking ahead, West African Resources aims to grow annual gold production beyond 500,000 ounces, supported by active exploration and development at both Kiaka and Sanbrado. Key projects for 2026 include continued mine development, plant upgrades, and infrastructure investment to support reliable operations and long-term profitability.
The company is also reviewing its capital management approach, with the potential for dividends and/or share buybacks after its 2026 half-year result, as free cash flow permits.
West African Resources share price snapshot
Over the past 12 months, West African Resources shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
