The West African Resources Ltd (ASX: WAF) share price is in focus after the company reported a record quarterly gold production of 125,179 ounces and operating cash flow of A$249 million for the June 2026 quarter.
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What did West African Resources report?
- Record Q2 gold production: 125,179 oz at an AISC of US$1,730/oz
- Gold sales: 110,737 oz at a realised price of US$4,556/oz
- Operating cash flow: A$249 million in Q2 2026
- Group cash balance: A$876 million and ~A$247 million of unsold gold held at quarter end
- No significant social, health or safety incidents reported; TRIFR at 1.25
- On track to achieve full-year guidance of 430,000–490,000 ounces at AISC under US$1,900/oz
What else do investors need to know?
West African Resources saw a 37% jump in gold output at its Sanbrado operation, mainly driven by higher grades and increased tonnes from underground mining. Meanwhile, the Kiaka centre boosted output by 3% quarter-on-quarter, with higher mill throughput offsetting some mining constraints due to limited explosives supply.
The company continued its growth strategy, investing heavily in exploration with a US$20 million budget for 2026 and completing over 100,000 metres of drilling at its key sites. Key drilling milestones at M5 South Underground and M5 North Open Pit confirm resource consistency, with more results from Toega anticipated in Q3.
On the financial front, the company maintains a healthy net cash position and continues discussions for the sale of a 25% stake in Kiaka SA to Burkina Faso's state-owned SOPAMIB, which is expected to settle in 2026.
What did West African Resources management say?
Executive Chairman and CEO Richard Hyde said:
With a record high quarterly gold production of 125,179 ounces in Q2 2026, WAF has achieved a run-rate of over 500,000 ounces per annum from our two large low-cost gold production centres of Sanbrado and Kiaka in Burkina Faso. Year-to-date 2026 Group gold production was 232,905 ounces at an AISC of $1,823 and WAF remains on-track to achieve annual guidance of 430,000 – 490,000 ounces of gold at an AISC under $1,900/oz. Outstanding infill and extensional drilling results from the M5 underground during the quarter included 29m at 16.4 g/t Au and 27m at 6.7 g/t Au, respectively. Drilling results continue to confirm the quality and consistency of WAF's ore bodies and our ability to extend the mine lives of our operations. We look forward to releasing the results from our Toega underground drilling program later in Q3 2026. 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 100,000 metres 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, WAF has reaffirmed full-year production guidance and plans further resource growth through ongoing drilling and exploration. Management remains confident in maintaining production targets while navigating approvals for mine developments and adapting mine plans for supply constraints.
The company is also progressing with community investment and environmental initiatives in Burkina Faso, aiming to advance sustainable mining alongside operational expansion, including the possible completion of the SOPAMIB transaction and updated mine production scheduling.
West African Resources share price snapshot
Over the past 12 months, West African resources shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
