West African Resources (ASX:WAF) increases its Mineral Resources by 1m ounces of gold

West African Resources (ASX:WAF) provided an update to its shareholders this morning. This company is a gold producer with a project in Burkina Faso that has brought a gold project from exploration phase to production. But even as it produces gold, the project just gets better and better.

WAF now has Mineral Resources of 12.6Moz

WAF increased its Mineral Resources by 1Moz to 12.6Moz, net of mining depletion and its Ore Reserves by 4.7Moz to 6.4Moz gold – the latter representing Mineral Resources that can be economically mined.

This upgrade came after work by independent resource consultants thatWAF hired. The Ore Reserves were increased mainly through the inclusion of an additional 4.5Moz reserve announced to shareholders last August.

WAF told shareholders it anticipated production of 210,000-230,000 oz at an AISC of <US$1,175/oz in 2023. From 2025, it hopes to increase this to 400,000oz per annum.

The company has $173m in cash, no senior debt and 100% unhedged gold production.

Its a good time for shareholders

Shareholders who have held this stock for the long term would be satisfied, but the past 12-18 months have been volatile as gold prices have stagnated.

West African Resources (ASX:WAF) share price chart, log scale (Source: TradingView)

But if gold prices hold up, and WAF meets or exceeds its gold production guidance, the future looks bright for the company.

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