West African Resources (ASX: WAF) Posts 130% Profit Jump: Is This Gold Stock Still a Buy at Current Prices?

West African Resources (ASX: WAF) is in focus this morning after reporting one of the strongest profit results in the ASX gold sector this season. Full-year net profit jumped 130% to A$567 million, revenue more than doubled to A$1.54 billion, and the company finished the year sitting on A$584 million in cash. For a company that was running just one mine not long ago, this is a remarkable transformation. The key question for investors now is simple: Is there more to come, or has most of the upside already been captured?

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WAF Delivers 130% Profit Jump: Here Is What Is Driving It

The result comes down to two things working together at the right time: more gold and a higher gold price.

WAF produced a record 300,383 ounces across its Sanbrado and Kiaka operations in Burkina Faso, up 45% on the prior year. Crucially, the company is fully unhedged, meaning it captures every dollar of gold’s extraordinary rise without any price cap holding it back. When gold runs hard, WAF runs harder. That is exactly what happened in 2025, and it shows clearly in the numbers.

What makes this result even more interesting is that Kiaka, the company’s newer mine, only contributed around five months of production in 2025. The full benefit of having both mines running at the same time has not yet shown up in annual results.

Why 2026 Could Be Even Bigger

Management has been direct about this: 2026 should deliver higher revenue and stronger cash flow than 2025, simply because both Sanbrado and Kiaka will be running for the full 12 months. That is a meaningful step up in output that does not require any new discoveries or bold assumptions. It is essentially already locked in.

On top of that, WAF plans to release an updated 10-year production target within the next two weeks, one of the most closely watched upcoming catalysts for the stock. If that update reflects the heavy exploration drilling done in 2025, it could give investors even more confidence in the long-term growth story.

The Toega satellite deposit, located just 14 km from Sanbrado, is also on track to deliver ore to the Sanbrado mill in early Q3 2026, adding further upside to production beyond the two main mines. Analysts currently have a consensus price target of A$5.25 on the stock. We believe that the gap to the current price is meaningful given the earnings trajectory now in place.

Investor’s Takeaway

For growth-oriented investors, WAF offers a genuinely compelling setup this morning. Record earnings, strong cash generation, full-year Kiaka production ahead, and a gold price that remains elevated all point in the same direction.

The risk that cannot be ignored, however, is Burkina Faso. Investors are weighing the government’s move to acquire an additional 25% paid interest in Kiaka, which would take their total stake to 40%. WAF has maintained that negotiations are constructive and must protect lender and shareholder interests, but the final terms remain the key variable for the stock’s valuation. This uncertainty has triggered sharp share price swings before and could do so again.

In our view, WAF represents one of the better opportunities in the ASX gold space right now for investors who are comfortable with emerging market exposure. The earnings story is strong and getting stronger. But given the country risk, position sizing matters. Watch closely for the Q1 reserve update and any developments on the Kiaka ownership talks before making a larger commitment.