PERTH (miningweekly.com) – Gold miner West African Resources has reported a solid first half of 2023, despite a 12% fall in gold sales.
The miner on Tuesday reported revenues of A$309.6-million for the six months to June, down 4% from the previous corresponding period, as gold ounces sold declined from 123 561 oz to 198 173 oz.
Profits after tax decreased by 23%, to A$82.4-million, down from the A$106.5-million in the first half of 2022, with cost of sales tracking 25% higher than the comparative period, reflecting higher cost per ounce of gold production.
“West African Resources delivered a strong result in the first half of 2023 producing 113 009 oz of gold at $1 169/oz all-in sustaining cost, generating A$110-million cashflow from operations, while also investing A$72-million in growth at our 7.7-million-ounce Kiaka gold project. Production and cost guidance for 2023 is maintained at 210 000 oz to 230 000 oz of gold at an all-in sustaining cost of less than $1 175/oz,” said executive chairperson and CEO Richard Hyde.
“West African’s mineral resources and ore reserves were updated in the first half and now stand at 12.6-million ounces and 6.4-million ounces of gold, respectively, following successful exploration drilling and feasibility programmes in 2022.
“West African is on track to become a 400 000 oz/y gold producer with the development of our second gold mine at Kiaka. Our unhedged 10-year production outlook estimates production of more than 200 000 oz of gold per annum in 2023 and 2024, and more than 400 000 oz of gold per annum from 2025 to 2032.”