West African Resources (WAF) 2025 Conference Transcript

Summary of West African Resources (WAF) 2025 Conference Company Overview - Company: West African Resources (WAF) - Market Cap: Approximately $2.7 billion, with a cash position of $328 million [3][4] - Historical Performance: Share price increased from $0.26 in 2016 to about $2.6, demonstrating significant growth [5] Key Points Production and Mining Operations - Current Production Guidance: Expected to produce about 300,000 ounces in 2025, with contributions from Sanbrado (200,000 ounces) and Kiaka (100,000 ounces) [13] - Long-term Production Target: Aiming for a sustainable production of 500,000 ounces per year by 2029, with a ten-year plan projecting 4.8 million ounces [7][35] - Resource Estimates: 12.2 million ounces in resources and 6.5 million ounces in reserves, with an increase post-depletion [6][33] - New Projects: Kiaka project ramping up, with expectations to hit full production in Q4 2025 [25] Exploration and Drilling - Drilling Programs: 200,000 meters of drilling planned over the next two years, focusing on M1 South and M5 South [35] - Recent Drilling Results: Strong results from infill drilling at M1 South, indicating a robust ore body [17] - Exploration Strategy: Continued exploration to enhance resource estimates and production targets [7][20] Financial Health - Cash Flow: Strong cash flow expected, with projections of nearly 500,000 ounces next year at current gold prices close to $2,000 per ounce [34] - Unhedged Reserves: 6.5 million ounces of unhedged gold reserves, allowing for better financial flexibility [33] Community and Environmental Commitment - Local Employment: 93% of the workforce is from Burkina Faso, with a focus on providing employment and training [30] - Community Investment: Over $8 million invested in community projects and $350 million contributed to the local economy since 2020 [28][29] - Health and Safety: Significant focus on health and safety, with a low total recordable injury frequency rate (TRIFR) compared to industry averages [31] Operational Challenges - Jurisdictional Risks: Operating in Burkina Faso presents challenges, but the company has successfully navigated these by building its own mining team [26][9] - Infrastructure Development: Ongoing efforts to secure grid power for projects, crucial for ramping up production [6][23] Future Outlook - Ten-Year Plan: A new ten-year plan is expected in March 2026, which will likely show significant improvements based on ongoing drilling and exploration [35] - Production Capacity: Potential to maintain high throughput with secondary crushing at Sanbrado and Kiaka, aiming for over 10 million tonnes per annum [12][13] Additional Insights - Operational Efficiency: The company has a track record of meeting or beating production guidance for four consecutive years [32] - Equipment Quality: Investment in high-quality equipment from Caterpillar and Sandvik to ensure operational efficiency [27] - Social License to Operate: Strong emphasis on social programs and community integration to maintain a positive operational environment [33]