Why West African Resources Share Price Jumped Higher Today

What happened to the West African Resources share price?

At the time of writing, shares of West African Resources Ltd [ASX:WAF] are up by 6%, to 35 cents, in today’s trading.

Why did West African Resources shares do this?

The company announced that its Sanbrado gold project should produce around 200,000 ounces per annum by 2020.

What now for West African Resources?

Managing Director Richard Hyde commented on the news:

‘The Company’s updated feasibility study confirms that Sanbrado is a high margin gold project, producing 211,000 ounces per annum at AISC of US$551/oz over the initial 5 years of mine life. The project is robust, generating an after-tax IRR of 49% and paying back capital in less than 16 months.’

This is extremely positive news for the company, and an excellent result. West African Resources’ shareholders have struggled this year, with the share price down by around 33%. That said, is this a sign of better times ahead?

Free Report: 10 ASX mining stocks that could make you huge money in the next 12 months and beyond. Get access now.

West African Resources has struck high-grade gold, beneath the current resources and reserves. That provides scope to improve the project’s economics in the future. A Scoping Study has already commenced and will assess the underground potential of the mine.

Project finance and resource upgrades are due by the end of the year.

Indeed, it does sound positive for the company’s shareholders. Hopefully this is the start to a turnaround in the share price, with multiple positive news announcements in the months ahead.

Jason Stevenson,
Resources Analyst, Markets & Money

PS: 2018 Mining Boom: Could these 10 cheap, top-quality Aussie mining stocks lead this year’s commodities comeback? Find out here.

Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:

Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money