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?
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.
Resources Analyst, Markets & Money