West African Resources on Track to Deliver 2026 Guidance Following 'Very Solid Production Update,' Euroz Hartleys Says

MT Newswires Live09:49

West African Resources (ASX:WAF) reported another "very solid production update" that surpassed market expectations, with the company remaining on track to deliver toward the upper end of its 2026 production guidance, Euroz Hartleys said in a Thursday note.

The company produced 127,950 ounces of gold in the third quarter, exceeding the equity research firm's estimate of 121,000 ounces.

Production at the Sanbrado operations fell 10% quarter over quarter, but the decline is largely attributable to lower tonnes milled as opposed to a deterioration in grade or metallurgical performance, the investment firm said.

It added that strong recoveries of 93.1% and higher processing volumes supported an increase in gold production at the Kiaka operations.

West African Resources' "strong cash position will continue to grow, supporting early debt repayment and ongoing capital returns via dividends and/or buybacks," Euroz Hartleys said.

It maintained a speculative buy recommendation on West African Resources while raising the price target to AU$6.50 per share from AU$5.75 per share.

The company's shares gained 3% in recent Friday trade.

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