This report is an updated version of the report published on 10 April 2025 at 11:43 PM AEST.

West African Resources Ltd (ASX: WAF)  

West African Resources Ltd (ASX: WAF) is an unhedged gold mining company focused on the operation of the Sanbrado Gold Project and the development of the Kiaka and Toega gold projects in Burkina Faso. WAF aims to become a sustainable +500koz producer by 2030.

Recommendation Rationale - SELL at AUD 2.280

• Surpassed Resistance: WAF has surpassed the ‘Resistance 1’ level recommended on 7 April 2025. Therefore, WAF can face resistance at the current levels.
• Political Instability:Political instability and conflict in Burkina Faso, West Africa, can negatively affect West African Resources.
• Gold Price Dependency: The company's financial performance is highly sensitive to gold prices. Therefore, profitability may be at risk in case of a price drop.
• Shift to Net Debt Position: West African Resources transitioned from a net cash position (AU$130.31 million) in FY23 to a net debt position (AU$14.82 million) in FY24. This change indicates increased financial leverage and potential risk.

Daily Price Chart

 Daily Technical Chart, Data Source: REFINITIV

Valuation Methodology: Price/Cash Flow Approach (FY Dec'25E) (Illustrative)

WAF is expected to trade at a slight premium to its peers considering the 7% YoY increase in Q1 FY25’s underground mined ounces, Kiaka construction near completion, and expected FY25 gold production guidance. For conducting valuation, the following peers have been considered: Catalyst Metals Ltd (ASX: CYL), Regis Resources Ltd (ASX: RRL), and Bellevue Gold Ltd (ASX: BGL).

Considering the rally in share price movement, current trading level, and risks associated, the share price can witness resistance at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 2.280, as of 10 April 2025, at 10:51 AM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 10 April 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.