WEST AFRICAN RESOURCES LIMITED (WAF)
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03/04/2025

1

Buy

$2.80

15.70%

Ord Minnett has broadly reduced its commodity price forecasts, with the exception of gold and neodymium-praseodymium.

The broker cites growing concerns over weakening Chinese steel demand and the potential global trade and economic impacts stemming from proposed US tariffs.

The broker's 2025 iron ore price forecast falls by -3%, while metallurgical coal and thermal coal price estimates fall by -18% and -17%, respectively.

On a sector level, Ord Minnett prefers base metal producers over the bulk miners, noting limited appeal among the lithium and coal producers.

Rio Tinto is preferred over over BHP Group among the large diversified miners, while South32, Capstone Copper, and MAC Copper are the analyst's top picks for base metals exposure.

The broker raises its target for West African Resources to $2.80 from $2.65 and maintains a Buy rating.

Among the large gold exposures, the analysts like Buy-rated Newmont Corp.

22/04/2025

1

Buy

$4.55

88.02%

West African Resources' March quarter production of 50koz at US$1,262/oz all-in-sustaining-costs came in above Canaccord Genuity's estimates by 1% and 10% respectively, with solid output from both open pit and underground operations at Sanbrado.

Operating cash flow reached US$46m, offset by -US$70m invested in Kiaka, resulting in a net debt position of US$36m.

Management's FY25 production guidance of 325koz is unchanged, with Kiaka expected to contribute 100koz in 2H 2025 at an estimated US$1,954/oz all-in-sustaining-costs.

The broker lowers FY25 earnings (EBITDA) by -4% due to timing of Kiaka capital, while Sanbrado’s all-in-sustaining-costs are revised down by 2%.

Buy rating maintained. Target price raised to $4.55 from $4.50.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 38.00 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 14.00 cents and EPS of 73.00 cents.