West African Resources (ASX:WAF) is expected to generate strong free cash flow through 2026 to 2027 to support accelerated debt repayment and ongoing shareholder returns, Euroz Hartleys said in a Tuesday report.
Recent infill drilling in the underground mine start-up area at M5 North at the Sanbrado gold operations in Burkina Faso delivered high-grade results, enhancing confidence in early production areas and reducing start-up execution risk, the brokerage noted.
Underground production is now expected to start in early 2027, subject to approvals being received in second half of 2026.
West African Resources remains on track to achieve 2026 guidance of 430,000 to 490,000 ounces at an all-in sustaining cost of under $1,900 per ounce.
The investment firm retained its speculative buy recommendation and AU$5.55 price target on West African Resources.
West African Resources' shares shed 1% in recent Wednesday trade.