FINWIRES · TerminalLIVE
FINWIRES

West African Resources Production to Increase in Coming Quarters, Says Euroz Hartleys

By

West African Resources' (ASX:WAF) production is expected to increase in the coming quarters helped by improvements in underground grades at Sanbrado and Kiaka, Euroz Hartleys said in a note on Thursday.

The company reported first-quarter group production of 107,700 ounces and operating cash flow of AU$440 million, leading to a record cash and bullion balance of AU$1.06 billion.

It also maintained its 2026 production guidance at 430,000 ounces to 490,000 ounces, in-line with Euroz Hartleys' forecast of 470,500 ounces.

The investment firm believes the miner is "materially undervalued" in light of its production profile and cash generation, especially after the Burkina Faso government's move to acquire a 25% stake in its Kiaka mine for AU$175 million, removing a key source of uncertainty.

Prevailing gold prices and the company's strong cash flow are expected to support early debt repayment and ongoing capital returns, with the recent special dividend of AU$0.15 seen as first of many.

Euroz Hartleys reiterated a speculative buy rating on West African Resources and raised its price target to AU$5.55 from AU$5.50.

Related Articles

Asia

Strike Energy Reports Smooth Progress at Western Australia Well; Shares Fall 4%

Strike Energy (ASX:STX) has safely cased the intermediate section of its Walyering West-1 exploration well at 2,596 meters and is continuing drilling at 2,670 meters within the Cattamarra coal measures, marking steady progress in its fully owned L23 license, according to a Thursday filing with the Australian bourse.The well is planned to be drilled to a total depth of around 3,639 meters to assess the reservoirs in the Cattamarra formation, followed by wireline logging operations, per the filing.Initial results are expected in early May, and if successful, the well will be cased and suspended for further testing, including possible production evaluation, the filing added.The company's shares fell 4% in recent Thursday trade.

ASX:STX
Asia

Litian Pictures Raises HK$10 Million From Share Placement

Litian Pictures (HKG:9958) raised about HK$10.3 million in net proceeds from a placing of new shares under a general mandate, according to a Wednesday Hong Kong bourse filing.Shares of the film production company were down nearly 2% in late morning trade on Thursday.The company issued 68 million new shares at HK$0.156 each, representing about 13.6% of its enlarged share capital.Net proceeds will be used for general working capital for the group's existing business and are expected to be fully utilised by the end of the year, the company said.

HKG:9958
Asia

Tovis' Net Attributable Income Jumps 77% in Q1; Shares Decline 4%

Tovis (KOSDAQ:051360) posted first-quarter net income attributable to shareholders of 16.05 billion won, up 77% from 9.07 billion won a year earlier, according to a Thursday filing with the Korea Exchange.The South Korean display models manufacturer's sales jumped 10.4% year over year to 169.8 billion won from 153.8 billion won.Shares of Tovis rose more than 4% in recent trade.

KOSDAQ:051360