West African Resources Limited reported robust performance in its March 2025 quarterly report, with its Sanbrado operations in Burkina Faso producing 50,033 ounces of gold at an all-in sustaining cost of US$1,262 per ounce. The report noted unhedged gold sales of 48,338 ounces at an average price of US$2,832 per ounce, generating A$73 million in cash flow from operating activities after income tax payments. The company finished the quarter with a strong balance sheet, holding A$331 million in cash and A$43 million in unsold gold bullion. Operational highlights include steady open pit mining activities with 1,545 kilotonnes of ore processed and sustained underground mining performance at M1 South, where drilling and development ensured solid production figures despite a 9% lower grade. Processing operations maintained high recovery levels of 92.9% from 857 kilotonnes of ore, supporting overall production continuity. The report also emphasized that health and safety benchmarks remained strong with no significant incidents recorded. A major focus was on growth projects. The Kiaka project is progressing on schedule and within budget after significant milestones were achieved. Construction updates reveal the practical completion of the dry plant, installation of key infrastructure such as mechanical equipment, and advancements in power installation. Additionally, the maiden grade control drilling at Kiaka confirmed consistent gold mineralisation exceeding 400 meters, with mining anticipated to ramp up in Q2 2025 and first gold expected in Q3 2025. Meanwhile, the Toega deposit scoping study has provided encouraging estimates, outlining a maiden underground resource of 4.9 million tonnes at 3.5 g/t for 560,000 ounces of gold and outlining the potential to add 515,000 ounces over a 7-year mine life. The company maintained its annual guidance for 2025, forecasting combined group production of 290,000 to 360,000 ounces. Sanbrado is expected to contribute 190,000 to 210,000 ounces at a site sustaining cost below US$1,350 per ounce, while Kiaka is guided to produce between 100,000 and 150,000 ounces. These projections are underpinned by an ongoing transition from contractor-led to owner-managed mining operations after the current agreement with African Mining Services expires, with investments in new equipment already underway. Bullish sentiment comes from the company’s strong production performance, cost controls, and momentum on major projects like Kiaka and Toega, which have the potential to significantly boost gold output in the coming quarters. Continuous operational improvements, a healthy cash balance, and clear progress on infrastructure development add further optimism for a ramp-up both in production and profitability. On the other hand, bearish considerations include an observed uptick in the all-in sustaining cost and a notional net debt increase from US$8 million to US$36 million over the quarter. Transitioning to owner-mining at Sanbrado and Toega carries inherent execution risk, and the future performance remains dependent on favorable gold prices and smooth operational handovers amid evolving market dynamics. Overall, West African Resources Limited’s Q1 report suggests a company well-positioned for growth, albeit with areas that warrant cautious oversight.