By: OrePulse

West African Resources (ASX: WAF), which operates the Sanbrado and Kiaka gold mines in Burkina Faso, told analysts on October 28 that its cash balance had climbed to A$1.2 billion at the end of the September quarter, and that repaying its outstanding debt is now the company's most immediate financial priority.

Chief executive Richard Hyde said the company is "definitely focused on paying down our debt obligations," and that West African Resources is targeting full repayment of its debt within six to twelve months.

West African Resources generated A$458 million in operating cash flow during the September quarter, pushing its cash position up by A$319 million from the end of June. The company also held gold bullion worth roughly A$217 million at the end of the quarter. Earlier in October, it paid shareholders a special dividend of A$229 million.

Gold production reached a quarterly record of 127,950 ounces in the September quarter. The company said it remains on track to produce between 430,000 and 490,000 ounces of gold for the full year.

West African Resources is also finalizing the sale of an additional 25 percent stake in the Kiaka project to SOPAMIB, a Burkina Faso state-owned entity. The deal would reduce the company's holding in Kiaka from 85 percent to 60 percent. Hyde said there have been no discussions about increasing the Burkinabe government's existing stake in the separate Sanbrado mine.

At Kiaka, the company plans to build a 40-megawatt power station fueled by heavy fuel oil, intended to secure power supply for the project, at a cost of just over $50 million. Installation is expected to begin early next year and take about six months to complete.

At Sanbrado, West African Resources has added the M5 South underground operation to its life-of-mine plan, a step the company said is intended to extend the mine's operating life. Underground stoping at M5 South is expected to begin in the second half of 2027.

Kiaka is still awaiting regulatory approval for an on-site explosives facility. Explosives supply has remained an operational bottleneck for the project, though the company said it has added a second supplier to help address the shortage.

Looking further ahead, Hyde said West African Resources may continue building its cash reserves before deciding how to deploy them, with a decision on capital allocation expected later this year or in early 2027.