WEST African Resources reported fourth quarter gold sales of 51,688 ounces from its Sanbrado gold mine in Burkina Faso enabling it to cut net debt to $101m, a reduction of some $23m.
The Sanbrado mine, newly commissioned, is slated to produce 217,000 oz of gold a year over the next five years. The company is also drilling the Toega gold deposit in the West African country, purchased in April last year from Canadian miner, B2Gold, and its partner, GAMS-Mining F&I for $45m.
“The Sanbrado mine continued the ramp-up during the fourth quarter … with high grade underground ore tonnages building, increasing production to over 50,000 oz of gold poured for the quarter,” said Richard Hyde, chairman and CEO of the company.
Western African Resources generated A$54m ($41.7m) of operating cash flow for the quarter and made “an early” $25m debt repayment, he said. The company had cash on hand of A$95m ($73.4m) as of period-end.
Commenting on targets for the first quarter of the 2021 financial year, Hyde said the company would continue to increase gold production and reduce per ounce costs. The all-in sustaining cost per ounce decreased from $1,009 to $992/oz while the gold sales price averaged $1,923/oz during the quarter, the company said.
“Reporting of resources, reserves, and the updated life of mine production profile for Sanbrado is on-track to be released in the first quarter,” Hyde said.