WEST African Resources may buy back shares or pay a maiden dividend once it had reduced net debt, said the company’s CEO and executive chairman, Richard Hyde.
Hyde said in a fourth quarter presentation on Wednesday that his company planned to “accelerate repayments” and reduce debt to “a manageable level”. As of December 31, West African’s main debt comprised $242m in secured loan facilities.
Hyde added: “There are active discussions about capital management that will take us past 2026”. Asked for whether he preferred the repurchase of the company’s shares to a dividend, Hyde said: “They both make sense. We just need to engage the market. I’m a follower of Berkshire Hathaway (US conglomerate chaired by Warren Buffett) and they have always bought back shares. They have never paid a dividend”.
West African generated record cash flow in the fourth quarter of A$389m after its Burkina Faso gold mine, Sanbrado produced its best ever results. The company reported production of just over 300,000 oz for 2025, about midway of its guidance which had an upper range of 320,000 oz.
The company is targeting medium-term production of at least 500,000 oz, establishing itself as a African gold midcap by 2029/30. Kiaka, another project in Burkina Faso and which is in ramp up mode, will take production to about 420,000 to 430,000 oz annually. A third satellite mine Toega near Sanbrado, is also being developed.
Shares in West African Resources have gained 140% in the last 12 months. However, the stock was suspended in September shortly after the Government of Burkina Faso announced it wanted to acquire a further 35% in Kiaka. This was after earlier exercising an option to increase its free carried stake to 15% from 10%.
The share resumed trade in November after Hyde’s group said it had submitted alternative proposals to the Burkinese. Hyde said on Wednesday his discussions with the government had been “cordial”, adding: “They have made it quite clear they will pay a market price for an additional share in Kiaka”.
Hyde also pointed out Burkina Faso already gets a significant portion of cash flow amid record gold prices, now through $5,200/oz. “We are waiting for response on most recent correspondence.”
Hyde said West African will publish an updated 10-year production in late March following a recent drilling campaign. “We expect that to be a positive increase on the plan issued last year,” Hyde said.
