WFRSF - West African Resources: A Strong Finish To FY2020
- West African Resources released its Q4 and FY2020 results last month, reporting record quarterly gold production of 50,300~ ounces at declining costs.
- The Sandbrado continues to see higher head grades with a further list in Q4, with underground tonnes mined more than doubling on a sequential basis.
- Assuming an $1,850/oz gold price and 200,000 ounces of gold sales in FY2021, West African would generate $370 million in revenue, leaving the stock trading at barely 1.4x sales.
- This is a dirt-cheap valuation for a company that's expected to be a very high-margin producer, even after accounting for the less favorable jurisdiction in Burkina Faso.
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West African Resources: A Strong Finish To FY2020