WFRSF - West African Resources: Back On The Sale Rack

• West African Resources reported another solid quarter in Q3 with revenues up more than 100% sequentially and gold production over 40% from Q2 levels.
• The African mid-tier producer introduced its first underground stoping ore to the mill in September and should see production ramp further in Q4 and Q1 2021.
• Despite West African being on track to be one of the three lowest-cost producers in the sector in FY2021, the stock is trading at less than 2x estimated FY2021 revenue.
• Based on industry-leading margins and a smooth ramp at Sanbrado thus far despite COVID-19 headwinds, I continue to see West African Resources as dirt-cheap relative to fair value.

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