WEST AFRICAN RESOURCES LIMITED
ANNUAL REPORT
2022
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
1
TABLE OF
CONTENTS
CORPORATE INFORMATION
CHAIRMAN’S LETTER
HIGHLIGHTS / 2022 IN BRIEF
DIRECTORS’ REPORT
REMUNERATION REPORT
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
INDEPENDENT AUDITOR’S REPORT
ASX ADDITIONAL INFORMATION
SUMMARY OF TENEMENTS
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08
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WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
CORPORATE
INFORMATION
WEBSITE
www.westafricanresources.com
PRINCIPAL PLACE OF BUSINESS
Level 1, 1 Alvan Street
Subiaco WA
Australia 6008
SOMISA OFFICE
Secteur 27, Quartier Ouayalghin,
Parcelle 07, Lot 22, Section SL,
Ouagadougou, Burkina Faso
T: +226 25 39 58 45
KIAKA SA OFFICE
Secteur 53, Parcelle 06,
Lot 12, Section 480, Zone A7
Ouagadougou, Burkina Faso
T: +226 25 37 49 74/75/76
AUDITORS
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000 Australia
COMPANY
West African Resources Limited
ABN
70 121 539 375
ASX
ASX trading code: WAF
DIRECTORS
Richard Hyde
(Executive Chairman and CEO)
Lyndon Hopkins
(Executive Director and COO)
Libby Mounsey
(Executive Director of Human Resources)
Rod Leonard
(Lead Independent Director)
Nigel Spicer
(Non-Executive Director)
Stewart Findlay
(Non-Executive Director)
Robin Romero
(Non-Executive Director)
COMPANY SECRETARY
Padraig O’Donoghue
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St George’s Terrace
Perth WA 6000 Australia
T: +61 (8) 9323 2000
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
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MESSAGE
FROM THE
CHAIRMAN
Dear Fellow Shareholders,
I am pleased to present the 2022 Annual Report
for West African Resources Limited (ASX: WAF).
Our company has achieved outstanding growth over
the past few years, transforming from a small Burkina
Faso-focused explorer in 2018, to pouring first gold at
Sanbrado in March 2020 and then purchasing the
Kiaka and Toega projects in 2021 as we aim to become
a plus 400,000 ounce per annum long-life low-cost
gold producer by 2025.
During 2022, we built on the accomplishments of our
prior years and delivered strong outcomes in all major
facets of the company including financial, operational,
growth, sustainability and governance.
We generated revenue of A$608 million in 2022 from
233,930 gold ounces sold unhedged at an average
realised price of A$2,586 per ounce (US$1,798 per
ounce). Profit for the year was A$184 million and
operating cash flow was also A$184 million. WAF’s
outstanding profit performance over the past three
years is reflected in our retained earnings balance of
$349 million at 31 December 2022.
WAF’s balance sheet at the end of 2022 was strong
with $173 million of cash, net assets of over $740 million
and no senior debt.
Our Sanbrado operation continued consistent high-
margin gold production in 2022 delivering 229,224
ounces at a US$1,086 per ounce all-in sustaining cost
(AISC). This met our annual guidance targets and was in
line with the 10-year production plan we released at the
beginning of 2022. Sanbrado operations have not been
affected by Burkina Faso’s January 2022 coup
d’état or the subsequent leadership change in
September 2022.
Looking forward, WAF’s profitability and Sanbrado’s
strong performance are expected to continue in 2023
with unhedged production guidance of 210,000 to
230,000 ounces of gold at an AISC of under US$1,175
per ounce. The outstanding deposits at Sanbrado and
strong performance of the process plant provide a
solid platform for maintaining similar production levels
at Sanbrado for well over another decade. Growth
projects progressing at Sanbrado include extensions
to the high-grade M1 South underground, the Toega
open-pit mining project (with Ore Reserves of
580,000 ounces of gold at 1.9 g/t gold), the MV3 East
open-pit mining prospect, and the M5 underground
scoping study.
Ore Reserves grew 365% in 2022 to 6.2 million ounces
gold from the addition of 4.5 million ounces of Kiaka
Probable Ore Reserves, as Kiaka shapes as our second
gold operation. We published the Kiaka feasibility study
results in 2022, which indicated a 2.5-year pre-tax
payback period at US$1,750 per ounce gold, an AISC
averaging US$953 per ounce for the first five years
and US$1,052 per ounce life of mine, with capital costs
of US$430 million, averaging 219,000 ounces of gold
production per annum for 18.5 years.
We continue to progress development at Kiaka,
and during Q4 2022, awarded its EPCM contract to
Lycopodium, and the SAG and ball mill package to
Metso Outotec. Site earthworks commenced late in the
quarter for the entry and camp accommodation area.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 5
appropriate mix of diversity, experience and skills
and we are not planning any further changes to its
composition in 2023.
I thank my fellow shareholders for your continued
support, and hope this will extend to approval of
director re-election and remuneration resolutions
tabled for consideration at our upcoming Annual
General Meeting. I also thank my fellow directors for
their guidance and contributions in assisting me and
the management team navigate our Company’s growth
to becoming a plus 400,000 ounce per annum gold
producer by 2025.
RICHARD HYDE
Executive Chairman & CEO
WAF expects to fund the construction of Kiaka from
existing cash, internal cash flow, and external debt.
The external debt funding process is advancing to plan
with the due diligence, facility documentation, and
commercial negotiations progressing in parallel.
We expect to announce the debt funding package
and lender group to the market in Q2 2023.
WAF’s first lost time incident since 2018 was recorded
during Q4 2022, following an outstanding achievement
of 12.7 million hours worked and 43 continuous months
LTI free. There were no other significant health or safety
incidents during the year with WAF’s 2022 annual
total recordable injury frequency rate standing at 1.73
versus Western Australian average reportable injuries
frequency rate of 7.1. While we have delivered excellent
safety performance outcomes to date, we will continue
safety audits and training programs at our operations
during 2023 to further strengthen the Group’s safety
practices and procedures.
While this Annual Report contains some of our
sustainability highlights, I encourage interested parties
to obtain a copy of the full 2022 Sustainability Report,
which is due for release soon and will be available
electronically from our website. As well as the numerous
agricultural, educational and health improvement
programs delivered to our regional communities, the
Sustainability Report outlines our significant economic
contributions to the Burkina Faso economy in 2022,
with A$181 million paid in taxes and royalties, A$24
million paid in direct employee wages, A$6.6 million
paid to the Local Development Management Fund, and
A$2.8 million spent on community initiatives. Sanbrado
is set to continue generating economic benefits to
the local and wider community for at least another 13
years. When Kiaka commences production in 2025, our
contributions will virtually double from current levels
and Kiaka will continue to provide significant
national and regional economic benefits for a
further 18 years.
We welcomed Robin Romero to the
Board in 2022 as an independent
Non-Executive Director (NED) and
we appointed Libby Mounsey as
Executive Director of Human
Resources, transitioning from her
previous consulting and NED
position. We are fortunate to have
these two highly accomplished
and well qualified women on our
Board, which is now comprised
of four independent NEDs and
three executive directors, and all
committees are chaired by an
independent NED.
The Nomination Committee has
concluded our Board now has the
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 6
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
2022
HIGHLIGHTS
2022
2021
GOLD PRODUCTION:
229,224 ounces
288,719 ounces
AISC PER OUNCE:
NET PROFIT:
US$1,086
US$796
A$183.7 million
A$214.4 million
YEAR-END GOLD RESOURCES:
12.6 million ounces
11.6 million ounces
YEAR-END GOLD RESERVES:
6.2 million ounces
1.7 million ounces
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
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2022 IN BRIEF
Q1 2022
Annual guidance
for 2022 set at
220,000 to 240,000oz
at AISC per oz of
US$1,040 to US$1,100
Q1 2022
Toega Maiden Ore
Reserve of 580,000
ounces
Q3 2022
Kiaka feasibility study
reports Kiaka will be a
long-life low-cost gold
project averaging
219,000oz of gold
production per annum
for 18.5 years
Q3 2022
Reserves grow
365% to 6.2 million
oz gold
Q3 2022
WAF cash settles
B2Gold’s US$45 million
convertible note
Q3 2022
12,700,000 hours
worked LTI free at
Sanbrado
Q4 2022
650,000oz of gold
produced since
commissioning
Sanbrado in
March 2020
Q4 2022
AWARDS
Kiaka EPCM
contract awarded to
Lycopodium, and Kiaka
mill package to
Metso Outotec
Q4 2022
Annual production
guidance exceeded
with 229,224oz gold
produced at
US$1,086/oz AISC
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WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
DIRECTORS’
REPORT
The Directors present their report
together with the consolidated financial
report of West African Resources
Limited (the ‘Company’) and its controlled
subsidiaries (the ‘Group’, ‘West African’
or ‘WAF’) for the year ended 31 December
2022.
ABOUT WEST AFRICAN
RESOURCES LIMITED
West African Resources Limited is an international
mining company actively undertaking mining,
mineral processing, exploration, project development,
community & social sustainability, and rehabilitation
within the West African country of Burkina Faso.
Headquartered in Perth, Western Australia, West African
Resources Limited is listed on the Australian Securities
Exchange (ASX:WAF).
The Sanbrado Gold Project (‘Sanbrado’) and the Kiaka
Gold Project (‘Kiaka’) are held under mining licences
and are 90%-owned by WAF, with the government of
Burkina Faso owning the remaining 10%. All exploration
licences in WAF’s portfolio are 100%-owned by WAF.
The Toega gold deposit (‘Toega’) is currently held under
a 100%-owned exploration licence, with the application
for a mining licence in progress.
Sanbrado is located in central Burkina Faso, 90km
east-southeast of the capital city of Ouagadougou.
Kiaka is located 110km southeast of Ouagadougou
and 45km south of Sanbrado (refer to figure 12).
The above-noted Sanbrado project Resources and
Reserves include Toega. Toega is located 14km
southwest of the Sanbrado processing plant.
WAF has an approximately 2,000km² exploration land
package over the prospective Markoyé fault region
where Sanabrado, Toega, and Kiaka are situated, as well
as an exploration tenement package in the southwest
of the country.
BURKINA FASO
WESTERN AUSTRALIA
SANBRADO GOLD PROJECT
KIAKA GOLD PROJECT
EXPLORATION
PERTH OFFICE
• WAF Group headquarters
• Business support centre
• Mineral Resources:
• Mineral Resources:
• Tenement portfolio
7.7Moz gold
• Mineral Reserves:
4.5Moz gold
• Long life, low strip ratio,
conventional open pit
• Fully permitted
• Construction commenced
targeting first gold in 2025
comprising 2,000 km2 over
the prospective Markoyé
fault region in central and
southern Burkina Faso
• Gold exploration
4.9Moz gold
• Mineral Reserves:
1.7Moz gold
• Open pit mining
• Underground mining
• Ore processing
• Gold smelting
• Active drilling of promising
gold exploration targets
• Community and social
programs
• Environmental programs
• Progressive rehabilitation
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
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SUSTAINABILITY REVIEW
Consistent with 2021, WAF will publish its 2022 Annual
Sustainability Report as a separate document to this
Annual Report. Below we present some of the highlights
and context from that document, however interested
parties are encouraged to obtain a copy of our full
2022 Annual Sustainability Report from the
Company’s website.
2022 SUSTAINABILITY HIGHLIGHTS
$181 million
paid to Government of
Burkina Faso in taxes and
royalties
$24 million
paid as wages and benefits
to employees
$6.6 million
paid to Local Development
Management Fund
$2.8 million
spent on community
initiatives
20,000
plants produced in
Sanbrado nursery
Waste
management
initiative results in
$84,000 available for
community
projects
94%
of Burkina Faso employees
are Burkinabé
Establishment of
university scholarship
program
86.1%
of spending on goods
and services was within
Burkina Faso
Winner
of the Best Innovation
in Corporate Social
Development at the 2022
AAMEG awards
Named
2022 Miner of the Year
by Gold Mining Journal
for the second
year running.
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SUSTAINABLE DEVELOPMENT GOALS
WAF is committed to working with its stakeholders to
achieve the Sustainable Development Goals (SDGs)
developed as a key part of the 2030 Agenda for
Sustainable Development, adopted by UN Member States.
The following are examples of how WAF’s initiatives align
with achievement of the SDGs.
SDG CATEGORY
OUR CONTRIBUTION
• Provision of local employment opportunities and training.
• Support for cooperatives to access credit from a microfinance institution.
• Training and community investment activities to improve agricultural productivity and
nutrition.
• Support the creation of cooperatives for farmers and associations for livestock
breeders.
• Support the creation of community gardens for market gardening.
• Training to prevent soil erosion.
• Supply of improved seed varieties for rain-fed crops and training on their use.
• Support to community education activities (awareness and prevention of sexually
transmitted diseases and malaria, road safety).
• Establishment of an employee wellbeing program at Sanbrado, targeting both mental
and physical wellbeing.
• Support to medical centres, including donation of equipment and funds for
improvements.
• Establishment of scholarship program, providing 2 local students the opportunity to
pursue university-level education.
• Internship opportunities for university students (30 interns in 2022).
• Training programs for young people and women, providing skills suitable for
employment.
• Provision of French language lessons to 253 women in 2022, enabling them to better
participate in social, economic and political activities.
• Provision of employment opportunities for women.
• Implementation of equal opportunity and non-discrimination policies.
• Drilling wells to supply drinking water to local communities along with ongoing water
quality monitoring.
• Damaged boreholes are rehabilitated to ensure continued access to drinking water.
• Provision of facilities, equipment and training to enable local communities to pursue a
diverse range of economic activities.
• Training on micro-credit and financial management.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 11
SDG CATEGORY
OUR CONTRIBUTION
• Support for cooperatives to access credit from a microfinance institution.
• Training workshops for local suppliers (35 attendees in 2022) so that they comply with
Burkina Faso regulations and are able to trade with WAF.
• Establishment of a tender review committee to improve transparency and
opportunities for local procurement.
• Employment opportunities with the Company are available for both men and women,
with equal opportunity and non-discrimination policies in place.
• Wages are reflective of the position’s requirements, with no distinction based on
gender.
• Provision of new houses and facilities for resettled households using local construction
methods and materials.
• Repair and maintenance of roads around the Sanbrado mine, including dust
suppression in the dry season.
• Support for local producers through local procurement plan.
• Waste minimisation projects to divert waste from landfill.
• Waste management initiatives including provision of segregated waste facilities and
awareness raising activities.
• Minimisation of land disturbance to reduce our impact on ecosystems.
• Progressive rehabilitation of disturbed sites, with plants grown on site.
• Provision of support to local community members to gain official documents
(birth certificate, identification card).
• Support to resettled households to gain land titles, enabling households to enjoy
property security.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 12
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
LIVELIHOOD RESTORATION AND TRAINING
WAF’s Sanbrado livelihood restoration program
has been underway since 2020 and will inform the
development of similar programs for Toega and Kiaka.
All project-affected people are entitled to participate
in the program, whether they have been physically or
economically displaced.
The livelihood restoration program is intended to run for
five years, transitioning to ownership and autonomous
management by participating communities, with
monitoring and evaluation by us to ensure the programs
remain relevant and effective. Some of the long-term
initiatives underway are:
•
•
•
•
Establishment of market gardens
Improved seeds initiative
Establishment of a poultry farm
Training to prevent soil erosion and improve
soil management.
Throughout the course of 2022, the Sanbrado livelihood
restoration program has largely transitioned from
implementation to monitoring and evaluation. Of the
20 components of the program, 15 have been
implemented and are in monitoring, while
implementation of the remaining five components is
more than 80% complete.
WAF’s efforts to support education come in various
forms, including:
•
•
•
•
•
WAF’s subsidiary SOMISA has built three schools
and equipped them with solar panels and the
necessary equipment and furniture.
Bicycles are donated to the best students of the
primary and secondary schools each year.
In 2022, WAF created a university scholarship
program to support high school graduates to
pursue higher education.
WAF’s scholarship program seeks to offer
motivated and ambitious high school graduates
the opportunity to gain further education in a field
relevant to the Company’s operations.
We also offer internships and training initiatives for
local community members.
EDUCATION
WAF’s projects are in rural areas of Burkina Faso, with
low rates of education, employment and socioeconomic
security. A key focus of WAF’s community investment
is supporting education to promote a better standard
of living and improved access to opportunities for the
communities impacted by or living near our projects.
This approach aims to improve participation across all
age groups (from primary school to adults), with a focus
on overcoming gender disparities.
WAF has supported opportunities for adult education
through the installation of solar power at local schools,
which enable night classes for adults who are otherwise
occupied during the day. One challenge in implementing
adult education programs and training has been the
low level of educational achievement in the community.
A significant portion of women have not received
basic education in reading and writing during normal
educational years. As a result, they have very little
knowledge related to financial management and have
struggled to initiate successful business ventures in the
past. By incorporating literacy in French into our training
programs, women are now well positioned to participate
in business and other matters conducted in French.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
13
is responsible for the day-to-day management of
local procurement mechanisms.
In response to the new legislation and requests from
communities for further opportunities in procurement,
the SOMISA Procurement Department introduced a
new strategy in October 2022 to promote suppliers and
service providers from local communities. The strategy
has been communicated to all SOMISA departments
and entails:
•
•
•
Identification of the goods and services which
can be contracted to local community suppliers.
Meeting with potential suppliers to present the
new strategy.
Establishing a selection committee responsible
for evaluating service offers using well-defined
evaluation criteria.
WAF also implements a Supply Chain Policy, which
outlines the Project’s commitment to meaningful
engagement with communities and recognises that
price is not the only variable to be considered when
finding value for money. It stipulates that effective
supply chain management requires thoughtful
identification, assessment and management of risks
across all stages of the mining life cycle.
LOCAL PROCUREMENT
WAF recognises that local procurement is a valuable
opportunity for benefit sharing with local communities
and aims to source necessary goods and services
within the local area or nationally wherever possible.
In 2021, the Government of Burkina Faso introduced
local content laws specifying conditions for local supply
of goods and services to the mining sector. At the
time the local content decree and order were issued,
Sanbrado already had a Local Procurement Plan.
The plan sets out the guidelines and principles to
maximise the procurement opportunities that accrue
to local and national residents and businesses and
to ensure compliance with the local content decree
that applies to the mining sector in Burkina Faso. The
provisions in the Local Procurement Plan are overseen
by the Procurement Department, in close collaboration
with the CRD. A designated Local Content Coordinator
EMPLOYMENT OPPORTUNITIES
Providing employment opportunities and career
pathways is key to the sustainability of WAF’s operations
and an important way for us to give back to local
communities and the people of Burkina Faso. WAF
directly employs 729 people globally and specialised
contractors working with us bring the total workforce to
about 1,600 people. The total workforce grew by 16%
in 2022 (employee numbers increased 15%; contractor
numbers increased 17%), in line with increasing activities
within the Company. Most employees work at Sanbrado,
with small teams also based at the Toega and Kiaka
Projects, offices in Ouagadougou and the corporate
office in Perth, Australia. In addition to employment,
employees are provided opportunities to participate in
personal and professional development.
As the Company continues to grow, so too do the
employment and training opportunities. The Toega
and Kiaka Projects currently employ relatively small
teams, but these teams will grow significantly as the
projects enter the construction and operational phases.
The success of Sanbrado’s Local Employment Plan
(LEP) has served as the basis for development of the
Kiaka LEP and will be adapted for the Toega and MV3
social context and operational needs. The plan ensures
that local communities are prioritised when hiring
workers, particularly those who have been physically or
economically displaced by the Project.
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WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
SUSTAINABILITY REVIEW
(CONTINUED)
As a Company, we prioritise the hiring of employees
from local communities, with the expectation that
employment-related benefits should be distributed
based on the degree of impact from the Project.
The Local Employment Policy refers to the requirements
of IFC Performance Standard 2 - Labour and Working
Conditions and sets out employment objectives
corresponding to level of impact, in particular for
unskilled and low-skilled positions:
•
•
•
•
•
50% from economically and physically affected
communities
25% from economically affected communities and
host communities
25% from communities along the mine’s access
routes, wider exploration areas and the rest of the
Commune of Boudry.
The policy also requires that a minimum of 30%
of these positions are filled by women.
For all other positions, when all other criteria are
equal, local candidates are given priority.
Female participation in the workforce remains high
when compared with other mining industry peers,
with female employment rates across the Company
being 20% of all staff and 27% of senior management.
Reinforcing these rates and WAF’s commitment to
creating an inclusive and safe workplace for female
employees, 20% of new hires in 2022 were female, while
only 11% of departing employees were female.
Sanbrado employment statistics:
•
•
•
National staff make up 90% of the Sanbrado
workforce.
40% of local employees hired in 2020 and 2021
for unskilled or low skilled positions have been
promoted to higher skilled positions.
65% of senior positions are filled by national staff,
up from 45% in 2020 and 59% in 2021.
RESETTLEMENT PLANNING
Resettlement arrangements with stakeholders of
the Kiaka and Toega projects are being guided by
resettlement experts familiar with good international
industry practice, including guidance from the IFC and
the International Council of Mining and Metals.
For each project, a consultative committee has been
established with representatives of customary leaders,
elected officials, representatives of youth, women
and artisanal gold miners, technical services and civil
society organisations. This committee provides a forum
for the exchange of information on project development
progress, entitlement distribution, and sharing of
concerns between the mine development team and
stakeholders. The committee also negotiates items
such as financial compensation, replacement land
and livelihood restoration programs, on behalf of the
communities affected by the project. The compensation
framework for physical and economic displacement
reflects the approach adopted for Sanbrado, taking
into account the cost of land, agricultural yields, and
inflation. The first memorandums of understanding were
signed in May and June, respectively, and the remaining
entitlement agreements are expected to conclude in
the first half of 2023.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
15
MANAGING OUR ENVIRONMENTAL FOOTPRINT
WAF is committed to responsible environmental management through the integration of environmental
considerations into business decisions at all stages. Each project is subject to a comprehensive environmental and
social impact assessment (‘ESIA’) during the permitting process. This enables us to apply the impact mitigation
hierarchy to avoid, minimise and mitigate negative environmental impacts, as well as identify opportunities to
improve environmental outcomes. Once operational, environmental management and monitoring continues
throughout the life of the project, guided by the Environmental and Social Management System, aligned with ISO
140001 and a project-specific Environmental and Social Management and Monitoring Plan (ESMMP) developed
in accordance with international industry practices and standards. Revegetation and rehabilitation takes place on
a continuous basis to reduce prolonged disturbance to the natural environment and to ensure that planned post-
closure outcomes for the environment and the community are achieved.
WAF recognises that tailings storage facilities (‘TSFs’) are high risk infrastructure. With projections for rainfall events
of greater intensity due to climate change, the appropriate design and management of TSFs and other storage dams
is becoming even more important. WAF currently operates one TSF at Sanbrado. In 2022, WAF’s Engineer of Record
conducted TSF inspections and management audits twice. The 2022 inspections identified no major issues, with the
TSF assessed to be in a stable condition and all action items resulting from the audits have been implemented. WAF
is also actively working on implementing the Global Industry Standard on Tailings Management (GISTM; 2020) at
Sanbrado. The Company hired a Civil and TSF Engineer to fulfill the Standard’s requirement for a Responsible Tailings
Facility Engineer. This position focuses on supervising the progressive development of the TSF, including material
management and wall and liner integrity. At Kiaka, the requirements of GISTM are being incorporated into the TSF
design from the onset, and will be applied through the facility’s construction, operation and management.
16
OPERATING REVIEW
SAFETY
Sanbrado recorded its first LTI since 2018 during
Q4 2022, following an outstanding achievement of
12.7 million hours worked and 43 continuous months
LTI free. A contractor’s workshop maintenance
employee fractured his leg while using a crane hoist to
reposition an axle assembly and the injured worker was
well treated by qualified medical professionals at
a private hospital in Ouagadougou.
There were no other significant health or safety
incidents during the year, and WAF’s 2022 annual
TRIFR (Total Recordable Injury Frequency Rate) was
1.73 (2021: 0.78) versus Western Australian average
reportable injuries frequency rate of 7.11
BURKINA FASO GOVERNMENT
LEADERSHIP CHANGES
On 24 January 2022, the Patriotic Movement for
Safeguard and Restoration military group, led by
Lieutenant-Colonel Paul-Henri Sandaogo Damiba,
assumed control of the Burkina Faso government,
deposed Mr Roch Marc Christian Kaboré from his
position as President, and subsequently dissolved
the parliament, government, and the constitution.
On 31 January, the group restored the constitution
and appointed Paul-Henri Sandaogo Damiba as
Interim President. On 1 March 2022, Interim President
Damiba signed a charter setting out the structure and
objectives of a 36-month transition government which
he led as President of the Transition until his removal
on 30 September 2022.
On 30 September 2022, Captain Ibrahim Traore
removed Lieutenant-Colonel Damiba as head of the
military and was subsequently appointed Interim
President of Burkina Faso by a delegation of more than
300 military and public officials on 14 October 2022.
Captain Traore has reaffirmed the timeline for return
to civilian democratic rule as advised by the Economic
Community of West African States (ECOWAS), with
elections scheduled for mid-2024.
The Directors advise that the Sanbrado and Kiaka sites
and the capital of Ouagadougou and the communities
around WAF’s operations remain calm. The government
bureaus have continued to operate normally and WAF’s
operations were not impacted by these government
leadership changes.
SANBRADO PRODUCTION STATISTICS
A year-on-year comparison of the key production statistics for Sanbrado is shown in the following table.
OP mining
Total movement
Total movement
Strip ratio
Ore mined
Mined grade
Contained gold
UG mining
Ore mined
Mined grade
Contained gold
Processing
Ore milled
Head grade
Recovery
Gold produced
Gold poured
Gold sold
UNIT
2022
2021
BCM '000
kt
w:o
kt
g/t
oz
kt
g/t
oz
kt
g/t
%
oz
oz
oz
8,620
21,706
7.1
2,685
1.4
118,514
424
8.1
9,426
24,138
5.9
3,518
1.9
210,132
372
9.5
110,183
113,259
3,251
2.4
93.1
229,224
230,424
233,930
3,155
3.0
94.5
288,719
287,619
295,215
1. Department of Mines, Industry Regulation and Safety, 2021, Safety performance in the Western Australian mineral industry — accident and injury
statistics 2020-21: Department of Mines, Industry Regulation and Safety, Western Australia. https://www.dmp.wa.gov.au/Documents/Safety/
Safety%20performance%20in%20the%20Western%20Australian%20mineral%20industry%202020-21%20-%20report.pdf
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
17
Figure 1 – Sanbrado layout
OPEN PIT MINING
Open-pit mining in 2022 reconciled in-line with WAF’s
10-year production plan. With the completion of the
high-grade M1 South open pit in Q1 2022, ounces mined
from open pit mining decreased 44% from 210,132
ounces in 2021 to 118,514 ounces in 2022, resulting in
a 26% decrease in mined grade from 1.9 to 1.4 g/t gold.
2022 saw WAF cut back the M5 South open pit to the
final design, resulting in a 24% decrease in ore tonnes
mined and a 21% higher average strip ratio in the
year. The M5 South cut back, which was completed in
Q4 2022, opens access to higher grade ore in the pit
and reduces the strip ratio for the remainder of the
open pit mine life to an approximate average of 3 : 1
(waste: ore).
A long section through M5 is shown in figure 2.
Figure 2 – Long section through the M5 Pit
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 18
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
OPERATING REVIEW (CONTINUED)
UNDERGROUND MINING
Underground mining in 2022 compared well against
WAF’s 10-year production plan with mined grade of
8.1 g/t gold, higher than 7.5 g/t gold modelled grade
for the year. Gold ounces mined from the M1 South
underground were in line with the prior year, with
113,259 ounces mined in 2021 compared to 110,183
ounces in 2022. Ore tonnes mined increasing 14%
from 372,000 to 424,000 tonnes with improvements to
operational productivity. M1 South underground grades
decreased 15% from 9.5 g/t gold in 2021 to 8.1 g/t in
2022. Some 3.0 km of underground development was
completed in 2022 (2021: 3.2km). At the end of 2022
the decline was 461 metres vertically below surface
(2021: 385 metres).
Figure 3 – Post-blast inspection
at M1 South
PROCESSING
Gold production at Sanbrado was in line with
guidance and reconciled well against WAF’s 10-year
production plan. With the completion of the high-
grade M1 South open pit in Q1 2022, ounces produced
decreased 21% from 288,719 ounces in 2021 to 229,224
ounces in 2022. Ore throughput and gold recovery
were approximately in line with the prior year, with
3,251,000 tonnes processed at a recovery of 93.1%.
Figures 4 and 5 show the Sanbrado process plant and
accommodation camp.
Figure 4 – Sanbrado process plant
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
19
Figure 5: Kiaka exploration camp
GROWTH REVIEW
KIAKA GOLD PROJECT
Background
Kiaka is a fully permitted gold mining project
located 110km southeast of the Burkina
Faso capital, Ouagadougou, and 45km south
of WAF’s Sanbrado Gold Operations. It is
accessed from Ouagadougou via 100km of
sealed road, and then by 40km of all-weather
dirt road to site. WAF purchased its 90%
ownership interest in Kiaka from B2Gold Corp
and their partner GAMS-Mining F&I Ltd on
30 November 2021.
Kiaka Feasibility Study
On 3 August 2022, WAF announced the
results of its Feasibility Study for Kiaka along
with Kiaka’s maiden Ore Reserve. Kiaka will
be a low strip-ratio conventional open-pit
mining operation with a conventional carbon-
in-leach process circuit. Highlighted physical
and financial metrics from the announcement
are contained in the following two tables.
KIAKA FEASIBILITY STUDY ANNOUNCEMENT 3 AUGUST 2022 – KEY PHYSICAL METRICS
Base case, stated on a 100% basis
Production Years 1 to 5
Average 233,000 oz/year
Production life of mine
Average 219,000 oz/year
Strip Ratio
1.8 : 1 (waste : ore)
Mineral Resource Estimate
279.2Mt at 0.9 g/t for 7.7Moz gold
(5.8Moz Indicated, 1.7Moz Inferred, open pit constrained at US$1,800/oz)
Probable Mineral Reserves
155Mt at 0.9 g/t for 4.5Moz gold (at US$1,400/oz)
Life of mine gold recovery
90% average, recovering 4.1Moz gold
Mine Life
18.5 years
KIAKA FEASIBILITY STUDY ANNOUNCEMENT 3 AUGUST 2022 – KEY FINANCIAL METRICS
Base case: stated on a 100% basis, and assumed average gold price per ounce of US$1,750
Pre-production capex
US$430 million of pre-production capital expenditure
(including pre-production mining & development costs, contingencies, duties & taxes)
AISC1,2 Years 1 to 5
Average All in Sustaining Costs (AISC) of US$953/oz (A$1,361/oz)
AISC life of mine
Average All in Sustaining Costs (AISC) of US$1,052/oz (A$1,503/oz)
Life of mine free cashflow
Pre-tax free cashflow of US$2,361 million (A$3,373 million)
Post-tax free cashflow of US$1,723 million (A$2,462 million)
NPV at 5% discount rate
Pre-tax NPV of US$1,231 million (A$1,758 million)
Post-tax NPV of US$856 million (A$1,223 million)
IRR and pay-back period
Post-tax internal rate of return (IRR) of 21.4% and 3.25 year pay back on
pre-production capital
• At assumed AUD/USD FX rate of 0.70.
• AISC includes all mining and processing costs, site administration, royalties, refining and site rehabilitation costs, sustaining capital,
closure costs but excludes head office corporate costs.
20
GROWTH REVIEW (CONTINUED)
The project is comprised of the Kiaka Main and Kiaka South deposits, with over 98% of the Ore Reserve contained
in the Kiaka Main deposit. Figure 6 presents the layout of the project, showing the relative positions of the mining
areas and the principal infrastructure. Figure 7 provides a pit shell diagram illustrating the large size of this low strip
ratio 18-year open pit mining project.
Figure 6 – Planned layout of Kiaka project
Figure 7 – Kiaka pit shell diagram
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 21
GROWTH REVIEW (CONTINUED)
Kiaka Construction
During Q4 2022, WAF awarded the Kiaka EPCM
contract to Lycopodium, and the semi-autogenous
grinding and ball mill package to Metso Outotec
(ASX: 5/12/2022). Site earthworks commenced
late in the quarter for the entry and camp
accommodation area.
SANBRADO GROWTH
WAF’s current growth projects for Sanbrado include:
• M1 South underground extension;
•
Toega gold deposit;
• MV3 East prospect; and
• M5 underground scoping study.
M1 South Underground
During Q4 2022, resource definition diamond drilling
at the M1 South underground targeted the conversion
of the Inferred Mineral Resources to Indicated Mineral
Figure 8 – M1 South Long Section
Resources between 1800mRL and 1600mRL
(500m to 700m BSL) beneath existing Ore Reserves
at M1 South (refer to ASX announcement dated
15 December 2022).
Results from infill drilling have returned intercepts
and confirmed the continuation of consistent high-
grade mineralisation between 1800mRL to 1600mRL
(500m to 700m BSL) beneath the current Ore Reserve
(refer to Figure 8). Diamond drilling results have
generally been higher grade than previous exploration
drilling completed by WAF from 2018 to 2020, with M1
South high-grade mineralisation continuing to display
predictable geometry and grade. At approximately
1600mRL, the deepest line of infill drilling, mineralisation
remains open to the northwest. WAF has planned
further drill holes to close off mineralisation.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 22
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
GROWTH REVIEW (CONTINUED)
The positive results underpin future underground gold production from the M1 South with the upcoming Mineral
Reserve Estimate expected to report additional ounces to those previously reported. WAF’s update of the Ore
Reserves estimates for M1 South incorporating these drilling results is expected to report a replacement of ounces
mined to date. An updated resources and reserves estimate and 10-year production outlook will be released in
the coming weeks.
Toega Gold Deposit
The Toega gold deposit is held under an exploration licence 100% owned by WAF. It is located within trucking
distance (14km southwest) of the Sanbrado gold processing plant.
On 22 February 2022, WAF announced on the ASX a maiden Ore Reserve for Toega of 9.7 million tonnes at a grade
of 1.9 g/t gold for 580,000 contained ounces with a strip ratio (waste : ore) of 5.4 : 1. The announcement included
a 10-year production target with Toega Ore Reserves included in the Sanbrado processing schedule from 2024.
Work to obtain Toega’s mining licence is progressing well. The ESIA and RAP were completed and have been
approved by the Government of Burkina Faso as part of the environmental certificate and mining licence
application.
Figure 9 shows a long section of the Toega deposit indicating the wide and thick mineralisation of this open pit
mining project.
Figure 9 – Toega long section
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
23
GROWTH REVIEW (CONTINUED)
MV3
WAF is undertaking a diamond drilling program targeting high grade sulphide mineralisation at the
MV3 East prospect (refer to figures 10 and 11), located 6km northwest of the Sanbrado mine site. A total of
140 holes for 13,392m have been drilled to date (refer to ASX announcement dated 10 January 2023).
Figure 10 – MV3 East long section
Figure 11 – MV3 East cross section 1340280mN (Section A)
24
GROWTH REVIEW (CONTINUED)
Strategic exploration position
With the acquisition of Kiaka and Toega in 2021, WAF has consolidated an exciting 2,000km2 exploration land
package over the prospective Markoyé fault region in central and southern Burkina Faso.
Figure 12 – Map showing location of WAF’s mineral
interests in Burkina Faso
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 25
FINANCIAL REVIEW
SUMMARY
Revenue
Profit after tax
Operating cash flow
Free cash inflow/(outflow)
Net asset/(debt) position
Gold ounces sold
Average sales price per ounce
All in sustaining cost (‘AISC’) per ounce sold
UNIT
A$’000
A$’000
A$’000
A$’000
A$’000
oz
US$/oz
US$/oz
2022
608,228
183,706
184,098
(12,702)
159,287
233,930
1,798
1,086
2021
712,140
214,438
349,660
188,953
170,256
295,215
1,808
796
REVENUE, EARNINGS, AND UNIT COST PERFORMANCE
Group Revenue in 2022 was 15% lower than the prior year due to a 21% decrease in gold ounces sold, from 295,215
ounces in 2021 to 233,930 ounces in 2022, but this was partially offset by a A$180 per ounce higher realised
average gold sales price in 2022.
Gold revenue
Gold ounces sold
Average sales price per ounce AUD
Average sales price per ounce USD
Average FX rate used for USD conversion
UNIT
A$'000
oz
A$/oz
US$/oz
AUD/USD
2022
605,030
233,930
2,586
1,798
0.6953
2021
710,265
295,215
2,406
1,808
0.7513
Group profit after tax in 2022 decreased 14% from the prior year primarily due to a decrease in the operating
margin reflected by the 6% increase in cost of sales compared with 15% lower revenue versus the prior
year, partially offset by a $56,620,000 decrease in finance expenses. The increase in cost of sales
over the prior year was driven by higher prices of significant operating inputs including fuel and
explosives, plus a 7% lower average AUD/USD exchange rate in 2022 versus 2021. Finance
expenses decreased by $56,620,000 from the prior year following the repayment of the
Taurus debt facility and buy-back of the Taurus product fee in 2021.
Exploration and evaluation (‘E&E’) expenses of $4,895,000 in 2022 relate to regional
exploration activities. Corporate and technical services were $2,044,000 higher than
the prior year due to higher salary, listed entity and international travel costs. Other
expenses increased by $3,519,000 over the prior year mainly reflecting a larger
amount of withholding taxes on funds repatriated from Burkina Faso.
Income tax expense of $73,851,000 in 2022 mainly reflects Burkina Faso
corporate income taxes on SOMISA’s taxable profit at a rate of 27.5% (SOMISA
being WAF’s Burkina Faso subsidiary that owns 100% of Sanbrado).
COST PER OUNCE PERFORMANCE
The ‘Adjusted operating cost’, ‘all in sustaining cost’ (‘AISC’), and ‘all in cost’
are per-ounce cost performance metrics recommended by the World
Gold Council for use in the gold mining industry, but they are not defined
by Australian Accounting Standards Board rules (i.e. they are non-AASB
measures). WAF follows the World Gold Council’s guidelines in the calculation
of these metrics.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 26
FINANCIAL REVIEW (CONTINUED)
The below table presents a year-on-year comparison of these non-AASB per ounce performance metrics for the
Group including the underlying absolute costs from which they are calculated.
UNDERLYING MEASURE
Gold sold
Gold revenue
OP mining cost
UG mining cost
Processing cost
Site administration cost
Change in inventory
Royalties & production taxes
Refining and by product
Adjusted operating cost
Rehabilitation
Capital development
Sustaining capital
Sustaining leases
Corporate & share-based payments
All-in sustaining cost
Growth and development
Exploration non-sustaining
Capex non-sustaining
All-in cost
Performance metrics per gold ounce sold
Adjusted operating cost
All in sustaining cost
All in cost
Average sales price
UNIT
oz
A$ '000
A$ '000
A$ '000
A$ '000
A$ '000
A$ '000
A$ '000
A$ '000
A$ ‘000
A$ '000
A$ '000
A$ '000
A$ '000
A$ '000
A$ ‘000
A$ '000
A$ '000
A$ '000
A$ ‘000
A$/oz
A$/oz
A$/oz
A$/oz
2022
233,930
605,030
74,443
39,766
83,437
30,731
2,318
35,938
(111)
266,523
1,413
64,002
15,501
7,544
10,241
365,224
-
17,269
26,715
409,208
1,139
1,561
1,749
2,586
2021
295,215
710,265
82,451
34,408
61,291
31,009
(3,408)
42,015
(13)
247,752
2,530
34,523
14,590
5,331
8,233
312,958
1,218
10,049
2,871
327,096
839
1,060
1,108
2,406
Average FX rate used for USD unit costs
AUD/USD
0.6953
0.7513
Adjusted operating cost
All in sustaining cost (AISC)
All in cost
Average sales price
US$/oz
US$/oz
US$/oz
US$/oz
792
1,086
1,216
1,798
631
796
832
1,808
The AISC per ounce increased 47% from A$1,060 in 2021 to A$1,561 in 2022 (and 36% in USD from US$796 in
2021 to US$1,086 in 2022). This year-on-year increase in the AUD AISC per ounce was mainly driven by a 21%
lower grade of ore processed at Sanbrado in 2022 compared to the prior year, which resulted in a 21% decrease
in the quantity of gold ounces sold, combined with a 17% increase in the AISC in AUD absolute terms from A$313
million in 2021 to A$365 million in 2022. The higher AUD absolute AISC in 2022 mainly reflects increased USD prices
of significant operating costs including fuel, explosives, freight, and reagents plus a 7% lower average AUD/USD
exchange rate experienced in 2022 versus 2021.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
27
FINANCIAL REVIEW (CONTINUED)
RECONCILIATION OF NON-AASB MEASURES TO CONSOLIDATED FINANCIAL STATEMENTS
A reconciliation of the ‘Adjusted operating cost per ounce’ and AISC per ounce presented in the previous section of
this report to the Group’s Consolidated Financial Statements is presented below:
DESCRIPTION
Cost of sales
(Less)/plus items:
Depreciation
Non-cash inventory movements
By-product credits
Adjusted operating cost
(Less)/plus items:
Reclamation & remediation (accretion & amortisation)
Corporate and technical services
Share-based payments
Capital development
Sustaining capital
Sustaining leases
Total All in sustaining cost (AISC)
Gold sold (ounces)
Adjusted operating cost per ounce ($A/oz)
AISC per ounce (A$/oz)
FINANCIAL
STATEMENT
REFERENCE*
P/L
Note 4
Note 4
N/A
N/A
P/L
P/L
Note 10
N/A
CF
2022
$’000
324,677
(58,997)
1,947
(1,104)
266,523
1,413
7,785
2,456
64,002
15,501
7,544
365,224
233,930
1,139
1,561
2021
$’000
306,805
(57,241)
(541)
(1,271)
247,752
2,529
5,741
2,492
34,523
14,590
5,331
312,958
295,215
839
1,060
* The Financial Statement references in the above table are abbreviated as follows:
• P/L = Consolidated Statement of Profit or Loss and Other Comprehensive Income
• CF = Consolidated Statement of Cash Flows
• N/A = A direct cross reference to the Financial Statements is not available. Sustaining capital excludes growth-related capital.
BALANCE SHEET, CASH FLOW, AND CAPITAL COMMITMENTS
The Group’s net assets increased by $186,160,000 during the year, reflecting a $74,458,000 increase in total assets
and a $111,703,000 decrease in total liabilities.
Key asset movements:
Property, plant and equipment (‘PP&E’) increased by $188,504,000 mainly due to $134,648,000 of transfers from
exploration and evaluation (‘E&E’) assets and $106,218,000 of PP&E additions partially offset by $54,322,000 of
depreciation. The PP&E additions in 2022 were mainly comprised of $64,002,000 of capitalised open pit stripping at
the M5 open pit and capitalised underground development at M1 South and $34,577,000 of capital-in-progress at
Sanbrado.
E&E assets decreased by $117,874,000 mainly due to the transfer of $134,648,000 of Kiaka E&E costs to ‘mines
under construction’ within PP&E, partially offset by $13,455,000 of E&E additions related to Toega, MV3, and Kiaka
(prior to the reclassification in Q4 2022).
Key liabilities movements:
Trade and other payables decreased by $53,664,000, primarily reflecting cash settlement in 2022 of the US$45
million convertible note issued to B2Gold in the prior year as part consideration for the purchase of Kiaka. Loans
and borrowings (current and non-current) were approximately in line with the prior year; however the full balance
is classified as current. Current tax payable decreased by $70,978,000 due to a combination of SOMISA’s lower
Burkina Faso taxable profit in 2022 versus the prior year, and higher income tax instalments paid in 2022 versus
the prior year.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
28
FINANCIAL REVIEW (CONTINUED)
NET CASH/(DEBT) POSITION
Cash and cash equivalents
Loans and borrowings
Net cash/(debt)
2022
$’000
173,393
(14,106)
159,287
2021
$’000
183,374
(13,118)
170,256
The Group’s net cash position decreased by $10,969,000 from the prior year, with strong pre-tax operating cash
flow of $317,867,000 being reduced by $133,769,000 of income tax paid in 2022 resulting in net cash flow from
operating activities of $184,098,000; and significant cash outflows from investing activities of $65,906,000 in
relation to cash settlement in 2022 of the US$45 million convertible note issued to B2Gold in the prior year as part
consideration for the purchase of Kiaka, and $102,533,000 of payments for PP&E, mainly related to capitalised
development and equipment purchases at Sanbrado.
CALCULATION OF FREE CASH FLOW
Net increase/(decrease) in cash held in the period
Add/(subtract):
Repayments of borrowings
Proceeds from issue of shares
Proceeds from exercise of share options
Payments for share issue costs
Free cash flow
2022
$’000
(12,401)
-
(120)
(526)
345
(12,702)
2021
$’000
87,141
235,064
(136,250)
(1,042)
4,040
188,953
The Group’s free cash flow was approximately in-line with the overall change in the group’s cash balance from
1 January to 31 December 2022, with no borrowing activity and negligible share issuances in the year.
CAPITAL COMMITMENTS
The Group’s capital expenditure commitments for property, plant and equipment were $61,200,000 at 31 December
2022 (2021: $1,831,000), with $55,200,000 related to the Kiaka project and the $6,040,000 related to Sanbrado.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 *
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3
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
30
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
RESOURCES AND RESERVES STATEMENT (CONTINUED)
ORE RESERVES
The following two tables provide the Ore Reserves for WAF at 3 August 2022 and 31 December 2021, respectively
(refer to WAF’s ASX announcement dated 3 August 2022 titled “West African Updates Resources, Reserves and
Production Target” for further information on the 3 August 2022 Ore Reserves). WAF is currently updating its Ore
Reserves, which are expected to be published in the coming weeks.
3 AUGUST 2022 ORE RESERVE BY DEPOSIT
PROVED
Grade
g/t
8.5
5.1
1.9
1.3
1.2
Tonnes
1,000,000
50,000
53,000
2,500,000
140,000
Contained
Au oz
290,000
9,000
3,000
100,000
5,300
1,700,000
1.0
56,000
Tonnes
1,100,000
0
320,000
10,000,000
30,000
9,700,000
155,000,000
5,600,000
2.6
460,000
175,000,000
PROBABLE
Grade
g/t
5.9
0.0
2.1
1.4
1.1
1.9
0.9
1.0
DEPOSIT
M1 South
UG
M1 South
M1 North
M5
M3
Toega
ROM
Stockpile
Kiaka
Total*
31 DECEMBER 2021 ORE RESERVE BY DEPOSIT
Contained
Au oz
200,000
0
21,000
420,000
1,000
580,000
PROVED + PROBABLE
Grade
g/t
7.1
Tonnes
2,100,000
Contained
Au oz
490,000
50,000
370,000
12,000,000
170,000
9,700,000
1,700,000
5.1
2.0
1.4
1.2
1.9
1.0
0.9
1.1
10,000
24,000
530,000
6,300
580,000
56,000
4,500,000
6,200,000
4,500,000
5,700,000
155,000,000
181,000,000
MEASURED RESOURCE
Grade
g/t
8.5
Contained
Au oz
290,000
Tonnes
1,000,000
INDICATED RESOURCE
Grade
g/t
5.9
Tonnes
1,100,000
Contained
Au oz
200,000
TOTAL RESOURCE*
Grade
g/t
7.1
Tonnes
2,100,000
Contained
Au oz
490,000
50,000
53,000
2,500,000
140,000
5.1
1.9
1.3
1.2
9,000
3,000
100,000
0
320,000
10,000,000
5,300
30,000
9,700,000
0.0
2.1
1.4
1.1
1.9
1,700,000
1.0
56,000
0
21,000
420,000
50,000
370,000
12,000,000
1,000
170,000
580,000
9,700,000
1,700,000
5.1
2.0
1.4
1.2
1.9
1.0
10,000
24,000
530,000
6,300
580,000
56,000
DEPOSIT
M1 South
UG
M1 South
M1 North
M5
M3
Toega
ROM
Stockpile
Total*
5,600,000
2.6
460,000
21,000,000
1.9
1,200,000
26,000,000
2.0
1,700,000
* Due to rounding the totals in the above two tables may not precisely add up to, and ounces may not precisely calculate to, the
amounts provided.
The increase in the Ore Reserve from December 2021 to August 2022 reflects the addition of the
Kiaka Probable Ore Reserve of 4.5 million ounces (refer to ASX announcement dated 3 August
2022 titled “Kiaka Feasibility Study Delivers 4.5Moz Gold Ore Reserve”).
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
31
RESOURCES AND RESERVES STATEMENT (CONTINUED)
COMPETENT PERSONS STATEMENT
The Company’s estimates of Mineral Resources and Ore Reserves for the Sanbrado Project (including the
Toega Deposit) are set out in the announcement titled “WAF Resource, Reserve and production guidance
update 2022” released on 22 February 2022. The Company confirms it is not aware of any new information or
data that materially affects the information included in that announcement and that all material assumptions
and technical parameters underpinning the estimates of Mineral Resources and Ore Reserves for the Sanbrado
Project in that announcement continue to apply and have not materially changed.
The Company’s estimates of Mineral Resources and Ore Reserves for the Kiaka Project referred to in this
report are set out in the announcement titled “Kiaka Feasibility Delivers 4.5Moz Gold Ore Reserve, 18.5 year
Mine Life” released on 3 August 2022. The Company confirms it is not aware of any new information or data
that materially affects the information included in that announcement and that all material assumptions and
technical parameters underpinning the estimates of Mineral Resources and Ore Reserves for the Kiaka Project
in the announcement continue to apply and have not materially changed.
Information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled
by Brian Wolfe (Mineral Resources with the exclusion of M1 South Deeps), Niel Silvio (M1 South Deeps Mineral
Resources), Andrew Fox (M1 South underground Ore Reserves) and Stuart Cruickshanks (open pit Ore Reserves)
who are Competent Persons. Mr Wolfe is a specialist mineral resource consultant employed by International
Resource Solutions Pty Ltd and a Member of the Australian Institute of Geoscientists. Mr Silvio is an employee
of the company and a Member of the Australian Institute of Mining and Metallurgy. Mr Fox is a specialist mining
consultant employed by Kenmore Mine Consulting Pty Ltd and a Member of the Australian Institute of Mining
and Metallurgy. Mr Cruickshanks was an employee of the company and is now a consulting Mining Engineer.
He is a Fellow of the Australian Institute of Mining and Metallurgy.
32
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
Directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
CURRENT DIRECTORS
RICHARD HYDE
BSc (Geology and Geophysics),
MAusIMM, MAIG
Executive Chairman and
Chief Executive Officer
Richard Hyde is a geologist with
over 25 years’ experience in the
mining industry and more than
20 years of experience in West Africa.
He has managed large exploration and
development projects for gold and base
metals in Australia, Africa and Eastern
Europe. He led the Company from
incorporation in 2006, IPO in 2010, and
through the discovery, development,
and operation of the Sanbrado
Gold Project.
LYNDON HOPKINS
BSc (Geology), MAusIMM, MAIG, MAICD
Executive Director and
Chief Operating Officer
Lyndon Hopkins is a geologist with
more than 30 years’ experience in
gold exploration, development and
production in Australia and Africa.
He was Chief Operating Officer of
Equigold NL’s Ivory Coast operations
and managed the in-country aspects
of the project development and
feasibility study for the Bonikro Gold
Mine. He was also Mine Manager for the
construction of Regis Resources Ltd’s
Rosemont Gold Mine.
ELIZABETH (LIBBY) MOUNSEY
BBus (Human Resources and Industrial
Relations), MAICD
Executive Director of Human Resources
Libby Mounsey has over 30 years’
experience in human resources and
industrial relations across the mining,
construction, health, fisheries, and
aviation industries. Over the last
15 years she has held senior positions
with resource companies in various
stages of development through
feasibility, construction and operations.
She holds a Bachelor of Business
(Human Resources & Industrial
Relations) from Edith Cowan University
and is a Member of the Australian
Mr Hyde is a founding shareholder
and commenced as a Director in 2006.
Committee memberships:
Technical, Risk, Nomination
Other ASX listed directorship:
Nil
Previous ASX listed directorship in
the last 3 years:
Nil
Mr Hopkins has been West African’s
Chief Operating Officer since 2015 and
commenced as a Director on
6 September 2019.
Committee memberships:
Technical, Risk, Nomination
Other ASX listed directorship:
Nil
Previous ASX listed directorship in
the last 3 years:
Nil
Institute of Company Directors.
Ms Mounsey joined the Board on
29 May 2020.
Committee memberships:
Risk, Nomination
Other ASX listed directorship:
Nil
Previous ASX listed directorship in
the last 3 years:
Nil
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
33
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
(CONTINUED)
CURRENT DIRECTORS
ROD LEONARD
BSc and MSc (Metallurgical Engineering),
MAusIMM, GAICD
Lead Independent Director and
Non-Executive Director
Rod Leonard is one of the founding
Directors of Lycopodium (ASX: LYL)
and served as an Executive Director
of Lycopodium Limited from 2004
to 2019. He has more than 30 years’
experience in the operation and project
development of major projects in North
and South America, Africa, Asia and
Australia. He has been involved in many
aspects of the mineral processing
industry from process development,
NIGEL SPICER
BSc (Mining), CEng, MAusIMM
Non-Executive Director
Nigel Spicer is a Mining Engineer with
more than 40 years’ experience in
mining and has held operational and
executive management positions
with mining companies in Africa, UK,
Australia, Indonesia, PNG, Brazil and
Philippines. He has extensive open
pit and underground (narrow vein
and bulk tonnage) mining experience
across a range of commodities,
including gold and copper. He has
significant experience managing both
owner and contract mining fleets and
has been involved in the successful
feasibility studies, and design
assignments as well as commissioning
of projects.
Mr Leonard joined the Board on
6 September 2019 and was appointed
as Lead Independent Director on
2 February 2021.
Committee memberships: Technical,
Risk (Chair), Audit, Remuneration,
Nomination
Other ASX listed directorship:
Lycopodium Limited
Previous ASX listed directorship in
the last 3 years:
Nil
commissioning of a number of gold
mines in Australia and Africa.
Mr Spicer joined the Board on
6 September 2019.
Committee memberships:
Technical (Chair), Risk, Audit,
Nomination
Other ASX listed directorship:
Nil
Previous ASX listed directorship in
the last 3 years:
Nil
ROBIN ROMERO
BCom (Accounting and Finance), LLB,
CA ANZ, GAICD
Non-Executive Director
Robin Romero has more than 30 years
of accounting, legal and commercial
experience. She is a former General
Counsel and Executive Director of mining
contractor Barminco Limited and is Legal
Counsel at FMR Investments Pty Ltd.
She is a current NED of ASX-listed Euroz
Hartleys Group Limited and a NED of
not-for-profit group Greening Australia
Limited.
Prior to these roles, Ms Romero spent
more than 10 years working in large
accounting and law firms including
KPMG, EY, and King & Wood Mallesons.
She holds BComm and Bachelor of Laws
degrees from the University of Western
Australia, is a Chartered Accountant
and an Australian Institute of Company
Directors member.
Ms Romero joined the Board on
1 December 2022.
Committee memberships:
Risk, Audit (Chair), Remuneration,
Nomination
Other ASX listed directorship:
Euroz Hartleys Group Limited
Previous ASX listed directorship
in the last 3 years:
Nil
34
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
(CONTINUED)
CURRENT DIRECTORS
STEWART FINDLAY
BCom (Accounting and Finance), MAICD
Non-Executive Director
Stewart Findlay has over 25 years’
financial markets experience and
has provided project finance (senior
secured debt and corporate facilities),
equity investments, commodity
hedging arrangements and corporate
advice to a large number of resource
companies. He has held senior positions
in the metals and mining divisions
of Macquarie Bank and National
Australia Bank. He holds a Bachelor
of Commerce (Accounting & Finance)
from the University of New South Wales
and is a Member of the Australian
Institute of Company Directors.
Mr Findlay joined the Board on
29 May 2020.
Committee memberships:
Technical (Chair), Risk, Audit,
Nomination
Other ASX listed directorship:
Nil
Previous ASX listed directorship in
the last 3 years:
Nil
COMPANY SECRETARY
PADRAIG O’DONOGHUE
Chief Financial Officer since June 2018 and Company Secretary since
May 2020.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
35
36
PRINCIPAL ACTIVITIES
During the year, the principal activities of the Group were comprised of:
•
•
•
operation of the Sanbrado Gold Project (‘Sanbrado’);
completion of the Kiaka Gold Project (‘Kiaka’) feasibility study and preparations for Kiaka construction;
completion of the Toega gold deposit (‘Toega’) feasibility study and advancement of the Toega mining licence
application; and
• mineral exploration on the Group’s exploration tenements located in Burkina Faso.
DIVIDENDS
No dividends have been paid or declared since the start of the year and the Directors do not recommend the
payment of a dividend in respect of the year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
No significant changes in the state of affairs of the Group occurred in the year.
SIGNIFICANT EVENTS AFTER BALANCE SHEET DATE
There has not arisen in the interval between the end of the reporting period and the date of this report, any item,
transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect
substantially the operations of the Group, the results of those operations or the state of affairs of the Group in
subsequent financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
In the opinion of the Directors, likely developments in and expected results of the operations of the Group have
been disclosed in the “Operating Review”, “Financial Review” and “Significant Events After Balance Sheet Date”
sections of this Annual Report. Disclosure of any further information regarding likely developments in the operations
of the Group in future years and the expected results of those operations is likely to result in unreasonable prejudice
to the Company.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 37
SHARE OPTIONS AND PERFORMANCE RIGHTS
At the date of this report the unissued ordinary shares of the Company under option are:
ISSUE DATE
EXERCISE PRICE
Options
20-Jan-20
11-Jun-20
Performance Rights*
20-Jan-20
11-Jun-20
8-Dec-20
17-Dec-20
22-Jan-21
9-Apr-21
9-Apr-21
9-Apr-21
20-May-21
20-May-21
20-May-21
11-Jun-21
10-Feb-22
6-Apr-22
6-Apr-22
6-Apr-22
26-May-22
26-May-22
26-May-22
27-May-22
27-May-22
27-May-22
16-Feb-23
15-Mar-23
15-Mar-23
15-Mar-23
$0.6061
$0.6061
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
Total options and performance rights on issue
* Performance rights are granted subject to various performance hurdles.
EXPIRY DATE
20-Jan-24
11-Jun-24
20-Jan-25
11-Jun-25
8-Dec-24
17-Dec-24
22-Jan-24
9-Apr-24
9-Apr-26
9-Apr-25
20-May-24
20-May-26
20-May-25
11-Jun-24
10-Feb-24
6-Apr-25
6-Apr-27
6-Apr-26
26-May-25
26-May-27
26-May-26
27-May-25
27-May-27
27-May-26
16-Feb-25
15-Mar-26
15-Mar-28
15-Mar-27
NUMBER ISSUED
131,578
657,894
789,472
131,578
657,894
2,820,000
2,500,000
82,942
174,478
69,306
69,306
626,496
402,103
402,102
10,148
20,963
360,874
68,322
68,322
115,295
149,456
149,456
174,864
235,927
235,926
100,445
322,732
304,294
606,041
10,859,270
11,648,742
NON-AUDIT SERVICES
The Group may decide to employ the external auditor, HLB Mann Judd, on assignments additional to their
statutory audit duties where the auditor’s expertise and experience with the Group are important. Fees that were
paid or payable for non-audit services provided by the auditor of the parent entity during the year are outlined
in note 26 of the accompanying financial statements. The Directors are satisfied that the provision of non-audit
services during the year by the auditor are compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The Directors are of the opinion that the services as disclosed in the
financial statements do not compromise the external auditor’s independence requirements of the Corporations
Act 2001 for the following reasons:
•
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical
Standards Board, including reviewing or auditing the auditor’s own work, acting in a management or decision-
making capacity for the company, acting as advocate for the company or jointly sharing economic risks
and rewards.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
38
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
DIRECTORS’ MEETINGS
The number of Directors’ meetings held during the year and the number of meetings attended by each director were
as follows:
DIRECTOR
Richard Hyde
Lyndon Hopkins
Libby Mounsey
Rod Leonard
Nigel Spicer
Stewart Findlay
Robin Romero
BOARD
MEETINGS
AUDIT COMMITTEE
MEETINGS
REMUNERATION
COMMITTEE MEETINGS
TECHNICAL & RISK
COMMITTEE MEETINGS
A
6
6
6
6
6
6
1
B
6
6
6
6
6
6
1
A
-
-
-
3
3
3
1
B
-
-
-
3
3
3
1
A
-
-
2
2
-
2
1
B
-
-
2
2
-
2
1
A
4
4
-
4
4
-
-
B
4
4
-
4
4
-
-
A – the number of meetings held whilst a Director or a committee member
B – the number of meetings the Director or committee member attended
There were no meetings of the newly-formed Nomination Committee during the year. The Technical & Risk
Committee was separated into a Risk Committee and a Technical committee during the year. There were no
meetings of these two newly-separated committees during the year.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in “ASIC Corporations (Rounding in Financial/Directors’ Report) Instrument
2016/191”, issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of
amounts in the Directors’ Report and accompanying financial statements. Amounts in the Directors’ Report and
accompanying financial statements have been rounded off in accordance with that Rounding Instrument to the
nearest thousand dollars, or in certain noted cases, to the nearest dollar. All amounts are in Australian dollars,
unless otherwise stated.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
39
REMUNERATION
REPORT (AUDITED)
The Directors of West African Resources Limited
present the Remuneration Report for the Group for
the year ended 31 December 2022. This Remuneration
Report forms part of the Directors’ Report and has
been prepared in accordance with the Corporations
Act 2001.
1. REMUNERATION REPORT OVERVIEW
This Remuneration Report details the remuneration arrangements for West African’s Key Management Personnel
(‘KMP’), being:
•
•
the Non-Executive Directors (‘NEDs’); and
the Executive Directors and the other senior executives with authority for planning, directing and controlling
the major activities of the Group (together the ‘Executives’).
The KMP during the year are set out below:
NAME
Non-Executive Directors
Nigel Spicer
Rod Leonard
Stewart Findlay
Robin Romero
Executive Directors
Richard Hyde
Lyndon Hopkins
Libby Mounsey1
Senior Executive
Padraig O’Donoghue
POSITION
APPOINTED
RESIGNED
Non-Executive Director
Non-Executive Director
Lead Independent Director
Non-Executive Director
Non-Executive Director
September 2019
September 2019
February 2021
May 2020
December 2022
Executive Chairman and Chief Executive Officer
Executive Director and Chief Operating Officer
Executive Director of Human Resources
September 2006
September 2019
December 2022
Chief Financial Officer and
Company Secretary
June 2018
May 2020
-
-
-
-
-
-
-
-
-
-
1. Ms Mounsey was a non-executive director from May 2020 until November 2022.
40
2. GROUP PERFORMANCE AND ITS LINK TO SHAREHOLDER RETURNS
The following table provides the earnings per share, dividends per share, net profit (loss) and share price of
West African Resources at 31 December 2022 compared to the 4 previous reporting periods.
PERIOD ENDING
REPORTING PERIOD LENGTH
EPS (cents)
Dividends (cents per share)
Net profit / loss ($’000)
Share price ($)
DECEMBER 2022
12 MONTHS
16.1
Nil
183,706
1.175
DECEMBER 2021
12 MONTHS
20.9
Nil
214,438
1.320
DECEMBER 2020
12 MONTHS
10.2
Nil
98,900
1.050
DECEMBER 2019
12 MONTHS
(0.5)
Nil
(4,334)
0.430
DECEMBER 2018
6 MONTHS
(0.5)
Nil
(3,551)
0.250
3. REMUNERATION GOVERNANCE
A. REMUNERATION COMMITTEE RESPONSIBILITY
The Remuneration Committee is a subcommittee of the Board. It is primarily responsible for making
recommendations to the Board on:
•
•
Executive remuneration, including the executive incentive scheme framework and associated policies, targets,
and awards;
matters relating to Executive and Non-Executive Director (‘NED’) recruitment, retention, performance
measurement and termination; and
• NED remuneration.
The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration of
Executives and NEDs by reference to relevant employment market conditions in comparative peer companies
both locally and internationally with the overall objective of maximising stakeholder benefit from the retention and
incentivisation of a high performing Board and Executive team. Further information on the duties and responsibilities
of the Remuneration Committee is contained in the Remuneration Committee Charter which is available on the
Company’s website.
B. USE OF REMUNERATION ADVISORS
External remuneration consultants may be engaged directly by the Board or the Remuneration Committee to
provide information or advice. Where a remuneration recommendation is made relating to Board, Executive and KMP,
the advice will be provided directly to an Independent Non-Executive Director and shall be free of influence from
management.
In 2022, the Remuneration Committee engaged The Reward Practice Pty Ltd (The Reward Practice) to review and
provide benchmarking for Executive and Non-Executive Remuneration. The Reward Practice recommendations
were provided to the Remuneration Committee as an input into decision making and were used to assist the
Remuneration Committee and Board in reviewing executive remuneration packages (base salaries and quantum/mix
of incentives), and non-Executive fees, including Committee fees. The Reward Practice was paid $14,100 (excluding
GST) in 2022 for the service.
C. EXECUTIVE REMUNERATION POLICY
In determining executive remuneration, the Board aims to ensure that remuneration practices are:
•
•
•
•
fair, competitive and reasonable, enabling the Company to attract and retain high calibre talent;
aligned to the Company’s performance, strategic and business objectives and the creation of shareholder value;
transparent and easily understood; and
aligned with shareholders, linking both short and long term shareholder value creation.
The Company’s approach to remuneration ensures that remuneration is competitive, performance focused, clearly
links appropriate reward with desired business performance, efficient to administer, and easy to understand by
Executives and shareholders.
In line with the remuneration policy, remuneration levels are reviewed annually to ensure alignment to the market and
the Company’s stated objectives.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
41
D. REMUNERATION FRAMEWORK
The following executive remuneration framework adopted by the Board in 2018 was reviewed by Company’s external
remuneration experts and confirmed as still suitable for the Company by the Remuneration Committee in 2022.
TYPE
Fixed
remuneration
At-risk
remuneration
CATEGORY
Total fixed
remuneration
Short term
incentive
DEFINITION OF CATEGORY
Pay which is linked to the present value and market
rate of the role.
Pay for delivering the plan and growth agenda for
WAF which must create value for shareholders.
Incentive pay will be linked to the achievement of
‘line-of-sight’ performance goals.
It reflects ‘pay for performance’.
PURPOSE SUMMARY
Pay for fulfilling the requirements
of the role.
Incentive for the achievement of
annual objectives and sustained
business value.
At-risk
remuneration
Long term
incentive
Pay for creating value for shareholders. Reward pay
is linked to shareholder returns.
Incentive for performance over the
long term.
It reflects ‘pay for results’.
An important governance and legal component of the remuneration framework is the Company’s Incentive Option
& Performance Rights Plan (‘Plan’). All equity incentives issued to Executives and other employees, including options
and Performance Rights, are issued by the Company under the terms and conditions of the Plan. The Plan was most
recently approved by shareholders at the Company’s Annual General Meeting on 14 May 2021. The purpose of the
Plan is to:
a. assist in the reward, retention and motivation of participants;
b. link the reward of participants to performance and the creation of shareholder value;
c. align the interests of participants more closely with the interests of shareholders; and
d. provide greater incentive for participants to focus on the Company’s longer-term goals.
E. FIXED REMUNERATION
Total fixed remuneration (‘TFR’) consists of the base salary, superannuation, and other non-monetary benefits such
as employee leave. TFR is intended to compensate the Executives for:
•
•
competently and professionally fulfilling the scope of the Executive’s roles and responsibilities; and
the Executive’s skills, experience, and qualifications.
F. AT-RISK REMUNERATION
Short-term incentive (‘STI’):
•
The primary purpose of the STI is to incentivise Executives to achieve the annual STI performance targets
which are set by the Board at the beginning of the year. The STI performance targets clearly set out the annual
performance targets the Board requires from management, and achievement of the targets is determined by
the Board at the end of the year.
•
•
The STI also enables the Executives to accumulate equity in the business which provides alignment with the
shareholders for sustained strong business results.
The STI also provides an employee-retention benefit to the Company due to the service vesting conditions of
the STI equity award, which require a period of continuous service before the equity awards vest. This service
condition is typically two years.
Long-term Incentive (‘LTI’):
•
The LTI is designed to incentivise Executives to achieve strategic objectives, delivering long-term shareholder
value as evidenced by market and non-market measures. The LTI is designed to reward the Executives for the
achievement of long-term performance targets set by the Board at the beginning of the long-term performance
period. The long-term targets are intended to provide clear and measurable direction as to what the Board and
shareholders require over the long-term performance period, which is typically a minimum of 3 years.
•
•
The LTI also enables the Executives to accumulate equity in the business which provides alignment with the
shareholders for sustained strong business results.
The LTI also provides an employee retention benefit due to the LTI equity awards including a condition that
requires Executives to remain in continuous service to the Company in order for them to vest.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
42
4. NON-EXECUTIVE DIRECTOR REMUNERATION
West African Resources Limited’s NED fee policy is designed to attract and retain high calibre Directors who
can discharge the roles and responsibilities required in terms of good governance, strong oversight, independence,
and objectivity.
The Company’s constitution and the ASX listing rules specify that the NED fee pool limit shall be approved
periodically by shareholders. The last determination at an AGM was an aggregate fee pool of $900,000 per year to
ensure the Company can continue to attract and retain a high-performing Board of Directors with the appropriate
overall skillset and composition.
The following table sets out the NED fee levels for 2022.
TITLE
Lead Independent Director
Other NEDs
ANNUAL FEE LEVEL
$112,500
$90,000
NED remuneration consists solely of director fees. There is no scheme to provide retirement benefits to NEDs other
than statutory superannuation. Aside from being offered the option of receiving 30% of their director fees in the
form of Performance Rights, NEDs do not participate in any performance related incentive programs.
Whilst WAF has no minimum shareholding policy for NEDs, the Board is of the view that it is beneficial for NEDs to
hold an equity interest because it is an alignment with the Company’s shareholders. The NED fee structure in 2022
was either one of the following, at the election of each individual NED:
i)
100% of NED fees paid in cash; or
ii) 70% of NED fees paid in cash and 30% paid in Performance Rights (30% equity component).
The 30% equity component of the structure has been approved, in respect of each participating Director, at a
General Meeting of Shareholders of the Company. All of the Company’s NEDs elected to participate in the 30%
equity component in respect of their 2022 NED fees, except for Ms Romero who joined the Board in December 2022.
For 2022, the NED fees covered all activities associated with the Directors’ role on the Board and no additional fees
were paid to NEDs for being a chairperson or member of a Board committee.
NEDs are entitled to be paid, as the Board determines, for additional services provided to the Group outside of their
Directorship responsibilities. They may also be reimbursed for out-of-pocket expenses they incur as a result of their
directorships.
5. EXECUTIVE REMUNERATION
A. EXECUTIVE REMUNERATION STRUCTURE
The remuneration framework provides for total remuneration for each Executive to be split between the fixed and
at-risk components. The following table sets out the apportionment of fixed and at-risk remuneration that applied
in 2022.
EXECUTIVE*
Executive Chairman & CEO
Chief Operating Officer
CFO & Company Secretary
FIXED
REMUNERATION
42%
45%
50%
AT-RISK
REMUNERATION
(STI AND LTI)
58%
55%
50%
* Commencing 2023, the apportionment for the new Executive Director of HR position will be 50% fixed, 50% at-risk.
The ‘at-risk’ apportionment for each Executive is comprised as follows, which shows a significant weighting towards
the long-term (LTI) component. In the Board’s view this provides a balance of Executive incentivisation that aligns
with shareholders for both short-term results and long-term sustainable returns.
EXECUTIVE*
Executive Chairman & CEO
Chief Operating Officer
CFO & Company Secretary
STI
CASH
INCENTIVE
14%
17%
20%
STI
EQUITY
INCENTIVE
25%
25%
40%
LTI
EQUITY
INCENTIVE
61%
58%
40%
* Commencing 2023, the weighting for the new Executive Director of HR position will be 20% cash, 40% STI equity, and 40% LTI equity.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
43
The proportions in the above tables are used as a guide by the Remuneration Committee to recommend to the
Board the maximum of each component of at-risk remuneration that can be earned by the Executives each year.
The equity incentives are awarded by the Board early in the year, with the number awarded calculated based on the
7-day VWAP of WAF shares at the beginning of the incentive performance period. The number of equity incentives
that will ultimately vest and become exercisable by the Executives is determined by the Board based on their
assessment of the achievement of the vesting conditions set out when the equity incentives were awarded.
The vesting conditions of the equity awards represent the market and non-market performance targets established
by the Board that the Executive must achieve to earn that portion of their at-risk remuneration.
The equity incentives also provide an employee-retention benefit to the Company, in addition to the performance
target incentives. For example, the STI equity incentives include a 2-year continuous service vesting condition, and
each LTI equity incentives includes a condition that it will lapse if the Executive’s employment terminates before the
LTI equity award has vested.
B. EXECUTIVE SERVICE AGREEMENTS
The terms and conditions of employment of Executives are set out in their Executives’ Service Agreements (‘ESAs’).
A summary of Executive’s ESAs is shown in the following table.
EXECUTIVE
Richard Hyde
TOTAL FIXED
REMUNERATION^
(ANNUAL)
$718,250
Lyndon Hopkins
Padraig O’Donoghue
Libby Mounsey**
$552,500
$442,000
$386,750
CONTRACT
TERM
Until terminated
by either party
Same as above
Same as above
Same as above
COMPANY
NOTICE-PERIOD
6-months’ notice
Same as above
Same as above
Same as above
EMPLOYEE
NOTICE-PERIOD
3-months’
notice
Same as above
Same as above
Same as above
TERMINATION
BENEFIT*
Nil termination
benefit
Same as above
Same as above
Same as above
^
*
**
Amount shown includes fixed base annual salary, plus superannuation. The Executives’ total fixed remuneration was changed on 1 July 2022 in
relation to the change in superannuation guarantee from 10% to 10.5%.
Termination benefits shown assume that termination was not due to a change of control of the Company. Shareholder approval was obtained at
the 29 May 2020 Annual General Meeting for purposes of sections 200B and 200E of the Corporations Act in relation to termination benefits
Messrs Hyde, Hopkins, and O’Donoghue may become entitled to if their employment under the ESA is terminated.
Ms Mounsey was appointed as an Executive on 1 December 2022 and accordingly she only received fixed remuneration in 2022 and did not
participate in the 2022 at-risk incentive component of Executive remuneration explained below in section C of this remuneration report.
C. AT-RISK REMUNERATION
At the beginning of 2022 the Board set out STI and LTI performance targets for Executives to earn their at-risk
remuneration. The following table summarises the Executives’ 2022 STI targets and their level of achievement as
determined by the Board at the end of the year. These targets were the same for all of the Executives and the same
targets applied to both the cash incentive portion of the STI and the equity incentive portions (as set out in section
5A of this report).
STI CATEGORY
Gateway
hurdle
Gold
production
Costs
Growth
Social &
Environment
Safety
STI TARGET
200,000 ounces of gold is produced in 2022.
2022 production guidance is achieved, being 220,000 to 240,000
ounces of gold.
2022 cost guidance is achieved, being AISC of US$1,040 to
US$1,100 per ounce.
Application for Toega mining licence is submitted to the Burkina
Faso government.
Construction of Kiaka Gold Project is commenced.
There are no significant social or environmental incidents reported.
The 12-month rolling Total Recordable Injury Frequency Rate (TRIFR)
is below the annual gold industry ‘reportable injuries frequency rate’
as published by DMIRS - Western Australia.
Overall level of achievement for 2022
WEIGHTING
Gateway hurdle which
determines if any STI
will be paid for 2022
30%
30%
10%
10%
10%
10%
LEVEL OF
ACHIEVEMENT
Gateway achieved
100%
100%
Not achieved
100%
100%
100%
90%
For 2022, the Executives earned 90% of the cash portion of their 2022 STI and this is reflected in the ‘Remuneration
Outcomes’ table in section 6A of this remuneration report (2021: 100%). The 2022 STI equity incentive portion was
comprised of Performance Rights with an expiry period of 3 years and an additional vesting condition that the
Executive must remain an employee of the Company for two years from the date the Performance Rights were
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
44
issued. The Board has determined that 90% of each Executive’s 2022 STI Performance Rights will vest, subject to
them satisfying the remainder of their 2-year service period.
The following table sets out the vesting conditions of the 2022 LTI equity instruments issued to Executives at
the beginning of 2022 along with their proportion of each Executive’s overall 2022 equity LTI and end-of-year
vesting status.
PROPORTION
OF 2022
EQUITY LTI
50%
25%
25%
LTI EQUITY INSTRUMENT
2022 Production LTI
Performance Rights
(expire 5 years from issue date)
2022 Growth LTI
Performance Rights
(expire 4 years from issue date)
2022 Reserve Replacement LTI
Performance Rights
(expire 4 years from issue date)
VESTING CONDITIONS
At least 600,000 ounces of gold is poured within the
3-year period from 1 January 2022 to 31 December 2024.
VESTING STATUS
Unvested
Unvested
Unvested
The proportion of Performance Rights that vest will be
determined by the board based on the achievement of the
following Kiaka development milestone: Kiaka reaches 50%
completion of project development by 31 December 2024.
The proportion of Performance Rights that vest will be
determined by the board based on replacement of Ore
Reserves due to depletion over the three-year period from
1 January 2022 to 31 December 2024 using the following
guidelines:
ORE RESERVE CHANGE
Ore reserve is depleted
VESTING PROPORTION
nil
Ore reserve is maintained
50%
Ore reserve is maintained
or grown up to 20%
50% to 100%
(straight line basis)
The 2022 STI and LTI equity awards issued to the Executive Directors were approved by shareholders at the
Company’s 13 May 2022 Annual General Meeting and additional details of these awards are contained in the
corresponding notice of meeting.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 45
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WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
48
7. DETAILS OF SHARE-BASED COMPENSATION (CONTINUED)
OPTIONS GRANTED DURING THE YEAR AS REMUNERATION TO KMP
There were no options granted to KMP in 2022.
GRANT DATE
10-Feb-22
Performance Rights granted during the year as remuneration to KMP
TYPE
in lieu of 30% of
Directors’ fees
STI
LTI
STI
LTI
30-Mar-22
30-Mar-22
13-May-22
13-May-22
NUMBER GRANTED
89,092
136,645
136,644
322,398
770,765
1,455,544
Total
Options and Performance Rights exercised during the year by KMP
EXERCISE
DATE
1-Feb-22
2-Feb-22
1-Sep-22
21-Oct-22
2-Nov-22
16-Dec-22
19-Dec-22
20-Dec-22
Total
NO. OF PERFORMANCE
RIGHTS
50,863
22,277
22,277
50,863
-
515,282
-
-
661,562
NO. OF
OPTIONS
-
-
-
-
279,661
-
588,235
355,932
1,223,828
TOTAL VALUE
$106,019
$171,489
$171,488
$378,818
$905,649
$1,733,463
VALUE EACH
$1.1900
$1.2550
$1.2550
$1.1750
$1.1750
VALUE EACH ON
EXERCISE DATE
$1.1350
$1.1800
$1.1700
$0.9900
$1.0800
$1.1500
$1.1500
$1.1150
OPTIONS AND PERFORMANCE RIGHTS FORFEITED/LAPSED DURING THE YEAR BY KMP
There were no Options or Performance Rights that were forfeited or lapsed by KMP during the year.
Share holdings of KMP
BALANCE
1 JAN 2022
ISSUED AS
REMUNERATION
ISSUED ON EXERCISE
OF OPTIONS/
PERFORMANCE
RIGHTS
NET CHANGE
OTHER
(3,000,000)
(1,499,846)
80,000
(32,000)
16,000
-
-
BALANCE
31 DEC 2022
16,456,950
2,674,353
195,188
75,188
66,863
121,610
-
1,103,517
355,932
22,277
22,277
50,863
50,863
-
279,661
1,885,390
-
(4,435,846)
1,239,496
20,829,648
Directors
Richard Hyde
Lyndon Hopkins
Rod Leonard
Nigel Spicer
Stewart Findlay
Libby Mounsey
Robin Romero
Executive
Padraig O’Donoghue
Total
18,353,433
3,818,267
92,911
84,911
-
70,747
-
959,835
23,380,104
-
-
-
-
-
-
-
-
-
8. LOANS TO KMP
There were no loans to KMP during the year.
END OF AUDITED REMUNERATION REPORT.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 49
AUDITOR INDEPENDENCE
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the Directors of the
Company with an Independence Declaration in relation to the audit of the financial report. This written Auditor’s
Independence Declaration is set out on page 91 and forms part of this Directors’ Report.
Signed in accordance with a resolution of the Directors.
RICHARD HYDE
Executive Chairman & CEO
Perth, 17 March 2023
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 50
WEST AFRICAN RESOURCES ANNUAL REPORT 2022
FINANCIAL
REPORT
CONTENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
INDEPENDENT AUDITOR’S REPORT
ASX ADDITIONAL INFORMATION
SUMMARY OF TENEMENTS
51
52
53
54
55
88
90
92
98
100
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
51
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Profit or Loss and Other
For the year ended 31 December 2022
Comprehensive Income
For the year ended 31 December 2022
Revenue from continuing operations
Cost of sales
Revenue from continuing operations
Exploration and evaluation expenses
Corporate and technical services
Cost of sales
Growth and development
Exploration and evaluation expenses
Share-based payments
Corporate and technical services
Other expenses
Growth and development
Finance expenses
Share-based payments
Net foreign exchange gain/(loss)
Other expenses
Profit before tax
Finance expenses
Income tax expense
Net foreign exchange gain/(loss)
Profit after tax
Profit before tax
Income tax expense
OTHER COMPREHENSIVE INCOME:
Profit after tax
Items that may be reclassified subsequently
to profit or loss:
OTHER COMPREHENSIVE INCOME:
Foreign currency translation differences for
Items that may be reclassified subsequently
foreign operations
to profit or loss:
Other comprehensive profit/(loss), net of
Foreign currency translation differences for
income tax
foreign operations
Other comprehensive profit/(loss), net of
Total comprehensive profit for the year
income tax
Profit attributable to:
Total comprehensive profit for the year
Owners of the parent
Non-controlling interest
Profit attributable to:
Owners of the parent
Total comprehensive profit attributable to:
Non-controlling interest
Owners of the parent
Non-controlling interest
Total comprehensive profit attributable to:
Owners of the parent
Basic profit per share (cents per share)
Non-controlling interest
Diluted profit per share (cents per share)
Basic profit per share (cents per share)
Diluted profit per share (cents per share)
Note
3
Note
4(a)
3
4(a)
4(b)
4(b)
5
5
24
24
24
6
24
6
6
6
2022
$'000
2021
$'000
2022
608,228
$'000
(324,677)
608,228
(4,895)
(7,785)
(324,677)
-
(4,895)
(2,456)
(7,785)
(9,695)
-
(2,110)
(2,456)
947
(9,695)
257,557
(2,110)
(73,851)
947
183,706
257,557
(73,851)
183,706
9,050
9,050
9,050
192,756
9,050
192,756
164,443
19,263
183,706
164,443
19,263
173,493
183,706
19,263
192,756
173,493
16.1
19,263
15.9
192,756
16.1
15.9
2021
712,140
$'000
(306,805)
712,140
(2,284)
(5,741)
(306,805)
(1,218)
(2,284)
(2,492)
(5,741)
(6,176)
(1,218)
(58,730)
(2,492)
(7,147)
(6,176)
321,547
(58,730)
(107,109)
(7,147)
214,438
321,547
(107,109)
214,438
(2,265)
(2,265)
(2,265)
212,173
(2,265)
212,173
188,964
25,474
214,438
188,964
25,474
186,699
214,438
25,474
212,173
186,699
20.9
25,474
20.7
212,173
20.9
20.7
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying notes.
50|West African Resources Limited
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying notes.
50|West African Resources Limited
52
Consolidated Statement of Financial Position
As at 31 December 2022
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Trade and other receivables
Inventories
Financial assets
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
Exploration and evaluation assets
Other non-current assets
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Loans and borrowings
Lease liabilities
Current tax payable
Total current liabilities
NON-CURRENT LIABILITIES
Loans and borrowings
Lease liabilities
Provisions
Deferred tax liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated profit
Equity attributable to owners of the parent
Non-controlling interest
Note
7
8
9
10
11
12
13
14
15
16
15
16
17
18
19
20
2022
$'000
173,393
10,272
43,367
68,031
-
295,063
518,060
7,469
57,581
532
583,642
2021
$'000
183,374
1,626
42,507
58,977
39
286,523
329,556
12,713
175,455
-
517,724
878,705
804,247
52,408
14,106
6,624
14,440
87,578
-
1,450
14,376
34,734
50,560
106,072
214
5,591
85,418
197,295
12,904
7,096
12,579
19,967
52,546
138,138
249,841
740,567
554,406
335,630
15,785
349,083
700,498
40,069
335,334
4,173
185,540
525,047
29,359
TOTAL EQUITY
740,567
554,406
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
West African Resources Limited|51
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
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5
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
54
OPERATING ACTIVITIES
Note
2022
$'000
2021
$'000
Receipts from customers
Payments to suppliers and employees
Income tax paid
Consolidated Statement of Cash Flows
Interest received
Interest paid
For the year ended 31 December 2022
Net cash inflow from operating activities
606,134
(289,591)
(133,769)
2,046
(722)
184,098
21(a)
Note
21(a)
19(b)
19(b)
21(b)
21(b)
19(b)
19(b)
21(b)
7
21(b)
INVESTING ACTIVITIES
Payments for property, plant and equipment
OPERATING ACTIVITIES
Capitalised exploration and evaluation
expenditure
Receipts from customers
Payment for acquisition of assets, net of cash
Payments to suppliers and employees
acquired
Income tax paid
Net cash outflow from investing activities
Interest received
Interest paid
FINANCING ACTIVITIES
Net cash inflow from operating activities
Proceeds from issue of shares
INVESTING ACTIVITIES
Proceeds from exercise of share options
Proceeds from borrowings
Payments for property, plant and equipment
Repayment of borrowings
Capitalised exploration and evaluation
Subsidiary minority interest profit distribution
expenditure
Payments for share issue costs
Payment for acquisition of assets, net of cash
Payments for lease liabilities
acquired
Interest paid on borrowings
Net cash outflow from investing activities
Financing costs
Transaction costs related to loans and borrowings
FINANCING ACTIVITIES
Net cash outflow from financing activities
Proceeds from issue of shares
Net (decrease)/increase in cash held
Proceeds from exercise of share options
Cash at the beginning of the financial period
Proceeds from borrowings
Effect of exchange rate changes on the balance of
Repayment of borrowings
cash held in foreign currencies
Subsidiary minority interest profit distribution
Payments for share issue costs
Cash at the end of the financial period
Payments for lease liabilities
Interest paid on borrowings
Financing costs
Transaction costs related to loans and borrowings
Net cash outflow from financing activities
Net (decrease)/increase in cash held
Cash at the beginning of the financial period
Effect of exchange rate changes on the balance of
cash held in foreign currencies
2022
$'000
(102,533)
(12,348)
606,134
(289,591)
(65,906)
(133,769)
(180,787)
2,046
(722)
184,098
120
526
-
(102,533)
-
(7,292)
(12,348)
(345)
(7,544)
(65,906)
(653)
(180,787)
-
(524)
(15,712)
120
(12,401)
526
183,374
-
-
2,420
(7,292)
(345)
173,393
(7,544)
(653)
-
(524)
(15,712)
(12,401)
183,374
2,420
687,597
(301,151)
(36,538)
602
(850)
349,660
2021
$'000
(48,254)
(7,003)
687,597
(301,151)
(52,704)
(36,538)
(107,961)
602
(850)
349,660
136,250
1,042
-
(48,254)
(235,064)
(2,690)
(7,003)
(4,040)
(5,331)
(52,704)
(13,395)
(107,961)
(31,330)
-
(154,558)
136,250
87,141
1,042
95,027
-
(235,064)
1,206
(2,690)
(4,040)
183,374
(5,331)
(13,395)
(31,330)
-
(154,558)
87,141
95,027
1,206
Cash at the end of the financial period
7
173,393
183,374
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
West African Resources Limited|53
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
West African Resources Limited|53
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
55
Notes to the Consolidated Financial Statements
For the year ended 31 December 2022
1 BASIS OF PREPARATION
A. BASIS OF ACCOUNTING
These consolidated financial statements are presented in Australian dollars and are general purpose financial
statements which have been prepared in accordance with applicable accounting standards, the Corporations Act
2001 and mandatory professional reporting requirements in Australia (including the Australian equivalents of
International Financial Reporting Standards). They have also been prepared on the historical cost basis and do
not take into account changing money values. The accounting policies are consistent with those of the previous
financial period, unless otherwise stated.
The financial information for the parent entity, West African Resources Limited, is disclosed in note 31 and has
been prepared on the same basis as the Group.
B. ROUNDING OF AMOUNTS
The Company is of a kind referred to in Rounding Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to the “rounding off” of amounts in the financial statements. Amounts in the
financial statements have been rounded off in accordance with that Rounding Instrument to the nearest
thousand dollars ($000’s), unless otherwise stated.
C. PRINCIPLES OF CONSOLIDATION
The consolidated financial statements comprise the financial statements of the Group. The financial statements
of the subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
All intercompany balances and transactions, including unrealised profits arising from intra-group transactions,
have been eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered. Subsidiaries are
consolidated from the date on which control is transferred to the Group and cease to be consolidated from the
date on which control is transferred out of the Group. Where there is loss of control of a subsidiary, the
consolidated financial statements include the results for the part of the reporting period during which West
African Resources Limited had control.
D. ADOPTION OF NEW AND REVISED STANDARDS
There have been no new or amended accounting standards or interpretations issued by the Australian Accounting
Standard’s Board (AASB) that have been applied for the first time in the current reporting period.
There are no forthcoming standards and amendments that are expected to have a material impact on the Group
in the current or future reporting periods, or on foreseeable future transactions.
E. SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY ESTIMATES
The preparation of this financial report requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
54|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
56
1 BASIS OF PREPARATION (CONTINUED)
E. SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY ESTIMATES (CONTINUED)
Exploration and evaluation costs
On a case-by-case basis, assessing whether the acquisition costs and exploration and evaluation expenses of
particular mineral properties will be expensed or whether it is appropriate to capitalised them as exploration and
evaluation (E&E) assets.
Valuation of rehabilitation provision
• Estimating the future cash flows to settle mine restoration obligations.
• Setting the discount rate and inflation rate used in the calculation of the rehabilitation provision.
Property, plant and equipment
• Estimating future life of mine costs and gold mineralisation for amortisation of mine development assets.
• Setting the useful lives and depreciation rates for plant and equipment.
• Assessing assets for impairment of their carrying value.
Group consolidation
Setting the functional currency used for each entity in the Group.
Income tax
•
• Estimating future tax outcomes.
Interpreting tax legislation in a number of countries.
Share-based payments
•
•
Estimating the fair value of share-based payments at the date at which they are granted.
Estimating number of share-based payment awards to employees that will ultimately vest at each reporting
date.
Value added tax receivable
Estimating the amount recoverable and timing of recovery of VAT receivable from the Burkina Faso government.
F. REVENUE
The Group primarily generates revenue from the sale of gold bullion. Such sales revenue is recognised when
ownership of the metal is transferred to the buyer. This typically occurs when physical bullion, from a contracted
sale, is transferred from the Group’s metal account to the metal account of the buyer.
Where the Group receives provisional payments from buyers, in advance of transfer of ownership, the Group
classifies the provisional payment as a deferred revenue liability until ownership is transferred and the associated
revenue is recognised.
G.
INCOME TAXES
The income tax expense or benefit for the period is based on the profit or loss for the period adjusted for any
non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantially
enacted as at balance date.
Deferred tax is provided on all temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or
taxation profit or loss.
Deferred income tax assets are recognised to the extent that it is probable that the future tax profits will be
available against which deductible temporary differences will be utilised. The amount of the benefits brought to
account, or which may be realised in the future, is based on the assumption that no adverse change will occur in
the income taxation legislation and the anticipation that the economic unit will derive sufficient future assessable
income to enable the benefits to be realised and comply with the conditions of deductibility imposed by law.
West African Resources Limited||5555
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
57
1 BASIS OF PREPARATION (CONTINUED)
H. OTHER TAXES
Revenues, expenses and assets are recognised net of the amount of value added taxes (‘VAT’) except:
• when the VAT incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the VAT is recognised as part of the cost of acquisition of the asset or as part of the expense item
as applicable; and
receivables and payables, which are stated with the amount of VAT included.
•
Australian goods and services tax (‘GST’) is a type of VAT.
The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the VAT component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is
classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of VAT recoverable from, or payable to, the
taxation authority.
I.
CASH AND CASH EQUIVALENTS
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents
as defined above.
J.
INVENTORIES
Ore stockpiles, gold in circuit and finished goods (being gold doré and gold bullion) inventories are valued at the
lower of weighted average cost and net realisable value. Costs include direct production costs and an appropriate
allocation of attributable overheads. Depreciation and amortisation attributable to production of the inventory
are also included in the cost of inventory.
Inventories of consumable supplies and spare parts are valued at the lower of weighted average cost and net
realisable value. Net realisable value is the estimated selling price in the ordinary course of business less
estimated cost of completion, and the estimated costs necessary to make the sale.
West African Resources Limited||5555
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
58
1 BASIS OF PREPARATION (CONTINUED)
K. PROPERTY, PLANT AND EQUIPMENT
Each class of property, plant and equipment (‘PP&E’) is carried at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses. The cost of an item of PP&E consists of the purchase price,
applicable borrowing costs, any costs directly attributable to bringing the asset to the location and condition
necessary for its intended use, and an initial estimate of the costs of dismantling and removing the item and
restoring the site on which it is located.
The carrying amount of the PP&E is reviewed at each balance sheet date to assess whether there is any indication
that the assets may be impaired. If any such indication exists, then the recoverable amount of the assets is
estimated. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than the estimated recoverable amount.
Gains and losses on disposal of PP&E are determined by comparing proceeds with the carrying amount. These
gains and losses are included in the statement of profit or loss and other comprehensive income.
Mines under construction
Expenditure on the construction, installation, and completion of infrastructure facilities for mining properties is
capitalised to mines under construction. The expenditure includes direct costs of construction, drilling costs and
removal of overburden to gain access to the ore, borrowing costs capitalised during construction and an
appropriate allocation of attributable overheads. The capitalised amount is net of proceeds from the sale of ore
extracted during the construction phase to the extent that it is considered integral to the development of the
mine. Any costs incurred in testing the assets to determine if they are functioning as intended are capitalised,
net of any proceeds received from selling any product produced while testing. Where these proceeds exceed the
cost of testing, any excess is recognised in the statement of profit or loss and other comprehensive income.
After reaching pre-determined levels of operating capacity intended by management, known as ‘commencement
of commercial production’, the assets included in mines under construction are transferred out of mines under
construction to their appropriate PP&E category and depreciation and amortisation commence.
Mine development assets
Mine development represents expenditure incurred in relation to overburden removal based on underlying mining
activities and related mining data and construction costs and underground development previously accumulated
and carried forward in relation to mineral properties in which mining has now commenced. Such expenditure
comprises direct costs and an allocation of directly related overhead expenditure.
All expenditure incurred prior to the commencement of production from each development property is carried
forward to the extent to which recoupment out of future revenue from the sale of production, or from the sale of
the property, is reasonably assured. When further development expenditure is incurred in respect of a mine
property after the commencement of commercial production, such expenditure is carried forward as part of the
cost of the mine property only when future economic benefits are reasonably assured, otherwise the expenditure
is classified as part of the cost of production and expensed as incurred. Such capitalised development
expenditure is added to the total carrying value of the mine development being amortised.
Mine development costs (as transferred from exploration and evaluation and/or mines under construction) are
amortised on a units-of-production basis over the life of mine to which they relate. In applying the units of
production method, amortisation is calculated using the expected total contained ounces as determined by the
life-of-mine plan specific to that mine property. For development expenditure undertaken during production, the
amortisation rate is based on the ratio of total development expenditure (incurred and anticipated) over the
expected total contained ounces as estimated by the relevant life-of-mine plan to achieve a consistent
amortisation rate per ounce. The rate per ounce is typically updated annually as the life of mine plans are revised.
56|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
59
1 BASIS OF PREPARATION (CONTINUED)
K. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Depreciation
Depreciation of non-mine specific PP&E is calculated using the straight-line method to allocate their cost or
revalued amounts, net of their residual values, over their estimated useful lives determined as follows:
Land and buildings
Office equipment
Plant and equipment
Light vehicles
3 to 10 years
3 to 10 years
3 to 10 years
3 years
The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at each balance sheet date.
L.
EXPLORATION AND EVALUATION
Exploration and evaluation (‘E&E’) costs are captured separately for each area of interest. Such costs comprise
direct costs and an appropriate portion of related overhead expenditure. E&E costs, including acquisition costs,
are capitalised when incurred in areas limited to a size related to a known mineral resource capable of supporting
a mining operation for which the Group has rights of (or is acquiring rights of) tenure and where activities have
reached a stage which permits a reasonable assessment of the existence of economically recoverable ore
reserves, and active and significant operations in relation to the area are continuing. Each capitalised area of
interest is regularly reviewed. If the project is abandoned or if it is considered unlikely that capitalised costs will
be recouped through development or sale of the project then accumulated costs to that point are written off
immediately.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
associated E&E assets are transferred to PP&E and all future E&E costs for the area of interest are classified as
PP&E within either mines under construction or mine development assets, as appropriate.
M. RECOVERABLE AMOUNT OF NON-CURRENT ASSETS
The carrying amounts of non-current assets are reviewed annually to ensure they are not more than the
recoverable amounts from those assets. The recoverable amount is assessed on the basis of the expected net
cash flows, which will be received from the assets employed and subsequent disposal. The expected net cash
flows have been or will be discounted to present values in determining recoverable amounts.
N. TRADE AND OTHER ACCOUNTS PAYABLE
Trade and other accounts payable represent the principal amounts outstanding at balance date, plus, where
applicable, any accrued interest.
O. BORROWINGS
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees
paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it
is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down,
the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which
it relates.
West African Resources Limited||5577
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
60
1 BASIS OF PREPARATION (CONTINUED)
O. BORROWINGS (CONTINUED)
Borrowings are removed from the statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
P.
LEASE LIABILITIES
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the
period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
Right-of-use assets
Right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling
and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-
of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
58|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
61
1 BASIS OF PREPARATION (CONTINUED)
Q. PROVISION FOR REHABILITATION
Rehabilitation costs are recognised in full at present value as a liability when an obligation arises to decommission
or restore a site to a certain condition. An equivalent amount is capitalised as part of the cost of the related asset
The Group’s assessment of the present value of the rehabilitation and mine closure provision requires the use of
estimates and judgements, including the future cost of performing the work, timing of the cash flows, discount
rates, and final remediation strategy. Changes in the estimates or other assumptions are accounted for on a
prospective basis. The provision can also be impacted prospectively by changes to legislation or regulations.
Adjustments to the provision are offset by a change in the carrying value of the related asset. Where the
provisions are for assets no longer in use, such as mines and processing sites that have been closed, any
adjustment is reflected directly in profit or loss.
R.
ISSUED CAPITAL
Ordinary Shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, or for
the acquisition of a business, are included in the cost of the acquisition as part of the purchase consideration.
S.
EMPLOYEE BENEFITS
Provision is made for employee benefits accumulated as a result of employees rendering services up to the
reporting date. These benefits include wages and salaries, annual leave, and long service leave.
Liabilities arising in respect of wages and salaries, annual leave and any other employee benefits expected to be
settled within 12 months of the reporting date are measured at their nominal amounts based on remuneration
rates which are expected to be paid when the liability is settled. All other employee benefit liabilities are measured
at the present value of the estimated future cash outflow to be made in respect of services provided by
employees up to the reporting date. In determining the present value of future cash outflows, the market yield as
at the reporting date on national government bonds, which have terms to maturity approximating the terms of
the related liability, are used.
T. SHARE-BASED PAYMENTS
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (“equity-settled
transactions”). The cost of these equity-settled transactions with employees is measured by reference to the fair
value at the date at which they are granted. The fair value is determined by a valuation using Black-Scholes or
Binomial option pricing models.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (“vesting date”). The cumulative expense recognised for equity-settled
transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has
expired and (ii) the estimated number of awards that will ultimately vest. This estimate is formed based on the
best available information at balance date. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition. Where an equity-settled award is cancelled, it is treated as if it had vested on the date
of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new
award is substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original award.
West African Resources Limited||5599
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
62
1 BASIS OF PREPARATION (CONTINUED)
U.
FOREIGN CURRENCY TRANSLATION
Both the functional and presentation currency of West African Resources Limited and its Australian subsidiary
are Australian dollars. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance date.
All exchange differences in the consolidated financial report are taken to profit or loss with the exception of
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
These are taken directly to equity until the disposal of the net investment, at which time they are recognised in
profit or loss.
Tax charges and credits attributable to exchange differences on those borrowings are also recognised in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined.
The functional currency of the foreign subsidiaries, Wura Resources Pty Ltd SARL, West African Resources
Development SARL, Tanlouka SARL, Société des Mines de Sanbrado SA, Volta Properties SARL, Kiaka Gold SARL
and Kiaka SA, is the Communaute Financière Africaine Franc (‘CFA’). The functional currency of the foreign
subsidiary, Channel Resources Ltd is the Canadian Dollar (‘CAD’). The functional currency of the foreign
subsidiaries, Channel Resources (Cayman I) Ltd, Channel Resources (Cayman II) Ltd, Volta Resources (Cayman)
Inc., and Volta II Ltd is the United States Dollar (‘USD’).
As at the reporting date the assets and liabilities of the subsidiaries are translated into the presentation currency
of West African Resources Limited at the rate of exchange ruling at the balance date and their income and
expenses are translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken directly to a separate component of equity, being
recognised in the foreign currency translation reserve.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular
foreign operation is recognised in profit or loss.
60|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
63
1 BASIS OF PREPARATION (CONTINUED)
V.
FINANCIAL ASSETS
Financial assets are classified, at initial recognition, and subsequently measured at amortised cost, at fair value
through other comprehensive income (OCI), or fair value through profit or loss (FVTPL).
The classification of financial assets at initial recognition that are debt instruments depends on the financial
asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the
exception of trade receivables that do not contain a significant financing component or for which the Group has
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of
a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain
a significant financial component or for which the Group has applied the practical expedient for contracts that
have a maturity of one year or less, are measured at the transaction price determined under AASB 15.
In order for a financial asset to be classified and measured at amortised cost of fair value through OCI, it needs
to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place (regular way trades) are recognised on the trade date, i.e. the date that the
Group commits to purchase or sell the asset.
Subsequent measurement
For the purposes of subsequent measurement, financial assets are classified in four categories:
i. Financial assets at amortised cost (debt instruments);
ii. Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);
iii. Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments); or
iv. Financial assets at fair value through profit or loss.
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both
of the following conditions are met:
• The financial asset is held within a business model with the objectives to hold financial assets in order to
collect contractual cash flows; and
• The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and
are subject to impairment. Interest received is recognised as part of finance income in the statement of profit or
loss and other comprehensive income. Gains and losses are recognised in profit or loss when the asset is
derecognised, modified or impaired.
Financial assets at fair value through profit or loss
Financial assets that do not meet the criteria for amortised cost are measured at fair value through profit or loss.
West African Resources Limited||6611
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
64
2 SEGMENT REPORTING
A. DESCRIPTION OF SEGMENTS
The Group has identified its operating segments based on the internal reports that are reviewed and used by the
Board and the executive management team in assessing performance and in determining the allocation of
resources. The operating segments of the Group are:
Mining Operations: comprise the Sanbrado Gold Project operations located in Burkina Faso.
Construction and E&E: comprises mines under construction and exploration and evaluation (E&E) projects in
locations other than Sanbrado.
B. SEGMENT INFORMATION
Mining
operations
$'000
Construction
and E&E
$'000
Other
$'000
Total
$'000
2021
Total segment revenue
Total segment expenses
Total segment results
Segment assets at 31 December 2021
Segment liabilities at 31 December 2021
2022
Total segment revenue
Total segment expenses
Total segment results
Segment assets at 31 December 2022
Segment liabilities at 31 December 2022
712,130
305,626
406,504
584,190
179,541
608,064
324,677
283,387
628,227
132,112
-
3,463
(3,463)
131,165
554
36
4,895
(4,859)
140,441
2,815
Segment result is reconciled to the profit before income tax as follows:
Total segment results
Share-based payments
Finance expenses
Other expenses
Net foreign exchange gain/(loss)
Profit before income tax
All metal sales in the year were made to MKS PAMP SA.
3 REVENUE
Metal sales
Interest received
Other income
2022
$'000
606,134
2,007
87
608,228
10
6,959
(6,949)
88,892
69,746
128
7,785
(7,657)
110,037
3,211
2022
$’000
270,871
(2,456)
(2,110)
(9,695)
947
257,557
712,140
316,048
396,092
804,247
249,841
608,228
337,357
270,871
878,705
138,138
2021
$’000
396,092
(2,492)
(58,730)
(6,176)
(7,147)
321,547
2021
$'000
711,536
603
1
712,140
West African Resources Limited||6633
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
4 EXPENSES
(a) Cost of sales
Production expenses
Royalties and other selling costs
Depreciation and amortisation
Changes in inventory (cash)
Changes in inventory (non-cash)
(b) Other expenses
Accretion of rehabilitation provision
Depreciation and amortisation
Withholding tax expense
65
2022
$'000
228,378
36,931
58,997
2,318
(1,947)
324,677
350
359
8,986
9,695
2021
$'000
209,157
43,273
57,241
(3,407)
541
306,805
255
53
5,868
6,176
(c) Other required disclosures
Employee benefits (excluding share-based payments)
34,662
30,189
5
A.
INCOME TAX
INCOME TAX RECOGNISED IN PROFIT OR LOSS
Current tax
Deferred tax
Under provided in prior years
2022
$'000
56,423
14,761
2,667
73,851
2021
$'000
103,819
(692)
3,982
107,109
B. NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE
2022
$’000
2021
$’000
Accounting profit before tax
257,557
321,547
Income tax expense at 30%
Add/(Deduct):
Non-deductible expenses
Effect of differences in foreign tax rates
Effect of differences in foreign exchange
Deferred tax movement re borrowing costs
Other permanent adjustment
Movement in unrecognised deferred tax assets
Income tax expense
77,267
96,464
2,964
(5,930)
631
-
5,747
(6,828)
73,851
7,184
(8,266)
(241)
(793)
4,629
8,132
107,109
64|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
66
5
INCOME TAX (CONTINUED)
C. UNRECOGNISED DEFERRED TAX BALANCES
(a) Unrecognised deferred tax assets
Annual leave provision
Accrued expenses
Long service leave provision
Borrowings
Leases
Tax losses
Section 40-880 undeducted losses
(b) Unrecognised deferred tax liabilities
Cash and short-term deposits
Prepayments
Right-of-use assets
Net unrecognised deferred tax asset
6 EARNINGS PER SHARE
Basic profit per share (cents per share)
Diluted profit per share (cents per share)
The profit and weighted average number of ordinary
shares used in the calculation of basic earnings per
share is as follows:
2022
$’000
92
145
33
14,132
41
20,447
-
(2,844)
(5)
(36)
32,005
2022
$
16.1
15.9
2021
$’000
73
107
20
14,406
68
23,590
634
-
(2)
(63)
38,833
2021
$
20.9
20.7
Attributable profit for the year
164,442,151
188,963,472
Weighted average number of shares outstanding during
the period used in calculations of basic profit per share
Weighted average number of diluted shares outstanding
during the period used in calculations of diluted profit
per share
1,021,110,697
901,991,086
1,031,263,524
912,120,649
7 CASH AND CASH EQUIVALENTS
Cash at bank
Cash in hand
2022
$'000
173,298
95
173,393
2021
$'000
183,277
97
183,374
West African Resources Limited||6655
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
67
8 TRADE AND OTHER RECEIVABLES
Current
Prepayments
Other receivables
2022
$'000
2,856
40,511
43,367
2021
$'000
6,294
36,213
42,507
Other receivables include value added tax receivable from the Burkina Faso government of $40,103,000 (2021:
$35,668,000). The full balance was assessed to be collectible and no provision for doubtful receivables was
applied.
9
INVENTORIES
Ore stockpiles – cost
Finished goods – cost
Gold in circuit – cost
Consumable supplies and spares – cost
2022
$'000
34,230
5,800
3,510
24,491
68,031
2021
$'000
34,646
6,086
2,913
15,332
58,977
66|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
68
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N
l
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
69
11 RIGHT-OF-USE ASSETS
Balance at 1 January 2021
Additions
Depreciation charge for the year
Effects of movement in foreign exchange
Balance at 31 December 2021
Balance at 1 January 2022
Additions
Depreciation charge for the year
Effects of movement in foreign exchange
Balance at 31 December 2022
Property
Equipment
$'000
$'000
299
-
(90)
-
209
209
-
(90)
-
119
15,921
1,462
(4,705)
(174)
12,504
12,504
-
(5,034)
(120)
7,350
Total
$'000
16,220
1,462
(4,795)
(174)
12,713
12,713
-
(5,124)
(120)
7,469
The components of the 31 December 2022 balance will be depreciated over the remaining unexpired period of
their respective lease agreements, which currently expire in 2024 unless extended.
12 EXPLORATION AND EVALUATION ASSETS
Balance at 1 January
Additions
Transfer to property, plant and equipment
Effects of movement in foreign exchange
Balance at 31 December
2022
$'000
175,455
13,455
(134,648)
3,319
57,581
2021
$'000
15,255
163,101
-
(2,901)
175,455
In 2022, on transfer of $134,648,000 of exploration and evaluation assets related to the Kiaka gold project to
property, plant and equipment management performed an impairment test and concluded no impairment was
required (2021: nil transferred to PP&E). Exploration and evaluation additions in 2021 included $155,161,000 of
purchase consideration paid for the Kiaka Gold Project and the Toega Gold Project.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase
is dependent on the successful development and commercial exploitation or sale of the respective areas.
13 OTHER NON-CURRENT ASSETS
Transaction costs
2022
$'000
532
532
2021
$'000
-
-
At 31 December 2022, the transaction costs represent amounts directly attributable to establishing the project
debt facility for Kiaka mine construction prior to execution and drawdown of the facility.
68|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 70
14 TRADE AND OTHER PAYABLES
Current
Trade payables
Accruals
Other payables
Convertible note
2022
$'000
23,853
27,528
1,027
-
52,408
2021
$'000
21,570
21,580
1,007
61,915
106,072
In 2022, the Company cash-settled the US$45 million convertible note that was issued to B2Gold Corp in 2021
as part consideration for the purchase of the Kiaka Gold Project.
15 LOANS AND BORROWINGS
Current
Non-current
2022
$’000
14,106
-
14,106
2021
$’000
214
12,904
13,118
The 2022 loans and borrowings balance represents the loan facility that was entered into with Byrnecut Burkina
Faso SARL in 2019 as a component of the Sanbrado underground mining services contract. The facility has a limit
of US$10 million and interest is charged at a rate of 9.75% per annum. Interest is payable half-yearly and the
principal is due 6 months before termination of the 5-year services contract. The balance outstanding under the
facility at 31 December 2022 was US$9.6 million inclusive of accrued interest (2021: US$9.6 million).
16 LEASES
Current
Non-current
Amounts recognised in profit or loss
Interest on lease liabilities
Expenses relating to short-term leases
Amounts recognised in the statement of cash flows
2022
$’000
6,624
1,450
8,074
722
55
777
2021
$’000
5,591
7,096
12,687
850
22
872
Total cash outflow for leases
7,544
5,331
West African Resources Limited||6699
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
17 PROVISIONS
Non-current
Long service leave provision
Rehabilitation provision
Reconciliation of movements in rehabilitation
provision:
Balance at the start of the period
Increase in rehabilitation provision during the year
Effects of movement in foreign exchange
Balance at the end of the period
2022
$’000
110
14,266
14,376
12,512
1,675
79
14,266
71
2021
$'000
67
12,512
12,579
9,362
3,266
(116)
12,512
The Group’s rehabilitation provision has been calculated with an inflation rate of 2.5% (2021: 2.5%) and by
discounting the cash flows at a rate of 2.75% (2021: 2.75%).
18 DEFERRED TAX LIABILITIES
Deferred tax liabilities
Trade and other receivables
Property, plant and equipment
Trade and other payables
Borrowings
Borrowing costs
Net deferred tax liabilities
Movements:
Opening balance
Charged/(Credited) to profit and loss
Under/(Over) provision in prior years
Closing balance
2022
$'000
2,840
24,999
(549)
3,130
4,314
34,734
19,967
11,220
3,547
34,734
2021
$'000
507
10,311
-
3,695
5,454
19,967
21,648
(692)
(989)
19,967
70|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
72
19 ISSUED CAPITAL
2022
$'000
2021
$'000
Fully paid ordinary shares
335,630
335,334
(a) Number of shares
No.
No.
At start of period
Issue of shares on exercise of options
Issue of shares from capital raising
Issue of shares as consideration for acquisition
1,020,773,845
1,972,148
96,000
-
878,682,646
5,969,467
109,000,000
27,121,732
Balance at end of period
1,022,841,993
1,020,773,845
(b) Value of shares
$'000
$'000
At start of period
Issue of shares on exercise of options
Issue of shares from capital raising
Issue of shares as consideration for acquisition
Share issue costs
Balance at end of period
20 RESERVES
Foreign currency translation reserve
Share-based payments reserve
Nature and purpose of reserves
(a) Foreign currency translation reserve
335,334
526
120
-
(350)
335,630
2022
$’000
689
15,096
15,785
165,263
1,042
136,250
36,819
(4,040)
335,334
2021
$’000
(8,361)
12,534
4,173
The foreign currency translation reserve is used to record the Group’s exchange differences arising from the
translation of loans to foreign subsidiaries that are expected to be repaid in the long term and the translation of
the financial statements of foreign subsidiaries.
(b) Shared-based payments reserve
The shared-based payments reserve is used to recognise the fair value of options and rights issued by the
Company to Directors, employees and other suppliers or consultants that are not exercised or expired.
West African Resources Limited||7711
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
73
21 CASH FLOW INFORMATION
A. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH FLOWS FROM OPERATING ACTIVITIES
2022
$'000
2021
$'000
Profit after income tax
183,706
214,438
Adjustment for:
Depreciation and amortisation
Share-based payments
Other non-cash items
Accretion of rehabilitation provision
Financing costs
Net foreign exchange (gain)/loss
Changes in assets and liabilities
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in inventories
(Decrease)/Increase in trade and other payables
(Decrease)/Increase in current tax payable
(Decrease)/Increase in deferred tax liabilities
59,355
2,456
(1,727)
350
2,110
(11,678)
234,572
(3,097)
(9,142)
21,682
(74,678)
14,761
57,294
2,492
-
255
57,880
1,223
333,582
(19,818)
(7,607)
(27,068)
72,252
(1,681)
Net cash flows from operating activities
184,098
349,660
B. RECONCILIATION OF LOANS AND BORROWINGS AND LEASES TO NET CASH FLOWS FROM FINANCING
ACTIVITIES
Balance at 1 January 2021
Cash outflow from financing activities
Leases entered into during the year
Other balance movements
Effect of changes in foreign exchange rates
Balance at 31 December 2021
Balance at 1 January 2022
Cash outflow from financing activities
Leases entered into during the year
Other balance movements
Effect of changes in foreign exchange rates
Balance at 31 December 2022
Loans and
borrowings Lease liabilities
$’000
$’000
226,333
(235,064)
-
21,719
130
13,118
13,118
(524)
-
-
979
13,573
15,806
(5,331)
1,462
-
750
12,687
12,687
(7,544)
-
-
2,932
8,075
Total
$’000
242,139
(240,395)
1,462
21,719
880
25,805
25,805
(8,068)
-
-
3,911
21,648
22 DIVIDENDS
No dividends have been paid or declared payable during the year (2021: nil).
72|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
74
23 COMMITMENTS AND OTHER CONTINGENCIES
A. EXPLORATION AND MINING LEASE COMMITMENTS
In order to maintain current rights of tenure to exploration tenements, the Group is required to outlay rental fees
and to meet the minimum expenditure requirements. These discretionary costs are not provided for in the
financial statements and will be payable as follows:
Due within 1 year
Due after 1 year but not more than 5 years
Due after 5 years
2022
$'000
2,429
2,661
-
5,090
2021
$'000
1,378
2,756
-
4,134
B. CAPITAL COMMITMENTS
The Group’s capital expenditure commitments for property, plant and equipment were $61,240,000 at 31
December 2022 (2021: $1,831,000).
C. CONTINGENT LIABILITIES
(i) Burkina Faso Income Tax
Société des Mines de Sanbrado SA (‘SOMISA’) is in discussions with the Burkina Faso tax authority in relation to
a reassessment resulting from an audit of its 2020 corporate income taxes. No amount in relation to this has
been provided in the Group’s financial statements as the parties have not yet come to a common understanding
of the underlying transactions being reassessed and the correct tax treatment under the tax code.
(ii) Royalty agreements
During 2021, the Group entered into royalty agreements with third parties in respect of the acquisition of the
Kiaka Gold Project (‘Kiaka’) and the Toega Gold Project (‘Toega’). Royalties will become payable under the
agreements when refined gold is produced from ore extracted from the physical areas covered by the
agreements.
• Royalty agreements in respect of gold produced from Kiaka comprise:
o a 3% net smelter return (‘NSR’) royalty on the first 2.5 million ounces; and
o a 0.5% NSR royalty on the next 1.5 million ounces.
• Royalty agreements on the first 1.5 million gold ounces produced from the Nakomgo exploration permit area
were provided in respect of Toega comprising:
o a 3% NSR royalty to a value of US$25 million; and
o
thereafter a 0.5% NSR royalty.
(iii) Other contingent liabilities
There were no other material contingent liabilities at 31 December 2022 (2021: nil).
West African Resources Limited||7733
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
75
24 INTEREST IN SUBSIDIARIES
The consolidated financial statements include the financial statements of West African Resources Limited and
the subsidiaries listed in the following table:
Ownership interest
Entities
Parent company
West African Resources Limited
Direct subsidiaries
WAF Finance Pty Ltd
Wura Resources Pty Ltd SARL
West African Resources Development SARL
Channel Resources Ltd
Volta II Ltd
Indirect subsidiaries
Channel Resources (Cayman I) Ltd
Channel Resources (Cayman II) Ltd
Tanlouka SARL
Société des Mines de Sanbrado SA1
Volta Resources (Cayman) Inc.
Volta Properties SARL
Kiaka Gold SARL
Country of
incorporation
Australia
Australia
Burkina Faso
Burkina Faso
Canada
Cayman Islands
Cayman Islands
Cayman Islands
Burkina Faso
Burkina Faso
Cayman Islands
Burkina Faso
Burkina Faso
Kiaka SA1
1 The remaining 10% is held by the government of Burkina Faso.
Burkina Faso
2022
%
100
100
100
100
100
100
100
100
90
100
100
100
90
2021
%
100
100
100
100
100
100
100
100
90
100
100
100
90
All intercompany balances and transactions, including unrealised gains and losses arising from intra-group
transactions, have been eliminated in preparing the consolidated financial statements.
74|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
76
24 INTEREST IN SUBSIDIARIES (CONTINUED)
A. SUMMARISED FINANCIAL INFORMATION FOR SOCIETE DES MINES DE SANBRADO BEFORE INTRAGROUP
ELIMINATIONS
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Revenue
Profit for the year:
Attributable to owners of the parent
Attributable to non-controlling interest
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
Non-current assets
Liabilities
Current liabilities
Non-current liabilities
Equity
Attributable to owners of the parent
Attributable to non-controlling interest
STATEMENT OF CASH FLOWS
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
2022
$'000
2021
$'000
608,064
710,265
173,289
19,254
192,543
225,100
393,097
618,197
152,055
64,521
216,576
361,458
40,162
401,620
188,951
(95,102)
(123,484)
(29,635)
229,276
25,475
254,751
230,868
342,293
573,161
213,091
65,461
278,552
265,148
29,461
294,609
367,332
(50,782)
(234,249)
82,301
West African Resources Limited||7755
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
77
24 INTEREST IN SUBSIDIARIES (CONTINUED)
B. SUMMARISED FINANCIAL INFORMATION FOR KIAKA SA BEFORE INTRAGROUP ELIMINATIONS
2022
$'000
2021
$'000
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Revenue
Profit for the year:
Attributable to owners of the parent
Attributable to non-controlling interest
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
Non-current assets
Liabilities
Current liabilities
Non-current liabilities
Equity
Attributable to owners of the parent
Attributable to non-controlling interest
STATEMENT OF CASH FLOWS
Net cash from operating activities
Net cash used in investing activities
Net cash from in financing activities
-
85
9
94
1,244
98,818
100,062
1,824
99,166
100,990
(836)
(93)
(929)
-
(12,332)
13,525
1,193
-
(5)
(1)
(6)
5
84,191
84,196
4
85,212
85,216
(918)
(102)
(1,020)
(1)
-
-
(1)
25 SUBSEQUENT EVENTS AFTER THE BALANCE DATE
There has not arisen in the interval between the end of the reporting period and the date of this report, any item,
transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to
affect substantially the operations of the Group, the results of those operations or the state of affairs of the
Group in subsequent financial years.
76|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
78
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
26 AUDITORS’ REMUNERATION
The auditor of West African Resources Limited is HLB
Mann Judd
Audit or review of the financial statements
Amounts received or due and receivable by non HLB
Mann Judd audit firms
Audit or review of the Burkina Faso financial reports
2022
$
73,000
73,000
22,423
22,423
2021
$
80,000
80,000
17,086
17,086
27 DIRECTORS AND EXECUTIVE DISCLOSURES
A. DETAILS OF KEY MANAGEMENT PERSONNEL
Non-Executive Directors
Appointed
Resigned
Rod Leonard
Nigel Spicer
Stewart Findlay
Robin Romero
Executive Directors
Richard Hyde
Lyndon Hopkins
Libby Mounsey
Other Executive (KMP)
Padraig O’Donoghue
Non-Executive Director and Lead
Independent Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Executive Chairman and CEO
Executive Director and COO
Executive Director of Human Resources
Chief Financial Officer and Company
Secretary
September 20191
September 2019
29 May 2020
1 December 2022
September 2006
September 20192
29 May 20203
June 20184
1 Date appointed as Lead Independent Director was February 2021 (NED since September 2019).
2 Date appointed as Executive Director (employed since January 2017).
3 Date appointed as Executive Director was December 2022 (NED from May 2020 to November 2022).
4 Date appointed as Company Secretary was May 2020 (CFO since June 2018).
B. COMPENSATION OF KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share-based payments
2022
$'000
2,586
76
2,114
4,776
-
-
-
-
-
-
-
-
2021
$'000
1,893
110
2,001
4,004
C. COMPENSATION BY CATEGORY OF KEY MANAGEMENT PERSONNEL FOR THE YEAR
Consulting fees were paid to Directors, details of which are included in the Remuneration Report in the Directors’
Report. Salaries were paid to the Chief Executive Officer, Chief Operating Officer, Executive Director of Human
Resources, and Chief Financial Officer, details of which are included in the Remuneration Report in the Directors’
Report.
West African Resources Limited||7777
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
79
27 DIRECTORS AND EXECUTIVE DISCLOSURES (CONTINUED)
D. LOANS TO KEY MANAGEMENT PERSONNEL
There were no loans provided to Key Management Personnel during the year (2021: nil).
E. OTHER TRANSACTIONS AND BALANCES WITH KEY MANAGEMENT PERSONNEL
There were no other transactions and outstanding balances with Key Management Personnel for the year ended
31 December 2022 that are not already included in the Remuneration Report in the Directors’ Report.
28 FINANCIAL INSTRUMENTS
Financial assets
Cash and cash equivalents (note 7)
Trade and other receivables (note 8)
Financial assets
Financial liabilities
Trade and other payables (note 14)
Loans and borrowings (note 15)
Lease liabilities (note 16)
2022
$'000
173,393
43,367
-
216,760
(52,408)
(14,106)
(8,074)
(74,588)
2021
$'000
183,374
42,507
39
225,920
(106,072)
(13,118)
(12,687)
(131,877)
29 FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks: market risk (including currency risk, interest rate
risk, and gold price risk), credit risk and liquidity risk. The Group's overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Group.
A. MARKET RISK
(i)
Interest rate risk
The Group’s main interest rate risk arises from its cash balances. Cash held at variable rates expose the Group
to cash flow interest rate risk while cash deposits at fixed rates expose the Group to fair value interest rate risk.
During the year, the Group’s cash deposits at variable rates were denominated in Australian Dollars (‘AUD’), United
States Dollars (‘USD’), Euros (‘EUR’), and Communaute Financière Africaine Francs (‘CFA’), being the currency of
Burkina Faso.
78|West African Resources Ltd
80
29 FINANCIAL RISK MANAGEMENT (CONTINUED)
A. MARKET RISK (CONTINUED)
(i)
Interest rate risk (continued)
The tables below analyse the Group's financial assets and financial liabilities into maturity groupings based on
the remaining period at the reporting date to the contractual maturity date.
Consolidated
Fixed Interest Rate Maturing
Weighted
Average
Effective
Interest
Rate
Floating
Interest
Rate
$’000
Within
Year
$’000
1 to 5
Years
$’000
Over 5
Years
$’000
Non-
interest
bearing
$’000
Total
$’000
31 December 2021
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total financial assets
0.4%
0.0%
0.5%
159,512
-
-
159,512
-
-
39
39
-
-
-
-
Financial liabilities
Trade and other payables
Loans and borrowings
Lease liabilities
Total financial liabilities
0.00%
9.75%
6.50%
-
-
-
-
-
1,289
5,591
6,880
-
13,641
7,096
20,737
31 December 2022
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total financial assets
1.09%
0.00%
0.00%
121,950
-
-
121,950
-
-
-
-
Financial liabilities
Trade and other payables
Loans and borrowings
Lease liabilities
Total financial liabilities
0.00%
9.75%
6.50%
-
-
-
-
-
14,106
6,624
20,730
-
-
-
-
-
-
1,450
1,450
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23,862
42,507
-
183,374
42,507
39
66,369 225,920
106,072 106,072
14,930
12,687
-
-
106,072
133,689
51,443
43,367
-
173,393
43,367
-
94,810 216,760
52,408
-
52,408
14,106
-
8,074
52,408
74,588
West African Resources Limited||7799
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
81
29 FINANCIAL RISK MANAGEMENT (CONTINUED)
A. MARKET RISK (CONTINUED)
(ii)
Interest rate sensitivity
At 31 December, if variable interest rates for the full year were -/+ 0.5% from the year-end rate with all other
variables held constant, pre-tax profit for the year would have moved as per the table below.
+0.5%
-0.5%
2022
$'000
918
(918)
2021
$'000
707
(707)
The sensitivity is calculated using the average cash position for the year ended 31 December 2022. The interest
income in note 3 of $2,006,698 (31 December 2021: $602,635) reflects cash balances in the year that ranged
between $88,040,733 and $160,906,423 (31 December 2021: $39,759,579 and $133,134,574).
(iii) Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk primarily arising from costs
denominated in CFA and USD, and loans and borrowings denominated in USD.
The Group also has transactional currency exposures. Such exposures arise from purchases by an operating
entity in currencies other than the functional currency.
The Group does not have a policy to enter into forward contracts or other hedge derivatives.
At 31 December, the Group had the following exposure to CFA, EUR, and USD foreign currencies expressed in AUD
equivalents:
2022
$'000
166,960
40,152
207,112
105,590
13,879
7,937
34,734
162,140
2021
$'000
162,974
37,876
200,850
195,053
13,002
12,460
19,967
240,482
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Loans and borrowings
Lease liabilities
Tax liabilities
80|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
82
29 FINANCIAL RISK MANAGEMENT (CONTINUED)
A. MARKET RISK (CONTINUED)
(iv) Exchange rate sensitivity
A 10 per cent strengthening or weakening of the AUD against the following currencies at 31 December would
have increased (decreased) net assets by the amounts shown in the below table. This analysis assumes that all
other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for the
year ended 31 December 2021.
+10%
2022
$'000
(244)
(56,351)
(4,067)
2021
$'000
2,968
(49,123)
(2)
-10%
2022
$'000
298
68,873
4,971
2021
$'000
(3,627)
60,040
2
USD
CFA
EUR
(v) Price risk
The Group is exposed to commodity price risk on its finished goods and future gold production. This risk is
estimated by management using forecasts of the quantity and cost of future gold production. While the Group’s
price risk could be partially managed using a range of different types of hedging instruments, the Group did not
have any open hedge instruments at 31 December 2022 (2021: nil).
B. CREDIT RISK
Credit risk arises mainly from
•
the Group’s cash and cash equivalents held with financial institutions (the banks the Group uses for cash
deposits and transactions are limited to high credit quality financial institution);
receivables related to gold sales (all gold sales have been carried out with MKS PAMP SA); and
value added tax receivable from the government of Burkina Faso.
•
•
The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as
summarised at the beginning of this note.
C. LIQUIDITY RISK
Liquidity risk is the risk the Group will not be able to meet its financial obligations as they fall due. Liquidity risk
management involves maintaining sufficient cash on hand or undrawn credit facilities to meet the operating
requirements of the business. This is currently managed through cash and cash equivalents ($173,393,000 as at
31 December 2022) and prudent cash flow and financial commitment management. The tables below analyse the
Group's financial assets and liabilities into maturity groupings based on the remaining period at the reporting
date to the contractual maturity date.
West African Resources Limited||8811
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
83
29 FINANCIAL RISK MANAGEMENT (CONTINUED)
Maturity analysis of financial assets and liabilities based on management's expectation
31 December 2021
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total financial assets
Financial liabilities
Trade and other payables
Loan and borrowings
Lease liabilities
Total financial liabilities
Net maturity
31 December 2022
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total financial assets
Financial liabilities
Trade and other payables
Loans and borrowing
Lease liabilities
Total financial liabilities
Net maturity
Consolidated
<6 months
$'000
6-12
months
$'000
1-5 years
$'000
>5 years
$'000
Total
$'000
183,374
42,507
39
225,920
-
-
-
-
-
-
-
-
(106,072)
(639)
(3,206)
(109,917)
116,003
-
(650)
(3,206)
(3,856)
(3,856)
-
(13,641)
(7,932)
(21,573)
(21,573)
173,393
43,367
-
216,760
-
-
-
-
-
-
-
-
(52,408)
(682)
(3,205)
(56,295)
160,465
-
(14,572)
(3,205)
(17,777)
(17,777)
-
-
(2,003)
(2,003)
(2,003)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
183,374
42,507
39
225,920
(106,072)
(14,930)
(14,344)
(135,346)
90,574
173,393
43,367
-
216,760
(52,408)
(15,254)
(8,413)
(76,075)
140,685
82|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
84
30 SHARE-BASED PAYMENTS
A. RECOGNISED SHARE-BASED PAYMENTS
The expenses recognised for services received during the year are shown in the table below:
Net share-based payments to Directors
Net share-based payments to employees
Net share-based payments/(recoveries) to third parties
2022
$'000
1,662
876
(82)
2,456
2021
$'000
1,603
818
71
2,492
The share-based payment plans are described below. There have been no cancellations or modifications to the
plan during the year.
B. TRANSACTIONS SETTLED USING SHARES
No transactions were settled in the current year using shares.
C. EMPLOYEE SHARE AND OPTION PLAN
Under the Incentive Options and Performance Rights Plan (‘Incentive Plan’), grants are made to senior executives
and other staff members who have made an impact on the Group’s performance. Grants are delivered in the form
of options or performance rights which vest over periods as determined by the Board of Directors.
D. PERFORMANCE RIGHTS
Performance rights are granted under the Incentive Plan for nil consideration and are subject to vesting conditions
as determined by the Board of Directors. Any performance rights that do not vest by their expiry date, or
otherwise become unexercisable, will lapse. Upon vesting, these performance rights will be settled in ordinary fully
paid shares of the Company.
(a) Summary of performance rights granted under the Incentive Plan
2022 Number
2022 WAEP* 2021 Number
2021 WAEP*
Outstanding at the beginning of the year
Granted during the year
Exercised during the year
Lapsed/cancelled during the year
Outstanding at the end of the year
Exercisable at the end of the year
**WAEP = weighted average exercise price
9,714,249
1,751,894
(748,320)
(351,951)
10,365,872
1,793,022
-
-
-
-
-
-
12,557,727
1,925,989
(3,141,048)
(1,628,419)
9,714,249
540,234
-
-
-
-
-
-
The performance rights outstanding at the end of the year had a weighted average remaining contractual life of
761 days (31 December 2021: 1,003 days)
West African Resources Limited||8833
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
85
30 SHARE-BASED PAYMENTS (CONTINUED)
D. PERFORMANCE RIGHTS (CONTINUED)
(b) Fair value of performance rights granted
The fair value of the performance rights granted during the year was determined using the Black-Scholes, Monte
Carlo Simulation and Binomial pricing methods.
Number
issued Grant date
10-Feb-22
89,092
30-Mar-22
432,995
30-Mar-22
68,322
30-Mar-22
68,322
13-May-22
322,398
13-May-22
385,383
13-May-22
385,382
Vesting
condition*
A
A & B
B
B
A & B
B
B
* Notations refer to the following vesting conditions:
Original
expiry
period
2 years
3 years
5 years
4 years
3 years
5 years
4 years
Dividend
yield
0%
0%
0%
0%
0%
0%
0%
Expected
volatility
65%
63%
58%
60%
63%
58%
60%
Risk-free
interest
rate
2.75%
2.54%
2.79%
2.79%
2.57%
3.05%
3.05%
Exercise
price
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Share
price on
grant
date
$1.1900
$1.2550
$1.2550
$1.2550
$1.1750
$1.1750
$1.1750
A = Performance Rights will vest upon service conditions being met.
B = Performance Rights will vest upon performance conditions being met, as outlined on page 44 in the Remuneration Report.
E. OPTIONS
Options are issued for nil consideration. The exercise price, vesting conditions and expiry date are determined by
the Board of Directors. Any options that are not exercised by the expiry date, or otherwise become unexercisable,
will lapse. Upon vesting, these options will be settled in ordinary fully paid shares of the Company.
(a) Summary of options granted by the Group
2022
Number
2022 WAEP*
2021
Number
2021 WAEP*
Outstanding at the beginning of the year
2,013,300
$0.4991
4,841,719
$0.4228
Granted during the year
Exercised during the year
Lapsed/cancelled during the year
Outstanding at the end of the year
Exercisable at the end of the year
**WAEP = weighted average exercise price
-
-
-
-
(1,223,828)
$0.4300
(2,828,419)
$0.3685
-
789,472
789,472
-
$0.6061
$0.6061
-
2,013,300
2,013,300
-
$0.4991
$0.4991
The share options outstanding at the end of the year had a weighted average remaining contractual life of 503
days (31 December 2021: 561 days).
(b) Fair value of options granted
There were no options granted during the period (31 December 2021: Nil).
West African Resources Limited||8833
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
86
30 SHARE-BASED PAYMENTS (CONTINUED)
F. OPTIONS AND PERFORMANCE RIGHTS BALANCES
The outstanding balance of performance rights as at 31 December 2022 is presented in the following table:
Grant date Expiry date
20-Jan-23
9-Jan-20
9-Jan-20
20-Jan-25
29-May-20
11-Jun-23
29-May-20
11-Jun-25
2-Jul-20
8-Jul-23
22-Sep-20
29-Sep-23
Granted
315,866
131,578
867,041
657,894
176,951
86,758
Number of Performance Rights
Lapsed /
Cancelled
-
-
-
-
(176,951)
Exercised
-
-
(515,282)
-
-
-
(86,758)
On issue
315,866
131,578
351,759
657,894
-
-
27-Nov-20
8-Dec-24
2,995,000
(175,000)
-
2,820,000
17-Dec-20
17-Dec-22
57,172
17-Dec-20
17-Dec-24
2,500,000
18-Jan-21
22-Jan-23
21-Jan-21
22-Jan-24
4-Apr-21
9-Apr-24
4-Apr-21
9-Apr-26
4-Apr-21
4-Apr-25
17-May-21 20-May-24
17-May-21 20-May-26
17-May-21 20-May-25
3-Jun-21
11-Jun-24
4-Feb-22
10-Feb-24
30-Mar-22
6-Apr-25
30-Mar-22
6-Apr-27
30-Mar-22
6-Apr-26
4-Apr-22
6-Apr-25
13-May-22
26-May-25
13-May-22
26-May-27
13-May-22 26-May-26
13-May-22
27-May-25
13-May-22
27-May-27
13-May-22
27-May-26
89,108
82,942
174,478
69,306
69,306
626,496
402,103
402,102
10,148
89,092
279,692
68,322
68,322
153,303
128,105
149,456
149,456
194,293
235,927
235,926
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(57,172)
-
-
2,500,000
(89,108)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
82,942
174,478
69,306
69,306
626,496
402,103
402,102
10,148
89,092
279,692
68,322
68,322
153,303
128,105
149,456
149,456
194,293
235,927
235,926
Vested
315,866
131,578
351,759
657,894
-
-
-
-
-
-
82,942
-
-
-
252,983
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total performance rights
11,466,143
(351,951)
(748,320)
10,365,872
1,793,022
All Performance Rights have a nil exercise price.
The outstanding balance of options as at 31 December 2022 is presented in the following table:
Grant date Expiry date
28-Dec-22
28-Dec-18
20-Jan-20
20-Jan-24
11-Jun-20
11-Jun-24
Total options
Exercise
price
$0.4300
$0.6061
$0.6061
Granted
1,223,828
131,578
657,894
2,013,300
Number of options
Lapsed /
Cancelled
-
Exercised
(1,223,828)
-
-
-
-
-
(1,223,828)
On issue
-
131,578
657,894
789,472
Vested
-
131,578
657,894
789,472
West African Resources Limited||8855
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022 31 PARENT ENTITY FINANCIAL INFORMATION
The individual financial statements for the parent entity show the following aggregate amounts:
87
STATEMENT OF FINANCIAL POSITION
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated profit/(losses)
Parent
2022
$'000
49,976
308,078
358,054
2,659
145
2,804
2021
$'000
46,921
248,450
295,371
1,157
203
1,360
355,250
294,011
335,630
15,097
4,523
335,334
12,535
(53,858)
Total equity
355,250
294,011
PROFIT FOR THE REPORTING PERIOD
Income tax benefit
Total comprehensive profit
58,382
-
58,382
23,415
-
23,415
Contingent liabilities of the parent entity
As at 31 December 2022, the parent entity had contingent liabilities as guarantor under each of the royalty
agreements detailed in note 23(c)(ii). (2021: royalty agreements detailed in note 23(c)(ii) and US$45 million
convertible note detailed in note 14).
Commitments of the parent entity for the acquisition of property, plant and equipment
As at December 2022, the parent entity had nil contractual commitments for the acquisition of property,
plant and equipment (2021: nil).
86|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
88
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
DIRECTORS’ DECLARATION
In the opinion of the Directors:
a.
The financial statements, notes and the additional disclosures included in the Directors’ Report, designated
as audited, of the consolidated entity are in accordance with the Corporations Act 2001 including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its
performance for the year then ended; and
complying with Australian Accounting Standards and Corporations Regulations 2001.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The financial statements also comply with International Financial Reporting Standards as disclosed in note
1A.
b.
c.
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the year ended 31 December 2022.
This declaration is signed in accordance with a resolution of the Board of Directors.
RICHARD HYDE
Executive Chairman & CEO
17 March 2023
86|West African Resources Ltd
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
89
90
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
AUDITOR’S
INDEPENDENCE
DECLARATION
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
91
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of West African Resources Limited
for the year ended 31 December 2022, I declare that to the best of my knowledge and belief, there
have been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
17 March 2023
B G McVeigh
Partner
92
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
INDEPENDENT
AUDITOR’S REPORT
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
93
INDEPENDENT AUDITOR’S REPORT
To the members of West African Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of West African Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 31 December 2022, the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
94
Key Audit Matter
How our audit addressed the key audit matter
Revenue recognition
Note 3 to the financial report
The Group generates revenue predominantly
from the sale of gold. The Group recognised
sales revenue of $608.2 million for the year
(2021: $712.1 million).
Revenue recognition is considered to be a key
audit matter given the significance of revenue to
the Group’s results as well as the fraud risk
around cut-off including:
• An overstatement of revenues
through
premature revenue recognition or recording
of fictious revenues.
• Revenue not being recognised when control
is transferred to the customer, resulting in it
not being
the correct
accounting period.
recognised
in
is
recognised when control
Revenue
is
transferred to the buyer and the amount of
revenue can be reliably determined. This occurs
for the Group when the refining process is
completed and ownership is transferred.
Recoverability of mine assets
Note 10 to the financial report
As at 31 December 2022 the Group had mine
development assets of $136.2 million.
Assessing the recoverability and carrying value
of this balance was considered to be a key audit
matter due to the judgements and estimations
involved.
These estimations and judgements surround two
areas being
the
amortisation and depreciation associated with
this asset.
indicators and
impairment
Impairment indicators involve assessing future
forecasts and judgement around recoverability of
the asset.
Amortisation and depreciation involves using
estimated reserves and resources (used as the
denominator
“units-of-production””
calculation) of the mines.
in
a
Our audit procedures included but were not
limited to the following:
• Understanding the Group’s process for
revenue and controls in place around gold
sales.
• Testing all gold sales transactions during
the year to invoice and receipt of cash.
• Assessing
the Group’s policies
revenue against
for
recognition of
the
requirements of the accounting standards
these were adequately
and checked
disclosed in the financial statements.
• Sales cut-off procedures focussing on
sales in December 2022 and January
2023, testing a sample of transactions to
underlying documentation and assessing
the period in which they were recognised.
• Matching gold produced against gold sold
for the year.
Our audit procedures included but were not
limited to the following:
• Testing impairment indicators to ensure
that no such indicators exist at year end.
• Reviewing future plans for the mine assets
and ensuring that such plans support the
recoverability of the mine.
• Assessing the current carrying value of the
mine development assets and ensuring
items capitalised during the year were
appropriate to capitalise.
• Assessing the application of reserves and
resources in the amortisation models by
comparing them to the latest published
statement and underlying mining records.
• Testing the mathematical accuracy of the
amortisation models.
• Assessing the adequacy of the Group’s
disclosures relating to amortisation.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
95
Recoverability of capitalised exploration expenditure
Note 12 to the financial statements
As at 31 December 2022 the Group had
exploration and evaluation assets of $57.6
million.
In accordance with its accounting policy, the
Group capitalises costs for areas of interest
related to a known mineral resource capable of
supporting a mining operation for which the
Group has rights to tenure for and where
activities have reached a stage which permits a
reasonable assessment of the existence of
economically recoverable ore reserves.
the carrying amount of
Our audit focussed on the Group’s assessment
of
the capitalised
exploration and evaluation asset, because this is
one of the significant assets of the Group. There
is a risk that the capitalised expenditure no longer
meets the recognition criteria of AASB 6 . In
addition, we considered it necessary to assess
whether facts and circumstances existed to
suggest
the carrying amount of an
exploration and evaluation asset may exceed its
recoverable amount.
that
Our audit procedures included but were not
limited to the following:
• We obtained an understanding of the key
processes associated with management’s
review of the carrying values of each area
of interest.
• We considered the Directors’ assessment
of potential indicators of impairment.
• We obtained evidence that the Company
has current rights to tenure of its areas of
interest.
• We examined the exploration budget for
the year and discussed with management
the nature of planned ongoing activities.
• We enquired with management, reviewed
reviewed
ASX announcements and
minutes of Directors’ meetings to ensure
that the Company had not resolved to
discontinue exploration and evaluation at
any of its areas of interest.
• We examined the disclosures made in the
financial report.
Transition of Kiaka exploration expenditure to mines under development
Notes 10 and 12 to the financial statements
During the year the Group made the decision to
move the Kiaka Gold project from the exploration
phase to the development phase. As such, they
transferred $134.1 million from exploration and
evaluation assets to mines under construction.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources when a group
transitions to the development phase there is a
requirement to test the balance for recoverability
of the balance.
The evaluation of
is
considered a key audit matter as it was based
upon a value-in-use calculation which required
significant judgement and estimation. In addition,
the balance is material to the users of the
financial statements and involved the most
communication with management.
recoverable amount
Our audit procedures included but were not
limited to the following:
• Critically
management’s
methodology used in the mine model and
the basis for key assumptions.
evaluating
• Reviewing the mathematical accuracy of
the mine model.
• Performing sensitivity analyses around the
key inputs used in the model such as
operating costs, construction costs grade
and gold prices.
• Considering the appropriateness of the
discount rate used.
• Comparing net present value of the future
cashflows to the exploration expenditure
transferred to mines under construction.
• Assessing
the appropriateness of
the
disclosures included in the relevant notes
to the financial report.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
96
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 31 December 2022, but does
not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
97
-
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
31 December 2022.
In our opinion, the Remuneration Report of West African Resources Limited for the year ended 31
December 2022 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
17 March 2023
B G McVeigh
Partner
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
98
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange Ltd and not shown elsewhere in this
report is as follows. The information is current as at 20 February 2023.
DISTRIBUTION OF SHARES
Distribution
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,000 – 100,000
100,001 – and over
Total
Number of holders
785
1,302
706
1,188
284
4,265
Securities held
425,519
3,663,766
5,685,965
38,756,873
975,045,624
1,023,577,747
The number of shareholdings held in less than marketable parcels is 562.
SUBSTANTIAL SHAREHOLDERS
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of the issued capital)
is set out below.
Shareholder Name
1 VANECK GLOBAL (NEW YORK)
2 BLACKROCK GROUP
Total
TWENTY LARGEST SHAREHOLDERS
Shareholder Name
1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
3 CITICORP NOMINEES PTY LIMITED
4 BNP PARIBAS NOMS PTY LTD
5 NATIONAL NOMINEES LIMITED
6 MR AND MRS ANTHONY POLI
7 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
8 B2GOLD CORP
9
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
10 MR RICHARD HYDE
11 STICHTING LICHFIELD US\C
12 BNP PARIBAS NOMINEES PTY LTD
13 WARBONT NOMINEES PTY LTD
14 BNP PARIBAS NOMS PTY LTD
15 GAMS-MINING F&I LTD
16
MR GRAEME JOHN HAINES + MRS SHARNI GAY HAINES + MR MALCOLM
ARNOLD HAINES
17 MR PHILLIP RICHARD PERRY
18
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
19 MR LYNDON HOPKINS
20 NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
Total
94|West African Resources Ltd
No. of shares
held
123,960,155
51,505,705
175,465,860
%
Holding
12.11%
5.03%
17.14%
No. of shares held % Holding
35.47%
15.27%
9.37%
5.28%
3.50%
2.87%
2.46%
363,052,614
156,299,522
95,889,270
54,049,849
35,833,495
29,400,000
25,172,196
22,190,508
2.17%
21,085,176
2.06%
16,456,950
13,250,000
9,278,648
9,048,679
6,360,801
4,931,224
1.61%
1.29%
0.91%
0.88%
0.62%
0.48%
4,515,882
0.44%
3,793,834
0.37%
3,296,591
0.32%
3,026,112
2,601,268
0.30%
0.25%
879,532,619
85.93%
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
99
STOCK EXCHANGE LISTING
Listing has been granted for the ordinary shares (ASX code: WAF) of the Company on the Australian Securities
Exchange Limited (‘ASX’) with 1,023,577,747 ordinary shares on the Company’s register.
VOTING RIGHTS
All shares carry one vote per unit without restriction.
UNLISTED OPTIONS
10,415,672 options and performance rights are held by 28 option holders.
Neither options nor performance rights carry a right to vote.
West African Resources Limited||9955
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
100
WEST AFRICAN RESOURCES LIMITED ANNUAL REPORT 2022
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