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WEST AFRICAN RESOURCES LIMITED
Corporate Information
COMPANY
West African Resources Limited
ABN
70 121 539 375
DIRECTORS
Richard Hyde (Executive Chairman and CEO)
Lyndon Hopkins (Executive Director and COO)
Libby Mounsey (Executive Director of HR)
Rod Leonard (Lead Independent Director)
Nigel Spicer (Non-Executive Director)
Stewart Findlay (Non-Executive Director)
Robin Romero (Non-Executive Director)
COMPANY SECRETARIES
Padraig O’Donoghue
Annie Atkins
SHARE REGISTRY
Computershare Investor Services
Pty Ltd
Level 17, 221 St Georges Terrace
Perth WA 6000 Australia
T: +61 (8) 9323 2000
Website
www.westafricanresources.com
PRINCIPAL PLACE OF BUSINESS
Level 1, 1 Alvan Street
Subiaco WA 6008 Australia
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
Level 4, 130 Stirling Street
Perth WA 6000 Australia
ASX
ASX trading code: WAF
Please read the “Important Notice” section of this report on page 28 carefully before
reading or making any other use of this report or the information set out in this report.
Table of Contents
Corporate Information
Inside Front Cover
Chairman’s Letter
2
2024 In Brief
4
2024 Results
5
Directors’ Report
6
Remuneration Report (Audited)
34
Consolidated Statement Of Profit Or Loss And Other Comprehensive Income
46
Consolidated Statement Of Financial Position
47
Consolidated Statement Of Changes In Equity
48
Consolidated Statement Of Cash Flows
49
Notes To The Consolidated Financial Statements
50
Directors’ Declaration
82
Auditor’s Independence Declaration
83
Independent Auditor’s Report
84
ASX Additional Information
89
Summary Of Tenements
91
West African Resources Limited / Annual Report 2024
1
It gives me great pleasure to present the 2024
Annual Report for West African Resources
Limited (ASX: WAF), as we reflect on our progress
in becoming a +420,000oz per annum gold
producer via our gold operations in Burkina Faso,
West Africa.
During 2024, we focussed on three key strategic objectives for
the Group, aiming to:
• Generate strong profit and cashflow from low-cost gold
operations at our flagship Sanbrado mine.
• Execute construction, operational readiness, and grade-
control drilling programs for our second mine, Kiaka, on
budget and on schedule.
• Strengthen our 10-year production profile.
I am delighted to report that we achieved these goals and
we are on the cusp of reaching our production targets, with
two long-life, low-cost gold production centres expected in
operation by the end of 2025.
We finished 2024 in a strong financial position, with A$392M
cash and net assets of A$1.3B on our balance sheet.
Our flagship project, Sanbrado, continued its solid performance
in 2024, generating A$723M revenue from 199,550oz gold
sold unhedged at an average realised price of A$3,624/oz
(US$2,391/oz). We generated Group net earnings of A$246M
and operating cash flow of A$252M in 2024. Sanbrado’s
continued profitable performance over the past five years is
reflected in the Group’s retained earnings balance of A$717M.
Sanbrado delivered consistent high-margin gold production
in 2024, producing 206,622oz at an all-in sustaining cost
(AISC1) of US$1,240/oz, achieving the upper end of our annual
production guidance for the fourth consecutive year.
1 ‘All-in sustaining cost’ (AISC) is a performance metric recommended by the World Gold Council.
2 ‘Site sustaining cost’ includes all components of AISC except corporate and share-based payments.
Sanbrado’s strong performance is expected to continue in 2025,
as we guide unhedged production of 190,000oz to 210,000oz
gold at a site sustaining cost2 less than US$1,350/oz.
Our focus is now on achieving production at our second
operation, Kiaka. In July 2024, we released our updated
feasibility study for Kiaka that incorporated a new owner-mining
strategy, increased Kiaka’s Ore Reserve from 4.6 to 4.8 million
ounces, and re-confirmed Kiaka as a long-life low-cost open pit
mining operation with conventional semi-autogenous ball mill
crushing and carbon-in-leach processing.
Construction of Kiaka is nearing completion and we are fast
approaching our first gold pour. Mining of the 20-year Kiaka
open pit will commence this month, following the completion
of our maiden grade control (‘GC’) drill program in 2024. The
GC results aligned closely to our Mineral Resource Estimate,
returning thick and consistent zones of gold mineralisation up
to 400 metres wide at surface.
We plan to pour first gold at Kiaka by Q3 2025, with
declaration of commercial production expected in H2 2025.
WAF is guiding gold production of 100,000 to 150,000 ounces
from Kiaka in 2025. This range relates to timing of process
plant commissioning and ramp up of processing operations.
During 2024, we advanced work to strengthen the 10-year
production profile of our Sanbrado production centre, which
included the award of the mining licence of the Toega gold
deposit in April 2024, strong exploration drill results beneath
the current M1 South Ore Reserve, and solid progress on the
M5 underground exploration drive.
Our Toega gold deposit is located within trucking distance
(12.6km) of the Sanbrado gold processing plant. Pre-stripping
of the Toega open pit mine is scheduled to start in Q3 2025,
with initial ore deliveries to the Sanbrado plant expected in
early 2026.
Chairman’s
Letter
West African Resources Limited / Annual Report 2024
2
Our current drilling campaign beneath the M1 South
underground aims to convert resources to reserves. It
is scheduled to be completed in Q1 2025, in time to be
incorporated into WAF’s updated Mineral Resource Estimate
and Ore Reserves, that we are aiming to release in Q2
2025. The M5 underground exploration drive is designed
to provide drill positions to grow the underground resources
at M5, as well as additional fresh air ventilation for both
M1 and M5 undergrounds. Figure 13 on page 19 of this
report conceptualises our growth plans for the M1 and M5
underground developments at Sanbrado.
With development expenditure of Kiaka nearing completion,
WAF is resuming value creation activities through the drill bit.
We plan to complete more than 115,000 metres of drilling
across our Sanbrado and Kiaka production centres, and
surrounding exploration areas in 2025.
Tragically, on 28 January 2024, the Group reported the fatality
of a contractor working at Kiaka. No other persons were injured
in the accident. WAF and the Kiaka safety team have worked
with the relevant authorities and the contracting companies
involved to investigate the accident and address the causal
factors. We express our deepest sympathies to the contractor’s
family and those close to our colleague.
Two lost time injuries were also reported in 2024. There
were no other significant health or safety incidents during the
year, and WAF’s 31 December 2024 12-month TRIFR (Total
Recordable Injury Frequency Rate) was 1.51, versus Western
Australia’s average reportable injury frequency rate of 4.6.
Sustainability is fundamental to how WAF operates within
Burkina Faso. I encourage interested parties to obtain a copy
of our 2024 Sustainability Report, which is due for release
in the coming weeks 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 2024.
WAF’s Board of Directors is comprised of four independent
non-executive directors (NEDs), three executive directors,
and committees chaired by independent NEDs. I am fortunate
to have well-qualified, engaged and high-performing
fellow-directors with me on our Board, and I thank them for
their dedication to our company and for the support and
guidance they provide to me and the other members of
our executive team.
I also thank my fellow shareholders for your strong support of
our $150 million share placement in July 2024, which greatly
assisted us to execute our growth strategy for our company to
become a +420,000oz per annum gold producer by mid-2025.
The next 12 months are integral in progressing our gold
production goals, with several important milestones now
very close. It is an exciting time for our company, operating
in a strong gold price environment, with zero-hedging and
continuing to consolidate our position as a mid-tier West
African gold producer. I hope you will continue to share the
journey with us.
Richard Hyde
Executive Chairman & CEO
West African Resources Limited / Annual Report 2024
3
2024
Highlights
• Annual guidance for 2024
set at 190,000
to 210,000 oz gold
at AISC of less than
US$1,300/oz
• 10-year production target
updated to average
+400,000/year
• Ore Reserves updated to
6.1 million oz gold
• Mineral Resources
updated to 12.8 million
oz gold
• Exploration drilling
intercepts 9.5m at 81.9
g/t gold outside reserves
at M1 South U/G
• Toega fully permitted with
issue of mining licence
• Sanbrado mining permit
renewed for a further
5 years
• US$265 million loan
facilities for Kiaka
construction are fully
drawn
• Exploration drilling
intercepts 24m at 55.8
g/t gold within M1 South
main lode
• Exploration drilling hits
10.5m at 15.3 g/t gold
outside reserves at M1
South
• Underground
development drive
commenced at M5 South
• 1 millionth ounce
produced at Sanbrado
• Kiaka updated feasibility
study incorporates new
owner-mining strategy
• Ore Reserves increased
to 6.4 Moz
• Updated 10-year
production target
improved to average
+420,000/year
• Placement raises A$150
million to fund Kiaka
owner-mining strategy
• Kiaka maiden grade
control drilling hits 30m
at 4.1 g/t gold
• Kiaka grade control
drilling surprises with
22m at 7.6 g/t gold
• Exploration drilling hits
45m at 7.3 g/t gold below
reserves at M1 South
• Exploration drilling hits
36m at 11.1 g/t gold
below reserves at M1
South
• Kiaka grade control
drilling returns 18m at
6.3 g/t gold
• 2024 annual guidance
achieved with 206,622oz
gold produced at AISC of
US$1,240/oz
• Kiaka construction and
operational readiness
on-schedule for first gold
in Q3 2025
In Brief
Q4
Q3
Q2
Q1
West African Resources Limited / Annual Report 2024
4
2024 Results
0
50000
100000
150000
200000
250000
2024
206,622 ounces
226,823 ounces
2023
0
50
100
150
200
250
A$251.6 million
A$208.6 million
2024
2023
0
200
400
600
800
1,000
1,200
US$1,240
US$1,136
2024
2023
0
3
6
9
12
15
12.49 million ounces
12.75 million ounces
2024
2023
0
50
100
150
200
250
A$246.2 million
A$164.8 million
2024
2023
0
1
2
3
4
5
6
7
8
6.18 million ounces
6.12 million ounces
2024
2023
Gold Production
Cash Flow from Operations
AISC per ounce
Year-end Gold Resources
Net Profit
Year-end Gold Reserves
West African Resources Limited / Annual Report 2024
5
West African Resources Limited / Annual Report 2024
6
Directors’
Report
The Directors present their report together with the consolidated financial report of West African Resources Limited (the
‘Company’) and its controlled subsidiaries (together the ‘Group’, ‘West African’ or ‘WAF’) for the year ended 31 December 2024.
ABOUT WEST AFRICAN RESOURCES LIMITED
West African Resources Limited is headquartered in Perth, Western Australia and listed on the Australian Securities Exchange
(ASX:WAF). The Company, through its subsidiaries, undertake gold mining, mineral processing, exploration, project development,
community and social sustainability, and rehabilitation within the West African country of Burkina Faso.
Burkina Faso
Western Australia
Sanbrado Gold Project
Kiaka Gold Project
Exploration
Perth Office
Mineral Resources: 4.6Moz
gold*
Mineral Resources:
7.9Moz gold
Tenement portfolio
comprising 1,334km2 over
the prospective Markoyé
fault region in central and
southern Burkina Faso
Group headquarters
Mineral Reserves: 1.4Moz
gold*
Mineral Reserves:
4.8Moz gold
Business support centre
Open pit mining
20-year open pit
Underground mining
Low strip ratio of 1.8:1
(waste : ore)
Gold exploration
Ore processing
Conventional CIL processing
Gold smelting
Fully permitted
Exploration
Construction nearing
completion with first gold
expected in Q3 2025
Resource to reserve
conversion
Community and social
programs
Environmental programs
Progressive rehabilitation
(* Includes Toega gold
deposit)
WAF emergency response team members
West African Resources Limited / Annual Report 2024
7
The Sanbrado gold project (Sanbrado) has been producing
gold since 2020. Sanbrado is located in central Burkina Faso,
90km east-southeast of the capital city of Ouagadougou.
The Kiaka gold project (Kiaka) is currently in pre-production
development phase. Commencement of gold production from
Kiaka is forecast for Q3 2025. Kiaka is located 45km south of
Sanbrado.
WAF has a 1,334km2 exploration land package over the
prospective Markoyé fault region where Sanbrado and Kiaka
are situated.
Sanbrado and 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 held 100% by WAF through wholly owned
subsidiaries.
OPERATING REVIEW
SAFETY
On 29 January 2024, the Company reported the fatality of a
contractor working at Kiaka. No other persons were injured in
the accident. Additionally, two lost time injuries (‘LTIs’) were
reported in the fourth quarter of the year.
There were no other significant health or safety incidents
during the year, and WAF’s 31 December 2024 12-month
TRIFR (Total Recordable Injury Frequency Rate) was 1.51
(2023: 1.21) versus Western Australian average reportable
injury frequency rate of 4.61.
1 Refer to the publication: Department of Energy, Mines, Industry Regulation and Safety, Quarterly Performance Snapshot for the Western Australian minerals sector for
the three-month period 1 January – 31 March 2024 (URL: worksafe.wa.gov.au/quarterly_performance_snapshot_1_january_-_31_march_2024.pdf).
GEOPOLITICAL ENVIRONMENT
Leadership of the government of Burkina Faso has been stable
since Captain Ibrahim Traore became the head of the military
and was appointed Interim President in October 2022.
SANBRADO PRODUCTION STATISTICS
A year-on-year comparison of the key production statistics for
Sanbrado is shown in the following table.
Unit
2024
2023
OP mining
Total movement
BCM ‘000
4,046
7,504
Total movement
kt
10,926
19,413
Strip ratio
w:o
1.8
3.4
Ore mined
kt
3,935
4,394
Mined grade
g/t
0.9
1.2
Contained gold
oz
112,830
172,177
UG mining
Ore mined
kt
478
470
Mined grade
g/t
7.9
6.9
Contained gold
oz
122,161
104,519
Processing
Ore milled
kt
3,435
3,321
Head grade
g/t
2.0
2.3
Recovery
%
93.3
93.7
Gold produced
oz
206,622
226,823
Gold poured
oz
211,120
222,778
Gold sold
oz
199,550
224,970
Table 1: Year-on-year key production statistics for Sanbrado
Figure 1 – WAF project location map
West African Resources Limited / Annual Report 2024
8
West African Resources Limited / Annual Report 2024
9
SANBRADO OPEN-PIT MINING
IN 2024
Open pit mined ounces decreased
34% in 2024 versus the prior year.
This decrease reflects 10% less
ore tonnes mined and 25% lower
grade, with 3,935kt of ore mined
at an average grade of 0.9g/t for
112,830 ounces of gold. The
decrease in open pit ore tonnage
and grade was consistent with the
mine plan and reflects completion
of mining from the higher grade
M5 South open pit in Q1 2024
with open pit ore mostly sourced
from M5 North in 2024.
SANBRADO UNDERGROUND
MINING IN 2024
Underground mined ounces
increased 17% in 2024 versus the
prior year. This increase results
from a 14% higher grade and 2%
more ore tonnes, with 478kt of ore mined at an average grade
of 7.9g/t for 122,161 ounces of gold. Lateral development
of 3.6km was completed in 2024 (2023: 3.1km) and the M1
South decline was 616 metres vertically below surface at the
end of 2024 (2023: 555 metres).
PROCESSING IN 2024
The Sanbrado process plant continued its strong reliable
performance in 2024 with 3% more ore tonnes milled than the
prior year. Gold production of 206,622 ounces was 9% lower
than prior year, with 3.4 million tonnes milled at a head grade
of 2.0 g/t and gold recovery of 93.3%.
A site layout of the Sanbrado project is shown below in figure 3.
Figure 3 – Sanbrado gold operation layout
Figure 2 – Sanbrado project location map
GROWTH REVIEW
OVERVIEW
Mineral Resources and Ore Reserves Growth
WAF’s Mineral Resources and Ore Reserves growth history
is shown in below figure 4 (for details of current Mineral
Resources and Ore Reserves please refer to pages 26-27
of this report).
Production Growth Target
WAF released an updated 10-year production target in July
2024 as shown below in figure 5 (for further details please
refer to ASX announcement “WAF Updates Ore Reserves and
10 Year Production Target” released 2 July 2024). The graph
shows WAF targeting an average of more than 480,000 ounces
of gold production per annum from 2026 to 2031, with Kiaka
expected to commence gold production in Q3 2025 and then
deliver full-year gold production from 2026.
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Gold Ounces
Mineral Resources
Ore Reserves
0
100,000
200,000
300,000
400,000
500,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Recovered Gold Ounces
Kiaka
Sanbrado
Figure 4 – WAF Resources and Reserves since 2015
Figure 5 – WAF 10-year production target
West African Resources Limited / Annual Report 2024
10
KIAKA GOLD PROJECT
Background and feasibility study
WAF purchased Kiaka in December 2021 from B2Gold Corp
and its partner GAMS-Mining F&I Ltd. 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 40km of all-weather dirt
road to site.
After releasing the results of an initial feasibility study for Kiaka
on 3 August 2022, WAF released updated feasibility study
results for Kiaka on 2 July 2024 (for further details refer to
ASX announcement titled “Kiaka Feasibility Update Delivers
4.8Moz gold Ore Reserve” released on 2 July 2024). The
updated feasibility study incorporated WAF’s new owner-mining
strategy for Kiaka, increased the Ore Reserve from 4.6 to 4.8
million ounces, and re-confirmed Kiaka as a long-life low-cost
conventional open-pit mining operation with conventional semi-
autogenous ball mill crushing (‘SABC’) and carbon-in-leach
(‘CIL’) processing.
The updated feasibility study estimates Kiaka will average
234,000 ounces per annum for 20 years. Figure 6 above
shows the gold production profile for Kiaka from the updated
feasibility study.
Kiaka development
In mid-2022, WAF commenced early works at Kiaka. In Q4
2022 WAF awarded the EPCM (engineering, procurement,
and construction-management) contract to Lycopodium and
the supply of the 18MW semi-autogenous grinding (‘SAG’)
mill and 9MW ball mill to Metso Outotec. Lycopodium is a
leading international engineering and project management
consultancy for West African mineral gold process plants,
having completed the construction of more than a dozen gold
projects in West Africa since 2009, including West African’s
Sanbrado gold mine. Metso Outotec were selected due to their
overall experience and reliability with supplying grinding mills of
this size, and the positive outcome at Sanbrado where WAF’s
Metso Outotec SAG and ball mills have been performing very
reliably above nameplate capacity.
During 2023, construction of the main camp was completed,
the security buildings and main entrance gates were erected,
earthworks for key areas of the primary crusher, reclaim,
mills, and CIL were handed over to the EPCM contractor
(Lycopodium), and the first concrete pour was completed.
During 2024, construction of Kiaka continued to progress on
schedule and on budget. By end of 2024 all major process
equipment was delivered to site, major concrete pours were
complete, mills were installed, settlement testing of the
carbon-in-leach tanks was successful, structural steel erection
was well progressed, most conveyor modules were installed,
mechanical equipment installation was advancing well and
electrical and instrumentation installation had commenced.
Process plant commissioning planning was underway with the
EPCM Commissioning Manager appointed.
Construction of the main camp was completed in Q2 2024.
The technical and mining offices, main administration
office, and the emergency response and safety offices were
completed and occupied in Q3 2024.
50,000
0
100,000
150,000
200,000
250,000
300,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
Recovered Gold (ozs)
Figure 6 – Kiaka gold production profile
West African Resources Limited / Annual Report 2024
11
Figure 7 – Kiaka project layout
The mining services area was well progressed by the end
of 2024, with the heavy vehicle workshop completed and
handed over to the operations team for mining fleet assembly
and commissioning. The wash bay, tyre change pad and light
vehicle workshop are scheduled for completion in Q1 2025.
Above figure 7 presents the layout of the Kiaka project, showing
the relative positions of the mining areas and the principal
infrastructure.
Erection of the 225kV powerline towers was well advanced
by the end of 2024, with the aim of commencing installation
of the powerline cables in Q1 2025. The water storage
facility was constructed and lined with water filling nearing
completion. The tailings storage facility (‘TSF’) embankment
works were completed and installation of the TSF lining was
well-progressed.
In respect of sustainability, construction of the resettlement
sites was well-progressed by the end of the year, with phase-1
resettlement sites nearing completion and construction of
phase-2 sites commenced. Water wells were commissioned
at each site and individual land parcels assigned to each
Kiaka plant mills
12
West African Resources Limited / Annual Report 2024
household. Each household selected their preferred land
parcel from the subdivision plans and site visits. Distribution of
parcels was undertaken by government authorities. Following
completion of the resettlement sites and relocation of project
affected people (‘PAPs’) to these sites, the PAPs will also retain
ownership of their existing temporary relocation housing.
Kiaka operational readiness
The Kiaka mining fleet and ancillary equipment have
commenced arrival to site for assembly and commissioning
and the initial grade control drilling program has been
completed (refer to Kiaka Main Grade Control Drilling Program
set out on page 14 of this report) in advance of the scheduled
start of open pit mining in late Q1 2025.
Construction of the explosives plant, explosives magazine,
and fuel and lubricants facilities continues to progress on
schedule. As noted above, the heavy vehicle workshop has
been completed and handed to the operations team. The
mining services area is practically complete with the tyre bay
civil works finalised and the wash bay civil works completed.
This area has now been handed over to the operations team
for owner miner equipment assembly.
The explosives contract was signed in Q4 of 2024. Orders
for first fill reagent supplies for the process plant were placed
along with arrangements for the on-site supply of tyres and
ground engaging tools (‘GET’).
Recruitment of technical, operational, and leadership
positions is progressing to plan, and experienced process
plant personnel have been transferred from Sanbrado. Mobile
equipment operator training with the use of on-site simulators
has been scheduled. Mobile equipment maintenance
training has been scheduled and computerised preventative
maintenance programs and structures are being prepared that
integrate with the warehouse/supply/accounting systems.
Kiaka process plant
Mining equipment assembly at Kiaka mine services area
West African Resources Limited / Annual Report 2024
13
Kiaka grade control drilling
The maiden grade control (‘GC’) drilling program for Kiaka
Main Pit Stage 1 was completed on schedule for
commencement of mining in Q1 2025. A total of 2,636
GC holes for 79,913 metres were drilled in the maiden
GC program. GC drilling was conducted on a nominal grid
spacing of 12.5m x 12.5m, targeting the top 20 metres of the
mineralisation within Kiaka Main Pit Stage 1 (Figure 8) and
was designed to improve the confidence level in the geological
model and grade estimation for the top 20 metres of the
deposit, which covers the first 12 months of open pit ore
production from Kiaka Main Stage 1 open pit. The two reverse
circulation rigs undertaking this GC drilling at Kiaka will now
move to Kiaka Main Pit Stages 2 and 3.
As announced on 6 February 2025 (ASX announcement titled
“WAF Grade Control Returns 5m at 27.2g/t Gold at Kiaka”),
the maiden GC drilling program continued to deliver thick
and consistent zones of gold mineralisation. The GC drilling
results aligned closely with the Company’s Mineral Resource
Estimate, confirming mineralisation widths of up to 400 metres
at surface. The initial GC model for Kiaka Main Stage 1 open
pit has been finalised and dig block design was well underway
ahead of the commencement of mining. Waste stripping is
scheduled to commence in late Q1 2025 and first ore mining is
expected to start in early Q2 2025.
Selected diagrams from the 6 February 2025 announcement
are provided below.
Figure 8 – Plan view of Kiaka Main grade control collars
West African Resources Limited / Annual Report 2024
14
Figure 10 – Kiaka Main Zone Grade Control - Section S – S’
Figure 9 – Plan View of Kiaka Main Grade Control showing cross section locations
Figure 10 – Kiaka Main Zone Grade Control - Section S – S’
West African Resources Limited / Annual Report 2024
15
SANBRADO GROWTH
WAF’s primary growth projects for Sanbrado include:
• M1 South Underground
• Toega gold deposit; and
• M5 underground.
M1 South Underground
During Q4 of 2024, the Company released the results from
recent resource definition diamond drilling within the M1 South
(‘M1S’) Deeps Resource (ASX announcement “West African
hits 36m at 11.1 g/t gold below reserves at M1S” released
on 15 October 2024). A highlight from this announcement
was that diamond drilling continues to deliver wide zones of
high-grade mineralisation beneath the current ore reserves
at M1S underground. Figure 11 below is taken from that
announcement.
Significant results from infill diamond drilling at M1S Main
Deeps in that announcement include:
• 36m at 11.1 g/t Au
• 11m at 31.2 g/t Au
• 35.5m at 9.2 g/t Au
• 20.5m at 13.2 g/t Au
• 27.5m at 7.1 g/t Au
• 16m at 11.5 g/t Au
• 20m at 8.2 g/t Au
Work from this drilling campaign beneath the current M1S Ore
Reserve is scheduled to be completed in Q1 2025 and will be
incorporated into WAF’s updated Mineral Resource Estimate
and Ore Reserves scheduled to be released in Q2 2025.
Figure 11 – Long section of M1 South Underground showing recent drilling results
West African Resources Limited / Annual Report 2024
16
Toega Gold Deposit
The Toega gold deposit is located within trucking distance
(14km southwest) of the Sanbrado gold process plant. Toega
has an Ore Reserve of 9.4 million tonnes at a grade of 1.9 g/t
gold for 570,000 contained ounces with a strip ratio (waste :
ore) of 5.4 : 1. The mining licence for Toega for an initial period
of 8 years was issued in April 2024.
Pre-strip mining at Toega is scheduled to start in Q3 2025,
with initial ore delivered to the Sanbrado plant expected in
2026.
Figure 12 shows a long section of the Toega deposit.
M5 Underground Potential
As announced on 27 June 2024 (ASX announcement titled
“WAF hits 10.5m at 15.3 g/t gold at M1S”), development
activities commenced on the M5 underground exploration
drive. Figure 13, extracted from that announcement, shows
the exploration drive which extends 800m from the existing
underground at M1 South and will provide a drill position for a
15,000m resource extension program. The drill program aims
to extend the resource at depth and significantly extend the
mine life of the potential M5 South underground. Based on the
current development schedule, the drill program is expected to
commence in Q1 2025.
STRATEGIC EXPLORATION POSITION
With the acquisition of Toega in 2020 and
Kiaka in 2021, WAF has consolidated a
strategic exploration land package over the
prospective Markoyé fault region in central
and southern Burkina Faso that currently
covers an area of 1,334km2.
Figure 12 – Toega long section
White Helmetshrike at Toega
West African Resources Limited / Annual Report 2024
17
Sanbrado M1 South Underground
West African Resources Limited / Annual Report 2024
18
Figure 13 - Oblique view looking north showing M5 exploration drive
Figure 14 – Location of WAF’s mineral interests in Burkina Faso
West African Resources Limited / Annual Report 2024
19
Broad Billed Roller at Sanbrado
West African Resources Limited / Annual Report 2024
20
SUSTAINABILITY REVIEW
The Company will publish its 2024 Sustainability Report
and 2024 Sustainability Databook in the coming weeks
as separate documents to this Annual Report. The 2024
Sustainability Report will be prepared following the Global
Reporting Initiative Sustainability Reporting Standards (GRI
Standards). Interested parties are encouraged to obtain a
copy of our full 2024 Annual Sustainability Report from the
Company’s website. Sustainability is fundamental to how West
African operates in Burkina Faso and we take our commitments
and responsibilities to the environment, the communities
where we operate, and our workforce very seriously. Provided
below are some of the key quotes from WAF’s policies that deal
with sustainability matters.
• “The Company is committed to environmental
stewardship through implementation of our Environmental
Management System and impact assessment mitigation
hierarchy. We strive to preserve the natural values of
the areas we work in and acknowledge past and future
land uses. We believe that prudent environmental
management requires science-based identification,
assessment and management of risks across the mining
life cycle, from exploration through operations and
closure.”
• “We hold ourselves to an ethical standard and are
committed to conserving and enhancing biodiversity
and ecosystem services, in line with global expectations
of a leading corporate citizen working towards meeting
the goals of the Kunming-Montreal Global Biodiversity
Framework (GBF 2030). We recognise that a strong
biodiversity strategy underpins this and is at the core of a
successful business.”
• “The Company has made a commitment to establishing
and making a lasting, positive contribution to the
countries and communities in which we operate. We at
all times engage respectfully with our stakeholders and
participate in open, honest and transparent dialogue
with our host communities. We will work with government,
community organisations and non-governmental
organisations to develop and support community
development projects and we work to enhance social
values in the regions where we operate by providing
education, training and community development
opportunities.”
• “We aim to avoid resettlement of people surrounding
our mining projects to the extent practicable while
maintaining the health and safety of our personnel
and host communities. In instances where physical
resettlement or economic displacement is unavoidable
as a direct result of our activities, we aim to restore
livelihoods and standards of living to a level equal to or
better than they enjoyed prior to displacement.”
• “West African Resources Limited is committed to being an
equal opportunity employer that embraces diversity. We
are also committed to providing an inclusive workplace
for all staff and contractors. We believe diversity
promotes and values individual and cultural differences
and is a core aspect for building and maintaining a
positive workplace culture and environment, which will
enhance the performance of Our People. In particular,
the Company values the relationships which are being
established with communities which are in the Sanbrado
Gold Project and Kiaka Gold Project localities. The
Company anticipates that the development of these
relationships will provide benefits for all parties, including
an understanding and insight into local customs and
culture, and sharing of knowledge and expertise to
facilitate employment and business opportunities.”
• “At West African Resources, we respect human dignity
in all we do, and we value diversity in our workplaces.
We do not discriminate against people based on their
ethnicity, nationality, religion, gender, age, disability or
any other bias. We do not and will not use child, forced or
compulsory labour in our operations and will not tolerate
it in our business relationships.”
• “The Company is committed to the health and safety
of Our People. The Company will work to eliminate
hazardous, practices and behaviour, which could cause
accidents, injuries or illness to Our People, visitors
to Company operations and the general public. The
Company strives to have injury free workplaces.”
Striped Kingfisher at Sanbrado
West African Resources Limited / Annual Report 2024
21
FINANCIAL REVIEW
SUMMARY
2024
$’000
2023
$’000
Revenue from continuing operations
729,984
661,225
Profit after tax
246,224
164,797
Operating cash inflow
251,640
208,612
Free cash outflow
(264,283)
(38,540)
Net cash/(debt) at end of year
(14,821)
130,312
Unit
Gold ounces sold
oz
199,550
224,970
Average sales price per ounce
US$/oz
2,391
1,944
All in sustaining cost (‘AISC’) per ounce sold
US$/oz
1,240
1,136
Table 2: Summary financial statistics
REVENUE, EARNINGS, AND UNIT COST PERFORMANCE
Unit
2024
$’000
2023
$’000
Gold sales revenue
A$’000
723,217
657,605
Gold ounces sold
oz
199,550
224,970
Average sales price per ounce AUD
A$/oz
3,624
2,923
Average sales price per ounce USD
US$/oz
2,391
1,944
Average FX rate used for USD conversion
AUD/USD
0.6598
0.6650
Table 3: Gold revenue components
‘Group profit after tax’ in 2024 increased 49% ($81,427,000) over the prior year primarily due to an increase in the operating
margin reflected by a 10% ($68,759,000) increase in ‘revenue from continuing operations’ and a 3% ($13,171,000) decrease
in ‘cost of sales’. ‘Revenue from continuing operations’ was 10% higher than the prior year due to a 24% increase in the
realised average AUD sales price per ounce, partially offset by an 11% decrease in gold ounces sold. ‘Cost of sales’ decreased
$13,171,000 from the prior year, mainly due to lower open pit mining costs.
Other notable factors contributing to the higher profit in 2024 versus the prior year included a 67% ($11,674,000) decrease
in ‘other expenses’, a 133% ($8,575,000) increase in ‘net foreign exchange gains’, and a 52% ($2,121,000) decrease in
‘exploration and evaluation expenses’ (‘E&E’). ‘Other expenses’, which is mainly comprised of withholding taxes on dividends
repatriated from Burkina Faso, decreased by $11,674,000 from the prior year mainly due to a reduction in dividend repatriations
in 2024 as funds were used in-country for construction of Kiaka. ‘Net foreign exchange gains’ in 2024 of $20,041,000 reflect
the Group’s mix of non-AUD monetary assets and liabilities during the year that benefited from the movements of foreign
exchange rates. E&E expenses decreased by $2,121,000 from the prior year as the Group prioritised development of Kiaka
during 2024.
‘Income tax expense’ of $95,861,000 in 2024 mainly comprises Burkina Faso corporate income taxes on SOMISA’s taxable
profit at a rate of 27.5% (SOMISA being the Company’s Burkina Faso subsidiary that owns 100% of Sanbrado) and a 2% levy on
SOMISA’s annual accounting profit after tax that was introduced by the Burkina Faso government in 2024.
West African Resources Limited / Annual Report 2024
22
COST PER OUNCE PERFORMANCE
The ‘adjusted operating cost’, ‘all in sustaining cost’ (‘AISC’), and ‘all in cost’ are per-ounce cost performance metrics
recommended by the World Gold Council for use in the gold mining industry, but they are not defined by Australian Accounting
Standards Board rules (i.e. they are non-AASB measures). The Company follows the World Gold Council’s guidelines in the
calculation of these metrics.
The below table presents a year-on-year comparison of these non-AASB per ounce performance metrics for the Group including
the underlying absolute costs from which they are calculated.
Underlying measure
Unit
2024
2023
Gold sold
oz
199,550
224,970
Gold revenue
A$ ‘000
723,217
657,605
Open pit mining cost
A$ ‘000
74,959
103,528
Underground mining cost
A$ ‘000
46,949
49,238
Processing cost
A$ ‘000
105,554
103,996
Site administration cost
A$ ‘000
39,174
37,053
Change in inventory
A$ ‘000
(20,535)
(20,178)
Royalties & production taxes
A$ ‘000
59,937
42,547
Refining and by product
A$ ‘000
(303)
(111)
Adjusted operating cost
A$ ‘000
305,735
316,073
Rehabilitation
A$ ‘000
1,915
1,882
Capital development
A$ ‘000
34,387
37,215
Sustaining capital
A$ ‘000
9,981
11,272
Sustaining leases
A$ ‘000
8,155
5,328
Corporate & share-based payments
A$ ‘000
14,689
12,386
All-in sustaining cost
A$ ‘000
374,862
384,156
Growth and development
A$ ‘000
-
-
Exploration non-sustaining
A$ ‘000
4,295
6,798
Capex non-sustaining
A$ ‘000
517,248
182,389
All-in cost
A$ ‘000
896,405
573,343
Performance metrics per gold ounce sold
Adjusted operating cost
A$/oz
1,532
1,405
All in sustaining cost
A$/oz
1,879
1,708
All in cost
A$/oz
4,492
2,549
Average sales price
A$/oz
3,624
2,923
Average FX rate used for USD unit costs
AUD/USD
0.6598
0.6650
Adjusted operating cost
US$/oz
1,011
934
All in sustaining cost (AISC)
US$/oz
1,240
1,136
All in cost
US$/oz
2,964
1,695
Average sales price
US$/oz
2,391
1,944
Table 4: Calculation of per-ounce cost performance metrics
The AISC per ounce in AUD increased 10% from A$1,708 in 2023 to A$1,879 in 2024 (and 9% in USD from US$1,136 in 2023
to US$1,240 in 2024). This year-on-year increase in the AUD AISC per ounce was mainly driven by 11% lower ounces sold in
2024 partially offset by a 2% decrease in the AISC in absolute terms from A$384 million in 2023 to A$375 million in 2024.
The lower AUD absolute AISC in 2024 mainly reflects lower open pit mining costs and lower sustaining capital offset by higher
royalties. Royalties increased in 2024 due to a higher average realised gold price and an increase in the Burkina Faso gold royalty
rates that came into effect in November 2023, partially offset by lower ounces sold.
West African Resources Limited / Annual Report 2024
23
RECONCILIATION OF NON-AASB MEASURES TO CONSOLIDATED FINANCIAL STATEMENTS
A reconciliation of the ‘adjusted operating cost’ and AISC per ounce presented in the previous section of this report to the Group’s
consolidated financial statements is outlined below:
Description
Financial
Statement
reference*
2024
$’000
2023
$’000
Cost of sales
P/L
377,704
390,874
(Less)/plus items:
Depreciation
Note 4
(75,150)
(86,790)
Non-cash inventory movements
Note 4
4,332
13,199
By-product credits
N/A
(1,151)
(1,210)
Adjusted operating cost
305,735
316,073
(Less)/plus items:
Reclamation & remediation (accretion & amortisation)
N/A
1,915
1,882
Corporate and technical services
P/L
11,608
9,789
Share-based payments
P/L
3,082
2,597
Capital development
Note 10
34,387
37,215
Sustaining capital
N/A
9,981
11,272
Sustaining leases
CF
8,155
5,328
Total All in sustaining cost (AISC)
374,863
384,156
Unit
Gold sold (ounces)
oz
199,550
224,970
Adjusted operating cost per ounce ($A/oz)
A$/oz
1,532
1,405
AISC per ounce (A$/oz)
A$/oz
1,879
1,708
* 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.
Table 5: Reconciliation of per-ounce cost performance metrics to the consolidated financial statements
FINANCIAL POSITION, CASH FLOW, AND CAPITAL COMMITMENTS
The Group’s net assets increased by $408,046,000 during the year, reflecting a $753,462,000 increase in total assets offset by
a $345,416,000 increase in total liabilities.
Key asset movements:
The ‘trade and other receivables’ balance was $114,362,000 lower than the prior year mainly due to $142,412,000 of loan
facility drawdowns receivables and $7,303,000 of borrowing cost prepayments that were classified to ‘borrowings’ in 2024,
offset by a $35,737,000 increase in VAT receivables from the Burkina Faso government. The 31 December 2024 trade and
other receivables balance of $117,555,000 was mostly comprised of the VAT receivables balance of $113,211,000, for which no
provision has been applied after considering the factors affecting recoverability.
The ‘inventories’ balance increased by $30,253,000 over the prior year mainly due to a $19,400,000 increase in ore stockpiles,
a $15,952,000 increase in finished goods, and a $2,410,000 increase in consumable supplies and spares, partially offset by a
$7,509,000 decrease in gold in circuit inventory.
The ‘property, plant and equipment’ (‘PP&E’) balance increased by $604,034,000 over the prior year mainly due to
$561,616,000 of PP&E additions, $48,955,000 transferred from E&E assets, $6,116,000 of rehabilitation asset increases and
$58,292,000 of foreign exchange movements increases, partially offset by $70,945,000 of depreciation. The PP&E additions
in 2024 were mainly comprised of $504,537,000 of mines under construction for Kiaka, $34,387,000 of capitalised open pit
stripping and underground development costs at Sanbrado and $22,692,000 of capital-in-progress at Sanbrado.
The ‘E&E assets’ balance decreased by $44,676,000 from the prior year mainly due to transfer of $48,955,000 of Toega E&E
assets to mines under construction following the grant of the Toega mining licence in the year and the Company’s decision to
proceed with development of Toega.
West African Resources Limited / Annual Report 2024
24
Key liabilities movements:
The ‘trade and other payables’ balance at the end of 2024 was $27,771,000 higher than the prior year mainly reflecting an
increase in supplier transactions for the development of Kiaka.
The ‘borrowings’ balance (combined current and non-current) at the end of 2024 was $259,311,000 higher than the prior
year mainly due to cash drawings and capitalised interest under the loan facilities of $263,759,000, PPA liability increases of
$8,131,000, partially offset by $13,784,000 of loan facility transaction costs.
The ‘lease liabilities’ balance (combined current and non-current) increased by $17,511,000 over the prior year due to new
underlying contracts containing lease assets being recognised during the year.
The ‘current tax payable’ balance of $54,330,000 at 31 December 2024 mainly represents estimated Burkina Faso income
taxes for the 2024 tax year less tax instalments paid in the year.
NET (DEBT)/CASH POSITION
31 December
2024
$’000
31 December
2023
$’000
Cash
391,670
135,080
Borrowings
(406,491)
(147,180)
Loan facility drawdown receivable
-
142,412
Net (debt)/cash
(14,821)
130,312
Table 6: Components of the net (debt)/cash position
The net debt position for the Group increased by $145,133,000 relative to the prior year, representing a $259,311,000 increase
in borrowings and a $142,412,000 decrease in loan facility drawdown receivable, partially offset by a $256,590,000 increase in
cash and cash equivalents.
CALCULATION OF FREE CASH OUTFLOW
2024
$’000
2023
$’000
Net increase/(decrease) in cash held in the period
230,329
(42,906)
Add/(subtract):
Proceeds from borrowings
(375,879)
-
Proceeds from issue of shares
(150,000)
-
Proceeds from exercise of share options
(232)
(247)
Payments for share issue costs
5,237
20
Effect of foreign exchange on cash balances
26,262
4,593
Free cash outflow
(264,283)
(38,540)
Table 7: Calculation of free cash outflow
The free cash outflow of $264,283,000 in the year mainly reflects operating cash inflows of $251,640,000 less expenditures
incurred for the purpose of advancing the Group’s strategy to bring Kiaka into production by the third quarter of 2025. Such
expenditures to advance Kiaka included: $485,161,000 of payments for PP&E, $25,713,000 of interest payments on borrowings
used primarily to fund the investment in Kiaka; and $5,237,000 of share issue costs on the placement that raised $150 million
used primarily to fund the investment in Kiaka.
CAPITAL COMMITMENTS
The Group’s capital expenditure commitments for property, plant and equipment were $110,474,000 at 31 December 2024
(2023: $67,300,000), with $107,150,000 related to the Kiaka project and $3,323,000 related to Sanbrado.
West African Resources Limited / Annual Report 2024
25
RESOURCES AND RESERVES STATEMENT
MINERAL RESOURCES
The following two tables provide the Mineral Resources for WAF at 31 December 2024 and 31 December 2023, respectively.
31 December 2024 Resources by Deposit
Measured Resource
Indicated Resource
Inferred Resource
Total Resource*
Deposit
Cut-off
g/t
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
MV3
0.5
2,100,000
2.2
150,000
1,700,000
1.9
100,000
3,830,000
2.0
250,000
M1 South UG
1.5
920,000
9.8
290,000
1,900,000
8.6
510,000
100,000
5.1
20,000
2,890,000
8.8
820,000
M1 South Deeps
1.5
1,300,000
11.9
500,000
1,300,000
12.0
500,000
M5 OP
0.5
770,000
1.4
30,000
23,900,000
1.0
770,000
18,200,000
1.0
600,000
42,880,000
1.0
1,390,000
M5 UG
1.5
1,700,000
3.6
200,000
700,000
4.2
90,000
2,390,000
3.8
290,000
Sanbrado Stockpile
0.4
4,110,000
0.7
90,000
4,110,000
0.7
90,000
Kiaka
0.4
212,500,000
0.9
5,950,000
72,400,000
0.8
1,920,000
284,860,000
0.9
7,870,000
Toega
0.5
13,100,000
1.7
700,000
8,500,000
2.1
580,000
21,590,000
1.8
1,280,000
Total*
5,800,000
2.2
400,000
255,100,000
1.0
8,280,000
102,940,000
1.2
3,810,000
363,840,000
1.1
12,490,000
31 December 2023 Resources by Deposit
Measured Resource
Indicated Resource
Inferred Resource
Total Resource*
Deposit
Cut-off
g/t
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
MV3
0.5
2,103,000
2.2
149,000
1,728,000
1.9
103,000
3,831,000
2.0
252,000
M1 South UG
1.5
1,228,000
10.1
398,000
1,893,000
8.6
521,000
312,000
3.4
34,000
3,434,000
8.6
953,000
M1 South Deeps
1.5
1,296,000
11.9
498,000
1,296,000
11.9
498,000
M5 OP
0.5
2,119,000
1.1
73,000
25,633,000
1.0
831,000
19,554,000
1.0
631,000
47,306,000
1.0
1,535,000
M5 UG
1.5
1,693,000
3.6
195,000
694,000
4.2
94,000
2,387,000
3.8
289,000
Sanbrado Stockpile
0.4
3,135,000
0.7
73,000
3,135,000
0.7
73,000
Kiaka
0.4
212,469,000
0.9
5,954,000
72,378,000
0.8
1,920,000
284,847,000
0.9
7,875,000
Toega
0.5
13,164,000
1.7
700,000
8,491,000
2.1
579,000
21,655,000
1.8
1,279,000
Total*
6,482,000
2.6
543,000
256,956,000
1.0
8,350,000
104,454,000
1.1
3,860,000
367,892,000
1.1
12,754,000
* 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.
West African Resources Limited / Annual Report 2024
26
ORE RESERVES
The following two tables provide the Ore Reserves for WAF at 31 December 2024 and 31 December 2023, respectively.
31 December 2024
Ore Reserve by Deposit
Proved
Probable
Proved + Probable
Deposit
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
M1
South UG
980,000
6.0
190,000
1,560,000
7.6
380,000
2,540,000
7.0
570,000
M5
410,000
1.0
10,000
4,530,000
1.2
170,000
4,940,000
1.1
180,000
Toega
9,460,000
1.9
570,000
9,460,000
1.9
570,000
ROM
Stockpile
4,110,000
0.7
90,000
4,110,000
0.7
90,000
Kiaka
164,030,000
0.9
4,770,000
164,030,000
0.9
4,770,000
Total*
5,500,000
1.6
290,000
179,580,000
1.0
5,890,000
185,080,000
1.0
6,180,000
31 December 2023
Ore Reserve by Deposit
Proved
Probable
Proved + Probable
Deposit
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
Tonnes
Grade
g/t
Contained
Au oz
M1 South
UG
1,298,000
7.3
304,000
1,591,000
7.7
392,000
2,889,000
7.5
696,000
M5
1,635,000
1.0
55,000
5,846,000
1.2
218,000
7,481,000
1.1
273,000
Toega
9,457,000
1.9
569,000
9,457,000
1.9
569,000
ROM
Stockpile
3,135,000
0.7
73,000
3,135,000
0.7
73,000
Kiaka
154,685,000
0.9
4,510,000
154,685,000
0.9
4,510,000
Total*
6,068,000
2.2
432,000
171,579,000
1.0
5,689,000
177,647,000
1.1
6,121,000
* 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.
WAF’s 31 December 2024 Ore Reserves increased by 60,000 oz gold (1%) over the prior year. The increase includes net mining
depletion of approximately 200,000ozs, which is offset by a higher Kiaka Ore Reserve following the updated feasibility study,
results of which were released in July 2024 (ASX announcement “Kiaka Feasibility Update Delivers 4.8Moz gold Ore Reserve”).
At Sanbrado, Ore Reserves have been depleted for 2024 mining activity; no models or designs have been updated. The Company
plans to announce an updated resource and reserve statement in Q2 2025, incorporating new models and mine designs.
West African Resources Limited / Annual Report 2024
27
IMPORTANT NOTICE
FORWARD-LOOKING INFORMATION
This report contains forward-looking information including information relating to the Company’s future financial or operating
performance. All statements in this report, other than statements of historical fact, that address events or developments that the
Company expects to occur, are “forward-looking” statements. This including projections, forecasts and estimates which may not
have been based solely on historical facts, but rather may be based on the opinions and estimates of the relevant management
as of the date such statements are made. Where the Company expresses or implies an expectation or belief as to future events or
results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties, contingencies, assumptions and
other factors many of which are beyond the Company’s ability to control or predict which could cause actual events or results to
differ from those expressed, projected or implied by the forward-looking information, including, without limitation, risks related to:
exploration hazards; exploration and development of natural resource properties; uncertainty in the ability to obtain funding; gold
price fluctuations; market events and conditions; the uncertainty of mineral resource calculations and the inclusion of inferred
mineral resources in economic estimation; governmental regulations; obtaining necessary licenses and permits; the business
being subject to environmental laws and regulations; the mineral properties being subject to prior unregistered agreements,
transfers, or claims and other defects in title; competition from larger companies with greater financial and technical resources;
the inability to meet financial obligations under agreements to which it is a party; ability to recruit and retain qualified personnel;
and directors and officers becoming associated with other natural resource companies which may give rise to conflicts of
interests. This list is not exhaustive of the factors that may affect the Company’s forward-looking information. Should one or more
of these risks and uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially
from those described in the forward-looking information.
Forward-looking statements are inherently uncertain and may therefore differ materially from results ultimately achieved. The
Company does not make any representations and provides no warranties concerning the accuracy of any forward-looking
information or likelihood of achievement or reasonableness of any forward-looking statements.
Past performance is not necessarily a guide to future performance. The Company does not assume any obligation to update
forward-looking information if circumstances or management’s beliefs, expectations or opinions change, or to reflect the
occurrence of unanticipated events, except as required by law.
COMPETENT PERSONS STATEMENT
Information in this report that relates to Mineral Resources for M5 Open Pit, Toega and Kiaka is based on, and fairly represents,
information and supporting documentation prepared by Mr Brian Wolfe, principal consultant of International Resources Solutions
Pty Ltd who specialises in mineral resource estimation, evaluation, and exploration. Mr Wolfe is a Member of the Australian
Institute of Geoscientists. Mr Wolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition
of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (‘JORC Code’).
Information in this report that relates to Mineral Resources for M5 Underground, MV3, M1 South Underground and M1 South
Deeps is based on, and fairly represents, information and supporting documentation prepared by Mr Neil Silvio, an employee and
Resource Geologist of WAF. Mr Silvio is a Member of the Australian Institute of Geoscientists. Mr Silvio has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the JORC Code.
Information in this report that relates to M5 open-pit Ore Reserves and open pit Ore Reserves for Kiaka is based on, and fairly
represents, information and supporting documentation prepared by Mr Peter Wright, a full-time employee of the Company. Mr
Wright is a Member of the Australian Institute of Mining and Metallurgy. Mr Wright has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the JORC Code.
Information in this report that relates to M1 South Underground Ore Reserves is based on, and fairly represents, information
and supporting documentation prepared by Mr Aleksandr Melanin, a full-time employee of the Company. Mr Melanin is a
Member of the Australian Institute of Mining and Metallurgy. Mr Melanin has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent
Person as defined in the JORC Code.
Each of the Competent Persons referred to above has reviewed the contents of this report and consents to the inclusion in this
report of all technical statements based on their respective information in the form and context in which they appear.
West African Resources Limited / Annual Report 2024
28
MINERAL RESOURCES, ORE RESERVES AND PRODUCTION TARGETS
The Company’s estimate of Ore Reserves and the production target for the Sanbrado Project (including the Toega Deposit) and
the Company’s estimate of Mineral Resources for the Group are set out in the ASX announcement titled “WAF Resource, Reserve
and 10 year production update 2024” released on 28 February 2024. Adjustments to the Company’s estimates of Mineral
Resources and Ore Reserves since the date of that announcement are set out on pages 26-27 of this report. The Company
confirms it is not aware of any new information or data that materially affects the information included in that announcement,
other than the adjustments set out in this report, and that all material assumptions and technical parameters underpinning the
estimates of Mineral Resources for the Group and Ore Reserves for the Sanbrado Project (including the Toega Deposit) and all
the material assumptions underpinning the production target and forecast financial information derived from it as set out in that
announcement continue to apply and have not materially changed.
The Company’s estimates of Ore Reserves and the production target for the Kiaka Project referred to in this report are set out
in the ASX announcement titled “Kiaka Feasibility Update Delivers 4.8Moz Gold Ore Reserve 20 Year Mine Life” released on 2
July 2024 . 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 estimate of Ore Reserves
for the Kiaka Project and all the material assumptions underpinning the production target for the Kiaka Project and the forecast
financial information derived from it as set out in that announcement continue to apply and have not materially changed.
EXPLORATION RESULTS
The exploration results referred to in this report were reported in the announcements titled “WAF Resource, Reserve and 10 year
production update 2024” released 28 February 2024, “WAF intercepts 9.5m at 81.9 g/t gold outside reserves at M1S” released
15 March 2024, “WAF intercepts 24m at 55.8 g/t gold at M1S” released on 17 April 2024, “WAF hits 10.5m at 15.3 g/t gold at
M1S” released on 27 June 2024, “WAF hits 30m at 4.1 g/t gold in grade control at Kiaka” released on 31 July 2024, “WAF Kiaka
South surprises with 22m at 7.6 g/t gold” released on 13 August 2024, “West African hits 45m at 7.3 g/t gold below reserves
at M1S” released 20 August 2024, “West African hits 36m at 11.1 g/t gold below reserves at M1S” released 15 October 2024
and “WAF Grade Control Returns 18m at 6.3 g/t gold at Kiaka. The Company is not aware of any new information or data that
materially affects the information included in those announcements.
GOVERNANCE AND INTERNAL CONTROLS FOR RESERVE AND RESOURCE ESTIMATES
WAF’s Mineral Resource and Ore Reserve estimates are prepared by suitably qualified external consultants and WAF’s personnel
using industry standard techniques in accordance with the JORC Code. The estimates are subject to internal controls and sign off
processes both at a site and corporate level and reviewed by the Technical Committee of the Board. WAF’s internal systems and
controls are reviewed on a regular basis and improvements are implemented as deemed appropriate.
West African Resources Limited / Annual Report 2024
29
RICHARD HYDE
BSc (Geology and Geophysics),
MAusIMM, MAIG
Executive Chairman and
Chief Executive Officer
Richard Hyde is a geologist with more
than 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, through to IPO
in 2010, the discovery, development,
and operation of Sanbrado, and the
acquisition and construction of Kiaka.
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
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.
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
ELIZABETH (LIBBY) MOUNSEY
BBus (Human Resources and
Industrial Relations), MAICD
Executive Director of
Human Resources
Libby Mounsey has more than 30 years’
experience in human resources and
industrial relations across the mining,
construction, health, fisheries, and
aviation industries. Over the past 15
years, she has held senior positions with
resource companies in various stages
of development from feasibility, through
to construction and operations. She
holds a Bachelor of Business (Human
Resources and Industrial Relations) from
Edith Cowan University and is a Member
of the Australian 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
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
West African Resources Limited / Annual Report 2024
30
ROD LEONARD
BSc and MSc
(Metallurgical Engineering),
MAusIMM, GAICD
Lead Independent Director
Rod Leonard is one of
the founding Directors of
Lycopodium Limited (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,
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
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 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 currently a
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
STEWART FINDLAY
BCom (Accounting and
Finance), MAICD
Non-Executive Director
Stewart Findlay has more
than 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 many
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 and
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:
Risk, Audit, Remuneration
(Chair), Nomination (Chair)
Other ASX listed directorship:
Nico Resources Limited
Previous ASX listed
directorship in the last 3
years:
Nil
West African Resources Limited / Annual Report 2024
31
COMPANY SECRETARIES
PADRAIG O’DONOGHUE
Chief Financial Officer since June 2018 and Company Secretary since May 2020.
Mr O’Donoghue has extensive experience in the mining industry and has held CFO and Company Secretarial positions with
several private and ASX-listed mining and contracting companies, including Consolidated Rutile, VDM, Navigator, Jabiru and
Barminco. His career has included roles with PWC in Vancouver, Canada where he qualified as a Chartered Accountant and with
Placer Dome and Barrick in senior management and operational positions in Australia and internationally. Mr O’Donoghue holds a
Bachelor of Commerce degree from the University of British Columbia, Canada.
ANNIE ATKINS
Legal Counsel and Joint Company Secretary, appointed on 13 November 2023.
Ms Atkins is an experienced lawyer and company secretary with a background of broad commercial experience gained in both in-
house and private practice roles. She has over 20 years of legal practice experience including leading a wide range of corporate
transactions for project financing, acquisitions, recapitalisations and major projects. Recently she held roles as Chief Legal
Officer at family office Lance East Office, Deputy General Counsel of both Tattarang, one of Australia’s largest private investment
groups, and the Minderoo Foundation and Senior Associate at national law firm Clayton Utz. Previously she also served as Legal
Counsel and Company Secretary at Macquarie Bank (Sydney) in its Infrastructure and Specialised Funds division.
PRINCIPAL ACTIVITIES
During the year, the principal activities of the Group were comprised of:
• operation of the Sanbrado Gold Project (‘Sanbrado’);
• development of the Kiaka Gold Project (‘Kiaka’);
• preparing for the start of development of the Toega gold deposit (‘Toega’); and
• mineral exploration on the Group’s 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 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 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 2024
32
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
Expiry date
Number issued
Performance rights*
6-Apr-22
$0.0000
6-Apr-26
68,322
26-May-22
$0.0000
26-May-26
149,456
27-May-22
$0.0000
27-May-26
235,926
15-Mar-23
$0.0000
15-Mar-26
322,732
15-Mar-23
$0.0000
15-Mar-28
304,294
15-Mar-23
$0.0000
15-Mar-27
606,041
12-May-23
$0.0000
12-May-26
552,593
12-May-23
$0.0000
12-May-28
568,009
12-May-23
$0.0000
12-May-27
568,008
15-Mar-24
$0.0000
15-Mar-27
921,644
15-Mar-24
$0.0000
15-Mar-28
278,948
15-Mar-24
$0.0000
15-Mar-29
332,144
10-May-24
$0.0000
10-May-26
158,567
10-May-24
$0.0000
10-May-27
636,597
10-May-24
$0.0000
10-May-28
688,796
10-May-24
$0.0000
10-May-29
688,797
13-Feb-25
$0.0000
13-Feb-27
85,335
Total performance rights on issue
7,166,209
* Performance rights are granted subject to various performance hurdles.
NON-AUDIT SERVICES
No fees were paid or payable for non-audit services provided by the auditor of the parent entity during the year.
DIRECTORS’ MEETINGS
The number of meetings of the Board of Directors and committees of the Board held during the year and the number of meetings
attended by each Director were as follows:
Committees of the Board
Board of
Directors
Audit
Remuneration
Technical
Risk
Nomination
Director
A
B
A
B
A
B
A
B
A
B
A
B
Richard Hyde
7
7
-
-
-
-
4
4
2
2
1
1
Lyndon Hopkins
7
7
-
-
-
-
4
4
2
2
1
1
Libby Mounsey
7
7
-
-
-
-
-
-
2
2
1
1
Rod Leonard
7
7
3
3
3
3
4
4
2
2
1
1
Nigel Spicer
7
7
3
3
-
-
4
4
2
2
1
1
Stewart Findlay
7
7
3
3
3
3
-
-
2
2
1
1
Robin Romero
7
7
3
3
3
3
-
-
2
2
1
1
A – the number of meetings held whilst a Director or a member of the Board committee
B – the number of meetings the Director or member of the Board committee attended
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 (‘ASIC’), 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 ASIC 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 2024
33
REMUNERATION REPORT (AUDITED)
This Remuneration Report forms part of the Directors’ Report and has been prepared in accordance with the Corporations Act
2001 (Cth).
1. REMUNERATION REPORT OVERVIEW
This Remuneration Report details the remuneration arrangements for the Company’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. All of the NEDs and Executives served in their stated position for the entire year.
Name
Position
Appointed
Non-Executive Directors
Nigel Spicer
Non-Executive Director
September 2019
Rod Leonard
Non-Executive Director
September 2019
Lead Independent Director
February 2021
Stewart Findlay
Non-Executive Director
May 2020
Robin Romero
Non-Executive Director
December 2022
Executive Directors
Richard Hyde
Executive Chairman and Chief Executive Officer
September 2006
Lyndon Hopkins
Executive Director and Chief Operating Officer
September 2019
Libby Mounsey
Executive Director of Human Resources
December 2022
Senior Executive
Padraig O’Donoghue
Chief Financial Officer and
June 2018
Company Secretary
May 2020
2. GROUP PERFORMANCE AND ITS LINK TO SHAREHOLDER RETURNS
The following table provides the earnings per share, dividends per share, net profit and share price for West African Resources
Limited for the year ended 31 December 2024 compared to the 4 previous reporting periods.
Period ending
Reporting period length
December 2024
12 months
December 2023
12 months
December 2022
12 months
December 2021
12 months
December 2020
12 months
EPS (cents)
20.7
14.3
16.1
20.9
10.2
Dividends (cents per share)
Nil
Nil
Nil
Nil
Nil
Net profit ($’000)
246,224
164,797
183,706
214,438
98,900
Share price ($)
1.435
0.945
1.175
1.320
1.050
3. REMUNERATION GOVERNANCE
A.
REMUNERATION COMMITTEE RESPONSIBILITY
The Remuneration Committee is a committee of the Board, with primary responsibility 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 recruitment, retention, performance measurement and termination;
and
• NED remuneration.
West African Resources Limited / Annual Report 2024
34
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 through 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 published 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 by an adviser relating to Board, Executive or 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. Recommendations from The Reward Practice 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 NED fees, including Committee
fees.
In 2024 the Remuneration Committee engaged Remsmart Consulting Services (RCS) to benchmark its Executive and Key
Management Personnel remuneration packages against market. Recommendations from RCS were provided to the Remuneration
Committee to assist the Remuneration Committee and Board in reviewing fixed remuneration for the Executive and Key
Management Personnel. The fee paid to RCS for this work was $8,000 (excluding GST).
C. EXECUTIVE REMUNERATION POLICY
The Board’s policy for determining Executive remuneration is to implement remuneration practices aligned with the following
objectives:
• 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.
This 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, Executive remuneration levels are reviewed annually to ensure alignment to the market and
the Company’s stated objectives.
D. REMUNERATION FRAMEWORK
The following Executive remuneration framework was adopted by the Board in 2018. Since this time, the framework has
been reviewed by external remuneration consultants in 2018 and 2022 and re-confirmed as suitable for the Company by the
Remuneration Committee in 2024.
Type
Category
Definition of category
Purpose summary
Fixed remuneration
Total fixed remuneration
Pay which is linked to the present
value and market rate of the role.
Pay for fulfilling the
requirements of the role.
At-risk remuneration
Short term incentive
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’.
Incentive for the achievement
of annual objectives and
sustained business value,
with a focus on short term
operational success and project
development milestones.
At-risk remuneration
Long term incentive
Pay for creating value for
shareholders. Reward pay is linked
to shareholder returns.
It reflects ‘pay for results’.
Incentive for performance over
the long term, with a focus
on strategic growth for both
operations and project pipeline.
West African Resources Limited / Annual Report 2024
35
An important governance and legal component of the remuneration framework is the Company’s Employee Awards Plan. An
updated Employee Awards Plan (‘Plan’) was approved at the Company’s May 2023 Annual General Meeting. The Plan aligns with
new provisions under Division 1A to Part 7.12 of the Corporations Act 2001 (Cth) with respect to being eligible for relief from the
Corporations Act requirements for disclosure and on-sale. The purpose of the Plan is to:
• assist in the reward, retention and motivation of participants;
• link the reward of participants to performance and the creation of shareholder value;
• align the interests of participants more closely with the interests of shareholders; and
• provide greater incentive for participants to focus on the Company’s longer-term goals.
All equity incentives issued to NEDs, Executives and other employees in 2024 in the form of performance rights, have been
issued by the Company under the terms and conditions of the Plan. Performance rights are granted under the 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 are otherwise not able to be exercised, will lapse. Upon vesting, performance rights are settled in
ordinary fully paid shares of the Company.
E. FIXED REMUNERATION
Total fixed remuneration (‘TFR’) consists of 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
• be commensurate with the Executive’s skills, experience, and qualifications
F. AT-RISK REMUNERATION
In order to ensure that Executive remuneration is aligned to Company performance, a portion of each Executive’s remuneration is
placed “at risk”. The STI and LTI components of the Executive remuneration comprise this at-risk portion.
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 management to achieve, and achievement of the targets is determined by the Board at the end of the year.
• The STI comprises a mix of cash and equity, which enables the Executives to accumulate equity in the business which in turn
provides alignment with the shareholders for sustained strong business results.
• The service vesting condition of the STI equity awards requires a period of continuous service (retention) 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 Executives for the achievement of long-term
strategic 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, being a minimum of 3 years.
• The LTI also enables 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 as a condition of the vesting of equity issued under the LTI.
West African Resources Limited / Annual Report 2024
36
4. NON-EXECUTIVE DIRECTOR REMUNERATION
The Company’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 the 2020 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 annual fee levels for the year ended 31 December 2024, which were consistent with the
prior year.
Title
2024
2023
Lead Independent Director base fee
$150,000
$150,000
NEDs base fee
$120,000
$120,000
Additional fee for chairing a board committee*
$15,000
$15,000
* Except chairing the Nomination Committee does not earn the NED an additional fee.
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 base 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 positive for NEDs to hold an equity
interest because it improves alignment with the Company’s shareholders. The NED fee structure in 2024 was either one of the
following, at the election of each individual NED:
i. 100% of NED fees paid in cash; or
ii. 30% of NED base fees paid in Performance Rights (30% equity component) with the remainder paid in cash.
The 30% equity component of the structure was approved, in respect of each participating Director, at the Company’s 2024
Annual General Meeting. All of the Company’s NEDs elected to participate in the 30% equity component in respect of their 2024
NED fees. There are no performance hurdles attached to the equity component, apart from a service vesting condition requiring a
period of continuous service.
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 ‘fixed’ and ‘at-risk’
components. The following tables set out the apportionment of fixed and at-risk remuneration components for the year ended 31
December 2024.
Total Fixed
Remuneration
(TFR)^
At-risk remuneration
(as a % of TFR)
Executive
STI cash
STI equity
LTI equity
Executive Chairman & CEO
$834,375
20%
35%
85%
Chief Operating Officer
$667,500
20%
30%
70%
CFO & Company Secretary
$556,250
20%
40%
60%
Director of Human Resources
$389,375
20%
40%
40%
^ Represents contractual TFR (base annual salary plus superannuation) assuming the Executive worked the full year without unpaid leave.
Remuneration component as a % of total fixed plus at-risk remuneration
TFR
At Risk Remuneration (STI and LTI)
Executive Chairman & CEO
42%
58%
Chief Operating Officer
45%
55%
CFO & Company Secretary
45%
55%
Director of Human Resources
50%
50%
West African Resources Limited / Annual Report 2024
37
The ‘at-risk’ component of remuneration for each Executive is comprised as per the below table, which shows a significant
weighting towards the long-term incentive (LTI) component. In the Board’s view this provides a balance of Executive incentivisation
that aligns with shareholders for both short-term outcomes and long-term sustainable returns and growth.
At risk remuneration
(as a % of total at-risk remuneration)
Executive
STI cash
STI equity
LTI equity
Executive Chairman & CEO
14%
25%
61%
Chief Operating Officer
17%
25%
58%
CFO & Company Secretary
20%
40%
40%
Director of Human Resources
20%
40%
40%
The proportions in the above tables are used as a guideline by the Remuneration Committee to recommend to the Board the
maximum of each component of at-risk remuneration that can be awarded to 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 Company 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 of Directors based on their assessment of the achievement of the vesting
conditions set at the time 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 must achieved for the Executives to retain that portion of their
at-risk remuneration. If the Board determines that vesting conditions attached to an equity award are ‘not achieved’ then, to the
extent they have not been achieved the respective portion of the equity award is lapsed by the Company.
In addition to incentivising the Executives to achieve the performance targets set out in the vesting conditions, the equity
incentives also provide an employee-retention benefit to the Company through including service vesting conditions. For example,
the STI equity incentives include a vesting condition whereby the Executive must remain an employee or director of the Company
for a continuous period of 2-years, and each LTI equity incentive includes a condition that the equity award will be lapsed 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 Executive Service Agreements (‘ESAs’). A summary of
the key terms of the ESAs for the year ended 31 December 2024, is shown in the following table.
Executive
Total Fixed
Remuneration^
(annual)
Contract term
Company
notice-period
Employee
notice-period
Termination
benefit*
Richard Hyde
$834,375
Until terminated
by either party
6-months’ notice
3-months’ notice
Nil termination
benefit
Lyndon Hopkins
$667,500
Same as above
Same as above
Same as above
Same as above
Padraig O’Donoghue
$556,250
Same as above
Same as above
Same as above
Same as above
Libby Mounsey
$389,375
Same as above
Same as above
Same as above
Same as above
^ Amount shown includes base annual salary, plus superannuation. The total fixed remuneration for Executives was adjusted on 1 July 2024 to reflect the change in
superannuation guarantee from 11% to 11.5%.
* Termination benefits disclosed in the table assume that termination was not due to a change of control of the Company.
C.
AT-RISK REMUNERATION
At the beginning of 2024, the Board determined STI and LTI performance targets to be achieved for Executives to earn their at-risk
remuneration. The following table summarises the 2024 STI targets for Executives 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 STI component and the equity STI component (as set out in section 5A of this report).
The 2024 STI and LTI equity awards issued to the Executive Directors were approved by shareholders at the Company’s May
2024 Annual General Meeting and additional details of these awards are contained in the corresponding notice of meeting.
West African Resources Limited / Annual Report 2024
38
The below table sets out the performance targets for the cash awards (which are the same as the vesting conditions for the
equity awards) and their level of achievement. The cash portion of the 2024 STI was paid after the Board considered the level of
achievement of the performance targets at the end of the year. The equity awards were issued to the Executives at the beginning
of 2024. Vesting of the equity awards will occur based on the level of achievement of the performance vesting conditions, as
determined by the Board, and satisfaction of a two-year service period by the Executives.
STI category
Performance targets / vesting conditions
Weighting
Level of achievement
Gateway hurdle
180,000 ounces of gold is produced in 2024.
Gateway hurdle which
determines if any STI will
be paid for 2024
Gateway achieved
Gold production
Ounces of gold produced in 2024.
Threshold: 180,000 (80% achievement)
Target: 200,000 (100% achievement)
30%
100%
Costs
2024 cost guidance is achieved, being AISC of
US$1,300 per ounce.
Threshold: $1,350 (80% achievement)
Target: $1,300 (100% achievement)
30%
100%
Growth
Kiaka Project Development milestones achieved by
31 December 2024:
• all major process plant foundations are
completed.
• the tailings storage facility (TSF) earthworks
are completed (excluding installation of the
TSF liners).
• the physical resettlement of project affected
people (PAP) is completed.
• the operational readiness program for open
pit mining is on schedule.
20%
100%
Social
There are no significant2 social incidents recorded.
5%
100%
Environment
There are no significant2 environmental incidents
recorded.
5%
100%
Safety
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.
5%
100%
External OHS Audit reports greater than 80%
compliance.
5%
100%
Board determination in relation to significant incident in 2024
(5%)
Overall level of achievement for 2024
100%
95%
Although all individual 2024 STI targets were achieved, the Board determined that the fatality in January 2024 of a contractor
working at Kiaka would result in a deduction of 5% of the achievement level of the Executives’ 2024 STI. Accordingly, the 2024
cash STI and the 2024 equity STI overall level of achievement was reduced from 100% to 95%.
For the 2024 cash STI, 95% of the potential cash award was paid to the Executives and the resulting amount is shown in the
‘cash bonus’ column of the ‘Remuneration Outcomes’ table in section 6A of this remuneration report.
For the 2024 equity STI, which is comprised of performance rights with a service vesting condition requiring the Executive to
remain an employee or director of the Company for two years from the date of issue, 5% of the performance rights have been
lapsed and the remaining 95% remain subject to the Executive satisfying the remainder of their 2-year service period before they
will vest.
2 “Significant” in this context means a Major Consequence as categorised under the Company’s enterprise risk matrix.
West African Resources Limited / Annual Report 2024
39
The following table sets out the performance vesting conditions of the 2024 equity LTI awards issued to Executives at the
beginning of 2024. The performance vesting conditions apply for a period of three years from the beginning of 2024. In addition,
the Executive must remain an employee or director of the Company until the performance vesting conditions have been satisfied.
LTI equity instrument
Proportion of
2024 equity LTI
Performance vesting conditions
Vesting
status
2024 Production LTI
Performance Rights
(expire 5 years
from issue date)
50%
Ounces of gold poured within the three-year period from 1 January
2024 to 31 December 2026
Achievement proportion will be based on the following scale:
Gold ozs poured
Achievement
<850,000
Nil
850,000
80%
900,000
100%
Unvested
2024 Sustainability
LTI Performance
Rights
(expire 4 years
from issue date)
25%
Weighted targets: The number of performance rights that will vest
will be determined relative to the Maximum Number of Rights
considering the extent to which the following weighted targets are
achieved by 31 December 2026:
• Tailings management: 50% weighting
Implement a plan to align with the Global Industry Standards
on Tailings Management (GISTM)3. Plan development to occur
in 2024, with implementation during 2025 and 2026.
• Biodiversity: 50% weighting
Implement a comprehensive biodiversity outreach strategy.
Strategy development to occur in 2024, with implementation
during 2025 and 2026.
Unvested
2024 Reserve
Replacement LTI
Performance Rights
(expire 4 years
from issue date)
25%
Replacement of Ore Reserves due to depletion over the three-year
period from 1 January 2024 to 31 December 2026.
Achievement proportion will be based on
the following scale:
Ore Reserve
change
Achievement
Ore reserve is
depleted
Nil
Ore reserve is
maintained
50%
Ore reserve is
maintained or
grown up to 20%
50% to 100%
(straight line
basis)
Unvested
100%
The following table sets out the Executives’ LTI Performance Rights on issue as at 1 January 2024 and their vesting status at the
date of this Directors’ Report.
LTI equity instrument
Year of issue
Year of expiry
Vesting status as at date
of Directors’ Report
2022 Production LTI Performance Rights
2022
2027
100% vested
2022 Growth LTI Performance Rights
2022
2026
100% vested
2022 Reserve Replacement LTI Performance Rights
2022
2026
100% vested
2023 Production LTI Performance Rights
2023
2028
Unvested
2023 Growth LTI Performance Rights
2023
2027
Unvested
2023 Reserve Replacement LTI Performance Rights
2023
2027
Unvested
3 The Board acknowledges that the Sanbrado TSF was constructed prior to the GISTM coming into effect and this will be considered when assessing achievement
of this target.
West African Resources Limited / Annual Report 2024
40
6.
REMUNERATION OUTCOMES
A.
SUMMARY OF REMUNERATION PAID TO EXECUTIVE KMP IN 2024
The remuneration disclosures for the executive KMP for the year ended 31 December 2024, prepared in accordance with the requirements of the Corporations Act 2001 (Cth) and the relevant
Australian Accounting Standards, are detailed in the following table.
Fixed remuneration
Variable remuneration
Performance based
% of remuneration
Cash salary
and fees
$
Super
$
Annual andlong
service leave
$
Total
$
Cash
Bonus*
$
Performance
rights
$
Total
$
Total
remuneration
$
Fixed
remuneration
%
Remuneration linked
to performance
%
Year
Executive Directors
Richard
2024
805,625
28,750
(20,742)
813,633
158,175
982,356
1,140,531
1,954,164
42%
58%
Hyde
2023
803,125
27,500
78,951
909,576
171,495
1,090,593
1,262,088
2,171,664
42%
58%
Lyndon
2024
571,931
28,750
29,410
630,091
126,540
648,388
774,928
1,405,019
45%
55%
Hopkins
2023
602,419
27,500
92,776
722,695
137,196
711,056
848,252
1,570,947
46%
54%
Libby
2024
360,710
28,665
9,125
398,500
73,815
238,620
312,435
710,935
56%
44%
Mounsey
2023
355,926
31,699
32,874
420,499
80,031
73,886
153,917
574,416
73%
27%
Executive
Padraig
2024
527,585
28,666
(15,853)
540,398
105,450
465,934
571,384
1,111,782
49%
51%
O’Donoghue
2023
526,301
27,449
59,824
613,574
114,330
483,638
597,968
1,211,542
51%
49%
Total
2024
2,265,851
114,831
1,940
2,382,622
463,980
2,335,298
2,799,278
5,181,900
46%
54%
2023
2,287,771
114,148
264,425
2,666,344
503,052
2,359,173
2,862,225
5,528,569
48%
52%
* Current year and prior year are presented on the accrual basis.
West African Resources Limited / Annual Report 2024
41
B.
SUMMARY OF REMUNERATION PAID TO NON-EXECUTIVE KMP IN 2024
The remuneration disclosures for the non-executive KMP for the year ended 31 December 2024, prepared in accordance with the
requirements of the Corporations Act 2001 (Cth) and the relevant Australian Accounting Standards, are detailed in the following
table. All remuneration paid to non-executive KMP was on a fixed basis, with no variable component.
Year
Cash salary and
fees
$
Super
$
Total
$
Performance
Rights*
$
Total
$
Total
remuneration
$
Rod
2024
107,866
12,134
120,000
47,764
47,764
167,764
Leonard
2023
108,353
11,647
120,000
35,141
35,141
155,141
Nigel
2024
88,989
10,011
99,000
38,212
38,212
137,212
Spicer
2023
89,391
9,609
99,000
28,113
28,113
127,113
Stewart
2024
99,000
-
99,000
38,212
38,212
137,212
Findlay
2023
99,000
-
99,000
28,113
28,113
127,113
Robin
2024
88,989
10,011
99,000
45,196
45,196
144,196
Romero
2023
89,391
9,609
99,000
18,790
18,790
117,790
Total
2024
384,844
32,156
417,000
169,384
169,384
586,384
2023
386,135
30,865
417,000
110,157
110,157
527,157
* NED remuneration consists solely of director fees. There is no scheme to provide retirement benefits to NEDs other than statutory superannuation. NEDs were
offered the option of receiving 30% of their 2023 and 2024 base director fees in the form of performance rights instead of cash, and all NEDs accepted the offer.
7. DETAILS OF SHARE-BASED COMPENSATION
Options held by KMP
At 31 December 2024
Balance
1 Jan
2024
Granted
as
remuner-
ation
Number
exercised
Net
change
other
Balance
31 Dec
2024
Total
Vested
Unvested
Director
Lyndon Hopkins
251,196
-
(251,196)
-
-
-
-
-
Executive
Padraig O’Donoghue
131,578
-
(131,578)
-
-
-
-
-
Total
382,774
-
(382,774)
-
-
-
-
-
Performance rights held by KMP
At 31 December 2024
Balance
1 Jan 2024
Granted as
remuner-
ation
Number
exercised
Net
change
other
Balance
31 Dec
2024
Total Vested
Unvested
Directors
Richard Hyde
2,496,671
1,035,354
(1,283,872)
(123,081)
2,125,072
2,125,072
-
2,125,072
Lyndon Hopkins
1,639,341
690,234
(842,721)
(77,970)
1,408,884
1,408,884
-
1,408,884
Libby Mounsey
265,624
322,108
-
-
587,732
587,732
-
587,732
Rod Leonard
38,633
46,637
(38,633)
-
46,637
46,637
-
46,637
Nigel Spicer
30,906
37,310
(30,906)
-
37,310
37,310
-
37,310
Stewart Findlay
30,906
37,310
(30,906)
-
37,310
37,310
-
37,310
Robin Romero
30,906
37,310
(30,906)
-
37,310
37,310
-
37,310
Executive
Padraig
O’Donoghue
1,178,260
575,195
(600,956)
(34,653)
1,117,846
1,117,846
-
1,117,846
Total
5,711,247
2,781,458
(2,858,900)
(235,704)
5,398,101
5,398,101
-
5,398,101
West African Resources Limited / Annual Report 2024
42
Options granted during the year as remuneration to KMP
There were no options granted to KMP in 2024.
Performance Rights granted during the year as remuneration to KMP
Grant date
Type
Number granted
Value each
Total value
10-Mar-24
STI
230,078
$1.0450
$240,432
10-Mar-24
LTI
345,117
$1.0450
$360,647
10-May-24
in lieu of 30% of
Directors’ fees
158,567
$1.4350
$227,544
10-May-24
STI
670,103
$1.4350
$961,598
10-May-24
LTI
1,377,593
$1.4350
$1,976,846
Total
2,781,458
$3,767,067
Options and performance rights exercised during the year for KMP
Exercise date
No. of Performance Rights
No. of options
Value each on exercise date
19-Jan-24
-
131,578
$0.9450
19-Feb-24
30,906
-
$0.8600
24-Feb-24
38,633
-
$0.8450
23-Apr-24
-
251,196
$1.2900
30-Apr-24
375,000
-
$1.3400
13-May-24
30,906
-
$1.4500
10-Sep-24
850,899
-
$1.3650
14-Oct-24
1,501,650
-
$1.4950
15-Oct-24
30,906
-
$1.5450
Total
2,858,900
382,774
Options and performance rights forfeited/lapsed during the year by KMP
Lapse date
No. of Performance Rights
No. of options
Financial year in which the
options/ performance rights
were granted
01-Jan-24
235,704
-
2021
Total
235,704
-
Shareholdings of KMP
Balance
1 Jan 2024
Issued as
remuneration
Issued on
exercise
of options/
performance
rights
Net change
other
Balance
31 Dec 2024
Balance
at report date
Directors
Richard Hyde
17,864,297
-
1,283,872
(2,000,000)
17,148,169
17,148,169
Lyndon Hopkins
3,674,828
-
1,093,917
(2,483,478)
2,285,267
2,285,267
Libby Mounsey
142,573
-
-
(14,000)
128,573
128,573
Rod Leonard
221,391
-
38,633
-
260,024
260,024
Nigel Spicer
96,151
-
30,906
(20,000)
107,057
107,057
Stewart Findlay
87,826
-
30,906
-
118,732
118,732
Robin Romero
-
-
30,906
-
30,906
30,906
Executive
Padraig
O’Donoghue
1,586,424
-
732,534
(1,619,058)
699,900
699,900
Total
23,673,490
-
3,241,674
(6,136,536)
20,778,628
20,778,628
West African Resources Limited / Annual Report 2024
43
8. LOANS TO KMP
There were no loans to KMP during the year.
END OF AUDITED REMUNERATION REPORT.
AUDITOR INDEPENDENCE
Section 307C of the Corporations Act 2001 (Cth) 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 83 and forms part of this Directors’ Report.
Signed in accordance with a resolution of the Directors.
RICHARD HYDE
Executive Chairman & CEO
Perth, 5 March 2025
West African Resources Limited / Annual Report 2024
44
Financial
Statements
2024
Contents
Consolidated Statement Of Profit Or Loss And Other Comprehensive Income
46
Consolidated Statement Of Financial Position
47
Consolidated Statement Of Changes In Equity
48
Consolidated Statement Of Cash Flows
49
Notes To The Consolidated Financial Statements
50
Directors’ Declaration
82
Auditor’s Independence Declaration
83
Independent Auditor’s Report
84
ASX Additional Information
89
Summary Of Tenements
91
West African Resources Limited / Annual Report 2024
45
2024
2023
Note
$’000
$’000
Revenue from continuing operations
3
729,984
661,225
Cost of sales
4(a)
(377,704)
(390,874)
Exploration and evaluation expenses
(1,949)
(4,070)
Corporate and technical services
(11,608)
(9,789)
Share-based payments
(3,082)
(2,597)
Other expenses
4(b)
(5,805)
(17,478)
Finance expenses
(2,772)
(1,770)
Net foreign exchange gain
15,021
6,446
Profit before tax
342,085
241,093
Income tax expense
5
(95,861)
(76,296)
Profit after tax
246,224
164,797
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences for foreign operations
16,070
12,149
Other comprehensive income, net of income tax
16,070
12,149
Total comprehensive income for the year
262,294
176,946
Profit attributable to:
Owners of the parent
223,844
146,873
Non-controlling interest
23
22,380
17,924
246,224
164,797
Total comprehensive income attributable to:
Owners of the parent
239,914
159,022
Non-controlling interest
23
22,380
17,924
262,294
176,946
Basic earnings per share (cents per share)
6
20.7
14.3
Diluted earnings per share (cents per share)
6
20.6
14.2
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2024
West African Resources Limited / Annual Report 2024
46
2024
2023
Note
$’000
$’000
CURRENT ASSETS
Cash and cash equivalents
7
391,670
135,080
Restricted cash
5,832
3,268
Trade and other receivables
8
117,555
231,917
Inventories
9
134,175
103,923
Total current assets
649,232
474,188
NON-CURRENT ASSETS
Property, plant and equipment
10
1,286,564
682,530
Right-of-use assets
11
21,284
2,226
Exploration and evaluation assets
12
17,220
61,895
Total non-current assets
1,325,068
746,651
TOTAL ASSETS
1,974,300
1,220,839
CURRENT LIABILITIES
Trade and other payables
13
110,378
82,608
Borrowings
14
23,776
14,102
Lease liabilities
15
6,492
1,970
Current tax payable
54,330
29,966
Total current liabilities
194,976
128,646
NON-CURRENT LIABILITIES
Borrowings
14
382,715
133,078
Lease liabilities
15
12,989
-
Provisions
16
33,054
17,197
Deferred tax liabilities
17
36,689
36,087
Total non-current liabilities
465,447
186,362
TOTAL LIABILITIES
660,423
315,008
NET ASSETS
1,313,877
905,831
EQUITY
Issued capital
18
480,375
335,857
Reserves
19
49,966
30,673
Retained earnings
716,643
494,674
Equity attributable to owners of the parent
1,246,984
861,204
Non-controlling interest
23
66,893
44,627
TOTAL EQUITY
1,313,877
905,831
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Consolidated Statement of Financial Position
As at 31 December 2024
West African Resources Limited / Annual Report 2024
47
Issued
capital
Retained
earnings
Foreign
currency
translation
reserve
Share-based
payments
reserve
Non-
controlling
interest
Total
$’000
$’000
$’000
$’000
$’000
$’000
Balance at 1 January 2023
335,630
349,083
689
15,096
40,069
740,567
Profit after tax
-
146,873
-
-
17,924
164,797
Other comprehensive income for the period
-
-
12,149
-
-
12,149
Total comprehensive income for the period
-
146,873
12,149
-
17,924
176,946
Shares issued during the year net of
transaction costs
227
-
-
-
-
227
Transfer to non-controlling interest
-
(1,282)
-
-
1,282
-
Share-based payments
-
-
-
2,739
-
2,739
Subsidiary minority interest profit distribution
-
-
-
-
(14,648)
(14,648)
Balance at 31 December 2023
335,857
494,674
12,838
17,835
44,627
905,831
Balance at 1 January 2024
335,857
494,674
12,838
17,835
44,627
905,831
Profit after tax
-
223,844
-
-
22,380
246,224
Other comprehensive income for the period
-
-
16,070
-
-
16,070
Total comprehensive income for the period
-
223,844
16,070
-
22,380
262,294
Shares issued during the year net of
transaction costs
144,518
-
-
-
-
144,518
Transfer to non-controlling interest
-
(1,875)
-
-
1,875
-
Share-based payments
-
-
-
3,223
-
3,223
Subsidiary minority interest profit distribution
-
-
-
-
(1,989)
(1,989)
Balance at 31 December 2024
480,375
716,643
28,908
21,058
66,893
1,313,877
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
West African Resources Limited / Annual Report 2024
48
2024
2023
Note
$’000
$’000
OPERATING ACTIVITIES
Receipts from customers
724,368
658,815
Payments to suppliers and employees
(412,369)
(392,647)
Income tax paid
(67,850)
(59,499)
Interest received
8,583
2,277
Interest paid
(1,092)
(334)
Net cash inflow from operating activities
20(A)
251,640
208,612
INVESTING ACTIVITIES
Payments for property, plant and equipment
(485,161)
(225,379)
Capitalised exploration and evaluation expenditure
(2,186)
(2,958)
Net cash outflow from investing activities
(487,347)
(228,337)
FINANCING ACTIVITIES
Proceeds from issue of shares
150,000
-
Proceeds from exercise of share options
18(b)
232
247
Proceeds from borrowings
20(B)
375,879
-
Subsidiary minority interest profit distribution
(1,989)
(14,648)
Payments for share issue costs
(5,237)
(20)
Payments for lease liabilities
20(B)
(8,155)
(5,328)
Interest paid on borrowings
(25,713)
(1,420)
Transaction costs related to borrowings
20(B)
(18,982)
(2,012)
Net cash inflow/(outflow) from financing activities
466,035
(23,181)
Net increase/(decrease) in cash held
230,328
(42,906)
Cash at the beginning of the financial period
135,080
173,393
Effect of exchange rate changes on the balance of cash held
in foreign currencies
26,262
4,593
Cash at the end of the financial period
7
391,670
135,080
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
West African Resources Limited / Annual Report 2024
49
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 30 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.
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 capitalise them as exploration and evaluation (E&E)
assets or transfer them to PP&E where a decision has been made to proceed with development in respect of a particular
area of interest.
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.
Valuation of PPA liability
• Estimating the future cash flows to settle the production payment agreement (‘PPA’) liability.
Group consolidation
• Setting the functional currency used for each entity in the Group.
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
West African Resources Limited / Annual Report 2024
50
1. BASIS OF PREPARATION (CONTINUED)
E.
SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY ESTIMATES (CONTINUED)
Income tax
• Interpreting tax legislation in a number of countries.
• Estimating future tax outcomes.
Share-based payments
• Estimating the fair value of share-based payments on 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 (‘VAT’) 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.
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.
West African Resources Limited / Annual Report 2024
51
1. BASIS OF PREPARATION (CONTINUED)
I.
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.
J.
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 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.
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.
West African Resources Limited / Annual Report 2024
52
1. BASIS OF PREPARATION (CONTINUED)
J.
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
3 to 10 years
Office equipment
3 to 10 years
Plant and equipment
3 to 10 years
Light vehicles
3 years
The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at each balance date.
K.
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 current rights of tenure and where activities may not 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.
L.
TRADE AND OTHER PAYABLES
Trade and other payables represent the principal amounts outstanding at balance date, plus, where applicable, any accrued
interest.
M.
BORROWINGS
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.
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.
Borrowing costs
Borrowing costs are recognised as an expense in the reporting period in which they are incurred, except to the extent
they are capitalised when they are directly attributable to the acquisition, construction or production of a qualifying asset.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
determined as those borrowing costs which would have been avoided if the expenditure on the qualifying asset had not
been made. To the extent funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of
borrowing costs eligible for capitalisation is determined as the actual borrowing costs incurred on that borrowing during the
period less any investment income on the temporary investment of those borrowings.
West African Resources Limited / Annual Report 2024
53
1
BASIS OF PREPARATION (CONTINUED)
N.
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.
O.
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.
P.
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 on 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.
Q. 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.
West African Resources Limited / Annual Report 2024
54
1
BASIS OF PREPARATION (CONTINUED)
Q. FOREIGN CURRENCY TRANSLATION (CONTINUED)
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, Kiaka SA and Toega 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.
R.
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.
West African Resources Limited / Annual Report 2024
55
1
BASIS OF PREPARATION (CONTINUED)
R.
FINANCIAL ASSETS (CONTINUED)
Financial assets at amortised cost are subsequently measured using the effective interest rate 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.
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 operation 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
Construction
and E&E
Other
Total
$’000
$’000
$’000
$’000
2023
Total segment revenue
660,808
36
381
661,225
Total segment expenses
390,874
4,070
9,789
404,733
Total segment results
269,934
(4,034)
(9,408)
256,492
Segment assets at 31 December 2023
656,148
330,102
234,589
1,220,839
Segment liabilities at 31 December 2023
141,701
14,774
158,533
315,008
2024
Total segment revenue
726,630
37
3,317
729,984
Total segment expenses
377,704
1,949
11,608
391,261
Total segment results
348,926
(1,912)
(8,291)
338,723
Segment assets at 31 December 2024
746,890
848,278
379,132
1,974,300
Segment liabilities at 31 December 2024
198,445
200,713
261,265
660,423
Segment result is reconciled to the profit before income tax as follows:
2024
2023
$’000
$’000
Total segment results
338,723
256,492
Share-based payments
(3,082)
(2,597)
Finance expenses
(2,772)
(1,770)
Other expenses
(5,805)
(17,478)
Net foreign exchange gain
15,021
6,446
Profit before income tax
342,085
241,093
Metal sales were made to the following customers in the year:
• 98% (2023: 100%) of sales to MKS PAMP SA; and
• 2% of sales to Société Nationale des Substance Précieuses
West African Resources Limited / Annual Report 2024
56
2
SEGMENT REPORTING (CONTINUED)
C.
GEOGRAPHICAL INFORMATION
Sales to external customers
Geographical non-current assets
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Africa
724,368
658,815
1,290,534
744,569
Australia
-
-
37,635
2,082
Total
724,368
658,815
1,328,169
746,651
3
REVENUE
2024
2023
$’000
$’000
Metal sales
724,368
658,815
Interest received
5,483
2,281
Other income
133
129
729,984
661,225
4
EXPENSES
2024
2023
$’000
$’000
(a) Cost of sales
Production expenses
266,637
293,815
Royalties and other selling costs
60,784
43,646
Depreciation and amortisation
75,150
86,790
Changes in inventory (cash)
(20,535)
(20,178)
Changes in inventory (non-cash)
(4,332)
(13,199)
377,704
390,874
(b) Other expenses
Accretion of rehabilitation provision
922
547
Depreciation and amortisation
82
154
Withholding tax expense
4,801
16,777
5,805
17,478
(c) Other required disclosures
Employee benefits (excluding share-based payments)
42,155
42,299
5
INCOME TAX
A
INCOME TAX RECOGNISED IN PROFIT OR LOSS
2024
2023
$’000
$’000
Current tax
93,332
79,271
Deferred tax
603
1,353
(Over)/Under provided in prior years
1,926
(4,328)
95,861
76,296
West African Resources Limited / Annual Report 2024
57
5
INCOME TAX (CONTINUED)
B.
NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE
2024
2023
$’000
$’000
Accounting profit before tax
342,085
241,093
Income tax expense at 30%
102,625
72,327
Add/(Deduct):
Non-deductible expenses
3,616
5,689
Effect of differences in foreign tax rates
(7,848)
(5,438)
Effect of differences in foreign exchange
1,157
960
Other permanent adjustment
6,667
3,105
Movement in unrecognised deferred tax assets
(10,356)
(347)
Income tax expense
95,861
76,296
C.
UNRECOGNISED DEFERRED TAX BALANCES
2024
2023
$’000
$’000
(a) Unrecognised deferred tax assets
Annual leave provision
161
144
Accrued expenses
259
213
Long service leave provision
79
59
Borrowings
11,516
14,270
Leases
127
11
Tax losses
20,447
20,447
Fixed ratio test disallowed amounts
4,010
-
(b) Unrecognised deferred tax liabilities
Cash and short-term deposits
(9,710)
(3,471)
Prepayments
(6)
(6)
Borrowing costs
(5,459)
-
Right-of-use assets
(122)
(9)
Net unrecognised deferred tax asset
21,302
31,658
West African Resources Limited / Annual Report 2024
58
6
EARNINGS PER SHARE
2024
2023
$
$
Basic earnings per share (cents per share)
20.7
14.3
Diluted earnings per share (cents per share)
20.6
14.2
The profit and weighted average number of ordinary shares used in the
calculation of basic earnings per share is as follows:
Attributable profit for the year
223,843,084
146,871,956
Weighted average number of shares outstanding during the period used in
calculations of basic earnings per share
1,080,117,492
1,024,736,383
Weighted average number of diluted shares outstanding during the period
used in calculations of diluted earnings per share
1,086,151,959
1,031,147,540
7
CASH AND CASH EQUIVALENTS
2024
2023
$’000
$’000
Cash at bank and in hand
391,670
135,080
391,670
135,080
8
TRADE AND OTHER RECEIVABLES
2024
2023
$’000
$’000
Current
Interest receivable
4
4
Prepayments
3,037
10,266
Loan facility drawdown receivable
-
142,412
VAT receivable
113,211
77,474
Other receivables
1,303
1,761
117,555
231,917
The value added tax (VAT) receivables are due from the Burkina Faso government and nil provision for doubtful debts has
been applied (2023: nil provision applied).
9
INVENTORIES
2024
2023
$’000
$’000
Ore stockpiles – cost
82,038
62,638
Finished goods – cost
21,130
5,178
Gold in circuit – cost
3,157
10,666
Consumable supplies and spares – cost
27,850
25,441
134,175
103,923
West African Resources Limited / Annual Report 2024
59
10 PROPERTY, PLANT AND EQUIPMENT
Mine
development
assets
Mines under
construction
Capital in
progress
Land and
buildings
Office
equipment
Plant and
equipment
Light
vehicles
Total
Cost and accumulated depreciation
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
31 December 2023
Gross carrying amount at cost
248,003
320,330
30,957
35,719
892
263,279
6,607
905,787
Accumulated depreciation
(122,302)
-
-
(13,612)
(741)
(80,551)
(6,051)
(223,257)
Net carrying amount
125,701
320,330
30,957
22,107
151
182,728
556
682,530
31 December 2024
Gross carrying amount at cost
296,520
921,726
38,336
36,874
920
288,150
6,873
1,589,399
Accumulated depreciation
(168,844)
-
-
(17,328)
(845)
(109,229)
(6,589)
(302,835)
Net carrying amount
127,676
921,726
38,336
19,546
75
178,921
284
1,286,564
Carrying value
31 December 2023
At the beginning of the period
136,176
142,580
32,593
24,790
77
180,822
1,022
518,060
Transfers
-
-
(20,560)
-
137
20,083
340
-
Additions
37,215
175,667
17,994
-
-
-
-
230,876
Depreciation expensed for the period
(53,902)
-
-
(3,406)
(66)
(23,428)
(753)
(81,555)
Depreciation capitalised for the period
-
-
-
-
-
(20)
(84)
(104)
Change in rehabilitation provision
(1,451)
-
-
-
-
-
-
(1,451)
Effects of movement in foreign exchange
7,663
2,083
930
723
3
5,271
31
16,704
Net of accumulated depreciation
125,701
320,330
30,957
22,107
151
182,728
556
682,530
31 December 2024
At the beginning of the period
125,701
320,330
30,957
22,107
151
182,728
556
682,530
Transfers
-
-
(16,416)
-
-
16,363
53
-
Transfers from E&E assets
-
48,955
-
-
-
-
-
48,955
Additions
34,387
504,537
22,692
-
-
-
-
561,616
Depreciation expensed for the period
(41,754)
-
-
(3,211)
(79)
(25,555)
(285)
(70,884)
Depreciation capitalised for the period
-
-
-
-
-
(8)
(51)
(59)
Change in rehabilitation provision
6,116
-
-
-
-
-
-
6,116
Effects of movement in foreign exchange
3,226
47,904
1,103
650
3
5,393
11
58,290
Net of accumulated depreciation
127,676
921,726
38,336
19,546
75
178,921
284
1,286,564
Additions to ‘mines under construction’ included $47,266,000 of capitalised borrowing costs (2023: nil) directly attributable to the construction of Kiaka.
West African Resources Limited / Annual Report 2024
60
11 RIGHT-OF-USE ASSETS
Property
Equipment
Total
$’000
$’000
$’000
Balance at 1 January 2023
119
7,350
7,469
Additions
-
-
-
Depreciation expensed for the period
(89)
(5,389)
(5,478)
Effects of movement in foreign exchange
-
235
235
Balance at 31 December 2023
30
2,196
2,226
Balance at 1 January 2024
30
2,196
2,226
Additions
490
23,044
23,534
Depreciation expensed for the period
(112)
(4,348)
(4,460)
Effects of movement in foreign exchange
-
(16)
(16)
Balance at 31 December 2024
408
20,876
21,284
12 EXPLORATION AND EVALUATION ASSETS
2024
2023
$’000
$’000
Balance at 1 January
61,895
57,581
Additions
2,346
2,729
Transfers to property, plant and equipment
(48,955)
-
Effects of movement in foreign exchange
1,934
1,585
Balance at 31 December
17,220
61,895
The recoupment of exploration and evaluation costs carried forward is dependent on the successful development and
commercial exploitation or sale of the respective areas of interest. E&E assets of $48,955,000 that related to the Toega
gold deposit were transferred to ‘mines under construction’ in the year following the granting of the mining licence and the
Group’s decision to proceed with development of the deposit.
13 TRADE AND OTHER PAYABLES
2024
2023
$’000
$’000
Current
Trade payables
68,850
46,251
Accruals
39,748
35,192
Employee benefits payable
1,780
1,165
110,378
82,608
West African Resources Limited / Annual Report 2024
61
14 BORROWINGS
A.
LOAN FACILITY
2024
2023
$’000
$’000
Current
Secured loan facilities
18,668
-
PPA liabilities
5,108
-
Total current loan facility
23,776
-
Non-current
Secured loan facilities
391,943
146,816
PPA liabilities
20,529
17,505
Transaction costs
(45,027)
(31,243)
Total non-current loan facility
367,445
133,078
Total loan facility
391,221
133,078
(a) Secured loan facilities
Secured loan facilities arranged by Sprott Resources Lending Corp. and Coris Bank International SA with a combined limit
of: a) USD 165 million; and b) FCFA 61 billion, were entered into on 29 December 2023. The facilities were fully drawn as at
31 December 2024. The USD component of the secured loan facilities carries interest at a rate of 5.5% plus the greater of:
(i) 3-month SOFR; and (ii) 4%, payable quarterly, with loan repayments commencing in March 2026. The FCFA component
of the secured loan facilities carries interest at a rate of 12.05%, payable quarterly, with loan repayments commencing in
September 2025.
(b) PPA liabilities
Associated with the secured loan facilities are liabilities under production payment agreements (each a ‘PPA’) to pay a
combined amount of US$12.44 per ounce on the first 1.5 million ounces of gold produced from the Kiaka Gold Project. The
PPA liabilities balance was calculated by discounting the expected future cash outflows at a rate of 5%.
Amounts owing under the secured loan facilities and PPAs rank equally with respect to guarantees given by substantially all
companies in the Group and first ranking securities over substantially all assets of the Group.
B.
SUPPLIER LOAN FACILITY
2024
2023
$’000
$’000
Current
-
14,102
Non-current
15,270
-
15,270
14,102
An unsecured USD denominated loan facility with Byrnecut Burkina Faso SARL as a component of the Sanbrado
underground mining services contract, with a limit of US$10 million. As at 31 December 2024, US$9.5 million (2023:
US$9.6 million) has been utilised which carries an interest rate of 12% (2023: 9.75%) and is repayable by June 2028.
West African Resources Limited / Annual Report 2024
62
15 LEASES
2024
2023
$’000
$’000
Current
6,492
1,970
Non-current
12,989
-
19,481
1,970
Amounts recognised in profit or loss
Interest on lease liabilities
1,082
352
Expenses relating to short-term leases
31
30
1,113
382
Amounts recognised in the statement of cash flows
Total cash outflow for leases
8,155
5,328
16 PROVISIONS
2024
2023
$’000
$’000
Non-current
Long service leave provision
263
196
Employee retirement provision
3,001
2,139
Rehabilitation provision
29,790
14,862
33,054
17,197
Reconciliation of movements in rehabilitation provision:
Balance at the start of the period
14,862
14,266
Increase in rehabilitation provision during the year
14,448
2,293
Effects of movement in foreign exchange
480
(1,697)
Balance at the end of the period
29,790
14,862
The Group’s rehabilitation provision has been calculated by discounting the expected future rehabilitation cash outflows at a
rate of 4.38% (2023: 4.0%) and assuming an average inflation rate of 2.8% (2023: 3.0%).
West African Resources Limited / Annual Report 2024
63
17 DEFERRED TAX LIABILITIES
2024
2023
$’000
$’000
Deferred tax liabilities
Trade and other receivables
1,627
1,270
Property, plant and equipment
(23,967)
29,092
Trade and other payables
(2,596)
(935)
Borrowings
58,179
3,029
Borrowing costs
3,446
3,873
Revenue losses
-
(242)
Deferred tax liabilities
36,689
36,087
Movements:
Opening balance
36,087
34,734
Charged to profit and loss
419
2,211
Under/(Over) provision in prior years
183
(858)
Closing balance
36,689
36,087
18 ISSUED CAPITAL
2024
2023
$’000
$’000
Fully paid ordinary shares
480,375
335,857
(a) Number of shares
No.
No.
At start of period
1,026,338,077
1,022,841,993
Issue of shares on exercise of options and performance rights
3,949,715
3,496,084
Issue of shares from capital raising
109,489,052
-
Balance at end of period
1,139,776,844
1,026,338,077
(b) Value of shares
$’000
$’000
At start of period
335,857
335,630
Issue of shares on exercise of options and performance rights
232
247
Issue of shares from capital raising
150,000
-
Share issue costs
(5,714)
(20)
Balance at end of period
480,375
335,857
West African Resources Limited / Annual Report 2024
64
19 RESERVES
2024
2023
$’000
$’000
Foreign currency translation reserve
28,907
12,838
Share-based payments reserve
21,059
17,835
49,966
30,673
Nature and purpose of reserves
(a) Foreign currency translation reserve
The foreign currency translation reserve is used to record the Group’s exchange differences arising from the translation of
loans to foreign subsidiaries 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 performance rights issued by the
Company under share-based payment arrangements that are not exercised or expired.
20 CASH FLOW INFORMATION
A.
RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES
2024
2023
$’000
$’000
Profit after income tax
246,224
164,797
Adjustment for:
Depreciation and amortisation
75,232
86,945
Share-based payments
3,082
2,597
Accretion of rehabilitation provision
922
547
Financing costs
2,772
1,770
Net foreign exchange gain
(20,040)
(8,146)
308,192
248,510
Changes in assets and liabilities
(Increase)/Decrease in trade and other receivables
(24,533)
(37,525)
(Increase)/Decrease in inventories
(27,277)
(35,891)
(Decrease)/Increase in trade and other payables
(33,115)
13,564
(Decrease)/Increase in provisions
595
3,157
(Decrease)/Increase in current tax payable
27,175
15,444
(Decrease)/Increase in deferred tax liabilities
603
1,353
Net cash inflow from operating activities
251,640
208,612
West African Resources Limited / Annual Report 2024
65
20 CASH FLOW INFORMATION (CONTINUED)
B.
RECONCILIATION OF BORROWINGS AND LEASES TO NET CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings
Lease
liabilities
Total
$’000
$’000
$’000
Balance at 1 January 2023
13,573
8,075
21,648
Cash outflow from financing activities
(2,012)
(5,328)
(7,340)
Drawdown yet to be received
133,078
-
133,078
Effect of changes in foreign exchange rates
2,541
(777)
1,764
Balance at 31 December 2023
147,180
1,970
149,150
Balance at 1 January 2024
147,180
1,970
149,150
Cash inflow/(outflow) from financing activities
356,897
(8,155)
348,742
Leases entered into during the year
-
25,534
25,534
Drawdown received during the year
(133,078)
-
(133,078)
Amortisation of borrowing costs
11,027
-
11,027
Effect of changes in foreign exchange rates
24,465
2,132
26,597
Balance at 31 December 2024
406,491
21,481
427,972
21 DIVIDENDS
No dividends have been paid or declared payable during the year (2023: nil).
22 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:
2024
2023
$’000
$’000
Due within 1 year
1,477
1,051
Due after 1 year but not more than 5 years
1,225
2,101
Due after 5 years
-
-
2,702
3,152
B.
CAPITAL COMMITMENTS
The Group’s capital expenditure commitments for property, plant and equipment were $110,474,000 at 31 December
2024 (2023: $67,300,000).
West African Resources Limited / Annual Report 2024
66
22 COMMITMENTS AND OTHER CONTINGENCIES (CONTINUED)
C.
CONTINGENT LIABILITIES
(i)
Royalty agreements
The Group entered into royalty agreements with third parties in respect of the 2021 acquisition of the Kiaka Gold Project
(‘Kiaka’) and Toega Gold Deposit (‘Toega’) as follows:
• Royalties will be payable on refined gold produced from ore extracted from Kiaka as follows:
• a 3% net smelter return (‘NSR’) royalty on the first 2.5 million ounces; and
• a 0.5% NSR royalty on the next 1.5 million ounces.
• Royalties will be payable on the first 1.5 million refined gold ounces produced from ore extracted from Toega as follows:
• a 3% NSR royalty to a value of US$25 million; and
• thereafter a 0.5% NSR royalty.
(ii)
Other contingent liabilities
There were no other material contingent liabilities at 31 December 2024 (2023: nil).
23 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
Country of
incorporation
2024
2023
Entities
%
%
Parent company
West African Resources Limited
Australia
Direct subsidiaries
WAF Finance Pty Ltd
Australia
100
100
Wura Resources Pty Ltd SARL
Burkina Faso
100
100
West African Resources Development SARL
Burkina Faso
100
100
Channel Resources Ltd
Canada
100
100
Volta II Ltd
Cayman Islands
100
100
Indirect subsidiaries
Channel Resources (Cayman I) Ltd
Cayman Islands
100
100
Channel Resources (Cayman II) Ltd
Cayman Islands
100
100
Tanlouka SARL
Burkina Faso
100
100
Société des Mines de Sanbrado SA1
Burkina Faso
90
90
Volta Resources (Cayman) Inc.
Cayman Islands
100
100
Volta Properties SARL
Burkina Faso
100
100
Kiaka Gold SARL
Burkina Faso
100
100
Kiaka SA1
Burkina Faso
90
90
Toega SA1,2
Burkina Faso
90
-
1 The remaining 10% is held by the government of Burkina Faso.
2 Toega SA was incorporated on 4 June 2024.
All intercompany balances and transactions, including unrealised gains and losses arising from intra-group transactions,
have been eliminated in preparing the consolidated financial statements.
West African Resources Limited / Annual Report 2024
67
23 INTEREST IN SUBSIDIARIES (CONTINUED)
A.
SUMMARISED FINANCIAL INFORMATION FOR SOCIÉTÉ DES MINES DE SANBRADO (‘SOMISA’) BEFORE
INTRAGROUP ELIMINATIONS
2024
2023
$’000
$’000
STATEMENT OF PROFIT OR LOSS
Revenue
726,624
660,808
Profit for the year:
Attributable to owners of the parent
206,677
161,769
Attributable to non-controlling interest
22,964
17,974
229,641
179,743
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
351,158
284,472
Non-current assets
594,972
367,040
946,130
651,512
Liabilities
Current liabilities
194,205
152,059
Non-current liabilities
75,559
51,723
269,764
203,782
Equity
Attributable to owners of the parent
608,729
402,957
Attributable to non-controlling interest
67,637
44,773
676,366
447,730
STATEMENT OF CASH FLOWS
Net cash from operating activities
269,462
219,196
Net cash used in investing activities
(56,352)
(60,587)
Net cash used in financing activities
(223,399)
(174,130)
(10,289)
(15,521)
West African Resources Limited / Annual Report 2024
68
23 INTEREST IN SUBSIDIARIES (CONTINUED)
B.
SUMMARISED FINANCIAL INFORMATION FOR KIAKA SA BEFORE INTRAGROUP ELIMINATIONS
2024
2023
$’000
$’000
STATEMENT OF PROFIT OR LOSS
Revenue
-
-
Profit for the year:
Attributable to owners of the parent
(5,240)
(456)
Attributable to non-controlling interest
(582)
(50)
(5,822)
(506)
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
7,401
8,129
Non-current assets
793,930
277,330
801,331
285,459
Liabilities
Current liabilities
40,753
12,144
Non-current liabilities
768,026
274,775
808,779
286,919
Equity
Attributable to owners of the parent
(6,701)
(1,314)
Attributable to non-controlling interest
(745)
(146)
(7,446)
(1,460)
STATEMENT OF CASH FLOWS
Net cash from operating activities
-
-
Net cash used in investing activities
(469,998)
(167,371)
Net cash from financing activities
469,065
173,856
(933)
6,485
West African Resources Limited / Annual Report 2024
69
23 INTEREST IN SUBSIDIARIES (CONTINUED)
C.
SUMMARISED FINANCIAL INFORMATION FOR TOEGA SA BEFORE INTRAGROUP ELIMINATIONS
2024
$’000
STATEMENT OF PROFIT OR LOSS
Revenue
-
Loss for the year:
Attributable to owners of the parent
(14)
Attributable to non-controlling interest
(2)
(16)
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
275
Non-current assets
376
651
Liabilities
Current liabilities
40
Non-current liabilities
601
641
Equity
Attributable to owners of the parent
9
Attributable to non-controlling interest
1
10
STATEMENT OF CASH FLOWS
Net cash from operating activities
-
Net cash used in investing activities
(336)
Net cash from financing activities
611
275
Toega SA is a company that was incorporated under the laws of Burkina Faso and was granted the Toega mining licence
during the year. The government of Burkina Faso owns a 10% equity interest in Toega SA.
24 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.
West African Resources Limited / Annual Report 2024
70
25 AUDITORS’ REMUNERATION
2024
2023
$
$
The auditor of West African Resources Limited is HLB Mann Judd
Audit or review of the financial statements
110,000
100,000
110,000
100,000
Amounts received or due and receivable by non HLB Mann Judd audit firms
Audit or review of the Burkina Faso financial reports
65,744
41,451
65,744
41,451
26 DIRECTOR AND EXECUTIVE DISCLOSURES
A.
DETAILS OF KEY MANAGEMENT PERSONNEL
Non-Executive Directors
Appointed
Resigned
Rod Leonard
Non-Executive Director and Lead Independent Director
September 20191
-
Nigel Spicer
Non-Executive Director
September 2019
-
Stewart Findlay
Non-Executive Director
29 May 2020
-
Robin Romero
Non-Executive Director
1 December 2022
-
Executive Directors
Richard Hyde
Executive Chairman and CEO
September 2006
-
Lyndon Hopkins
Executive Director and COO
September 20192
-
Libby Mounsey
Executive Director of Human Resources
29 May 20203
-
Other Executive (KMP)
Padraig O’Donoghue
Chief Financial Officer and Company Secretary
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
2024
2023
$
$
Short-term employee benefits
3,116,615
3,441,381
Post-employment benefits
146,987
145,014
Share-based payments
2,504,682
2,469,330
5,768,284
6,055,726
C.
COMPENSATION BY CATEGORY OF KEY MANAGEMENT PERSONNEL FOR THE YEAR
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 / Annual Report 2024
71
26 DIRECTORS AND EXECUTIVE DISCLOSURES (CONTINUED)
D.
LOANS TO KEY MANAGEMENT PERSONNEL
There were no loans provided to Key Management Personnel during the year (2023: 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 2024 that are not already included in the Remuneration Report in the Directors’ Report.
27 FINANCIAL INSTRUMENTS
2024
2023
$’000
$’000
Financial assets
Cash and cash equivalents (note 7)
391,670
135,080
Trade and other receivables (note 8)
117,555
231,917
509,225
366,997
Financial liabilities
Trade and other payables (note 13)
(110,378)
(82,608)
Borrowings (note 14)
(406,491)
(147,180)
Lease liabilities (note 15)
(19,481)
(1,970)
(536,350)
(231,758)
28 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 and borrowings under the secured loan facility. Cash held
at variable rates and the secured loan facility, which carries a variable interest rate, expose the Group to cash flow interest
rate risk. Cash deposits at fixed rates and the supplier loan facility, which carries a fixed interest rate, 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, while the secured loan facility and supplier loan facility were denominated in USD.
West African Resources Limited / Annual Report 2024
72
28 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
Within
Year
1 to 5
Years
Over 5
Years
Non-
interest
bearing
Total
$’000
$’000
$’000
$’000
$’000
$’000
31 December 2023
Financial assets
Cash and cash equivalents
1.42%
108,494
-
-
-
26,586
135,080
Trade and other receivables
0.00%
-
-
-
-
231,917
231,917
Financial assets
0.00%
-
-
-
-
-
-
Total financial assets
108,494
-
-
-
258,503
366,997
Financial liabilities
Trade and other payables
0.00%
-
-
-
-
82,608
82,608
Secured loan facility
10.83%
146,816
-
-
-
-
146,816
PPA liability
5.00%
-
-
17,505
-
-
17,505
Supplier facility
9.75%
-
14,102
-
-
-
14,102
Lease liabilities
6.50%
-
1,970
-
-
-
1,970
Total financial liabilities
146,816
16,072
17,505
-
82,608
263,001
31 December 2024
Financial assets
Cash and cash equivalents
3.20%
21,098
-
-
-
370,572
391,670
Trade and other receivables
0.00%
-
-
-
-
117,555
117,555
Financial assets
0.00%
-
-
-
-
-
-
Total financial assets
21,098
-
-
-
488,127
509,225
Financial liabilities
Trade and other payables
0.00%
-
-
-
-
110,378
110,378
Secured loan facility
11.11%
410,611
-
-
-
-
410,611
PPA liability
5.00%
-
5,107
20,529
-
-
25,636
Supplier facility
12.00%
-
-
15,270
-
-
15,270
Lease liabilities
12.05%
-
6,492
12,989
-
-
19,481
Total financial liabilities
410,611
11,599
48,788
-
110,378
581,376
West African Resources Limited / Annual Report 2024
73
28 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.
2024
2023
$’000
$’000
+0.5%
590
805
-0.5%
(590)
(805)
The interest rate sensitivity was based on the approximate average cash balance and approximate average drawn balance
of the USD component of loan facility during the year. The other financial liabilities and financial assets of the Group in the
year had fixed interest rates.
(iii) Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk primarily arising from costs denominated in CFA
and USD, cash held in USD, CFA, and EUR, and borrowings denominated in USD and CFA. 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:
2024
2023
$’000
$’000
Financial assets
Cash and cash equivalents
372,928
134,743
Trade and other receivables
116,430
78,227
489,358
212,970
Financial liabilities
Trade and other payables
197,405
124,877
Loans and borrowings
283,292
178,199
Lease liabilities
19,060
1,935
Tax liabilities
37,220
36,883
536,977
341,894
West African Resources Limited / Annual Report 2024
74
28 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
2023.
+10%
-10%
2024
2023
2024
2023
$’000
$’000
$’000
$’000
USD
1,470
(2,077)
(1,797)
2,539
CFA
(108,494)
(75,893)
132,604
92,759
EUR
(1,939)
(1,095)
2,370
1,338
(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 various hedging instruments, the Group did not have any open hedge instruments at 31 December
2024 (2023: nil).
B.
CREDIT RISK
Credit risk arises mainly from
• the Group’s cash held on deposit with financial institutions, primarily commercial banks located in Australia and
Burkina Faso;
• receivables related to gold sales (98% of 2024 gold sales were 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, gold bullion, and undrawn credit facilities to meet the operating requirements
of the business. This is currently managed through cash and cash equivalents ($391,670,000 as at 31 December 2024)
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 / Annual Report 2024
75
28 FINANCIAL RISK MANAGEMENT (CONTINUED)
The below table presents a maturity analysis of the expected undiscounted future cash flows to contractual maturity of
financial assets and liabilities and as such includes expected future principal and interest payments on borrowings and
lease liabilities.
Consolidated
<6 months
6-12
months
1-5 years
>5 years
Total
$’000
$’000
$’000
$’000
$’000
31 December 2023
Financial assets
Cash and cash equivalents
135,080
-
-
-
135,080
Trade and other receivables
231,917
-
-
-
231,917
Total financial assets
366,997
-
-
-
366,997
Financial liabilities
Trade and other payables
(82,608)
-
-
-
(82,608)
Borrowings
(686)
(14,567)
(164,322)
-
(179,575)
Lease liabilities
(2,002)
-
-
-
(2,002)
Total financial liabilities
(85,296)
(14,567)
(164,322)
-
(264,185)
Net maturity
281,701
(14,567)
(164,322)
-
102,812
31 December 2024
Financial assets
Cash and cash equivalents
391,670
-
-
-
391,670
Trade and other receivables
117,555
-
-
-
117,555
Total financial assets
509,225
-
-
-
509,225
Financial liabilities
Trade and other payables
(110,379)
-
-
-
(110,379)
Borrowings
(16,515)
(46,980)
(434,054)
-
(497,549)
Lease liabilities
(3,527)
(4,940)
(15,064)
-
(23,531)
Total financial liabilities
(130,421)
(51,920)
(449,118)
-
(631,459)
Net maturity
378,804
(51,920)
(449,118)
-
(122,234)
West African Resources Limited / Annual Report 2024
76
29 SHARE-BASED PAYMENTS
A.
RECOGNISED SHARE-BASED PAYMENTS
The expenses recognised for services received during the year are shown in the table below:
2024
2023
$’000
$’000
Net share-based payments to Directors
1,898
1,852
Net share-based payments to employees
1,184
745
3,082
2,597
The share-based payment plans are described below.
B.
TRANSACTIONS SETTLED USING SHARES
No transactions were settled in the current year using shares.
C.
EMPLOYEE SHARE AND OPTION PLAN
Following shareholder approval at its May 2023 Annual General Meeting, the Company adopted an updated Employee
Awards Plan (‘Plan’) that aligns with new provisions under Division 1A to Part 7.12 of the Corporations Act. The Plan is
designed to provide incentives to employees and Directors and to recognise their contribution to the Company’s success.
Under the Plan, grants of options and/or performance rights are made to senior executives and other staff members
who make an impact on the Group’s performance. Grants are delivered in the form of options or performance rights with
performance and/or service vesting conditions determined by the Board of Directors.
D.
PERFORMANCE RIGHTS
Performance rights are granted under the 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
2024 Number
2024 WAEP*
2023 Number
2023 WAEP*
Outstanding at the beginning of the year
7,178,026
-
10,365,872
-
Granted during the year
3,798,865
-
3,053,028
-
Exercised during the year
(3,566,941)
-
(3,089,386)
-
Lapsed/cancelled during the year
(235,704)
-
(3,151,488)
-
Outstanding at the end of the year
7,174,246
-
7,178,026
-
Exercisable at the end of the year
453,704
-
2,566,556
-
*WAEP = weighted average exercise price
The performance rights outstanding at the end of the year had a weighted average remaining contractual life of 680 days
(31 December 2023: 809 days).
West African Resources Limited / Annual Report 2024
77
29 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
Vesting
condition*
Original
expiry
period
Dividend
yield
Expected
volatility
Risk-free
interest
rate
Exercise
price
Share
price on
grant date
981,510
10-Mar-24
A & B
3 years
0%
49%
3.60%
Nil
$1.0450
332,144
10-Mar-24
A & B
5 years
0%
57%
3.66%
Nil
$1.0450
278,948
10-Mar-24
A & B
4 years
0%
56%
3.66%
Nil
$1.0450
158,567
10-May-24
A
2 years
0%
49%
3.99%
Nil
$1.4350
670,103
10-May-24
A & B
3 years
0%
49%
3.93%
Nil
$1.4350
688,797
10-May-24
A & B
5 years
0%
58%
3.99%
Nil
$1.4350
688,796
10-May-24
A & B
4 years
0%
52%
3.99%
Nil
$1.4350
* Notations refer to the following vesting conditions:
A = Performance Rights will vest upon service conditions being met.
B = Performance Rights will vest upon performance conditions being met, as outlined on page 40 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 and payment of the exercise price prior to the expiry date, options will be settled in ordinary fully paid shares of the
Company.
(a)
Summary of options granted by the Group
2024 Number
2024 WAEP*
2023 Number
2023 WAEP*
Outstanding at the beginning of the year
382,774
$0.6061
789,472
$0.6061
Granted during the year
-
-
-
-
Exercised during the year
(382,774)
$0.6061
(406,698)
$0.6061
Lapsed/cancelled during the year
-
-
-
-
Outstanding at the end of the year
-
-
382,774
$0.6061
Exercisable at the end of the year
-
-
382,774
$0.6061
*WAEP = weighted average exercise price
The options outstanding at the end of the year had a weighted average remaining contractual life of 0 days (31 December
2023: 113 days).
(b)
Fair value of options granted
There were no options granted during the year (2023: Nil).
West African Resources Limited / Annual Report 2024
78
29 SHARE-BASED PAYMENTS (CONTINUED)
F.
PERFORMANCE RIGHTS AND OPTIONS BALANCE
The outstanding balance of performance rights as at 31 December 2024 is presented in the following table:
Number of Performance Rights
Grant date
Expiry date
Granted
Lapsed /
Cancelled
Exercised
On issue
Vested
27-Nov-20
8-Dec-24
835,000
-
(835,000)
-
-
17-Dec-20
17-Dec-24
1,250,000
-
(1,250,000)
-
-
4-Apr-21
4-Apr-25
69,306
(34,653)
(34,653)
-
-
17-May-21
20-May-25
402,102
(201,051)
(201,051)
-
-
3-Jun-21
11-Jun-24
10,148
-
(10,148)
-
-
30-Mar-22
6-Apr-25
222,901
-
(222,901)
-
-
30-Mar-22
6-Apr-27
68,322
(68,322)
-
-
30-Mar-22
6-Apr-26
68,322
-
-
68,322
-
4-Apr-22
6-Apr-25
137,973
-
(137,973)
-
-
13-May-22
26-May-25
115,295
-
(115,295)
-
-
13-May-22
26-May-27
149,456
-
(149,456)
-
-
13-May-22
26-May-26
149,456
-
-
149,456
-
13-May-22
27-May-25
174,864
-
(174,864)
-
-
13-May-22
27-May-27
235,927
-
(235,927)
-
-
13-May-22
27-May-26
235,926
-
-
235,926
-
15-Feb-23
16-Feb-25
100,445
-
(100,445)
-
-
7-Mar-23
15-Mar-26
322,732
-
-
322,732
-
7-Mar-23
15-Mar-28
304,294
-
-
304,294
-
7-Mar-23
15-Mar-27
250,294
-
-
250,294
-
9-Mar-23
15-Mar-27
355,747
-
-
355,747
-
12-May-23
12-May-26
552,593
-
-
552,593
-
12-May-23
12-May-28
568,009
-
-
568,009
-
12-May-23
12-May-27
568,008
-
-
568,008
-
12-May-23
12-May-27
30,906
-
(30,906)
-
-
10-Mar-24
15-Mar-27
981,510
-
-
981,510
-
10-Mar-24
15-Mar-29
332,144
-
-
332,144
-
10-Mar-24
15-Mar-28
278,948
-
-
278,948
-
10-May-24
10-May-26
158,567
-
-
158,567
-
10-May-24
10-May-27
670,103
-
-
670,103
-
10-May-24
10-May-29
688,797
-
-
688,797
-
10-May-24
10-May-28
688,796
-
-
688,796
-
Total performance rights
10,976,891
(235,704)
(3,566,941)
7,174,246
-
All performance rights have a nil exercise price.
The outstanding balance of options as at 31 December 2024 is presented in the following table:
Number of options
Grant date
Expiry date
Exercise
price
Granted
Lapsed /
Cancelled
Exercised
On issue
Vested
20-Jan-20
20-Jan-24
$0.6061
131,578
-
(131,578)
-
-
11-Jun-20
11-Jun-24
$0.6061
251,196
-
(251,196)
-
-
Total options
382,774
-
(382,774)
-
-
West African Resources Limited / Annual Report 2024
79
30 PARENT ENTITY FINANCIAL INFORMATION
The individual financial statements for the parent entity show the following aggregate amounts:
Parent
2024
2023
$’000
$’000
STATEMENT OF FINANCIAL POSITION
Current assets
175,650
12,979
Non-current assets
479,380
456,886
Total assets
655,030
469,865
Current liabilities
2,270
3,058
Non-current liabilities
573
196
Total liabilities
2,843
3,254
Net assets
652,187
466,611
Equity
Issued capital
480,375
335,856
Reserves
21,059
17,836
Retained earnings
150,753
112,919
Total equity
652,187
466,611
Profit before tax
37,834
108,396
Income tax expense
-
-
Profit after tax
37,834
108,396
Contingent liabilities of the parent entity
As at 31 December 2024, the parent entity had contingent liabilities as guarantor under the secured debt facility and PPA
liability detailed in note 14A and under each of the royalty agreements detailed in 22(c)(i).
Commitments of the parent entity for the acquisition of property, plant and equipment
As at 31 December 2024, the parent entity had nil contractual commitments for the acquisition of property, plant and
equipment.
West African Resources Limited / Annual Report 2024
80
Name of entity
Type of entity
% of
share
capital
held
Country of
incorporation
Australian resident
or foreign
resident
(for tax purpose)
Foreign tax
jurisdiction(s)
of foreign
residents
West African Resources Ltd
Body corporate
N/A
Australia
Australian resident
N/A
WAF Finance Pty Ltd
Body corporate
100%
Australia
Australian resident
N/A
Channel Resources Ltd
Body corporate
100%
Canada
Foreign resident
Canada
Channel Resources (Cayman I) Ltd
Body corporate
100%
Cayman Islands
Foreign resident
Cayman Islands
Channel Resources (Cayman II) Ltd
Body corporate
100%
Cayman Islands
Foreign resident
Cayman Islands
Tanlouka SARL
Body corporate
100%
Burkina Faso
Foreign resident
Burkina Faso
Société des Mines de Sanbrado SA
Body corporate
90%
Burkina Faso
Foreign resident
Burkina Faso
Wura Resources Pty Ltd SARL
Body corporate
100%
Burkina Faso
Foreign resident
Burkina Faso
Volta II Ltd
Body corporate
100%
Cayman Islands
Foreign resident
Cayman Islands
Kiaka SA
Body corporate
90%
Burkina Faso
Foreign resident
Burkina Faso
Volta Resources (Cayman) Inc.
Body corporate
100%
Cayman Islands
Foreign resident
Cayman Islands
Kiaka Gold SARL
Body corporate
100%
Burkina Faso
Foreign resident
Burkina Faso
Volta Properties SARL
Body corporate
100%
Burkina Faso
Foreign resident
Burkina Faso
West African Resources
Development SARL
Body corporate
100%
Burkina Faso
Foreign resident
Burkina Faso
Toega SA
Body corporate
90%
Burkina Faso
Foreign resident
Burkina Faso
Consolidated Entity Disclosure Statement
As at 31 December 2024
West African Resources Limited / Annual Report 2024
81
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 Group are in accordance with the Corporations Act 2001 including:
(i)
giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its performance for the
year then ended; and
(ii)
complying with Australian Accounting Standards and Corporations Regulations 2001.
b.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
c.
The financial statements also comply with International Financial Reporting Standards as disclosed in note 1A.
d.
The consolidated entity disclosure statement on page 81 is true and correct.
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 2024.
This declaration is signed in accordance with a resolution of the Board of Directors.
RICHARD HYDE
Executive Chairman & CEO
5 March 2025
Directors’ Declaration
West African Resources Limited / Annual Report 2024
82
Auditor’s Independence Declaration
West African Resources Limited / Annual Report 2024
83
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 2024, 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
5 March 2025
M R Ohm
Partner
Independent Auditor’s Report
West African Resources Limited / Annual Report 2024
84
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 2024, 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, notes to the financial statements, including material accounting policy information, the
consolidated entity disclosure statement 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 2024 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 (including Independence Standards) (“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.
West African Resources Limited / Annual Report 2024
85
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 metal sales. The Group recognised sales
revenue of $730 million for the year (2023:
$661.2 million).
Revenue recognition is considered to be a key
audit matter given its significance to the
Group’s results and importance to the users’
understanding of the financial statements in
addition to the presumed risk of fraud in
revenue recognition.
Revenue is recognised when control is
transferred to the buyer and the amount of
revenue can be reliably determined. This
occurs for the Group when the refining process
is complete, and ownership is transferred from
the Group’s metal account.
Our audit procedures included but were not limited
to the following:
-
Understanding the Group’s processes for
revenue recognition and controls in place
around gold sales;
-
Performing substantive tests of detail of all
gold sales transactions during the year to
supporting documentation and receipt of cash;
-
Assessing the Group’s policies for recognition
of revenue against the requirements of
accounting standards and ensuring these are
applied correctly and adequately disclosed in
the financial statements;
-
Performing sales cut-off procedures focusing
on sales around balance date, testing a
sample
of
transactions
to
underlying
documentation and assessing the period in
which they were recognised; and
-
Matching gold produced against gold sold for
the year.
Recoverability of mine development assets
and mines under construction
Note 10 to the financial report
As at 31 December 2024 the Group had mine
development assets with a carrying value of
$127.7 million and mines under construction of
$921.7 million in relation to the Sanbrado and
Kiaka cash-generating units.
Assessing the recoverability and carrying value
of these balances was considered to be a key
audit matter due to the judgements and
estimations involved.
These estimations and judgements relate to two
main areas, being impairment indicators and, in
the case of Sanbrado, the amortisation and
depreciation associated with this asset.
Impairment indicators involve assessing future
forecasts and judgements around recoverability
of the asset.
Amortisation and depreciation involves using
estimated reserves and resources in a units of
production methodology.
Our audit procedures included but were not
limited to the following:
-
Obtaining an understanding of the processes
and controls in place around management’s
assessment of the recoverability of mine
development
assets
and
mines
under
construction;
-
Testing impairment indicators to determine
whether any such indicators exist at balance
date;
-
Reviewing future plans for the cash-generating
units and ensuring that such plans support the
recoverability of the related assets;
-
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; and
-
Assessing the adequacy of the Group’s
disclosures within the financial statements.
West African Resources Limited / Annual Report 2024
86
Transition of Toega exploration expenditure
to mines under development
Notes 10 and 12 to the financial statements
During the year, the Toega project transitioned
from the exploration phase to the development
phase and accordingly $49 million was
reclassified from exploration and evaluation
assets to mines under construction.
In accordance with AASB 6 Exploration for and
Evaluation
of
Mineral
Resources,
an
exploration and evaluation asset shall no
longer be classified as such when the technical
feasibility and commercial viability of extracting
a
mineral
resource
are
demonstrable.
Exploration and evaluation assets shall be
assessed for impairment, and any impairment
loss recognised, before reclassification.
The evaluation of recoverable amount 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.
Our audit procedures included but were not
limited to the following:
-
Critically
evaluating
management’s
methodology used in the mine model and the
basis for key assumptions;
-
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; and
-
Assessing the appropriateness of the
disclosures included in the relevant notes to
the financial report.
Other Information
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 2024, 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:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
West African Resources Limited / Annual Report 2024
87
for such internal control as the directors determine is necessary to enable the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
(b) the consolidated entity disclosure statement that is true and correct 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.
−
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.
West African Resources Limited / Annual Report 2024
88
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, actions taken to eliminate
threats or safeguards applied.
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 2024.
In our opinion, the Remuneration Report of West African Resources Limited for the year ended 31
December 2024 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
M R Ohm
Chartered Accountants
Partner
Perth, Western Australia
5 March 2025
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 24 February 2025.
DISTRIBUTION OF SHARES
Distribution
Number of holders
Securities held
1 – 1,000
1,276
711,562
1,001 – 5,000
1,810
4,829,218
5,001 – 10,000
787
6,121,882
10,000 – 100,000
1,127
35,646,757
100,001 – and over
213
1,092,467,425
Total
5,213
1,139,776,844
The number of shareholdings held in less than marketable parcels is 254.
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
No. of shares held
% Holding
1
L1 CAPITAL
114,441,906
10.04%
2
VANECK GLOBAL
88,548,494
7.77%
3
STATE STREET CORPORATION
59,877,013
5.25%
4
VANGUARD GROUP
56,994,349
5.00%
Total
319,861,762
28.06%
West African Resources Limited / Annual Report 2024
89
ASX Additional Information (Continued)
TWENTY LARGEST SHAREHOLDERS
Shareholder Name
No. of
shares held
% Holding
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
359,542,903
31.55%
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
192,151,537
16.86%
3
CITICORP NOMINEES PTY LIMITED
181,419,922
15.92%
4
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
59,368,589
5.21%
5
MR AND MRS ANTHONY POLI
51,297,811
4.50%
6
BNP PARIBAS NOMS PTY LTD
41,224,111
3.62%
7
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
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