West African Resources Ltd · ASX:WAF
West African Resources — Investor Presentation (July 2024)
41 slides from West African Resources's investor presentation, Jul 4, 2024
Slide 1: West Africa's Emerging Mid Tier Producer
Not for release to US wire services or distribution in the US WEST AFRICA’S EMERGING MID TIER PRODUCER TARGETING +420,000 ozpa GOLD PRODUCTION FROM 2025 Investor presentation July 2024
Slide 2: Important Notice
IMPORTANT NOTICE DISCLAIMER This Presentation may not be released to US wire services or distributed in the United States. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an of
Slide 3: Important Notice: Forward Looking Statements
IMPORTANT NOTICE FORWARD LOOKING STATEMENTS 19. the possible failure to receive, or changes in, required permits, approvals and licenses. This presentation contains “forward-looking information” including information relating to WAF's future financial or operating Forward-looking information is subj
Slide 4: Important Notice: Mineral Resources, Ore Reserves and Production Targets
IMPORTANT NOTICE MINERAL RESOURCES, ORE RESERVES AND PRODUCTION TARGETS permitted or caused the issue, lodgement, submission, dispatch or provision of this Presentation in a final form and none of them makes or purports to make any binding statement in this Presentation and there is no statement in
Slide 5: Important Notice: Disclosure
IMPORTANT NOTICE DISCLOSURE Euroz Hartleys Limited and its affiliates and related bodies corporate are full service financial institutions engaged in various activities, which may include trading, corporate advisory, financial advisory, investment management, investment research, principal investmen
Slide 6: West Africa's Emerging Mid-Tier Gold Producer
WEST AFRICA’S EMERGING MID-TIER GOLD PRODUCER 100% UNHEDGED MINERAL RESOURCES AND ORE RESERVES 2024 Mineral Ore 10 Year Exploration Market Guidance Resources Reserves Production Target Permits Capitalisation 190 – 210 Koz 12.8 Moz 6.4 Moz 4.2 Moz +1,300 km² A$1,634m* A$484m in cash and bullion** AIS
Slide 7: WAF Project Locations
WAF PROJECT LOCATIONS Burkina Faso ‘Vi I AFRICAN RESOURCES @® War Mine Q@ WAF Project © War Tenement Current / Former Gold Mine Q Project / Deposit M5 Greenstones Capital city a Town BBombord H+ Rail — Major Roads 0 a» 100 km
Slide 8: Equity Raising Overview
EQUITY RAISING OVERVIEW 88
Slide 9: Equity Raising Details: Placement Overview
EQUITY RAISING DETAILS PLACEMENT OVERVIEW A non-underwritten placement of up to approximately 109.5 million new fully paid ordinary shares (New Shares) under WAF’s ASX Listing Rule 7.1 Offer Details capacity, representing approximately 10.7% of the existing shares on issue, via a single tranche pl
Slide 10: Equity Raising Details: Sources and Uses of Funds
EQUITY RAISING DETAILS SOURCES AND USES OF FUNDS Sources1 A$M Uses1 A$M Cash at bank and unsold bullion 2 484 Kiaka construction capital 422 SOMISA cashflow3 207 Kiaka mining pre-production capital 178 Equipment Financing4 76 Interest 37 Placement proceeds Exploration Programs and Working Capital Up
Slide 11: Pro-Forma Capital Structure
EQUITY RAISING DETAILS P R O - F O R M A C A P I TA L S T R U C T U R E Units Current1,2 Placement Adjustments3,4 Pro-forma3, 4, 5 Ordinary shares on issue M 1,028 109.5 1,137.3 Share Price A$/share 1.59 1.37 1.57 Indicative Market Capitalisation A$M 1,634 150 1,784 Cash A$M 468 150 618 Supplier Loa
Slide 12: Indicative Equity Raising Timetable
EQUITY RAISING DETAILS I N D I C AT I V E E Q U I T Y R A I S I N G T I M E TA B L E Placement Date1 Trading halt Tuesday, 2 July 2024 Announcement of Placement Thursday, 4 July 2024 Shares re-commence trading Thursday, 4 July 2024 Settlement of New Shares Thursday, 11 July 2024 Allotment of New Sha
Slide 13: Kiaka Gold Project
KIAKA GOLD PROJECT 2 0 Y E A R S AT 2 3 4 , 0 0 0 O Z P E R Y E A R 13
Slide 14: Kiaka Gold Project: Key Project Metrics
KIAKA GOLD PROJECT 2 0 Y E A R S AT 2 3 4 , 0 0 0 O Z P E R Y E A R Location South-central Burkina Faso, West Africa Ownership WAF 90%; Burkina Faso Government 10% Type Open-pit, low strip ratio 1.8 : 1 LOM Resources 285 Mt at 0.9 g/t for 7.9 Moz gold (US$2000) Reserves 164 Mt at 0.9 g/t for 4.8 Moz
Slide 15: Kiaka Gold Project: Key Metrics
KIAKA GOLD PROJECT K E Y M E T R I C S AT U S $ 2 , 1 0 0 / O Z ( 1 0 0 % P R O J E C T B A S I S ) Production 4.5Moz gold at 90% met. recoveries 258,000 ozpa gold production Y1-5 234,000 ozpa gold production LOM (20Y) Financial US$447 million pre-production capital costs US$118 million pr
Slide 16: Kiaka Gold Project: First Gold Estimated for 2025
KIAKA GOLD PROJECT F I R S T G O L D E S T I M AT E D F O R 2 0 2 5 Project tracking to schedule and budget first gold Q3 2025 Project currently 50% complete Experienced WAF team managing earthworks, camp and buildings, power supply, mine services, overland HDPE piping Lycopodium managing pr
Slide 17: Revised Capital for Owner-Mining Strategy
KIAKA GOLD PROJECT R E V I S E D C A P I TA L F O R O W N E R - M I N I N G S T R AT E G Y Under the new owner-mining strategy, US$84.2 million Kiaka Equipment Number and Cost (LOM)1 will be expended for mining equipment fleet, Cost Pre-Production Cost Production Cost Equipment Type Model Number (
Slide 18: Sanbrado Gold Operations
WEST AFRICAN RESOURCES LTD S A N B R A D O G O L D O P E R AT I O N S 1818
Slide 19: Sanbrado Gold Mine: Key Project Metrics
SANBRADO GOLD MINE KEY PROJECT METRICS Location South-central Burkina Faso, West Africa Ownership WAF 90%; BF Government 10% Type Contract open-pit and underground mining Resources 83 Mt at 1.83 g/t for 4.9 Moz gold (US$2000) Reserves 19.8 Mt at 2.4 g/t for 1.5 Moz gold (US$1400) Reserves + Inventor
Slide 20: Sanbrado Gold Mine: Ten Consecutive Quarters of Meeting or Beating Guidance
SANBRADO GOLD MINE T E N C O N S E C U T I V E Q U A R T E R S O F M E E T I N G O R B E AT I N G G U I D A N C E 10 Year Sanbrado Production Plan 2023 Summary: 300,000 ‒ Processed: 3.3Mt at 2.3 g/t gold ‒ 93.7% recovery 250,000 ‒ Produced: 226,823 oz 200,000 ‒ Gold sold: 224,970 oz Recovered Gold
Slide 21: Outstanding History of Resource & Reserve Growth
WEST AFRICAN RESOURCES LTD O U T S TA N D I N G H I S T O R Y O F R E S O U R C E & R E S E R V E G R O W T H Historical Resource and Reserve Growth: 14,000,000 12,000,000 10,000,000 Gold Ounces 8,000,000 6,000,000 4,000,000 2,000,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Mineral
Slide 22: 10 Year Production Target
WEST AFRICAN RESOURCES LTD 1 0 Y E A R P R O D U C T I O N TA R G E T 500,000 10-year production target to average: 450,000 ‒ >420,000 oz pa 2024-33 400,000 ‒ >480,000 oz pa 2026-31 350,000 ‒ 4.2 Moz production 2024-33 Recovered Gold Ounces 300,000 10-year production target based on 83% Ore 250,
Slide 23: Resource Extension: M1 South Northern Shoot
RESOURCE EXTENSION M1 SOUTH NORTHERN SHOOT Recent diamond drilling at the M1S northern shoot intercepts high grade mineralisation outside of Ore Reserve Significant results from diamond drilling at the M1S northern shoot include: ‒ 10.5m at 15.25 g/t gold ‒ 6m at 25.76 g/t gold ‒ 3m at 43.06g/t
Slide 24: Reserve Extension: M1 South Main
RESERVE EXTENSION M1 SOUTH MAIN Exploration drive completed, 18,000m drilling campaign now underway targeting the M1S deeps inferred resource Significant results from diamond drilling at the M1S deeps include: ‒ 7m at 20.0 g/t Au ‒ 6m at 20.6 g/t Au ‒ 6.5m at 16.1 g/t Au Aiming to convert up t
Slide 25: Near Mine Growth: M5 Underground Potential
NEAR MINE GROWTH M5 UNDERGROUND POTENTIAL Grade and tenor of previous drilling confirmed, +1.5 g/t Au mineralisation core below the M5 South open pit High-grade shoots remain open at depth at more than 400m below surface Maiden underground Mineral Resource Estimate delivers 2.4Mt at 3.8 g/t Au
Slide 26: Near Mine Growth: M5 Underground Potential
NEAR MINE GROWTH M5 UNDERGROUND POTENTIAL Infill drilling complete New results include: – 20.5m at 4.1 g/t gold and 7m at 5 g/t gold – 12.5m at 4.6 g/t gold – 4m at 5.3 g/t gold and 9m at 5.7 g/t gold – 10m at 3.8 g/t gold and 6m at 2.6 g/t gold Historic results by WAF include: – 11m at 11.45
Slide 27: Near Mine Growth: Exploration Potential
NEAR MINE GROWTH M 5 E X P L O R AT I O N P O T E N T I A L Refer ASX announcements titled “Amended M5 South UG Mineral Resource and Scoping Study” released 13 December 2023 and “WAF Resource, Reserve and 10 year production update 2024” released 28 February 2024. 27
Slide 28: ESG: Our Commitment
ESG OUR COMMITMENT Integrating sustainability into our operations with a long-term view; beyond production and closure for a positive mine legacy Sanbrado nursery growing thousands of seedlings for Sanbrado’s progressive rehabilitation and revegetation program in collaboration with local Government
Slide 29: ESG: Making a Positive Impact
ESG M A K I N G A P O S I T I V E I M PA C T Positive Social Impact from Sanbrado in education and health Donation of bicycles and tricycles to support transport needs of local students and people with disabilities Scholarship program in its second year Livelihood diversification training aimed a
Slide 30: Building a Strong Workforce
BUILDING A STRONG WORKFORCE É Q U I P E WA F Total WAF workforce: 844 ─ +90% Burkinabè workers ─ 50% workers from local areas surrounding projects ─ 20% women across all business units Employment opportunities: total workforce including contractors: 2,077 WAF senior leadership roles: 30% women P
Slide 31: 420,000+ oz pa Gold Production from 2025
WEST AFRICAN RESOURCES LTD + 4 2 0 , 0 0 0 O Z PA G O L D P R O D U C T I O N F R O M 2 0 2 5 • Quality board and management team aligned with shareholders TEAM • Building a reputation for consistent and reliable delivery GOLD • 6.4 Moz unhedged gold reserves EXPOSURE • 12.8 Moz unhedged gold resour
Slide 32: West Africa's Emerging Mid-Tier Gold Producer
WEST AFRICAN RESOURCES LTD WEST A F R I C A’S EM ER G I N G M I D - TI ER G O LD PR O D U C ER w w w. w e s t a f r i c a n r e s o u r c e s . c o m A S X : WA F
Slide 33: Capital Structure
WEST AFRICAN RESOURCES LTD C A P I TA L S T R U C T U R E INVESTOR BY GEOGRAPHIC LOCATION4 Australia & NZ 40.7% ASX: WAF Total Ordinary Shares on Issue 1,027,780,934 North America 36.5% Options and performance rights on issue 9,681,104 Europe 21.8% Top 20 Shareholders1 62% Asia 1.1% Cash at 20 June
Slide 34: Mineral Resources
MINERAL RESOURCES Measured Resource Indicated Resource Inferred Resource Total Resource Cutoff Contained Contained Contained Tonnes Grade Tonnes Grade Tonnes Grade Contained A Tonnes Grade Au Au Au g/t (000) t g/t (000) oz (000) t g/t (000) oz (000) t g/t (000) oz (000) t g/t (000) oz MV3 0.5 - - -
Slide 35: Ore Reserves
ORE RESERVES Proved Probable Proved + Probable Tonnes Grade Contained Au Tonnes Grade Contained Au Tonnes Grade Contained Au Cutoff (000) t g/t (000) oz (000) t g/t (000) oz (000) t g/t (000) oz M1 South UG 1.5 1,298 7.3 304 1,591 7.7 392 2,889 7.5 696 M5 0.4 1,635 1 55 5,846 1.2 218 7,481 1.1 273 T
Slide 36: Key Risks
KEY RISKS Raising risks The Placement is not underwritten and there is no guarantee the funds sought will be received. A decision by ASX to grant Official Quotation of the New Shares is not certain and is not to be taken in any way as an indication of ASX’s view as to the merits of the Company, or t
Slide 37: Key Risks (cont.)
KEY RISKS (CONT.) Financing risks and capital requirements The Company’s capital requirements will depend on a number of factors. Whilst the Company has sufficient funding (based on existing estimates of funding requirements) in relation to its existing operations further financing may be required i
Slide 38: Key Risks (cont.)
KEY RISKS (CONT.) Regulatory requirements including exploration and mining permits and licences The Company’s operations are subject to various Federal, State and local laws in the countries in which it operates including Burkina Faso. These laws include those relating to mining, prospecting, develo
Slide 39: Key Risks (cont.)
KEY RISKS (CONT.) Key personnel and labour Key personnel are important to attaining the business goals of the Company. The Company believes that it has, in general, good relations with its employees and contractors. However, there can be no assurance affected by labour related problems in the future
Slide 40: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This Presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia exce
Slide 41: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) New Zealand This Presentation has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the “FMC Act”). The New Shares are not being offered or sold in New Zealand (or allotted with a
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