While the top gold companies are on the run, primarily driven by surge in gold prices, these two ASX gold companies have come under a cloud, temporary, may be, for different reasons. While Ora Banda Mining Limited revised its guidance due to extended downtime from processing plant upgrades and longer-than-expected commissioning, West African Resources Limited faced an increase in the State's free-carried equity interest from 10% to 15%.
West African Resources Limited
West African Resources Limited, one of the best gold mining stocks is an unhedged gold mining company focused on its projects in Burkina Faso, including Sanbrado, Kiaka and Toega. The company has made significant strides particularly with its Kiaka Gold Project which is progressing on schedule and within budget with first gold production anticipated in early Q3 2025. This milestone is set to transform WAF into a +420K ounce per year gold producer, significantly increasing its annual output. Mining and crushing operations have begun at Kiaka, and the crushing circuit and wet plant have finished commissioning.
Recent resource definition drilling at the Sanbrado Gold Operations, specifically within the M1 South Main Deeps, has shown encouraging high-grade gold mineralization. Significant findings include intercepts of 44 meters at 25.8 grams per tonne gold and 44.5 meters at 17.1 grams per tonne gold. These results are expected to lead to an increase in both contained gold and ore tonnage. This will be incorporated into an updated Mineral Resource Estimate, Ore Reserves and a 10-year production outlook, all slated for release in Q3 2025.
WAF is also aligning its mining projects with Burkina Faso's 2024 Mining Code which involves an increase in the State's free-carried equity interest from 10% to 15%. The company is also transitioning to owner-mining at its Sanbrado and Toega sites with new equipment ordered and operations expected to resume in early Q4 2025, supported by substantial run-of-mine stockpiles.
WAF's 2025 guidance remains 190K -210K ounces at an AISC under US$1,350 per ounce, supporting its ambition of 500K ounces per annum by 2030.
Ora Banda Mining Limited
Ora Banda Mining Limited is a gold mining company focused on sustainably growing gold production. The company is among gold companies to invest in, having reported a strong March 2025 quarter with closing cash increasing by $22.9M to $80.7M. Gold sold for the quarter was 23,643oz, a 6% increase from the prior quarter, bringing the FY25 year-to-date total to 71,467oz which is already 6% above the full FY24 production with one quarter remaining. Gold production for the quarter was 23,150oz. The All-In Sustaining Cost (AISC) for the quarter stood at $2,470 per ounce sold, representing a 3% reduction compared to the previous quarter.
Key accomplishments include no Lost Time Injuries, consistent mining performance at Riverina Underground with mined grade above reserve grade and the successful first production stope at Sand King Underground which is on track for steady-state production in the June quarter. The Riverina Underground mine achieved capital payback only 18 months after commencement. Exploration success was noted at Riverina Underground with confirmed high-grade gold mineralization continuity and a new greenfields discovery at Little Gem.
FY25 guidance was updated with expected gold production revised to 100-105k ounces (previously 100-110koz) and AISC guidance increased to $2,350/oz - $2,500/oz (previously A$1,975/oz - A$2,125/oz). This adjustment is primarily due to extended downtime from processing plant upgrades and longer-than-expected commissioning. However, the processing plant works are now complete and June production is forecast to reach 12.5k ounces, the target monthly rate for achieving 150k ounces annual production. The company maintains a target of 150k ounces gold production for FY26.
(Source: Company Announcements)
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