WAFF (West African Resources) Overview

Company Overview

• Peer of Capricorn, both are gold companies.
• Market Cap: $1 billion compared to Capricorn's $1.7 billion.
• Produces double the amount of gold compared to Capricorn.
• Located in Burkina Faso, Africa.

Reserves and Resources

• Reserves: 6.4 million ounces.
• Mineral Resources: 12.6 million ounces.
• Average production to increase from 200,000 ounces to 400,000 ounces per annum until 2032.

Key Projects

• Kiaka Project: Coming online soon, contributing to production increase.
• Strategy involves acquiring and developing assets rather than depleting existing ones.

Financials

• Trades at a discount to Capricorn due to country and development risks.
• All-in sustaining cost: $1,200 USD.
• Unhedged production yielding strong free cash flows.

Challenges

• Share price has faced pressure due to geopolitical issues in Burkina Faso.
• Country risk in Africa presents uncertainties about long-term asset security.

Mineral Resource Growth

• Significant growth in mineral resources showcased in recent announcements.

Comparison with Capricorn

• WAFF trades at a discount, equivalent to 0.5 times, whereas Capricorn trades above one time.
• Capricorn benefits from jurisdictional advantages.
• Both have good growth stories but face different market valuations due to location and risk factors.

Potential

• Strong exploration results including high-grade gold hits, indicating potential for impressive cash flow.

Conclusion

• Despite challenges, WAFF presents a robust growth story with strategic asset development and strong production potential.