Transcript for:
Overview of WAFF Gold Company

let's get on to WAFF West African resources they've chucked a reserve resource and a 10-year production update out now there you could say they're a bit of a peer of Capricorn so they're trading it so their market cap is a billion uh Capricorn is 1.7 billion and WAFF pretty much produced double the amount of gold and have a massive razor 6.4 million ounce Reserve they're up to now in uh Sunny Mali oh sorry Sunny bikina yeah that's right Maddie so 6.4 million ounces in all Reserve now that goes along with the 12.6 million ounces in Mineral resource and these guys are going to average production of 200 000 ounces over the coming couple years and that's going to jump up to 400 000 ounces per annum up until 2032 that's as kiaka comes online so like you said there's a lot of similarities with this company with Capricorn so obviously both gold companies they've both got one producing asset and another asset that they've acquired over the past couple years that's in development so wolf trades at a significant discount to Capricorn as you might expect this is largely a result of the country risk as well as development risk with kiaka coming online but there's a few things that I really like about this company they've they've got a strategy they don't just have one asset that they're depleting over the mine life they've got a plan they've gone and executed they've bought kiaka they're going to try and get that into production over the next couple years and then move on so so these guys captured in the announcement today a chart which shows the mineral resource growth over the past couple years which I think just really well summarizes the growth that these guys have been focused on and the sort of trajectory that they're on so you can see the share price has come under a bit of pressure over the past few months it's largely a result of issues in country in Burkina Faso but at an Orleans sustaining cost of about 1200 US dollars and on hedge production these guys are producing great free cash flows so once that money's been spent on kiaka I'd expect that to that asset and the combined company to produce some really strong free cash over the remainder of their own lives so pretty impressive unbelievable all body the underground at Sam Brado just oh look I can't quite the exact figures but they had like thick thick hits of line I think it was like 20 meters at nearly double digit grade of gold which is you know that that's good for narrow phone whereas they're getting it over like thick thick Stripes which is the money they would be pulling out of there is unbelievable so it looks like a dream or body yeah that's right so hence the hence the cash flow um look do you drive do you reckon WAFF and the Capricorn are they sort of are the ends of the Spectrum in terms of trading at a premium and trading at a discount for a I guess your your gold producers that are pretty similar sort of size output absolutely I you know you both have reducing mind a great growth story um and you know one's trading at 0.5 times now the other one's trading you know a bit above one times now so um you know there's there's you're paying full price for Capricorn and yeah it might be worth it you're obviously getting a jurisdictional benefit um whereas you know WAFF there's there's clearly an expectation that cash flows are going to return great great returns to shareholders however when you operate in Africa you never quite know whether that mine's going to get taken away from you in five years time or not imagine chucking that all body in Australia that'd be pretty unbelievable wouldn't it foreign foreign