West African Resources Limited

ASX:WAF

West African Resources Limited

ASX:WAF
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$1.505 (+1.3%)
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juneauquan
Company Report
Last edited 2 years ago
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#Quarterly Report (Cash Flow)
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juneauquan
Last edited 2 years ago
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West African Resources (WAF) started producing gold about two years ago

Now with the cash flow from their Burkina Faso gold mine they have transitioned from having $220m of net debt to having $200m of net cash.

So WAF are a cash producing behemoth.

Now Burkina Faso is a volatile country with a coup in January that temporarily impacted WAF's share price. And with that sovereign risk there is a significant discount to WAF's valuation.

Market Cap is approximately $1.4b

Cash receipts (TTM) = $740m

Operating cash flow (TTM) = $430m

CAPEX (TTM) = $60m

Free cash flow (TTM) = $360m (you can see why/how the company have gone from high debt to high cash levels)

So the company is trading on about 4 times free cash flow.

**Note: the company will pay $45m for the final downpayment of another project**