Highlights

• H1 2026 revenue reached a record AU$1.46 billion, with NPAT of AU$437 million.
• Operating cash flow climbed to AU$690 million, supporting accelerated debt repayments.
• A 20 cents per share special dividend will return AU$228.8 million to shareholders.

Record H1 Result Drives WAF Shares HigherWest African Resources Limited (ASX: WAF) released its June 2026 Half-Year Financial Report, reporting record financial and operating results following the first full six-month contribution from its Sanbrado and Kiaka gold operations. The shares surged 5.29% to a current market price (CMP) of AU$3.960, with the positive reaction coinciding with strong earnings, cash generation and a sizeable special dividend.

For H1 2026, West African Resources generated revenue of AU$1.46 billion, profit before tax of AU$684 million and profit after tax of AU$437 million. Operating cash flow reached AU$690 million, highlighting the strong cash conversion generated from the group's expanded production base.Gold Production Supports Strong MarginsWAF’s gold operations delivered 232,905 ounces in H1 2026, while all-in sustaining costs averaged US$1,823 per ounce. During H1 2026, the company sold 214,883 ounces of gold, generating an average realised value of US$4,744 for each ounce sold.

The wide difference between the realised gold price and AISC underpinned the company's robust profitability and operating cash generation. Importantly, the company also reported no significant health or safety incidents during the period.Strong Liquidity Adds Financial FlexibilityWest African Resources ended the half year with AU$876 million in cash alongside 42,453 ounces of unsold gold bullion. Net assets stood at AU$1.99 billion.

This liquidity provides WAF with greater flexibility to balance shareholder distributions, debt reduction and investment in its next stage of growth. Management has indicated that debt repayments to secured lenders will be accelerated over the coming 12 months.Special Dividend Rewards ShareholdersAnother key catalyst for investor sentiment was the declaration of a 20 cents per ordinary share special dividend. The distribution totals AU$228.8 million and will be unfranked.The record date is 18 September 2026, while payment is scheduled for 7 October 2026.Sanbrado and Kiaka Strengthen ScaleThe result marks the first complete six-month reporting period incorporating combined production from Sanbrado and Kiaka. Management highlighted the two operations as large, low-cost and long-life production centres capable of supporting performance through the second half of 2026 and beyond.

This expanded production platform is strategically important because it diversifies WAF's operating base while increasing overall gold output and cash-generating capacity.Growth Investment Remains ActiveWest African Resources is also advancing its next development phase. The company is advancing pre-production activities at Toega and intends to complete over 100,000 metres of exploration drilling across its portfolio during 2026.

These programs could help extend the group's production pipeline and support resource replacement, although execution, commodity prices and operating costs remain important variables for future performance.Why Did WAF Shares Surge?The 5.29% rise to AU$3.960 appears consistent with investors responding positively to a combination of record earnings, substantial operating cash generation, strong gold margins and the special dividend.

A particularly supportive feature is WAF's ability to simultaneously return capital to shareholders, accelerate debt reduction and continue investing in future production. The AU$876 million cash balance also provides a meaningful financial buffer as the company advances its development and exploration programs.What Lies Ahead for West African Resources?Investor attention is likely to shift toward the sustainability of production and margins during H2 2026, particularly whether Sanbrado and Kiaka can maintain strong operating performance while gold prices and cost conditions evolve.

Progress at Toega, execution of the planned exploration program and accelerated debt repayments will also be important indicators. With two established production centres, substantial liquidity and a longer-term production framework already in place, West African Resources enters the second half of 2026 with a considerably stronger operating and financial platform.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au