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West African Resources (ASX:WAF) After Earnings And A Special Dividend Is The Stock Still A Bargain

Simply Wall St · 23h ago

West African Resources (ASX:WAF) has put investors on alert after pairing a special A$0.20 per share cash dividend with fresh half year earnings that show higher sales, profit and earnings per share.

That earnings and special dividend combo has arrived after a strong run, with the share price delivering a 15.11% 90 day share price return and a 16.61% year to date share price return. The 3 year total shareholder return of 360.84% shows how long term holders have been rewarded as momentum has built over time.

Scan how West African Resources fits within the broader gold story by comparing it to other 36 elite gold producer stocks that share strong production profiles and market interest.

West African Resources now trades at a sizeable discount to analyst targets, even after the special dividend and fresh earnings update. Is that valuation gap a real opportunity, or a signal the market is pricing in risk?

Most Popular Narrative: 24% Undervalued

Set against a last close of A$3.58, the most followed narrative pegs West African Resources at a fair value of A$4.73, which puts the current analyst view under the spotlight.

The successful commissioning and ramp-up of the Kiaka Gold Project, with first gold poured ahead of schedule and under budget, positions West African Resources for a material production increase in 2025 and beyond, boosting revenue and delivering significant operating leverage as fixed costs are absorbed over higher output.

See why 58 investors see West African Resources as 24% undervalued.

Result: Fair Value of A$4.73 (UNDERVALUED)

Still, the narrative around West African Resources depends on grid power arriving at Kiaka as planned and on Burkina Faso avoiding policy or security shocks that hit operations.

Find out about the key risks to this West African Resources narrative.

Next Steps

Seeing mixed signals around West African Resources and unsure how to weigh them against your own risk tolerance and goals? Take a closer look at the balance of potential red flags and upside by reviewing the 5 key rewards and 2 important warning signs.

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If West African Resources has caught your attention, do not stop here. Broaden your watchlist with a few focused stock shortlists tailored to different goals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.