Assessing West African Resources (ASX:WAF) Valuation After Record 2025 Gold Production And New Share Price Highs

West African Resources (ASX:WAF) is back in focus after reporting record 2025 gold production of 300,383 ounces, meeting its guidance and supporting market interest in the stock.

See our latest analysis for West African Resources.

The strong 2025 production update and Kiaka ramp up have come alongside firm share price momentum, with a 1 month share price return of 20.29% and a 1 year total shareholder return of 114.19%. This suggests investors are rewarding consistent delivery.

If you are looking beyond gold producers after this update, it could be a useful moment to broaden your search and check out fast growing stocks with high insider ownership.

With record production, double digit recent returns and analysts’ price targets above the current A$3.32 share price, the key question now is simple: is West African Resources still undervalued, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 16.3% Undervalued

With the narrative fair value at about A$3.97 versus the last close of A$3.32, the current price sits well below that estimate and raises questions about what is being priced in.

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.

Read the complete narrative.

Curious what earnings power sits behind this valuation gap? The narrative leans on rapid revenue expansion, firm margins, and a future earnings multiple well below many peers. Want to see how those moving parts add up to that fair value?

Result: Fair Value of A$3.97 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story can change quickly if power connection delays at Kiaka or rising site costs squeeze margins and unsettle the current earnings and valuation narrative.

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

Build Your Own West African Resources Narrative

If you look at the numbers and come to a different conclusion, or simply want to test your own view, you can build a personalised narrative in just a few minutes, starting with Do it your way.

A great starting point for your West African Resources research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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