PRECIOUS METALS

Early debt repayment underlines Sanbrado performance

West African Resources has again proven all is going very well in Burkina Faso at its new Sanbrado gold operation by paying back US$25 million to project financier Taurus Funds Management.

High-grade underground production from Sanbrado will extinguish debt quickly for West African Resources in Mali

High-grade underground production from Sanbrado will extinguish debt quickly for West African Resources in Mali

The early repayment of the $25 million reduces the amount owed from $200 million to $175 million and will ensure "substantial future cost savings in relation to budgeted interest on the debt facility".

No penalties for early repayment are due.

WAF has indicated it wants to have all debt cleared by the end of next year.

Production has going very well to date and with underground mining now moving into the high-grade M1 South deposit and production of circa 300,000oz at all-in sustaining costs of about US$600 per ounce understood to be possible over the next 12 months. 

If that proves to be the case (and if the gold price remains strong), voila, no debt.

Shares in WAF were up 5.5% to A$1.07 in early trade, capitalising the company at $942 million.

 

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