West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa. More Details
Good value with adequate balance sheet.
Share Price & News
How has West African Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WAF is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: WAF's weekly volatility (9%) has been stable over the past year.
7 Day Return
AU Metals and Mining
1 Year Return
AU Metals and Mining
Return vs Industry: WAF underperformed the Australian Metals and Mining industry which returned 59.8% over the past year.
Return vs Market: WAF underperformed the Australian Market which returned 37.3% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is West African Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
15 hours ago | Simply Wall StWe Think Shareholders Will Probably Be Generous With West African Resources Limited's (ASX:WAF) CEO Compensation
1 month ago | Simply Wall StWest African Resources' (ASX:WAF) Promising Earnings May Rest On Soft Foundations
1 month ago | Simply Wall StHere's What West African Resources Limited's (ASX:WAF) Shareholder Ownership Structure Looks Like
Is West African Resources undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WAF (A$1.01) is trading below our estimate of fair value (A$5.48)
Significantly Below Fair Value: WAF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WAF is good value based on its PE Ratio (9.8x) compared to the AU Metals and Mining industry average (14x).
PE vs Market: WAF is good value based on its PE Ratio (9.8x) compared to the Australian market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: WAF is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: WAF is overvalued based on its PB Ratio (5.3x) compared to the AU Metals and Mining industry average (2.5x).
How is West African Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WAF's forecast earnings growth (3.2% per year) is above the savings rate (1.9%).
Earnings vs Market: WAF's earnings (3.2% per year) are forecast to grow slower than the Australian market (14% per year).
High Growth Earnings: WAF's earnings are forecast to grow, but not significantly.
Revenue vs Market: WAF's revenue (8.2% per year) is forecast to grow faster than the Australian market (5.3% per year).
High Growth Revenue: WAF's revenue (8.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WAF's Return on Equity is forecast to be high in 3 years time (26.7%)
How has West African Resources performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WAF has a high level of non-cash earnings.
Growing Profit Margin: WAF became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WAF has become profitable over the past 5 years, growing earnings by 54.9% per year.
Accelerating Growth: WAF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: WAF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (25.6%).
Return on Equity
High ROE: Whilst WAF's Return on Equity (57.41%) is outstanding, this metric is skewed due to their high level of debt.
How is West African Resources's financial position?
Financial Position Analysis
Short Term Liabilities: WAF's short term assets (A$169.7M) do not cover its short term liabilities (A$222.5M).
Long Term Liabilities: WAF's short term assets (A$169.7M) exceed its long term liabilities (A$135.9M).
Debt to Equity History and Analysis
Debt Level: WAF's debt to equity ratio (131.4%) is considered high.
Reducing Debt: WAF had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: WAF's debt is well covered by operating cash flow (65.4%).
Interest Coverage: WAF's interest payments on its debt are well covered by EBIT (7.7x coverage).
What is West African Resources's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WAF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WAF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WAF's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WAF's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WAF's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Richard Hyde, B.Sc. (Geology and Geophysics), MAusIMM, MAIG, is an Executive Chairman and CEO of West African Resources, Ltd. since September 2019. He served as the Managing Director of West African Re...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD954.72K) is about average for companies of similar size in the Australian market ($USD878.93K).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Experienced Management: WAF's management team is considered experienced (2.8 years average tenure).
Experienced Board: WAF's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
West African Resources Limited's company bio, employee growth, exchange listings and data sources
- Name: West African Resources Limited
- Ticker: WAF
- Exchange: ASX
- Founded: 2006
- Industry: Gold
- Sector: Materials
- Market Cap: AU$856.556m
- Shares outstanding: 883.05m
- Website: https://www.westafricanresources.com
Number of Employees
- West African Resources Limited
- 1 Alvan Street
- Level 1
- Western Australia
West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa. The company explores for gold and copper deposits. Its key asset is the ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 08:30|
|End of Day Share Price||2021/05/07 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.