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WAF

West African ResourcesASX:WAF Stock Report

Last Price

AU$1.33

Market Cap

AU$1.4b

7D

0%

1Y

35.9%

Updated

21 Jan, 2022

Data

Company Financials +
WAF fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance6/6
Financial Health5/6
Dividends0/6

WAF Stock Overview

West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa.

West African Resources Competitors

Newcrest Mining

ASX:NCM

AU$20.8b

Northern Star Resources

ASX:NST

AU$11.3b

Evolution Mining

ASX:EVN

AU$7.6b

De Grey Mining

ASX:DEG

AU$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for West African Resources
Historical stock prices
Current Share PriceAU$1.33
52 Week HighAU$1.47
52 Week LowAU$0.72
Beta0.78
1 Month Change6.00%
3 Month Change-4.68%
1 Year Change35.90%
3 Year Change502.27%
5 Year Change381.82%
Change since IPO452.08%

Recent News & Updates

Dec 16
Is West African Resources (ASX:WAF) Using Too Much Debt?

Is West African Resources (ASX:WAF) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Oct 31
A Look At The Intrinsic Value Of West African Resources Limited (ASX:WAF)

A Look At The Intrinsic Value Of West African Resources Limited (ASX:WAF)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of West African Resources...

Shareholder Returns

WAFAU Metals and MiningAU Market
7D0%2.0%-0.5%
1Y35.9%11.5%8.4%

Return vs Industry: WAF exceeded the Australian Metals and Mining industry which returned 6.2% over the past year.

Return vs Market: WAF exceeded the Australian Market which returned 7.7% over the past year.

Price Volatility

Is WAF's price volatile compared to industry and market?
WAF volatility
WAF Average Weekly Movement6.2%
Metals and Mining Industry Average Movement10.8%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.5%
10% least volatile stocks in AU Market3.6%

Stable Share Price: WAF is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WAF's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aRichard Hydehttps://www.westafricanresources.com

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 90% owned Sanbrado Gold Project located in Burkina Faso.

West African Resources Fundamentals Summary

How do West African Resources's earnings and revenue compare to its market cap?
WAF fundamental statistics
Market CapAU$1.38b
Earnings (TTM)AU$151.72m
Revenue (TTM)AU$519.09m

8.9x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WAF income statement (TTM)
RevenueAU$519.09m
Cost of RevenueAU$239.32m
Gross ProfitAU$279.77m
ExpensesAU$128.05m
EarningsAU$151.72m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin53.90%
Net Profit Margin29.23%
Debt/Equity Ratio60.8%

How did WAF perform over the long term?

See historical performance and comparison

Valuation

Is West African Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAF (A$1.35) is trading below our estimate of fair value (A$3.23)

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 (9.1x) compared to the Australian Metals and Mining industry average (16.4x).

PE vs Market: WAF is good value based on its PE Ratio (9.1x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: WAF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WAF is overvalued based on its PB Ratio (5.9x) compared to the AU Metals and Mining industry average (2.8x).


Future Growth

How is West African Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAF's earnings are forecast to decline over the next 3 years (-10.2% per year).

Earnings vs Market: WAF's earnings are forecast to decline over the next 3 years (-10.2% per year).

High Growth Earnings: WAF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WAF's revenue is expected to decline over the next 3 years (-6.1% per year).

High Growth Revenue: WAF's revenue is forecast to decline over the next 3 years (-6.1% 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 (22.9%)


Past Performance

How has West African Resources performed over the past 5 years?

72.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAF has high quality earnings.

Growing Profit Margin: WAF's current net profit margins (29.2%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: WAF has become profitable over the past 5 years, growing earnings by 72.4% per year.

Accelerating Growth: WAF's earnings growth over the past year (8569.9%) exceeds its 5-year average (72.4% per year).

Earnings vs Industry: WAF earnings growth over the past year (8569.9%) exceeded the Metals and Mining industry 33%.


Return on Equity

High ROE: WAF's Return on Equity (68.8%) is considered outstanding.


Financial Health

How is West African Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WAF's short term assets (A$161.0M) do not cover its short term liabilities (A$232.7M).

Long Term Liabilities: WAF's short term assets (A$161.0M) exceed its long term liabilities (A$54.9M).


Debt to Equity History and Analysis

Debt Level: WAF's net debt to equity ratio (35.9%) is considered satisfactory.

Reducing Debt: WAF's debt to equity ratio has reduced from 200% to 60.8% over the past 5 years.

Debt Coverage: WAF's debt is well covered by operating cash flow (133.1%).

Interest Coverage: WAF's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet


Dividend

What is West African Resources's current dividend yield, its reliability and sustainability?


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Richard Hyde

no data

Tenure

AU$1,228,156

Compensation

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 ($USD886.82K) is about average for companies of similar size in the Australian market ($USD931.63K).

Compensation vs Earnings: Richard's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WAF's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: WAF's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WAF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.1%.


Top Shareholders

Company Information

West African Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: West African Resources Limited
  • Ticker: WAF
  • Exchange: ASX
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: AU$1.378b
  • Shares outstanding: 1.02b
  • Website: https://www.westafricanresources.com

Number of Employees


Location

  • West African Resources Limited
  • 1 Alvan Street
  • Level 1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 07:03
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.