West African Resources (ASX:WAF): Assessing Valuation After Director Buying and New Share Issuance

West African Resources (ASX:WAF) has drawn fresh attention after a director lifted their stake while the company simultaneously issued nearly one million new shares on the ASX, reshaping the ownership and liquidity picture.

See our latest analysis for West African Resources.

Those moves come after a strong run, with the share price now at A$2.82 and a powerful year to date share price return of around 92 percent, supported by a three year total shareholder return above 160 percent. This performance suggests momentum is still firmly on the side of longer term holders.

If director buying and new shares on issue have you reassessing your watchlist, it could be worth exploring fast growing stocks with high insider ownership for other ideas with a similar high conviction feel.

With earnings growing quickly and the share price still sitting below analyst targets, is West African Resources quietly undervalued here, or has the market already baked in its next leg of production-led growth?

Most Popular Narrative: 25.8% Undervalued

With West African Resources last closing at A$2.82 against a narrative fair value of A$3.80, the valuation case leans firmly toward upside potential.

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. Unhedged exposure to record high gold prices, combined with persistent global economic uncertainty and heightened demand for gold as a safe haven asset, is likely to sustain strong realized sales revenues and robust operating cash flows.

Read the complete narrative.

Curious how aggressive revenue growth, steady margins and a surprisingly low future earnings multiple combine to support that higher fair value tag? The full narrative reveals the playbook.

Result: Fair Value of $3.8 (UNDERVALUED)

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

However, this growth story could unravel if political risks in Burkina Faso escalate, or if grid power delays at Kiaka force extended reliance on costly diesel generation.

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

Build Your Own West African Resources Narrative

If you see things differently or would rather dig into the numbers yourself, you can build a personalised view in just a few minutes: 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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