West African’s A$229 Million Special Dividend Could Be Followed by Kiaka Proceeds

West African Resources has moved from building mines to deciding how much cash to hand back. The Burkina Faso-focused gold producer reported A$437 million of first-half net profit, A$690 million of operating cash flow and declared a 20-cent-per-share special dividend worth about A$228.8 million, while also saying it will accelerate debt repayments over the next 12 months.

That combination matters because the balance sheet is no longer being judged only on whether Kiaka can ramp. West African ended June with A$876 million of cash plus 42,453 ounces of unsold bullion. First-half production was 232,905 ounces at an all-in sustaining cost of US$1,823 an ounce, while 214,883 ounces were sold at an average realised gold price of US$4,744 an ounce. Revenue reached A$1.46 billion.

The operating result puts the company broadly on pace for its 2026 production guidance of 430,000 to 490,000 ounces. Simply doubling first-half output would imply about 466,000 ounces for the year. The cost side is tighter: first-half AISC of US$1,823 sits only modestly below the company’s full-year target of less than US$1,900 an ounce, leaving less room for disruption, grade variability or higher royalties in the second half.

Kiaka is the main reason the cash profile has changed. The mine poured first gold in June 2025 and is expected to average more than 270,000 ounces annually over West African’s current 10-year plan. The company says plant throughput and recoveries have exceeded feasibility assumptions, and secondary crushing planned for 2028 is intended to lift fresh-ore throughput to 12 million tonnes a year.

Sanbrado provides the second production centre. Its mine plan now extends to 2036, with output expected to average more than 250,000 ounces a year over the updated plan. The near-term production mix should also improve as the Toega satellite deposit begins contributing higher-grade ore to the Sanbrado plant; first gold from Toega is scheduled for the third quarter of 2026.

The more unusual capital-allocation question sits outside the half-year accounts. Burkina Faso has authorised state mining company SOPAMIB to acquire an additional 25% of Kiaka SA for 70 billion CFA francs, approximately A$175 million. West African has said it aims to finalise that transaction by the end of 2026 and previously indicated that the cash proceeds would be distributed to shareholders through a special dividend.

That means today’s 20-cent payout may not be the end of the capital-return story. If the Kiaka transaction closes on the announced terms and management follows through on its stated plan, investors could see a second transaction-linked return while West African is simultaneously reducing secured debt. The trade-off is that the company would also surrender a quarter of its economic interest in the mine that is driving much of its production growth.

The strategic case therefore depends less on headline gold prices than on conversion of current cash generation into durable per-share value. West African forecasts 5.3 million ounces of production from 2026 to 2035, averaging 533,000 ounces a year and peaking at 596,000 ounces in 2030. Its group Ore Reserves stand at 7.0 million ounces and Mineral Resources at 13.7 million ounces.

The immediate catalysts are practical. Investors should watch second-half AISC against the sub-US$1,900 guidance ceiling, Toega’s first contribution to Sanbrado, Kiaka throughput and recoveries, the pace of secured-debt reduction, and the final terms and timing of the Burkina Faso government’s proposed 25% Kiaka purchase. A strong gold price has created the cash. The next test is whether West African can return it without weakening the production platform that created it.