The ASX 200 gold stock market recently witnessed a remarkable surge of 11% in the shares of a prominent player, driven by soaring profits. West African Resources Ltd (ASX: WAF) experienced a significant rise in its stock value, closing at $2.10 per share, up from $1.885 in the previous session. This surge reflects the company’s robust performance over the past year, with its shares skyrocketing by an impressive 112%.

The exceptional performance of West African Resources can be attributed to its strong financial results for the fiscal year 2024. The company reported a production of 206,622 ounces of gold at a competitive all-in sustaining cost (AISC) of US$1,240 per ounce. Unhedged gold sales amounted to 199,550 ounces, achieving an average realized price of US$2,391 per ounce. These operational achievements translated into a substantial revenue of AU$730 million, generating AU$252 million in cash flow from operating activities. Remarkably, the company’s after-tax profit surged by 49% compared to the previous year, reaching AU$246 million.

Moreover, West African Resources revealed its plans to update its Mineral Resources in the upcoming quarter of 2025. The company currently boasts a Mineral Resource estimate of 12.5 million ounces, with an ore reserve of 6.2 million ounces of gold. Additionally, the company’s Kiaka project is progressing as per schedule, with the first gold production expected in the third quarter of 2025.

The company’s solid financial position is evident from its net assets of AU$1.3 billion at the end of 2024, including a substantial cash reserve of AU$392 million. The positive outlook and promising results have garnered significant investor interest, propelling the stock to new heights.

CEO Richard Hyde expressed optimism about the company’s future prospects, highlighting the successful performance of the Sanbrado production center and the upcoming launch of the Kiaka project. With the Kiaka project nearing completion, West African Resources is poised to enhance its annual gold production to over 420,000 ounces, positioning itself as a key player in the gold mining sector.

In conclusion, the remarkable surge in the ASX 200 gold stock underscores the industry’s resilience and the potential for substantial growth in the gold market. West African Resources’ exceptional performance and strategic initiatives have positioned it as a frontrunner in the sector, attracting significant investor attention and driving its stock value to unprecedented levels.