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“In Western Australia it is very tough to operate with the current
border restrictions, but being an international employer, our pool is
much larger,” Hyde said. “We have hired from every continent bar
Antarctica.
“Key positions have been filled by Australians and New Zealanders
and that is because we wanted to instil that Australian mining
mentality. But, it is interesting the different skills sets you bring in
when you hire internationally; different attitudes and capabilities, the
ability to speak multiple languages. There are many advantages.”
a 10% return, we go there for a 50% return and that’s what we want
WAF’s ability to keep labour costs in check – while at the same time The Sanbrado plant hit its straps almost immediately on
contributing to upliftment in Burkina Faso – has been in stark contrast commissioning and processed 834,000t in Q3
to Australian gold miners who struggled to maintain margins as the
gold price fell and wage and input inflation began to bite.
to get out of it. If we are making money, we can do a lot of good with
Hyde said Sanbrado hadn’t been immune to cost inflation but
social and employment development programmes.”
remained on track to meet cost guidance. The relative age of
Kiaka had been left further up the B2Gold development pipeline,
operations is also assisting the outperformance.
with the TSX-listed miner’s focus clearly on its Fekola mine in
“If there are new projects in WA, they should have similar costs
neighbouring Mali. Hyde describes the deal as a sensible one for
to West Africa but they’re mainly older assets which need a lot of both companies.
sustaining capex to access more ore,” he said. “The West African
“It is in the same country as Sanbrado, which means we don’t have
projects are reasonably new with lots of free-milling oxide ore, so
to replicate management and admin structures,” he said. “Senior
they are low-cost and have high recoveries. For that reason, I think
management can float across two projects which gives some of
we will see African projects continue to generate a lot more free
our staff the chance to step up. We know the system well in Burkina
cash flow.”
Faso, we have a good reputation with government and we are a big
Regardless of the reasons why it is being generated, there is no
employer in the region.
arguing that free cash flow from Sanbrado has transformed WAF.
“WAF developing Kiaka just makes sense. It is 45km away from
By November, the company had reduced its project debt with
Sanbrado and it is ready to be developed, fully permitted with a huge
Taurus Funds Management to $65 million, with the entire loan of
amount of work done on it. It is especially a good fit if we size it right for us.
$US200 million expected to be repaid in coming months.
“They [B2Gold] gave a fair bit and we gave a fair bit and that is why
For Hyde, that financial performance is proof of the ease of doing we got the deal done in three months.
business in West Africa.
“I would say B2 has a strong moral compass, they didn’t want to be
“The share price has done well this year [2021] in absolute terms
sat on an asset for the sake of making the ore reserve table look
but there is still a perception among investors that if an asset is in
better. They know we’ll do a good job and that the deal is the right
a Tier-1 jurisdiction it will be safer. But we have demonstrated we
thing for shareholders, community and the Government.”
can get money out and that is what it is about. We have paid Taurus
As well as building on the in-country platform, Hyde was eager to use
back and had $US100 million in cash and bullion before the Kiaka
WAF’s development capabilities while they are still in place.
transaction.”
“There is the chance to build a brand-new project,” he said. “We
The Kiaka purchase demonstrates WAF’s robust balance sheet.
will use Lycopodium again as we did with Sanbrado. Our entire
The company will pay $US100 million in stage cash and share
approach is about keeping things simple.”
payments to B2Gold Corp for the 6.8 moz gold project. Hyde said
Kiaka is the second asset WAF has taken off B2 Gold’s hands in the
the deal would bolster both production and risk profile.
last 18 months, having picked up the Toega project, even closer to
“For WAF, it will reduce operational risk and take us towards
Sanbrado, last year.
500,000 ozpa production across two assets 45km apart,” he said.
Hyde said a feasibility study on Toega would be completed this year
While peers in the region have chosen to spread their portfolio
ahead of bringing it into the Sanbrado production schedule in late
across several jurisdictions, WAF has settled on a single country
2023/early 2024.
strategy.
“Toega is all on track with the feasibility study, and now that we have
“I don’t discriminate between Burkina Faso, Mali, Cote d’Ivoire,
paid Taurus we are back into regional exploration,” he said. “We are
there are border problems in each country,” Hyde said. “We know
debt-free, unhedged and generating free cash flow. That means we
that we are dealing with risk in West Africa, but we don’t go there for
can crack on with growth.
“We are done now on the corporate front. We will keep our head
down and deliver the Kiaka feasibility study, restart regional
exploration and we now have 11 moz in resource so we need to build
out the reserves.”
It is an enviable position to be in less than 24 months after first gold
pour but having consistently exceeded expectations for the last five
years, there will be few in the international gold sector doubting WAF
The combination of Australian and Burkinabe know-how has can do it again.
proven a potent mix for WAF
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