West African Resources' (ASX:WAF) third quarter showed "strong" operating cash flows of AU$242 million after AU$52 million value-added tax receipt and AU$24 million taxes, according to a Monday Euroz Hartleys note.
The company on Monday reported total third-quarter gold production of 92,721 ounces at an all-in sustaining cost (AISC) of $1,532 per ounce, compared to 7,799 ounces at an AISC of $1,296 an ounce last year.
The research firm noted that the company remains in trading suspension because of its ongoing discussions with the Burkina Faso government regarding its request to acquire an additional stake in Kiaka for valuable paid consideration.
Euroz Hartleys said that its rating and West African Resources' AU$4.95 price target are under review, pending the outcome of a potential change in project interest at Kiaka.