WAF 0.69% $1.46 west african resources limited

2021 we were advised costs would blow out in 2022 (mainly I...

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    2021 we were advised costs would blow out in 2022 (mainly I think from memory due to a high stripping ratio of waste to ore for that year), it did, however in 2021 we were also advised that in 2023 costs would then go down again. This IMO is what they are now getting punished for as the costs have been forecast to further increase this year. Is this increase their fault? probably not but regardless its still a very significant increase in costs and as such the share price has been punished. My fear as a shareholder is that Kiaka being quite low grade (1g/t) is fast becoming unprofitable if costs keep rising (not saying its not going to be profitable yet and yes I realise with recent increases in gold price a lot of those cost increases have been offset .... provided the gold price stays up of course). Was never a fan of Kiaka purchase for a number of reasons (low grade and not diversifying sovereign risk) but at the time the numbers stacked. Would have preferred the focus to have been on finding more high grade deposits like MV3 .... anyhow my 2 bobs worth, management has done a great job in the past and although I disagreed on Kiaka they still have my confidence to keep making good profits into the future until they don't. At these prices if I wasn't already way over weight on these I'd have to purchase a few more. GLTAH
 
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