West African Resources Ltd (WAF)Jun 08, 2017 · M1 South growing and getting better at depth Deep diamond drilling by West African Resources (WAF) at the M1 South deposit, Sanbrado

Page 1 of 9

West African Resources Ltd (WAF)

Gold

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WAF.asxSpeculative Buy

Share Price

Valuation $0.61

Price Target (12 month) $0.65

Brief Business Description:

Hartleys Brief Investment Conclusion

Chairman & MD

Top Shareholders

1832 Asset Management 8.6%

Board & Management 4.0%

Company Address

Issued Capital

- fully diluted

Market Cap

- fully diluted

Cash (est)

Debt

EV

EV / Resource Oz

EV / Reserve Oz

Prelim. (A$m) FY19e FY20e FY21e

Prod (koz Au) 0.0 30.6 134.1

Op Cash Flw -10.29 37.95 123.42

Norm NPAT -11.9 23.0 108.8

CF/Share (cps) -1.5 5.5 17.9

EPS (cps) -2.1 4.0 15.8

P/E -15.7 8.2 2.1

A u

Resources (Moz) 2.2

Reserves (Moz) 0.9

Mike Millikan

Resources Analyst

Ph: +61 8 9268 2805

E: [email protected]

484.2m

8 Jun 2017

$0.330

Richard Hyde (Managing Director)

14 Southbourne St

Scarborough WA, 6007

Sanbrado is a high-quality project, w ell advanced w ith FS

highlighting a robust development. The project is fully

permitted w ith a granted mining licence. Strong

exploration upside.

Mark Connelly (Non-Exec Chairman)

Gold explorer and developer focused on the Sanbrado

Project in Burkina Faso

541.5m

A$159.8m

A$178.7m

A$145.8m

Hartleys has completed capital raisings in the past 12

months for West African Resources Limited ("WAF") for

w hich it has earned fees and has provided corporate

advice w ithin the past 12 months to WAF for w hich it has

earned fees. Hartleys has a beneficial interest in 5 million

unlisted options in WAF.

A$163/oz

A$0.0m

A$14.0m

A$67/oz

WEST AFRICAN RESOURCES LTD (WAF)

M1 South growing and getting better at depth Deep diamond drilling by West African Resources (WAF) at the M1 South

deposit, Sanbrado Gold Project in Burkina Faso continues to deliver

spectacular high-grade results, which we anticipate will ultimately improve the

mining inventory and further enhance the project economics.

Diamond hole TAN17-DD111 is a recent highlight, reporting 21m @ 53.1g/t

Au (or 1.7oz/t) from 408.5m, including an impressive 0.5m @ 1,613.4g/t Au

(or 51.9oz/t), extending high-grade mineralisation at M1 South to more than

350m vertical depth.

M1 South has been defined over 350m of strike, is up to 45m true width in

parts and has at least three high-grade sub-vertical lodes which remain open

at depth. Drilling has recently concentrated on the southern high-grade shoot,

which continues to demonstrate good mineralised continuity some 180m

beneath the current reserve shell. Gold endowment remains strong at over

1,500oz per vertical metre, with abundant visible gold providing high

recoveries of over 95%.

Recent high-grade domaining of the M1 South resource using hard

boundaries and a 200g/t Au top provides 226kt @ ~34g/t Au for ~246koz,

down to a depth of ~160m. With mineralisation (ultra-high-grade) now

confirmed down to +350m, implies potential for the current resource to more

than double (+500koz @ +30g/t Au), especially as the grade appears to be

improving with depth. Importantly the high-grade system remains open at

depth and appears to be increasing in width at depth while improving grade

in the hanging wall and footwall positions. If we assume mineralisation

extends to 500m vertical depth (no reason not to at this stage), potential exists

for over 750koz at very high grades from the M1 South deposit alone.

Resource upgrade in Q3 CY17; Development studies deferred Drilling is ongoing, completing infill and extensional work at M1 South and

M5, with 6 rigs active. A resource upgrade remains on-track for release in Q3

CY17, but the optimised feasibility study (FS) for a combined open pit and

underground operation has now been deferred until 1H CY18, allowing time

to better define and improve both the M1 South and M5 mining inventories.

The early introduction of high-grade underground ores is seen as a key value

driver, providing opportunities to lift mill grades for increased production and

to grow mine life. The introduction of the M1 South underground could provide

options to maintain the 150kozpa run-rate for a longer period and/or

potentially lift head grades for even higher production (~200kozpa) to improve

capital payback. On our estimates a modest 200ktpa (at a diluted 20g/t Au)

underground mine at M1 South, blended with open pit ore sources (M5, M3

and M1 North) could lift head grades above 3.4g/t Au for +200kozpa.

Sanbrado is a high-quality project, with a growing high-grade mining

inventory, simple processing flowsheet (free-milling ores), and increasing

production profile and mine life. The project has substantial appeal, being

100%-owned, and well advanced (fully permitted with a granted mining

licence) for medium-term construction, now likely to commence late CY18.

We maintain our Speculative Buy recommendation with an updated price

target of 65cps, NAV of 61cps, spot NAV of 71cps. WAF remains well funded

(~A$14M in cash and options (in the money) expiring end Sep’17 for

~A$5.7M) for ongoing drilling and to complete development study work.

Hartleys Limited ABN 33 104 195 057 (AFSL 230052) 141 St Georges Terrace, Perth, Western Australia, 6000

Hartleys does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the

firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single

factor in making their investment decision. Further information concerning Hartleys’ regulatory disclosures can be found on Hartleys

website www.hartleys.com.au

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

.

2.

4.

6.

8.

10.

12.

Jun-17Feb-17Oct-16Jun-16

Volume - RHS

WAF Shareprice - LHS

Sector (S&P/ASX SMALL RESOURCES) - LHS

A$ M

West African Res Ltd

Source: IRESS

http://www.hartleys.com.au/

Hartleys Limited West African Resources Ltd (WAF) 8 June 2017

Page 2 of 9

SUMMARY MODEL

West African Res Ltd Share Price

WAF $0.330 Speculative Buy

Key Market Information Directors & Management Company InformationShare Price $0.330 Mark Connelly (Non-Exec Chairman) 14 Southbourne StMarket Capitalisation - ordinary A$160m Richard Hyde (Managing Director) Scarborough WA, 6007Net Debt (cash) -$14m Simon Storm (Non-Exec Director & Comp Sec) +61 8 9481 7344Market Capitalisation - fully diluted A$179m +61 8 9481 7355EV A$165m Lyndon Hopkins (COO)Issued Capital 484.2m Vincent Morel (Expl Manager) www.westafricanresources.com.auOptions 57.3m Joanne Thompson (Sustainability Manager)Issued Capital (fully diluted inc. all options) 541.5m Nick Harch (Project Finance)Issued Capital (fully diluted inc. all options and new capital) 696.1m Pierre Tapsoba (National Director)

Valuation $0.61 Top Shareholders m shares %12month price target $0.65 1832 Asset Management 41.5 8.6%

Board & Management 19.5 4.0%

P&L Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21Net Revenue A$m 0.0 0.0 0.0 45.1 195.5 Reserves & Resources Mt g/t Au Koz LCTotal Costs A$m -16.2 -12.3 -8.8 -2.2 -39.0 ReservesEBITDA A$m -16.2 -12.3 -8.8 42.9 156.5 Probable 16.8 1.7 894 - margin - - - 95% 80% ResourcesDepreciation/Amort A$m -0.4 -0.4 -4.1 -13.6 -23.2 Indicated 12.5 2.3 940 1g/t Au

EBIT A$m -16.6 -12.8 -12.9 29.3 133.3 Indicated 29.6 1.4 1,332 0.5g/t AuNet Interest A$m -1.5 -1.5 -1.5 -1.5 -1.5 Inferred 8.7 2.2 614 1g/t Au

Norm. Pre-Tax Profit A$m -18.1 -14.3 -14.4 27.8 131.8 Inferred 18.6 1.4 839 0.5g/t AuReported Tax Expense A$m 0.0 0.0 0.0 0.0 -22.9 Total 21.1 2.3 1,554 1g/t Au

Normalised NPAT A$m -14.9 -11.8 -11.9 23.0 108.8 Total 48.1 1.4 2,171 0.5g/t AuAbnormal Items A$m -3.2 -2.5 -2.5 4.9 0.2Reported Profit A$m -18.1 -14.3 -14.4 27.8 108.9 Production Summary Unit Jun 18 Jun 19 Jun 20 Jun 21Minority A$m 0 0 0 0 0 Mill Throughput Mt 0.0 0.0 0.5 2.1Profit Attrib A$m -18.1 -14.3 -14.4 27.8 108.9 Strip Ratio x 0.0 0.0 12.3 10.7

Mined grade g/t 0.00 0.00 2.0 2.2

Balance Sheet Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 Combined Recovery & Payability % 0% 0% 91% 91%

Cash A$m 14.5 75.3 131.0 9.5 75.6 Gold (Koz) 0.0 0.0 31 134.1

Other Current Assets A$m 0.1 0.1 0.1 3.8 16.3 Gold Equiv (Koz) 0.0 0.0 31 134.1

Total Current Assets A$m 14.5 75.4 131.0 13.3 91.8 Implied Resource Conversion % 23% 23% 23% 20%

Property, Plant & Equip. A$m -0.3 -0.7 40.2 174.0 174.2 Mine Life yr - 9.0 9.0 8.00

Exploration A$m 7.0 15.0 19.0 23.0 27.0Investments/other A$m 0.0 0.0 0.0 0.0 0.0 Costs Unit Jun 18 Jun 19 Jun 20 Jun 21Tot Non-Curr. Assets A$m 6.7 14.3 59.2 197.0 201.2 Cost per milled tonne $A/t - - 23.1 27.1

Total Assets A$m 21.2 89.6 190.3 210.3 293.0 EBITDA / tonne milled ore $A/t - - 81.8 74.5

Short Term Borrowings A$m - - - - - C1: Operating Cash Cost = (a) $A/oz - - 357 382

Other A$m 1.4 1.0 1.1 1.3 5.1 (a) + Royalty = (b) $A/oz - - 415 440

Total Curr. Liabilities A$m 1.4 1.0 1.1 1.3 5.1 C2: (a) + depreciation & amortisation = (c) $A/oz - - 801 554

Long Term Borrowings A$m 0.0 0.0 115.0 107.0 77.0 (a) + actual cash for development = (d) $A/oz - - 1,336 586 Other A$m - - - - - C3: (c) + Royalty $A/oz - - 860 613

Total Non-Curr. Liabil. A$m 0.0 0.0 115.0 107.0 77.0 (d) + Royalty $A/oz - - 1,395 644

Total Liabilities A$m 1.4 1.0 116.1 108.3 82.1 All In Sustaining Cost (AISC) $A/oz - - 1,031 715

Net Assets A$m 19.8 88.6 74.2 102.0 210.9 All In Sustaining Cost (AISC) $US/oz - - 787 552 Net Debt A$m -14.5 -75.3 -16.0 97.5 1.4

Price Assumptions Unit Jun 18 Jun 19 Jun 20 Jun 21Cashflow Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 AUDUSD A$/US$ 0.75 0.76 0.76 0.77Operating Cashflow A$m -9.4 -4.6 -8.8 39.4 147.8 Gold US$/oz 1300 1375 1275 1250Income Tax Paid A$m 0.0 0.0 0.0 0.0 -22.9Interest & Other A$m -1.5 -1.5 -1.5 -1.5 -1.5 Hedging Jun 18 Jun 19 Jun 20 Jun 21Operating Activities A$m -10.9 -6.1 -10.3 38.0 123.4 Hedges maturing? No No No No

Property, Plant & Equip. A$m 0.0 0.0 -45.0 -147.4 -23.4 Sensitivity AnalysisExploration and Devel. A$m -7.0 -8.0 -4.0 -4.0 -4.0 ValuationOther A$m 0.0 0.0 0.0 0.0 0.0 Base Case 0.61Investment Activities A$m -7.0 -8.0 -49.0 -151.4 -27.4 Spot Prices 0.71 (16.7%)

Spot USD/AUD 0.75, Gold $1287/oz.

Borrowings A$m 0.0 0.0 115.0 -8.0 -30.0 AUDUSD +/--10% 0.53 / 0.70 (-12.9% / 15.7%) 24.9 / 31.0 (-10.6% / 11.2%)Equity or "tbc capital" A$m 21.0 75.0 0.0 0.0 0.0 Gold +/--10% 0.72 / 0.50 (18.0% / -18.1%) 31.6 / 23.5 (13.4% / -15.6%)Dividends Paid A$m 0.0 0.0 0.0 0.0 0.0 Production +/--10% 0.72 / 0.49 (18.7% / -18.8%) 31.7 / 23.3 (13.9% / -16.2%)

Financing Activities A$m 21.0 75.0 115.0 -8.0 -30.0 Operating Costs +/--10% 0.59 / 0.63 (-3.9% / 3.9%) 26.7 / 28.9 (-3.9% / 3.8%)

Net Cashflow A$m 3.1 60.8 55.7 -121.5 66.1 Unpaid Capital - ITMYear Expires No. (m) $m Avg price % ord

Shares Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 30-Jun-17 0.0 0.0 0.00 0.0%Ordinary Shares - End m 478.9 679.3 688.8 688.8 688.8 30-Jun-18 45.9 6.5 0.14 9.5%Ordinary Shares - Weighted m 443.9 579.1 684.1 688.8 688.8 30-Jun-19 9.5 1.0 0.11 2.0%Diluted Shares - Weighted m 443.9 556.2 633.5 633.5 633.5 30-Jun-20 1.3 0.3 0.24 0.3%

30-Jun-21 0.0 0.0 0.00 0.0%

Ratio Analysis Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 TOTAL 56.7 7.8 0.14 11.7%Cashflow Per Share A$ cps -2.5 -1.1 -1.5 5.5 17.9Cashflow Multiple x -13.4 -31.2 -21.9 6.0 1.8 Share Price Valuation (NAV) Risked Est. A$mEarnings Per Share A$ cps -4.1 -2.5 -2.1 4.0 15.8 90% Sanbrado (pre-tax NAV at disc. rate of 12%) 411Price to Earnings Ratio x -8.1 -13.4 -15.7 8.2 2.1 Exploration upside, other assets etc 70Dividends Per Share AUD - - - - - Forwards 0Dividend Yield % 0.0% 0.0% 0.0% 0.0% 0.0% Corporate Overheads -17Net Debt / Net Debt + Equity % -269% -567% -27% 49% 1% Net Cash (Debt) 14Interest Cover X na na na 19.7 89.5 Tax (NPV future liability) -56Return on Equity % na na na 23% 52% Options & Other Equity 4

Hedging 0Total 426

Analyst: Mike Millikan

+61 8 9268 2805

"tbc capital" could be equity or debt. Our valuation is risk-adjusted for how this may be obtained.

Sources: IRESS, Company Information, Hartleys Research

0.02-0.080.010.000.61

29.3 (5.1%)

FY19 NPAT

Last Updated: 08/06/2017

Est. A$/share0.590.100.00-0.02

27.8


Page 3 of 9

SANBRADO GOLD PROJECT – BURKINA FASO The Sanbrado Gold Project (formerly Tanlouka Gold Project) is located ~90km

southeast of Ouagadougou, Burkina Faso. The project comprises one granted mining

permit and one granted exploration licence, covering an area of ~116km². WAF has a

current 100% interest in the project, however the Government of Burkina Faso is

entitled to a free-carried 10% interest in the project upon commencement of mining.

The project was acquired by WAF through an all scrip transaction with TSX-V listed

gold junior Channel Resources. At the time of the acquisition the project contained the

~1Moz (0.5g/t LC) Mankarga 5 deposit. Subsequently WAF has discovered the high-

grade M1 South deposit and extended mineralisation at both the M1 North and M3

prospects.

Fig. 1: Sanbrado Project Location

Source: West African Resources Limited

Reserves are currently 16.8Mt @ 1.7g/t Au for 894Koz gold, from a total resource

base of 21.1Mt @ 2.3g/t Au for 1.55Moz gold (at a 1g/t Au lower cut), and 48.1Mt @

1.4g/t Au for 2.17Moz gold (at a 0.5g/t Au lower cut); ~59% of the resource is

Indicated.

Sanbrado is proposed to be a conventional CIL operation, with free-milling ores

(average LOM recoveries of ~90.7%) and anticipated low reagent consumption and

good portion of gravity recoverable gold. WAF estimated LOM cash costs of

US$708/oz and AISC of US$759/oz in its open pit FS, which implies healthy margins

at the current spot gold prices for quick capital payback. We expect costs will improve

as the mine plan is further refined by the ongoing underground studies.

Sanbrado is located

~90km southeast of

Ouagadougou in

Burkina Faso

Burkina Faso remains

a mining fr iendly

jur isdict ion

The project comprises

one granted mining

permit and one

granted exploration

l icence, cover ing an

area of ~116km²

Sanbrado is located

along the main

Markoye Fault , along

str ike from B2Gold’s

Kiaka Gold Project

(~4.8Moz)

Good metallurgy –

free mil l ing ores

Resources wi l l be

updated in Q3 CY17


Page 4 of 9

The underground optimisation study on M1 South aims to reduce current mining costs

and determine an optimal transition between open pit and underground mining.

Ongoing infill drilling is expected to convert existing Inferred resources beneath

reserve pit-shells and extensional drilling is targeting high-grade shoots at both M1

and M5, with both deposits open at depth.

Drilling has already been highly successful with high-grade down-dip results from both

M1 South and M5, which are expected to have a positive impact on open pit reserves

and enhance the underground potential of both deposits.

Fig. 2: Sanbrado Project - Gold Prospects (LHS) and M1 South Plan View (RHS)


Fig. 3: M1 South – Long Section (LHS) and Cross Section SW425


WAF remains wel l

funded (~A$14M cash)

for exploration dr i l l ing

to extend and

converted resources


Page 5 of 9

VALUATION - UPDATED Our modelling largely aligns to the Open Pit FS but now includes some upside for the

M1 South underground (potential) and further the project enhancements. We assume

a project scale of 2.0Mtpa (unchanged), with a slightly adjusted mine plan and cost

estimates. We now assume pre-production capex of ~US$153M (~A$202M). Our

modelling assumptions are summarised below.

Fig. 4: Sanbrado Project Model Assumptions

Source: Hartleys Estimates

We now assume a blended LOM head grade of ~2.4/t Au, good recoveries of just over

90% and total mining inventory of over 1.2Moz. Our production profile provides

average LOM production of ~139kozpa over a mine-life of ~9 years. We see significant

potential for additional higher grade tonnes at M1 South as the deposit remains open

at depth and is expected to transition to a future underground mining operation. The

exploration potential of the project are remains strong and we model a nominal A$70m

($0.09/share) value for exploration upside.

Fig. 5: Hartleys Sum of Parts Valuation for WAF


Sanbrado Open Pit FS Hartleys BC (old) Hartleys BC (new)

LOM Strip Ratio (x) 5.0x 5.3x 5.1x

Reserve or Mining Inventory - Base 16.8Mt @ 1.7g/t Au for 0.89Moz 17Mt @ 2.0g/t Au for 1.09Moz 20Mt @ 2.5g/t Au for 1.61Moz

Resource - Base 21.1Mt @ 2.36g/t Au for 1.55Moz 21.1Mt @ 2.36g/t Au for 1.55Moz 23Mt @ 2.6g/t Au for 1.92Moz

Operation Scale (Mtpa) 2.0Mtpa 2.0Mtpa 2.0Mtpa

LOM Head Grade g/t 1.7g/t 2.0g/t 2.4g/t

LOM Recovered Grade g/t 1.4g/t 1.7g/t 2.2g/t

LOM Gold recovery 90.7% 91% 91%

Total Gold Produced 0.81Moz 0.98Moz 1.25Moz

Total Gold Produced pa 93Kozpa 109Kozpa 139Kozpa

Current Assumed Mine Life (yrs) 8.75yrs 9.0yrs 9.0yrs

Commencement Date (qtr) Jun-19 Jun-19 Jun-20

LOM avg selling price (US$/gold oz) US$1200/oz US$1244/oz US$1225/oz

LOM Cash Costs (US$/gold oz) US$717/oz US$619/oz US$573/oz

LOM AISC (US$/gold oz) US$759/oz US$698/oz US$635/oz

LOM Operating Margin (US$mpa) US$41mpa US$60mpa US$82mpa

Capex - Pre-production US$131m US$145m US$153m

Pre-tax NPV @ 5% US$143m US$265m US$396m

Share Price Valuation (NAV) Risked Est. A$m90% Sanbrado (pre-tax NAV at disc. rate of 12%) 411Exploration upside, other assets etc 70Forwards 0Corporate Overheads -17Net Cash (Debt) 14Tax (NPV future liability) -56Options & Other Equity 4Hedging 0Total 426

0.02-0.080.010.000.61

Est. A$/share0.590.100.00-0.02

We assume an

+US$150m capex

requirement in FY19

to build a 2.0Mtpa CIL

plant , open pit and

underground mine(s)

We assume a nominal

A$70m value for

explorat ion upside and

other gold assets

within the port fol io

Hart leys sum of par ts

valuation for WAF is

61cps


Page 6 of 9

PRICE TARGET Our price target is based on our Base Case valuation at both Hartleys commodity price

and current spot prices, using our development discount rate of 12% and future

production discount rate of 8%. We have included a small weighting for the current net

cash backing.

Fig. 6: WAF Price Target Methodology


WAF Price Target Methodology Weighting Spot 12 mth out

50% $0.61 $0.67

20% $0.71 $0.78

15% $0.74 $0.80

5% $0.88 $0.95

Net Cash 10% $0.03 $0.03

Risk weighted composite $0.61

12 Months Price Target $0.65

Shareprice - Last $0.330

12 mth total return (% to 12mth target ) 97%

Sanbrado NPV@12% - Base Case

Sanbrado NPV@12% - Base Case - Spot

Sanbrado NPV@8% - Upside Case

Sanbrado NPV@8% - Upside Case - Spot

Hart leys 12 month

price target is 65cps


Page 7 of 9

EV/EBITDA BANDS

Fig. 7: Using Hartleys base case commodity forecasts

Source: Hartleys Estimates, IRESS

Fig. 8: Using spot commodity prices

Source: Hartleys Estimates, IRESS

.00

.20

.40

.60

.80

1.00

1.20

WAF Actual

Hartleys Target

8x EV/EBITDA

6x EV/EBITDA

4x EV/EBITDA

2x EV/EBITDA

1x EV/EBITDA

Shareprice

.00

.20

.40

.60

.80

1.00

1.20

1.40

WAF Actual

8x EV/EBITDA

6x EV/EBITDA

4x EV/EBITDA

2x EV/EBITDA

1x EV/EBITDA

Shareprice


Page 8 of 9

RISKS

Fig. 9: Key assumptions and risks for valuation Assumption Risk of not realising

assumption Risk to valuation if

assumption is incorrect

Comment

Feasible project development

Moderate Meaningful WAF is leveraged to the success of the Sanbrado project. We model a 2.0Mtpa project

for 9 years. If the project varies largely from these metrics our valuation will be at risk to

upside and downside Model parameters

Moderate

Meaningful

We have made a number of large assumptions in

our valuation of WAF, changes in these assumptions can change our valuation to both

the upside and downside Exploration upside potential

Moderate

Meaningful

We assume exploration upside at Sanbrado.

Our valuation will be at risk if WAF has no further exploration success

Funding Risk

Moderate

High

We assume a ~60:40 debt:equity funding

scenario to develop the 2.0Mtpa CIL project, if this funding scenario is not achievable our

valuation will be at risk, equity dilution is the highest risk to our valuation

Conclusion At this early stage we have made significant assumptions but believe these are achievable.

Source: Hartleys Research

Page 9 of 9

HARTLEYS CORPORATE DIRECTORY Research Trent Barnett Head of Research +61 8 9268 3052

Mike Millikan Resources Analyst +61 8 9268 2805

John Macdonald Resources Analyst +61 8 9268 3020

Paul Howard Resources Analyst +61 8 9268 3045

Aiden Bradley Research Analyst +61 8 9268 2876

Michael Scantlebury Junior Analyst +61 8 9268 2837

Janine Bell Research Assistant +61 8 9268 2831

Corporate Finance Dale Bryan Director & Head of

Corp Fin.

+61 8 9268 2829

Richard Simpson Director +61 8 9268 2824

Ben Crossing Director +61 8 9268 3047

Ben Wale Associate Director +61 8 9268 3055

Stephen Kite Associate Director +61 8 9268 3050

Scott Weir Associate Director +61 8 9268 2821

Scott Stephens Associate Director +61 8 9268 2819

Rhys Simpson Manager +61 8 9268 2851

Registered Office

Level 6, 141 St Georges TcePostal Address:

PerthWA 6000 GPO Box 2777

Australia Perth WA 6001

PH:+61 8 9268 2888 FX: +61 8 9268 2800

www.hartleys.com.au [email protected]

Note: personal email addresses of company employees are

structured in the following

manner:[email protected]

Hartleys Recommendation Categories

Buy Share price appreciation anticipated.

Accumulate Share price appreciation anticipated but the risk/reward is

not as attractive as a “Buy”. Alternatively, for the share

price to rise it may be contingent on the outcome of an

uncertain or distant event. Analyst will often indicate a

price level at which it may become a “Buy”.

Neutral Take no action. Upside & downside risk/reward is evenly

balanced.

Reduce /

Take profits

It is anticipated to be unlikely that there will be gains over

the investment time horizon but there is a possibility of

some price weakness over that period.

Sell Significant price depreciation anticipated.

No Rating No recommendation.

Speculative

Buy

Share price could be volatile. While it is anticipated that,

on a risk/reward basis, an investment is attractive, there

is at least one identifiable risk that has a meaningful

possibility of occurring, which, if it did occur, could lead to

significant share price reduction. Consequently, the

investment is considered high risk.

Institutional Sales Carrick Ryan +61 8 9268 2864

Justin Stewart +61 8 9268 3062

Simon van den Berg +61 8 9268 2867

Chris Chong +61 8 9268 2817

Digby Gilmour +61 8 9268 2814

Tia Hall +61 8 9268 3053

Wealth Management Nicola Bond +61 8 9268 2840

Bradley Booth +61 8 9268 2873

Adrian Brant +61 8 9268 3065

Nathan Bray +61 8 9268 2874

Sven Burrell +61 8 9268 2847

Simon Casey +61 8 9268 2875

Tony Chien +61 8 9268 2850

Tim Cottee +61 8 9268 3064

David Cross +61 8 9268 2860

Nicholas Draper +61 8 9268 2883

John Featherby +61 8 9268 2811

Ben Fleay +61 8 9268 2844

James Gatti +61 8 9268 3025

John Goodlad +61 8 9268 2890

Andrew Gribble +61 8 9268 2842

David Hainsworth +61 8 9268 3040

Neil Inglis +61 8 9268 2894

Murray Jacob +61 8 9268 2892

Gavin Lehmann +61 8 9268 2895

Shane Lehmann +61 8 9268 2897

Steven Loxley +61 8 9268 2857

Andrew Macnaughtan +61 8 9268 2898

Scott Metcalf +61 8 9268 2807

David Michael +61 8 9268 2835

Jamie Moullin +61 8 9268 2856

Chris Munro +61 8 9268 2858

Michael Munro +61 8 9268 2820

Ian Parker +61 8 9268 2810

Matthew Parker +61 8 9268 2826

Charlie Ransom

(CEO)

+61 8 9268 2868

Mark Sandford +61 8 9268 3066

David Smyth +61 8 9268 2839

Greg Soudure +61 8 9268 2834

Sonya Soudure +61 8 9268 2865

Dirk Vanderstruyf +61 8 9268 2855

Samuel Williams +61 8 9268 3041

Jayme Walsh +61 8 9268 2828

Disclaimer/Disclosure

The author of this publication, Hartleys Limited ABN 33 104 195 057 (“Hartleys”), its Directors and their Associates from time to time may hold

shares in the security/securities mentioned in this Research document and therefore may benefit from any increase in the price of those securities.

Hartleys and its Advisers may earn brokerage, fees, commissions, other benefits or advantages as a result of a transaction arising from any advice

mentioned in publications to clients.

Hartleys has completed capital raisings in the past 12 months for West African Resources Limited ("WAF") for which it has earned fees and has

provided corporate advice within the past 12 months to WAF for which it has earned fees. Hartleys has a beneficial interest in 5 million unlisted

options in WAF.

Any financial product advice contained in this document is unsolicited general information only. Do not act on this advice without first consulting

your investment adviser to determine whether the advice is appropriate for your investment objectives, financial situation and particular needs.

Hartleys believes that any information or advice (including any financial product advice) contained in this document is accurate when issued.

Hartleys however, does not warrant its accuracy or reliability. Hartleys, its officers, agents and employees exclude all liability whatsoever, in

negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law.

Documents

West African Resources Ltd (WAF)Jun 08, 2017 · M1 South growing and getting better at depth Deep diamond drilling by West African Resources (WAF) at the M1 South deposit, Sanbrado