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Up 59% in a year, why is this $3.8 billion ASX 200 gold stock sinking today?

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Miner standing at quarry looking upset.

S&P/ASX 200 Index (ASX: XJO) gold stock West African Resources Ltd (ASX: WAF) is slipping today.

West African shares closed yesterday trading for $3.38. In morning trade on Thursday, shares are changing hands for $3.31 apiece, down 2.2%. That gives the gold miner a market cap of approximately $3.8 billion.

For some context, the ASX 200 is down 0.1% at this same time, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down a steeper 3.2% amid concerns that the nascent ceasefire in the Iran war may not hold for long.

That’s seen oil prices rebound and gold prices dip overnight, as a prolonged war will stoke inflation and likely lead to higher interest rates. Gold, and by connection ASX 200 gold stocks like West African Resources, tend to perform better in a low or falling interest rate environment.

Despite today’s dip, West African shares remain up an index smashing 59.1% since this time last year.

Here’s what else ASX investors are mulling over today.

ASX 200 gold stock on track to meet guidance

Before market open today, West African released a preliminary production update for the March quarter (Q1 2026). The update covers both its Sanbrado and Kiaka gold production centres, located in Burkina Faso.

Over the three months to 31 March, the ASX 200 gold stock reported total gold production of 107,728 ounces. The miner sold 104,145 ounces of gold during this period, receiving an average realised price of US$4,945 per ounce.

Breaking that down across its two centres, Sanbrado produced 42,024 ounces of gold, while Kiaka produced 65,704 ounces of gold.

Management said that open-pit mining at Sanbrado continued to ramp up during the quarter. And open-pit mining at Kiaka achieved an 18% increase in mined ounces compared to the December quarter.

West African shares may be outperforming the broader ASX gold sector today, with the miner reaffirming it is on track to achieve its full calendar-year 2026 production guidance of 430,000 to 490,000 ounces of gold.

What did West African Resources management say?

Commenting on the March results that have yet to lift the ASX 200 gold stock today, West African Resources CEO Richard Hyde said:

With quarterly production of 107,728 ounces gold from our two large low-cost gold production centres of Sanbrado and Kiaka in Burkina Faso, WAF is well on-track to achieve 2026 annual production guidance of 430,000 – 490,000 ounces of gold.

I look forward to releasing our full quarterly activities report in the coming weeks.

The post Up 59% in a year, why is this $3.8 billion ASX 200 gold stock sinking today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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