Just days after reporting a stellar profit result, Subiaco-based West African Resources has entered a trading halt over a potential deal with the Burkina Faso government.
The miner today revealed it was preparing to announce a request from the government to acquire, “for valuable paid consideration”, an additional 35 per cent of subsidiary Kiaka, which owns the recently constructed Kiaka gold project.
First gold was poured only two months ago – three-and-a-half years after it bought the operation.
West African in June ceded an extra 5 per cent stake in Kiaka – as well as its Sanbrado and Toega projhects – amid a broader trend of resource nationalism sweeping West Africa.
Burkina Faso’s military junta now has a 15 per cent free-carry stake in all three mines.
“Kiaka will be a long-life, low-cost gold project averaging 234,000 ounce of gold production per annum for 20 years from 2025,” the miner’s website says.
Its shares last changed hands at $3.04.
They passed a fresh record of $2.90 on Tuesday after it reported that a run of record spot gold prices earlier this year has lit a fire under its half-year profit result.
It delivered a 4 per cent fall in total ounces sold — down from 101,954oz in the first half of the 2024 financial year to 98,178oz in the six months to the end of June this year.
Average prices rose from $US2199/oz to $3049/oz, up 39 per cent, while all-in costs of production rose only 12 per cent to $US1374/oz — including a one per cent hike in the Burkina Faso government’s royalty rate from the start of April.
But gold’s surge after US President Donald Trump sent tariff shockwaves around the world in April propelled West African’s profit 133 per cent higher to $214.6 million — up from $92.2m a year earlier. Total revenue was 39 per cent higher at $477.3m.