Did Burkina Faso’s Push for Greater Kiaka Ownership Just Shift West African Resources’ (ASX:WAF) Investment Narrative?

• In late August 2025, West African Resources entered a trading halt following the Burkina Faso government's request to acquire an additional 35% stake in its Kiaka gold mine, as part of intensified nationalization efforts impacting foreign miners in the region.
• This government action highlights growing sovereign risk and operational uncertainty for mining companies operating in Burkina Faso, underscoring the significance of political developments for investor confidence and business continuity.
• We'll explore how the government's push for greater ownership at Kiaka may alter West African Resources' long-term growth outlook and risk profile.

Find companies with promising cash flow potential yet trading below their fair value.

West African Resources Investment Narrative Recap

At its core, being a shareholder in West African Resources means believing in the company's ability to unlock substantial value from its Burkina Faso gold projects, particularly through ramping up output at Kiaka and Sanbrado. However, the government’s recent move to acquire a majority stake in Kiaka adds a degree of sovereign risk that now dominates the risk-reward equation and may materially impact the company’s most important near-term catalyst: the scale-up of Kiaka’s production and associated cash flow growth.

Against this backdrop, West African Resources’ recent half-year earnings report stands out, with sales rising to A$477.32 million and net income more than doubling year on year. This operational momentum underscores how critical timely project execution and stable regulatory conditions are to maintaining growth, outcomes that could now be shaped by evolving government involvement. Yet, the real uncertainty remains around...

Read the full narrative on West African Resources (it's free!)

West African Resources' outlook anticipates A$2.2 billion in revenue and A$782.2 million in earnings by 2028. This projection is based on a 35.7% annual revenue growth rate and represents an increase of A$454.7 million in earnings from the current A$327.5 million.

Uncover how West African Resources' forecasts yield a A$3.95 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Community fair value estimates for West African Resources span from A$2.39 to over A$17.17, with nine investor perspectives from the Simply Wall St Community. While some expect significant future growth, the recent push by Burkina Faso’s government for a larger Kiaka stake raises fresh questions about long-term stability and earnings potential, explore several viewpoints to see how opinions compare.

Explore 9 other fair value estimates on West African Resources - why the stock might be worth 21% less than the current price!

Build Your Own West African Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your West African Resources research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free West African Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate West African Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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