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Highlights:
West African Resources has agreed to implement Burkina Faso’s updated mining code
The government’s equity share in key gold projects will increase as a result
The company maintains its full-year production guidance despite the change
Gold sector company West African Resources Ltd (ASX:WAF) experienced a decline in early trading on the ASX 200 following an announcement that it will comply with Burkina Faso’s revised mining code. This adjustment will lead to an increase in the local government’s ownership stake in three of its gold projects — Sanbrado, Kiaka, and Toega. The ASX 200 index reflected this development with WAF among the lower performers in the session.
The updated mining framework was introduced by the Burkina Faso government to increase its equity interest in mining projects operating within the country. Previously, the state held a smaller share, but this move brings the ownership level up, aligning with the new national mining policies.
Government Stake to Rise Across Key Projects
The company confirmed that Burkina Faso's equity stake across its major operations would be lifted. These include the Sanbrado project, which is currently operational, as well as the Kiaka and Toega developments. West African Resources intends to finalize the adjustments in equity ownership within the current calendar year.
West African Resources had earlier noted that its three licenses were governed under the former mining code. However, ongoing discussions with the country's Ministry of Mines and various stakeholders have led to an agreement to comply with the new legal framework.
Production Guidance Remains Unchanged
Despite the regulatory shift, West African Resources has reaffirmed its full-year production guidance. The company expects to maintain gold production within the same range as previously stated and also reiterated its focus on cost efficiency, with all-in sustaining costs anticipated to remain below a set benchmark.
Operations are set to proceed without disruption as the company transitions its ownership structure in line with the government’s revised policy. The company has not reported any anticipated changes to operational timelines or output levels for its active or planned projects.
Ongoing Operations Under Scrutiny
The alignment with the new mining legislation had earlier raised concerns around the validity of two of West African Resources’ mining permits. However, with the company now committed to implementing the required changes, this uncertainty appears to have been addressed through direct engagement with authorities.
West African Resources remains one of the notable gold miners listed on the ASX 200 index, and its performance continues to be closely watched amid evolving regulatory developments in West Africa. The broader index saw mixed performance during the session, with WAF emerging as one of the more volatile stocks following the announcement.
