Hi Gil,
The WAF saga is dragging on, as you say, the company went into suspense in late August, well over 2-months ago. What we know:
- WAF’s third quarter result released this month showed strong operating cash flows of $242mn on production of 92,721 oz at an all-in sustaining (AISC) of $1532/oz, and they reiterated FY25 guidance.
- WAF has benefited from its unhedged gold book as the precious metal soared higher.
- However, the firm remains in a trading suspension because of its ongoing discussions with the Burkina Faso government regarding its “request” to acquire an additional 35% stake in Kiake.
Obviously, they are operating in a volatile part of the world with the likes of Mali, Burkina Faso and Niger having recently exited the International Criminal Court – the volatility has also pushed up the price of chocolate! It’s why companies in such regions tend to trade at a lower valuation to miners operating in more stable juristictions, such as Australia.
We can only suggest there has been no release from WAF because discussions are sensitive, without any resolution at this stage. While keeping shareholders in the dark can be frustrating, it’s why the stock remains suspended. Making public all the ins/outs of the negotiations can be detrimental to their negotiating position.
Point noted on the jargon!
