West African Resources suspended until statement on Kiaka stake

West African Resources suspended until statement on Kiaka stake

Title: West African Resources Suspends Trading Amid Kiaka Stake Request

West African Resources (WAF), a major gold producer in West Africa, has temporarily halted trading of its shares following a request from the Burkina Faso government to acquire an additional 35% stake in its flagship Kiaka gold mine. The move, part of a broader nationalization push in the region, has raised concerns among investors and underscored the growing influence of Burkina Faso's new administration under Captain Ibrahim Traoré.

The request from the Burkina Faso government to acquire the additional stake in the Kiaka gold mine was announced this week, forcing WAF to place its shares on a trading halt. The company has stated that the government wants to raise its stake in the mine "for valuable paid consideration" and expects trading to resume on Monday. This development comes on the heels of the government's recent acquisition of a 15% equity stake in WAF's gold projects under the revised 2024 mining code [1].

WAF's interim financial report for the first half of 2025 showed a significant increase in mining revenues, with the company's executive chairman Richard Hyde confirming that the equity transfer was finalized in July and August. The company controls approximately 6.5 million ounces of reserves and projects average annual production of 480,000 ounces over the next decade [1].

The nationalization push in Burkina Faso is part of a broader trend of reclaiming greater control over natural resources across the Sahel region. The move is seen as a means to strengthen state revenues and support economic development and national security. However, the development has raised concerns about the investment climate in West Africa, particularly in light of political instability in neighboring countries like Mali [2].

For investors, the situation is more than just regional politics; it is about risk, ownership, and the entire growth equation for one of the ASX's key gold producers. While WAF has reported strong headline numbers, including revenue and net income growth, the request from the Burkina Faso government adds a layer of uncertainty. The immediate question facing shareholders is whether the risk and future growth are already priced into the stock or if uncertainty is opening up a unique buying window [3].

The trading halt and stake request highlight the fragile investment climate in West Africa. Countries like Ghana, Egypt, Namibia, and Botswana continue to offer more predictable frameworks, while Côte d'Ivoire and Guinea are emerging as new magnets for investment. However, the risks remain high, with success often depending on global majors with world-class mines, diversified portfolios, and close government ties [2].

References:
[1] https://copperbeltkatangamining.com/burkina-faso-boosts-mining-revenues-as-govt-raises-equity-in-west-african-resources-to-15/
[2] https://www.northernminer.com/regulatory-issues/burkina-fasos-nationalization-rattles-west-africas-gold-sector/1003882066/
[3] https://simplywall.st/stocks/au/materials/asx-waf/west-african-resources-shares/news/west-african-resources-asxwaf-valuation-in-focus-after-burki