Latest news with #RichardHyde
Business Insider
2 days ago
- Business
- Business Insider
Burkina Faso increases state ownership in gold projects as new mining law takes effect
Burkina Faso has officially increased its free-carried equity stake in key gold mining projects from 10% to 15%, aligning with the provisions of its new Mining Code adopted in August 2024. This adjustment affects several high-profile assets, including the Sanbrado, Kiaka, and Toega projects operated by Australia-listed West African Resources. The company agreed to the new terms after talks with the government and other key players in the mining industry. In simple terms, this new regulation means Burkina Faso will now earn a bigger slice of the gold profits from mines on its land, without having to spend a dime. Mining Weekly reports that aside from the change to the State's equity interest, all other key terms of West African Resources' existing mining agreements with the Burkina Faso government remain unchanged. 'Our 2025 cost and production guidance of 190,000 to 210,000 ounces of gold at an all-in sustaining cost of less than $1,350 per ounce remains intact,' said West African Resources Chairperson, Richard Hyde. He added that construction at the Kiaka project is progressing on schedule and within budget, with the first gold pour expected early in the third quarter of this year. Burkina Faso's mining sector reforms Burkina Faso's status as a gold producer has grown significantly over the past two decades, making it one of Africa's leading gold-producing countries. The nation ranks fourth in gold production after Ghana, South Africa, and Sudan. Gold is Burkina Faso's most valuable export, contributing over 70% of export earnings and serving as a cornerstone of its economy. Since taking power in 2022, Captain Ibrahim Traoré has made resource sovereignty a core priority, insisting that Burkinabè citizens must benefit more from the country's gold wealth. Under his leadership, the government adopted a new Mining Code in August 2024, raising the state's free-carried interest in mining projects from 10% to 15% to strengthen national control and revenue. Captain Ibrahim Traoré's decision to reform Burkina Faso's mining laws was largely driven by a desire to reassert national control over a sector long dominated by foreign interests. For years, foreign companies from Canada, Australia, and the UK have dominated Burkina Faso's gold sector, contributing capital and expertise but offering limited benefits to local communities. Most profits have been repatriated, with only small portions retained through taxes and minimal state equity. Under the revised 2024 Mining Code, all mining firms must now grant the state a 15% free-carried interest giving the government a larger, cost-free stake.
Yahoo
02-04-2025
- Business
- Yahoo
Institutional investors control 64% of West African Resources Limited (ASX:WAF) and were rewarded last week after stock increased 3.1%
Significantly high institutional ownership implies West African Resources' stock price is sensitive to their trading actions 52% of the business is held by the top 10 shareholders Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To get a sense of who is truly in control of West African Resources Limited (ASX:WAF), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 64% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Last week's 3.1% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. One-year return to shareholders is currently 73% and last week's gain was the icing on the cake. Let's delve deeper into each type of owner of West African Resources, beginning with the chart below. See our latest analysis for West African Resources Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. West African Resources already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of West African Resources, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in West African Resources. L1 Capital Pty. Limited is currently the company's largest shareholder with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.7% and 5.2% of the stock. Additionally, the company's CEO Richard Hyde directly holds 1.5% of the total shares outstanding. We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. We can report that insiders do own shares in West African Resources Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around AU$167m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling. With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over West African Resources. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for West African Resources you should know about. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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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