Latest news with #WestAfricanResources'
Business Insider
30-05-2025
- Business
- Business Insider
Junta-led Burkina Faso banks on revived gold mines to boost output in 2025
Burkina Faso is set to boost its industrial gold production in 2025, driven by the ramp-up of Soleil Resources International Ltd.'s project in the country and the anticipated start of output from a new mine operated by Australia's West African Resources Ltd. Burkina Faso plans to increase its industrial gold output by 4% to 55.7 metric tons in 2025. This growth is driven by operations at Soleil Resources' Youga mine and West African Resources' Kiaka mine. Western companies have exited due to operational risks, while partnerships with Russian firms have risen. Burkina Faso is set to boost its industrial gold production in 2025, driven by the ramp-up of Soleil Resources International Ltd.'s project in the country and the anticipated start of output from a new mine operated by Australia's West African Resources Ltd. Together, these developments will push Burkina Faso's industrial gold output up by 4%, reaching 55.7 metric tons, according to Aristide Belemsobgo, Director General of Mines and Geology at the Ministry of Energy, Mines and Quarries. Soleil Resources returned the Youga mine in the south to production in October, Belemsobgo said. West African Resources' Kiaka mine, situated in the southeast, is on schedule for first gold in the third quarter, he said, confirming an earlier update from the company. Burkina Faso is Africa's fourth-largest gold producer and has long relied on the precious metal to drive its economy. But the glitter hasn't come easy, rising insecurity and armed violence have hit the mining sector hard, forcing several operations to halt production in recent years. Burkina Faso tightens grip on mining sector Since junta leader Ibrahim Traoré came to power following a 2022 coup, Burkina Faso has moved to assert greater control over its natural resources. The government has revised its mining code to enhance national oversight and participation in the sector. These reforms are part of a broader push to increase state control over foreign-owned industrial mines and capture a larger revenue share from the country's mineral wealth. These moves have increasingly raised concerns among Western mining investors. In April, Canadian miner Fortuna Silver Mines exited Burkina Faso by selling its Yaramoko gold mine to a local private firm for $130 million, citing declining reserves and rising operational risks. Fortuna's departure follows similar exits by other companies, including Endeavour Mining, which pulled out of the country last year. As part of a wider effort to reduce the Western influence, Burkina Faso—like its junta-led neighbours Mali and Niger, has been deepening ties with Russia, both for security support and economic cooperation. In May, the military-led government granted an industrial mining license to Russian company Nordgold for a new gold project expected to produce 20.22 metric tons over eight years. According to the Council of Ministers, the project will contribute approximately 51.5 billion CFA francs ($89 million) to the national budget and an additional 7.06 billion CFA francs to the country's mineral wealth fund.
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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Yahoo
06-03-2025
- Business
- Yahoo
Are Robust Financials Driving The Recent Rally In West African Resources Limited's (ASX:WAF) Stock?
West African Resources' (ASX:WAF) stock is up by a considerable 31% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to West African Resources' ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Check out our latest analysis for West African Resources Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for West African Resources is: 19% = AU$246m ÷ AU$1.3b (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.19. We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. At first glance, West African Resources seems to have a decent ROE. Especially when compared to the industry average of 11% the company's ROE looks pretty impressive. This probably laid the ground for West African Resources' significant 24% net income growth seen over the past five years. However, there could also be other causes behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing with the industry net income growth, we found that West African Resources' growth is quite high when compared to the industry average growth of 19% in the same period, which is great to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about West African Resources''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. West African Resources doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above. In total, we are pretty happy with West African Resources' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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. Sign in to access your portfolio
