West African Resources shares leap on mining permits assurance, guidance
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More news: West African Resources was the best performing company across the ASX 200 at market open, after the gold miner was told by government officials that its mining permits in Burkina Faso are in "good standing".
The Perth-based company also confirmed that it was on track to hit the upper end of its full-year guidance as it reported its September quarter results
West African shares were up 7.3% to $1.44 by 11am AEDT, having more than doubled in value over the last 12 months.
West African Resources says no threat to Burkina Faso mining permits
More news: West African Resources has announced that it has been reassured by government officials that its mining permits in Burkina Faso are in "good standing".
The announcement follows uncertainty over the future of WAF's Sanbrado and Kiaka gold projects in the country after Burkina Faso's military junta said over the weekend it is planning to withdraw mining permits from some foreign companies. It resulted in WAF shares sliding nearly 20% on Monday.
What they said: "Companies operating in compliance with the laws of Burkina Faso, which includes WAF and many other mining companies, will not have their mining permits withdrawn or revoked," the company said in a statement to the ASX.
"Officials from the Ministry of Mines and Quarries confirmed that none of WAF’s mining permits are under review and all of them remain in good standing."
West African Resources keeps guidance despite Q3 dip
The news: West African Resources says it is on track to hit the upper end of its full-year guidance despite reporting a drop in September quarter production.
The numbers: The gold miner reported third quarter production of 47,799 ounces from its Sanbrado mine in Burkina Faso, down 6% from the prior quarter. Sales also fell to 5.4% to 49,643 ounces, but these were at a higher average price of USD2,493 ($3,688.96) per ounce.
The company said it is tracking towards the upper end of its 2024 gold production guidance of 190,000 to 210,000 ounces.
The context: WAF attributed the decrease in production to a lower head grade and recovery in the quarter. Underground mined ounces fell 14% from the prior quarter, mainly related to a lower average underground grade mined.
The announcement comes amid uncertainty over the future of the Sanbrado and Kiaka gold projects in the country after Burkina Faso's military junta said over the weekend it is planning to withdraw mining permits from some foreign companies, resulting in WAF shares sliding nearly 20% on Monday.
The sources: ASX announcement, ASX announcement
