Australian (ASX) Stock Market Forum

WAF - West African Resources

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Must be one of the best performers over the past year or so. Was a great ride. Could have stayed on for a few more bucks but happy that it offset a couple of very bad decisions the last couple of years.

Interesting volume last Friday.

Screenshot 2024-09-23 at 08.44.37.png
 
Glad I'm not fretting as to whether this further asset grabbing won't bleed into Burkina Faso. Sounds a bit like the Mali Junta took hostages on trumped up charges? Maybe not. Now they want 35%, as well as royalties I assume. Also, I read that Russia is worming its way in by undertaking to build a gold refinery in Mali and Barrick'll be forced to refine its gold in the dark state?

WAF Not Held

Barrick reaches deal with Mali after reports staff were detained​

Bloomberg News | September 30, 2024 | 12:58 pm Top Companies Africa Canada Gold

Mali-based Loulo-Gounkoto complex. (Reference image by Barrick Gold.)
Barrick Gold Corp. and Mali’s military leadership have agreed to resolve a dispute over the company’s assets in the West African nation.
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“Barrick and the government of Mali have agreed to find a global resolution to the existing claims and disputes between the government and Barrick’s Loulo and Gounkoto gold mining companies,” the Toronto-based miner said in an emailed statement on Monday.
Details of the agreement will be made public once the terms of the settlement have been finalized, according to the statement, which follows a Reuters report of the arrest of four Barrick employees.

Mali’s junta in 2023 adopted a new mining code that could see the government increase its stake to 35% in existing gold mines. Mining companies operating in Mali, including Barrick – the world’s second-largest miner and one of Mali’s top gold producers, has come under pressure from the military junta that took power in 2020, to adhere to the new law.
 
qldfrog said:
Yeap..my short endeavour mining (uk) task a while back explains why i just traded and do not hold any more
Run baby run ..away
Click to expand...

The juntas making significant changes to the mining codes are going to shoot themselves in the foot, kill the golden goose, and other such idioms, in the long run.

"We know how to mine our own gold", LOL. Yes, by hand with a wooden stick, maybe.

Will they just replace Western miners with Chinese and Russian? Doubt it, if they actually want their own gooses.

Whatever happens, it's just re-confirming the West African discount has some substance to it, but how much?

Having a lot of cash tied up in these countries must be very exciting.
 
Suspect the Junta is focused on expropriation from western colonisers rather than protecting its people from these ideological maniacs. No real moral core, not that I can talk. But look what happens whenever they get charge of their own affairs, just a free-for-all by lying larcenous opportunists. Every fricken time: Rhodesia, South Africa, Congo, Sudan, Nigeria .. and a segment behaves 'archeypically' when transplanted to the USA or Europe.

Massacre in Burkina Faso left 600 dead, double previous estimates, according to French security assessment​

"The French official told CNN there had been a “very significant deterioration in the security situation” in Burkina Faso where “armed-terrorist groups are enjoying increasing freedom of action because security forces are unable to cope.” The report notes an attack on a military convoy in the village of Tawori, 15 days before the attack in Barsalogho, where “no fewer than 150 soldiers” were killed by jihadists, adding that the military is struggling to retain potency and credibility.

On September 17, the capital of nearby Mali, Bamako, was rocked by another JNIM assault, which hit the airport, among other key buildings, and killed more than 70 people."
 
Now paused trading. Should have been in a pause from the open. Bad darts WAF.

Looks like other WAf goldies have been infected.

This has happened several times over the past few years and nothing really comes of it. I think the last time was August that proved to be an excellent buying opportunity. Maybe 'this time it's different'.

These juntas biting the hand the feeds them are pretty smart cookies. :banghead:
 
Sean K said:
Now paused trading. Should have been in a pause from the open. Bad darts WAF.

Looks like other WAf goldies have been infected.

This has happened several times over the past few years and nothing really comes of it. I think the last time was August that proved to be an excellent buying opportunity. Maybe 'this time it's different'.

These juntas biting the hand the feeds them are pretty smart cookies. :banghead:
Click to expand...
Just on how often it happens.

Has anyone ever quantified the risk on investing in Gold stocks in Africa? Apologies if a bit off topic . I'm v. risk averse and would not have the balls to trade an African mining outfit.

gg
 
Garpal Gumnut said:
Just on how often it happens.

Has anyone ever quantified the risk on investing in Gold stocks in Africa? Apologies if a bit off topic . I'm v. risk averse and would not have the balls to trade an African mining outfit.

gg
Click to expand...

gg, I haven't seen it quantified in any meaningful way. Only that there's a 'West African discount' due to geopolitics. It's got to be somewhere between 10-20% discount to Western peers, at least.
 
Garpal Gumnut said:
Just on how often it happens.

Has anyone ever quantified the risk on investing in Gold stocks in Africa? Apologies if a bit off topic . I'm v. risk averse and would not have the balls to trade an African mining outfit.

gg
Click to expand...
I have traded gold stocks, particularly those in Africa rather than held them as an "investment".
Have done more good trades than bad ones, so am better off.
Its a risk reward thing.
If you want the reward, you gotta take the risk.
The most you can lose in a trade is 100% of your capital.
The upside is of course, potentially unlimited( the semi mythical ten bagger).
Unfortunately, like so many others, I have been guilty in not pricing the potential risk as high as I should have (e.g. I had not factored into the price risk a chance of the various military juntas nationalising gold mines).
If you can't afford the risk, then its best to run away.
Mick
 
I anticipate WAF to come out with a statement today that they recognise the media articles but they have not been informed by the 'government' in any way that their projects are subject to the potential withdrawal of their mining licence.

Best case is they have a direct statement from the junta confirming they are not subject to this speculation, or that it's false.

Worst case is that they say they haven't got a clue what's going on and anything could happen.
 
Being 'not aware of any plans' is probably not decisive enough, but it's expected.

This does not address the quote "we are going to withdraw mining permits", which is sort of important to quell.

Screenshot 2024-10-07 at 12.22.57.png
 
Sold the last of my PRU, and put the proceeds back into WAF.
The quarterly should show enormous free cash flow.
Only looking for a short term boost.
Mick
 
WAF's Swan Zone under M1S keeps on giving. It's a gold mine down there.

Surprised it hasn't got back to pre-junta jaw boning on mining permits levels, but steadied well. Maybe some residual distrust. A regretful non-knife catch.


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