CAPITAL MARKETS

West African to join ASX 200

11th gold miner in the index

This article is 2 years old. Images might not display.

S&P Dow Jones Indices announced the out-of-cycle change late Friday with West African to replace telecommunications company Uniti Group, which has been acquired.

While West African shares are down around 7% so far in 2022, the stock is up nearly 13% over the past year off the back of a strong operating performance at the Sanbrado mine in Burkina Faso.

Sanbrado produced 64,114 ounces of gold in the June quarter at all-in sustaining costs of US$959 an ounce, generating A$120 million of operating cashflow.

The company remains on track to meet 2022 guidance of 220,000-240,000oz of gold at ASIC of US$1040-1100/oz.

"WAF easily beat top end of production guidance last year and could well do it again this year on the back of higher than budgeted head grades," Argonaut analyst John Macdonald said on Friday.

West African has a market capitalisation of A$1.25 billion, which would see it slot into the ASX 200 gold sub-sector as the fifth largest stock after Newcrest Mining, Northern Star Resources, Evolution Mining and Perseus Mining.

It has a larger market cap than Gold Road Resources, Silver Lake Resources, Regis Resources, De Grey Mining, Ramelius Resources and St Barbara.

The stock last traded at $1.225. Argonaut has a buy recommendation and price target of $1.44.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.