WEST AFRICAN RESOURCES LIMITED (WAF)
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24/10/2024

1

Buy

$2.10

41.89%

Following a review of yesterday's 3Q activities report for West African Resources, Ord Minnett raises its target to $2.10 from $2.05 and maintains a Buy rating.

The broker reiterates the investment case revolves around the successful delivery of the company's Kiaka project in Burkina Faso.

The extent to which the sovereign discount will diminish once the project transitions from growth to paying dividends is important, explains the analyst.

14/10/2024

1

Buy

$3.60

143.24%

Canaccord Genuity highlights gold and gold equities have consistently outperformed during quantitative easing cycles, noting recent actions by central banks in the US, the ECB, Bank of Canada, and Swiss National Bank.

The broker lists other positives for the gold price including increasing ETF inflows, rising US debt levels, and escalation of geopolitical conflicts.

Canaccord's long-term US$ gold price forecast (from 2030) rises by 9% to US$2,963/oz and across 2024-29 estimates rise by 10% on average.

However, less than 50% of the 19 producers under research coverage by the broker will produce meaningful free cash flow in the September quarter, somewhat lessening the impact of record gold prices.

Across Canaccord's research coverage of intermediate/junior producers target prices rise by 17% on average.

For West African Resources, the broker's target rises to $3.60 from $3.15. Buy.