WEST AFRICAN RESOURCES LIMITED (WAF)
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03/04/2025

1

Buy

$2.80

20.69%

Ord Minnett has broadly reduced its commodity price forecasts, with the exception of gold and neodymium-praseodymium.

The broker cites growing concerns over weakening Chinese steel demand and the potential global trade and economic impacts stemming from proposed US tariffs.

The broker's 2025 iron ore price forecast falls by -3%, while metallurgical coal and thermal coal price estimates fall by -18% and -17%, respectively.

On a sector level, Ord Minnett prefers base metal producers over the bulk miners, noting limited appeal among the lithium and coal producers.

Rio Tinto is preferred over over BHP Group among the large diversified miners, while South32, Capstone Copper, and MAC Copper are the analyst's top picks for base metals exposure.

The broker raises its target for West African Resources to $2.80 from $2.65 and maintains a Buy rating.

Among the large gold exposures, the analysts like Buy-rated Newmont Corp.

05/06/2025

1

Buy

$4.30

85.34%

As suspected by Canaccord Genuity, the government of Burkina Faso's August 2024 mining code that lifts its equity interest in mining projects to 15% from 10%, applies to both existing and new projects.

West African Resources previously assumed it would be applicable to new projects only and wouldn't affect its three current operating projects -- Sanbrado, Toega and Kiaka.

The government's additional interest has resulted in a cut to the broker's earnings forecasts and a -5.5% decrease in overall risked valuation estimate.

Target cut to $4.30 from $4.55. Buy retained.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 25.00 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 10.00 cents and EPS of 52.00 cents.