Hey J, I view WAF as a leading example of how mines should be run, however, the political situation in the country is truly frustrating. I have had to reduce my position in recent months, as while the company has great assets, the reality is, unless BF sees a radical change in the their ability to deal with the insurgency to the north, WAF is always going to suffer a heave discount. That being said, if they can get Kiaka into production, then even with all the issues, the company should re-rate.
I just noted that Endevour is looking at offloading its BF assets (perhaps another reason why sentiment on WAF is so negative. It's not a great look for BF and any investor thinking of buying WAF.
I wonder if WAF would be interested in the Wahgnion mine. Its only 3 years old. If they can get it cheap enough, WAF would have a production profile of over 600k ounces p.a. Though of course... country risk would be the key issue, but... sometimes, going all in is not a bad option. Or just buy both mines... but needs to be at a steep discount. Perhaps $600m AUD?
The war goes on, though I note the government is making some progress.
WAF Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held
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