General topics, page-119

Way, way back in 1992 an adviser told Bill Clinton, 'the economy, stupid'. The positive changes got voters to elect got Bill Clinton. Investors are like voters. Forget strategy, operational performance, management experience, leadership...etc. Market risk, like an economy, is the key and sovereign risk right up there. If that risk is understood then it can be a road to fortune. Many multilateral companies and funding institutions make their highest global profit margins in African markets. Being tough markets in which to do business, they have their most able mangers on the job. WAF is the epitome of an operationally sound, professionally-managed and very profitable company. When WAF need to raise capital, lending institutions know all about them and oblige at the drop of a hat. The stock price, at least for the moment, matters little. Management and the Board remain very comfortably remunerated. What does matter however, for pricing of the stock via trade, is the jurisdiction. You can't move a gold mine. WAF can have the richest assets and peak operational performance, but it resides in an exceptionally high risk jurisdiction. Until there is genuine political stability, serious demise of fundamentalist violence, and a semblance of rising national economic and social well-being in Burkina Faso, then that high jurisdictional risk and its huge cost to the share price will remain. The change needs to be serious too cos although you can put sunglasses on a turd, it is still a turd.