This is exactly right. The recent mining code brings the governments free carried interests to ~15% and a royalty to ~7%.
These are risk free cash flows to the govt and the royalty is off the top line.
I don’t doubt the Burkinabe people are good gold miners but they lack the key expertise in mining engineering, geology & metallurgy.
WAF has a plan to produce around 4Moz over the next 10yrs at ~$1,300/oz AISC. The government collect on spot and under current mining code is ~$1.4bn.
If they nationalise the mine and utilise local labour I think you’d see far different economics… because of the lack of skilled labour in the critical positions. The below is just a hypothetical example but shows the govt is far better off allowing a company such as WAF to take the risk and operate these mines. Incredible overreaction.
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