Burkina Faso has adopted an updated Mining Code which, at this point, appears to have limited impact on WAF’s current 10% free carried interest (FCI) obligations to the State. The proposed Mining Code is yet to come into effect and clarifications of its impact to WAF’s assets are still being assessed by WAF management. We update our model, taking a conservative assumption, that Sanbrado could move from 10% FCI to 15% from CY30 onwards. We leave our Kiaka FCI assumptions unchanged at 10%. The new Mining Code is likely a short term hit to investor sentiment, and we do note that adjustments to the mining code had been flagged by the government. We maintain our Speculative Buy recommendation and our $3.00 Price Target is unchanged.
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