The contrasting fortunes of two ASX-listed gold miners underscored the complexities of operating in Africa, with Perseus Mining reporting record profits while West African Resources faced increased sovereign risk. Perseus Mining is a gold producer and explorer focused on projects in West Africa. The company operates multiple mines across Ghana and Côte d’Ivoire.
Perseus Mining (PRU) announced a 16 per cent increase in full-year net profit, reaching $US421.7 million. This marks a significant leap from the $US203 million profit in 2022 and a massive surge compared to the $US8.1 million profit in 2019. The company has consistently improved its financial performance over the past nine years. Shareholders benefited from a 50 per cent increase in total dividends to 7.5¢, and the company also announced a $100 million share buy-back program. The results come as current CEO Jeff Quartermaine prepares to step down on September 30, with former Newcrest executive Craig Jones taking over the role.
In contrast, West African Resources (WAF) entered a trading halt after the government of Burkina Faso expressed its desire to increase its stake in WAF’s Kiaka gold mine from 15 per cent to 50 per cent. This follows a previous demand in early June to increase its stake from 10 per cent to 15 per cent at no cost to the government. WAF had previously valued the initial 5 per cent stake increase at $33.4 million.
