Australian listed, West African Resources Ltd (ASX:WAF) shares were down more than 9% at midday. The shares hit a new 52-week low of AU$0.94. Dropping alongside West African Resources, were Core Lithium Ltd (ASX:CXO), Nickel Mines Ltd. (ASX:NIC), and Vulcan Energy Resources Ltd. (ASX:VUL) shares.
West African Resources is a mining company, with gold mining operations in Burkina Faso. West African Resources shares fell following the weekend coup in Burkina Faso, where the company’s Sanbrado gold project is located. Burkina Faso’s military president who took over power in a January coup was replaced on Sunday, amid apparent disagreements in the military leadership.
Although the military leadership change in Burkina Faso caused some investors to abandon West African Resources shares, the company came out to assure investors that all is well with its business. Aside from stating that its Sanbrado project continues to operate as normal, West African Resources also said that it remained on track to meet its 2022 production target. The company plans to release its September quarter production and cost report in the coming weeks.
West African Resources share price forecast
West African Resources shares have dropped almost 20% since the beginning of 2022, and analysts believe the decline in the stock presents a good buying opportunity. According to TipRanks’ analyst rating consensus, West African Resources stock is a Moderate Buy. The average West African Resources share price forecast of AU$1.53 implies about 60% upside potential.
West African Resources stock is receiving positive mentions on financial blogs. TipRanks data shows that financial blogger opinions are 100% Bullish on WAF, compared to a sector average of 74%.
Closing thoughts
The political situation in Burkina Faso creates an uncertain environment for companies like West African Resources. However, there does not seem to be an immediate threat to West African Resources’ operations in the country. The new Burkina Faso military leadership has come out to urge people to go about their business in peace.
