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COVER: MINER OF THE YEAR

West Africa remains king

of the miners

by Fraser Palamara

Jurisdictional superiority was named as a
key factor behind West African Resources
Ltd (WAF) winning its second consecutive
GMJ Miner of the Year Award,
an achievement which also marked a
three-peat for West African miners.

AF emerged as the winner, narrowly ahead of another West
WAfrican gold producer, Perseus Mining Ltd. Canaccord
Genuity (Australia) senior mining analyst Paul Howard, who sat
on the judging panel, argued African miners weathered the storm
that was 2022 better than their overseas cohorts.
“I think it has been easier to come across as having had a better
2022 if you are African-focused, because diesel has been
subsidised over there and you don’t have a workforce who is
jumping ship for [higher pay],” he said.
“I think your costs are a bit more stabilised because of the diesel
and the labour issues that have been faced in other places such
as Western Australia. So, you’re already off to a better start if
you’re in Africa in 2022.”
Such praise contrasts with the traditional stigma African miners
have faced, including risks of political coups and project
expropriation. While not all African miners came out of 2022
unscathed – Malian gold producer Firefinch Ltd infamously fell
to its knees – WAF managed to keep its Sanbrado gold mine
in Burkina Faso within guidance, despite a change in military
leadership during September.
WAF rounded out the year with Sanbrado producing up to
240,000oz with AISC as low as $US1,100/oz. The miner, which
boasts a $1.17 billion market cap, was showing no signs of pulling
back in Burkina Faso, having also acquired the Kiaka gold project
to enhance its operating portfolio.
A year of success for WAF contrasted heavily with a litany of
hurdles thrown at the way of the world’s resources industry,
including disruptions to fossil fuel supply – an effect largely from
Russia’s invasion of Ukraine. Howard said these difficulties varied
for “broadly geographic” reasons.
“The ones who are making cash are Perseus and WAF,” he said.
“Putting on my banking hat, those are the ones we want to be Richard Hyde
around.

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