WAF 2.56% $1.20 west african resources limited

I don't necessarily think a WAF/PRU merger is likely, just that...

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    I don't necessarily think a WAF/PRU merger is likely, just that it makes some sense for both parties. I think there is a sweet spot in a market valuation sense going from a 450+koz producer to a 700koz type so that would help Perseus. A diversification of assets away from BF would help WAF. Maybe WAF management team inserted into Perseus a la the SSR merger with Alacer where Alacer's management took over despite being the junior in the deal. Jeff Quartermaine has been around for a while at Perseus.

    I actually favour the scenario of WAF going their own way and developing another project than being taken out. Osino is interesting because it is similar to B2's Ojikoto which B2 bought from Osino's management team a decade ago. Richard Hyde has spoken of his admiration for B2 previously so maybe tries to emulate that. Namibia is one of the top few jurisdictions in Africa.

    I feel Orezone has moved out of reach for WAF. Plus when I hear WAF talk about the potential on their own ground around Sanbrado the probability of them finding cheap ounces is quite high. So why buy Orezone's for $500M.

    Roxgold was the best partner for WAF with Seguela development project but it could be out of reach if WAF have to pay a $40M break fee to quash the Fortuna deal. Or maybe the market would see >$40M in benefit to WAF taking out Roxgold. The window is open for a short period because a few people are unhappy with that Fortuna deal.

    Thor Exploration is building a small project in Nigeria, maybe not big enough to be of interest.

    B2 have Kiaka down the road from Sanbrado. They might look for a partner there. Could be something interesting for WAF, although it would concentrate more in BF so probably unlikely.

    Tietto is another one doing DFS. The project is only ok though and I think needs more ounces. Build ready in maybe 6 months.

    Endeavour may look to spin out some of its development projects if they are surplus to requirements. Afema is in Ivory Coast is ex-Teranga and had good hits. https://www.endeavourmining.com/our-business/our-assets/projects

    Then PDI. Too early for WAF probably but maybe get a toehold with an equity stake in a raising?

    All of that is complete guess work. I spend too much time looking at West African projects and my portfolio is overweight the region with WAF, PRU, EDV, OSI and PDI.
 
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