West African Resources Hit with Higher Royalty Costs in Burkina Faso

Australia-based miner West African Resources (WAF) reported higher royalty costs due to a new royalty regime in Burkina Faso, where it operates two gold mines. The company paid A$181.5m in royalties for the first half of 2026, with an average royalty cost per ounce rising by A$460/oz from last year.

The new royalty regime, which took effect in April 2025, increases the royalty rate beyond a gold price of US$3,000/oz. WAF's average realised gold price rose 56% to $4,744/oz, contributing to the higher costs. The company also set aside A$21m for unsettled regulatory assessments and reported an increase in VAT owed by the state.

The higher government costs came alongside strong first-half results, with revenue rising to A$1.46bn from A$477.3m and profit after tax more than doubling to A$436.6m. WAF's gold sales more than doubled to 214,883 ounces, while its operating cash flow rose to A$689.8m from A$159.5m.