John Rubino is a former Wall Street financial analyst and author or co-author of five books, including The Money Bubble: What to Do Before It Pops and Clean Money: Picking Winners in the Green-Tech Boom. He founded the popular financial website DollarCollapse.com in 2004, sold it in 2022, and now publishes John Rubino’s Substack newsletter.
Governments, by their nature, are always starved for revenue. Most of the time, they respond by raising taxes on their subjects’ income or real estate (see New York’s “pied-à-terre” tax).
But sometimes they go after foreign investors, like miners, who, they claim, are making too much money. This can be a game-changer for those mines and their investors.
(Africa Business Insider) – Australian gold producer West African Resources Limited suspended trading in its shares on the Australian Securities Exchange on Friday, as investors weighed a government move in Burkina Faso that could significantly reshape ownership of one of West Africa’s largest gold projects.
The trading halt, requested by the company, will remain in place until the earlier of a market update or April 21, 2026, as it prepares to respond to a decree by the government of Burkina Faso that could lift the state’s stake in the Kiaka gold mine to 40%.
State tightens grip on strategic gold asset
Burkina Faso’s move follows a recent decision, under a military-led government headed by Captain Ibrahim Traoré, to expand state control over the mining sector through a decree adopted by the Council of Ministers, in line with mining legislation introduced in 2024.
The proposed 40% stake builds on signals since August 2025 that the government intends to raise its interest in the Kiaka gold mine to as much as 50%, after increasing its holding from 10% to 15% at no cost.
At the time, West African Resources Limited had valued a 5% stake increase at $33.4 million.
The Kiaka gold mine, located in the Centre-Est region and covering about 54 square kilometres, began production in June 2025 and is currently 85% owned by the Australian miner, with the state holding the remaining 15%.
Trading halt reflects investor caution
Following the latest demand, West African Resources Limited said the trading halt was necessary to “ensure orderly trading and an informed market” as it prepares further disclosures.
The miner’s outlook remains closely tied to global gold prices, which have been supported by inflation and geopolitical tensions, although higher interest rates and a stronger U.S. dollar continue to weigh on sentiment.
Kiaka is a key gold project expected to produce 240,000 to 280,000 ounces annually, underpinning West African Resources’ target of up to 490,000 ounces in 2026.
The Lesson
Obviously, shares of a miner with a single property in a developing country are far riskier than those of a miner with resources in multiple places. So build jurisdiction risk into your analysis. When choosing stocks from this newsletter’s Portfolio, start with the bigger market cap (and therefore more diversified) miners before moving down the food chain to the high-risk/high-potential-return juniors and explorers.
STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio
delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.
