West African Resources Shares Rise 5 Percent to A$3.69 as Gold Miners Catch a Bid With No New Filing

West African Resources shares rose 5.4 percent on Friday, a gold-miner move with no company announcement attached, leaving the stock still well under both its 52-week high and the average analyst target.

The shares traded at A$3.69, up A$0.19, or 5.43 percent, from Thursday's close of A$3.50. They opened at A$3.54 and traded between A$3.46 and A$3.72. Volume was above 5 million shares. The 52-week range is A$2.51 to A$4.06. Four analysts rate the stock a strong buy, with an average target of A$4.85, about 31 percent above Friday's print. The next earnings date is estimated for Oct. 28. The market value is about A$4.2 billion.

No filing on Friday explained the gain. The company mines gold in Burkina Faso. It holds 85 percent of the Sanbrado and Kiaka projects. Trailing revenue was about A$2.53 billion, up 193 percent. Net income was about A$640 million, up 95 percent. Earnings per share were A$0.56. The dividend is A$0.20, a yield of about 5.4 percent at this price. The stock went ex-dividend on Sept. 17. Friday's rise is not the dividend.

The week before had been flat to down. The shares closed at A$3.44 on Oct. 5, A$3.43 on Oct. 6, A$3.51 on Oct. 7 and A$3.50 on Oct. 8. A 5 percent day is the first clear move of the month, and it stopped short of the Sept. 10 high of A$4.06. Gold names move with the metal and with the jurisdiction. Burkina Faso is the jurisdiction. The company has not issued a new security or production note in the accounts of this session.

A price-to-earnings ratio near 6, and a forward ratio near 5, is the market's discount for a West African producer that has already delivered a near-tripling of revenue. The A$4.85 target assumes the ounces keep coming and the discount narrows. Friday's A$3.69 does not close that gap. It marks a session in which buyers paid more for the same two mines, with the earnings report still three weeks away.