TOL - 16th Dec, 2025
2 ideas in 200 words #11
A gold stock with a free cashflow yield of >30% per annum and a hard asset play trading at a fraction of the replacement cost
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We are holding
West African Resources Ltd (ASX: WAF)
Whilst uncertainty remains around the current negotiations with the Burkina Faso Government (BFG), we are cautiously optimistic that the outcome will recognise ‘the legitimate rights of all parties’.
The far larger prize for the BFG is to develop new mines which create not just new taxes and royalties, but also much-needed employment. This also reaffirms the critical message that the country is a safe jurisdiction for future investment.
Risks remain, but with an average free cashflow yield of >30% per annum, the upside is substantial.
We are buying
Centuria Office REIT (ASX: COF)
COF is trading at 67c in the dollar on a hard net asset basis. If we consider the substantial inflation that has occurred in land and building costs over the past five years, this is likely to be closer to 45c in the dollar on a replacement basis.
In the June half of 2025, the portfolio recorded its first increase in valuation since 2022. The company has guided to distributions of 10.25cps pa, which equates to a yield of 9%.
The office space is recovering, and this is the most leveraged way to gain exposure.
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Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
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2 stocks mentioned
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Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
Expertise
Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
Expertise
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