S&P Dow Jones Indices announced the out-of-cycle change late Friday with West African to replace telecommunications company Uniti Group, which has been acquired.
While West African shares are down around 7% so far in 2022, the stock is up nearly 13% over the past year off the back of a strong operating performance at the Sanbrado mine in Burkina Faso.
Sanbrado produced 64,114 ounces of gold in the June quarter at all-in sustaining costs of US$959 an ounce, generating A$120 million of operating cashflow.
The company remains on track to meet 2022 guidance of 220,000-240,000oz of gold at ASIC of US$1040-1100/oz.
"WAF easily beat top end of production guidance last year and could well do it again this year on the back of higher than budgeted head grades," Argonaut analyst John Macdonald said on Friday.
West African has a market capitalisation of A$1.25 billion, which would see it slot into the ASX 200 gold sub-sector as the fifth largest stock after Newcrest Mining, Northern Star Resources, Evolution Mining and Perseus Mining.
It has a larger market cap than Gold Road Resources, Silver Lake Resources, Regis Resources, De Grey Mining, Ramelius Resources and St Barbara.
The stock last traded at $1.225. Argonaut has a buy recommendation and price target of $1.44.
