West African Resources' (ASX:WAF) Burkina Faso-based Kiaka Gold project, which saw the state's equity interest increase by a further 25%, represents stronger political alignment and operating security for the company, Euroz Hartleys said in a note on Tuesday.

Burkina Faso's state mining entity has now boosted government ownership of the project to 40% after acquiring the additional stake share for AU$175 million. This has reduced West African Resources' holding to 60%.

Alignment with government reduces the risk of licensing and operational disruption, marking a key driver for the gold producer. The strengthened relationship could also "create opportunities for deeper collaboration," the investment firm added.

The brokerage lowered its net present value estimates for the Kiaka project to AU$2.3 billion from AU$3.08 billion following the company's reduced stake.

Euroz Hartleys maintained a speculative buy rating but lowered price target to AU$5.50 from AU$5.70, reflecting the dilution from the reduced Kiaka interest.