3rd Quarter Gold Production Up 35%
Mana Gold Project on Track for Q1 2008
MONTREAL, Nov. 14 /CNW Telbec/ - SEMAFO (TSX: SMF) today reported its
financial and operational results for the period ended September 30, 2007. All
amounts are in US dollars unless otherwise stated. A conference call will be
held Thursday November 15, at 11:00 a.m. to discuss the quarterly results.
Details to access the call can be found on the home page of the Company's
website at www.semafo.com. Semafo's consolidated interim financial statements
together with Management's Discussion and Analysis are available on its
website or at www.sedar.com.
Third Quarter Highlights
- Gold production for the third quarter totaled 20,500 ounces, an
increase of 35% over the comparative quarter ended September 30, 2006.
Gold production for the nine months ended September 30, 2007 totaled
- Quarterly sales were up 108% to $16,314,000, representing 24,000 ounces
at an average price of $680, compared to 13,800 ounces at an average
price of $569 per ounce in the third quarter of 2006.
- Cash flow from operating activities of $859,000 for the quarter and
$6,309,000 for the nine-month period ended September 30, 2007.
- Third quarter net loss of $10,317,000, including an unrealized loss of
$7,150,000 resulting from the mark to market of gold sales contracts.
- Mana mine in latter stages of construction.
- Appointment of Mana Mine Manager and execution of the Mana Mining
- Commencement of drilling activities on potential extension of the Wona
structure in Burkina Faso and the Libiri structure in Niger.
"We are pleased about Mana's construction progress and foresee gold
production in Q1 2008," commented Benoit Desormeaux, Chief Operating Officer,
Semafo. "Furthermore, the proceeds of the recent financing will permit us to
improve operating results at the Samira Hill mine through the selective
purchase of gold sales contracts".
The Samira Hill Mine produced, in accordance with budget, a total of
17,300 ounces of gold during the quarter at a cash operating cost of
$440 per ounce compared to 5,000 ounces and $433 per ounce respectively for
the same period in 2006.
Kiniero mine results remained unsatisfactory with a total of 3,200 ounces
of gold produced at a cash operating cost of $851 per ounce compared to
10,200 ounces at $424 for the same period in 2006. The increased cash
operating costs per ounce were due to a marked reduction in head grade.
Following an operational review, a series of initiatives were implemented in
order to restore the mine to economic production during the fourth quarter of
The Mana, Burkina Faso exploration program is aimed at developing new
targets in the immediate vicinity of the Wona and Nyafé deposits as well as
identifying new targets in surrounding areas covered by our permit. The
program focused primarily on drilling, which demonstrated significant
potential of extended mineralization of the Wona deposit towards the
northeast. Further exploration of the Wona extension is ongoing.
At Samira Hill, Niger, exploration activities focused mainly on the IP
survey results indicating an extension of the Samira horizon, which runs
through the Samira and Libiri deposits. Exploration of new geophysical
anomalies is underway.
In Guinea, the Kiniero exploration program is mainly focused on the
development of advanced targets.
"Semafo remains committed to evolve conscientiously as a socially
responsible gold producer in West Africa" said Benoit La Salle, Semafo's
President and Chief Executive Officer. "We continue to focus on a disciplined
approach in order to maximize production throughout the organization."
Semafo is a Canadian-based mining company with gold production and
exploration activities located in West Africa. The Company currently operates
two gold mines with a third, the Mana mine in Burkina Faso, in the latter
stages of construction. Semafo is committed to evolve in a conscientious
manner to become a major player in its geographical area of interest, while
maintaining values and strengthening relationships to increase shareholder
This press release may contain forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding expectations of the Company as to the market price of gold,
strategic plans, future commercial production, production targets, timetables,
mining operating expenses, capital expenditures, and mineral reserve and
resource estimates. Forward-looking statements involve known and unknown risks
and uncertainties and accordingly, actual results and future events could
differ materially from those anticipated in such statements. Factors that
could cause future results or events to differ materially from current
expectations expressed or implied by the forward-looking statements include,
but are not limited to, fluctuations in the market price of precious metals,
mining industry risks, uncertainty as to calculation of mineral reserves and
resources, risks related to hedging strategies, risks of delays in
construction, requirements of additional financing and other risks described
in the Company's documents filed from time to time with Canadian securities
regulatory authorities. Although the Company is of the opinion that these
forward-looking statements are based on reasonable assumptions, those
assumptions may prove to be incorrect. Accordingly, readers should not place
undue reliance on forward-looking statements. Readers can find further
information with respect to risks in the Annual Information Form of the
Company and other filings of the Company with Canadian securities regulatory
authorities available at www.sedar.com. The Company disclaims any obligation
to update or revise these forward-looking statements, except as required by
For further information:
For further information: SEMAFO: Benoit La Salle, President & CEO, (514)
744-4408, firstname.lastname@example.org; Renmark Financial Communications Inc.: Tina
Cameron, email@example.com; Eric St-Pierre,
firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717;