Semafo Reports Second Quarter 2007 Financial Results



    TSX-SMF

    MONTREAL, Aug. 14 /CNW Telbec/ - SEMAFO (TSX - SMF) today reported its
operating results for the six-month period ended June 30, 2007. All amounts
referenced are in US dollars except as otherwise stated.

    Highlights
    ----------

    
    -------------------------------------------------------------------------
                          Three-month period ended    Six-month period ended
                                 June 30                      June 30
                                2007      2006              2007      2006
    -------------------------------------------------------------------------
    Operations
    Gold production
     (ounces)                 30,200    24,700            59,200    58,000
    Gold sales (ounces)       27,500    29,800            55,600    59,800
    Cash operating cost
     ($/tonne
     processed)(2)(3)             28        27                26        25
    Cash operating cost
     ($/ounce
     produced)(2)(3)             473       373               463       367
    Average selling price
     ($/ounce)                   659       503               660       459

    Results (in thousands $)
    Gold sales                18,136    14,957            36,712    28,044
    Net loss(3)               (2,083)     (384)           (5,316)   (2,043)
    Cash flow from
     operating
     activities(1)(2)(3)       1,591     1,675              5,462    1,697
    -------------------------------------------------------------------------
    1 Cash flow from operating activities excludes changes in non-cash
      working capital items and settlement of liabilities related to asset
      retirement obligations for property, plant and equipment.
    2 Non GAAP measures.
    3 The 2006 amounts are restated since the company adopted CICA EIC-160 -
      "Stripping Costs Incurred in the Production Phase of a Mining
       Operation".

    - A 22% increase in gold production - having produced 30,200 ounces in
      the second quarter of 2007, compared to the second quarter of 2006.

    - Construction of the Mana project is proceeding on schedule and on
      budget

    - Cash flow from operating activities of $1,591,000

    - Net loss of $2,083,000 in the second quarter of 2007 including an
      unrealized gain of $511,000 due to the revaluation of the financial
      instruments

    - High-potential extensions of the Wona structures in Burkina Faso and
      the southeast horizon of the Libiri structure in Niger

    Results for the three-month period ended June 30, 2007
    ------------------------------------------------------

    For the three-month period ended June 30, 2007, Semafo presents a net loss
of $2,083,000 or $0.01 per share, compared to a net loss of $384,000 or $0.01
per share for the corresponding period in 2006. The operating revenue
(calculated by deducting the mining operating expenses from revenues)
increased by $1,400,000 to $3,387,000 due to the increase in sales revenue.
    During the second quarter of 2007, gold sales totaled $18,136,000,
corresponding to the sale of 27,500 ounces of gold at an average price of
$659 per ounce. For the same period in 2006, gold sales totaled $14,957,000
corresponding to the sale of 29,800 ounces of gold at an average price of
$503 per ounce.

    Samira Hill - Mining Operations for the three-month period ended
    ----------------------------------------------------------------
    June 30, 2007
    -------------

    A total of 21,600 ounces of gold was produced during the second quarter of
2007 at a cash operating cost of $373 per ounce compared to 9,700 ounces
during the second quarter of 2006 at a cash operating cost of $397 per ounce.
The increase in the ounces produced and the decrease in the cash operating
cost per ounce produced were primarily due to the higher recovery rate and the
processing of higher-grade ore representing $58 per ounce produced. The cash
operating cost per tonne of ore processed was $22 in the first quarter of 2007
compared to $20 during the same period in 2006. This increase was primarily
due to higher fuel and reagent costs. It was offset in part by the
approximately $100,000 per month in cost savings achieved by joining the
national power grid that now services the Samira Hill mine.

    Kiniero - Mining Operations for the three-month period ended
    ------------------------------------------------------------
    June 30, 2007
    -------------

    During the three-month period ended June 30, 2007, a total of 8,600 ounces
of gold was produced at a cash operating cost of $726 per ounce, compared to
15,000 ounces at a cash operating cost of $357 per ounce during the same
period in 2006. This decrease in production was primarily due to the
processing of lower-grade ore in 2007 compared to 2006. The higher cash
operating cost per ounce produced is due to lower grade ($233), higher strip
ratio ($135) and increase in fuel price ($101).
    Later this year, we will enter the West Balan pit where we will be mining
higher grade ore at a lower strip ratio compared to pits currently in
operation, therefore increasing production at a lower cash operating cost.
    Consolidated interim financial statements and the Management's discussion
and analysis for the three-month period ended June 30, 2007 are available on
the Semafo website at www.semafo.com and on the SEDAR website at
www.SEDAR.com.

    FORWARD-LOOKING STATEMENTS

    This press release contains 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
applicable law.

    The common shares of Semafo are traded on The Toronto Stock Exchange under
the symbol "SMF".

    Semafo is a mining company whose mission is to explore, develop and mine
    major mineral deposits in West Africa. Semafo currently operates the
    Kiniero mine in Guinea, the Samira Hill mine in Niger and the Mana
    project in Burkina Faso, currently in construction.

    NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
    RELEASE
    




For further information:

For further information: MONTREAL: Benoit La Salle, President & Chief
Executive Officer, (514) 744-4408, blasalle@semafo.com; Benoit Desormeaux,
Chief Operating officer, (514) 744-4408, bdesormeaux@semafo.com; RENMARK: Tina
Cameron, tcameron@renmarkfinancial.com; Christopher Wells,
cwells@renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717;
www.renmarkfinancial.com; More extensive information on Semafo can be found on
our home page at http://www.semafo.com

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SEMAFO INC.

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