SEMAFO Delivers Record Gold Production in 2010
Exceeds Guidance with Gold Production of 261,100 Ounces
Montreal,
QC - January 11, 2011 - SEMAFO (TSX: SMF) today provided a summary of its
2010 operating results. Effective operations at the Company�s Mana Mine spearheaded a new annual production record
of 261,100 ounces of gold in 2010, representing an increase of 8% over
2009.
Gold
production totaling 261,100 ounces exceeded the upper end of the
Company�s annual guidance of between 235,000 and 260,000 ounces and the
cash operating cost is anticipated to be in line with the Company�s
guidance of between $485 and $520 per ounce.
�Gold sales
for 2010 totaled $323,275,000. The average realized gold price for the
fourth quarter was $1,391 per ounce or $24 per ounce above the London
Gold Fix (PM) and the average realized gold price for the year was $1,240
per ounce or $15 per ounce above the London Gold Fix (PM),� said Benoit
La Salle, SEMAFO�s President and Chief Executive Officer. �SEMAFO�s
average realized gold price has surpassed the average London Gold Fix
(PM) for eight consecutive quarters.�
�Operationally,
we continue to demonstrate our ability to deliver by repeatedly meeting
and exceeding production guidance,� said Benoit Desormeaux,
SEMAFO�s Executive Vice-President and COO.
The Mana Mine�s production of 179,700 ounces of gold
surpassed expectation. Moving forward, we anticipate that Mana will continue to be the cornerstone of our
operations and remain optimistic about its potential to become a mining
district.
"In
2010, we delivered another solid performance both operationally and
financially,� added Benoit La Salle, �We believe that SEMAFO is
well-positioned for the future. As an integral part of our organic growth
strategy, we will continue to actively pursue opportunities to optimize
our operations through ongoing aggressive exploration programs.�
Production
numbers are preliminary and are subject to final adjustment. All
amounts are in US dollars unless otherwise indicated.
SEMAFO will
release its fourth quarter and 2010 year-end financial results on or
about March 16, 2011. The Company will also host a conference call
to discuss the results, the details of which will be announced at a later
date.
About SEMAFO
SEMAFO
Inc. is a
Canadian-based mining company with gold production and exploration
activities in West Africa. The Company currently operates three gold
mines: the Mana Mine in Burkina Faso, the
Samira Hill Mine in Niger and the Kiniero Mine
in Guinea. SEMAFO is committed to evolve in a conscientious manner to
become a major player in its geographical area of interest. SEMAFO�s
strategic focus is to maximize shareholder value by effectively managing
its existing assets as well as pursuing organic and strategic growth
opportunities in West Africa.
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CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains
forward-looking statements. Forward-looking statements involve known
and unknown risks, uncertainties and assumptions and accordingly,
actual results and future events could differ materially from those
expressed or implied in such statements. You are hence cautioned not to
place undue reliance on forward-looking statements. Forward-looking
statements include words or expressions such as �anticipated�, �moving
forward�, �will continue�, �optimistic�, �evolve�, �become�, �pursuing�
and other similar words or expressions. Factors that could cause future
results or events to differ materially from current expectations
expressed or implied by the forward-looking statements include the
final adjustments to our production numbers, the ability of our 2010
cash operating cost to be in line with the Company�s guidance of
between $485 and $520 per ounce, the accuracy of current economic
forecasts for gold, the ability of Mana to
become a mining district, the ability to execute on our strategic
focus, fluctuation in the price of currencies, gold or operating costs,
mining industry risks, uncertainty as to calculation of mineral
reserves and resources, delays, political and social stability in
Africa (including our ability to maintain or renew licenses and
permits) and other risks described in SEMAFO�s documents filed with
Canadian securities regulatory authorities. You can find further
information with respect to these and other risks in SEMAFO�s 2009
Annual MD&A, as updated by our 2010 First Quarter MD&A, 2010
Second Quarter MD&A and 2010 Third Quarter MD&A, and other
filings made with Canadian securities regulatory authorities and
available at www.sedar.com. These documents are also
available on our website at www.semafo.com. SEMAFO disclaims any obligation to
update or revise these forward-looking statements, except as required by
applicable law.
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