Semafo Reports Second Quarter 2007 Financial Results
Montreal, Quebec, August 14, 2007 - 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
June 30 |
Six-month period ended
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''.
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A 22% increase in gold production - having produced 30,200 ounces in the second quarter of 2007, compared to the second quarter of 2006.
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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 h
edging 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.
For more information contact :
MONTREAL:
Benoit La Salle, President & Chief Executive Officer
Tel : (514) 744-4408
E-Mail : blasalle@semafo.com
MONTREAL:
Benoit Desormeaux, Chief Operating Officer
Tel: (514) 744-4408
E-mail: bdesormeaux@semafo.com
RENMARK :
Tina Cameron : tcameron@renmarkfinancial.com
Christopher Wells : cwells@renmarkfinancial.com
Tel : (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
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE