SEMAFO REPORTS THIRD QUARTER 2007 RESULTS
3rd Quarter Gold Production Up 35%
Mana Gold Project on Track for Q1 2008
Montreal, Quebec, November 14, 2007 - 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
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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 79,700 ounces.
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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.
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Cash flow from operating activities of $859,000 for the quarter and $6,309,000 for the nine-month period ended September 30, 2007.
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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.
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Mana mine in latter stages of construction.
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Appointment of Mana Mine Manager and execution of the Mana Mining Convention.
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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".
Production
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 2007.
Exploration
The Mana, Burkina Faso exploration program is aimed at developing new targets in the immediate vicinity of the Wona and Nyaf� 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."
About SEMAFO
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 value.
FORWARD-LOOKING STATEMENTS
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 strateg
ies, 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.
For more information contact :
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Semafo Inc
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PRODUCTEUR |
CODE : SMF.TO |
ISIN : CA8169221089 |
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Semafo est une société de production minière d'or basée au Canada. Semafo détient divers projets d'exploration au Burkina Faso. Ses principaux projets en production sont KINIERO en Guinee, SAMIRA HILL au Niger et MANA au Burkina Faso. Semafo est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 1,5 milliards CA$ (1,1 milliards US$, 1,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 14 décembre 2001 à 0,10 CA$, et son plus haut niveau récent le 16 septembre 2011 à 10,00 CA$. Semafo possède 324 860 000 actions en circulation. |