Semafo (SMF.T) pouring 220,000-240,000 Oz gold in 2009
MONTREAL, Jan. 29 (CNW Telbec/)- SEMAFO (TSX: SMF) today provided a summary of its 2008 key operating highlights as well as the Company's production outlook for 2009:
- Gold production for 2008 totaled 195,500 ounces, establishing a production record and exceeding SEMAFO's guidance of between 165,000 and 185,000 ounces of gold.
- Average cash operating cost for 2008 is expected to be approximately $465 per ounce, which is in line with management's forecast and represents an improvement of 7% over 2007.
- SEMAFO's 2009 annual production plan is established at between 220,000 and 240,000 ounces of gold, an increase of approximately 18% over 2008.
- Average cash operating cost for 2009 is estimated to be between $435 and $475 per ounce.(1)
- Capital expenditures for 2009 are expected to be $13 million; including $4 million for the first phase of the Mana expansion project.
Footnote: (1) The average cash operating cost is based on material assumptions calculated as at December 31, 2008 and based on the following: an oil price of $0.90 per liter, $1.19 Canadian to the US Dollar, and $1.30 US dollar to one Euro, continued stable production at all three
mines.
"SEMAFO is looking forward to another strong year in 2009," said Benoit
La Salle, SEMAFO's President and CEO, "We intend to build upon our 2008
achievements, where we delivered record production and completed the smooth,
successful start-up of our new Mana mine. In 2008, our goal was to increase
gold production by 60% through steady quarterly growth. Not only did we
deliver on this promise, but we surpassed our objective, achieving an increase
of 84% over our 2007 production."
"We expect continued stable production at all three mines in 2009, with
the Mana mine to account for 55% of our total production" said Benoit
Desormeaux, SEMAFO's Executive Vice-President and COO. "In 2009, as part of
our expansion project at Mana, the purchase of additional mining equipment and
minor facility modifications will augment plant capacity to 6,000 tonnes per
day for saprolite ore. The delivery of mining equipment is expected at Mana in
the second quarter of 2009, while increased capacity at the plant is expected
be operational in the fourth quarter of 2009."
The Company closed out 9,000 ounces of gold sales contracts at a cost of
$4,525,000 using a portion of the December 2008 financing proceeds. The
Company is scheduled to retire all 22,100 outstanding gold sales contracts by
June 30, 2009. Currently, 7,100 ounces of these gold sales contracts remain
uncovered.
"SEMAFO remains committed to the effective management of its assets"
reiterated Mr. La Salle, "We will continue to focus on the diligent
administration of our finances in order to maximize liquidity and cash flow.
We are committed to increasing shareholder value through the delivery of solid
results all of which is a result of the strength and dedication of our
operational and management teams.
About SEMAFO
Semafo is a Canadian-based mining company with gold production and
exploration activities in West Africa. The Company currently operates three
gold mines in Burkina Faso, Niger and Guinea. Semafo is committed to evolve in
a conscientious manner to become a major player in its geographical area of
interest, while maintaining principles and strengthening relationships to
increase shareholder value.
FORWARD-LOOKING STATEMENTS
[omitting the obvious...]
For further information: SEMAFO: Benoit La Salle, President & CEO, (514)
744-4408, blasalle@semafo.com; Sofia St Laurent, Communications, (514)
744-4408, sstlaurent@semafo.com
