Semafo (SMF.TO) is fit for a king, apparently.
(see the final sentence below)
Company News
Morocco's Managem starts Niger's gold mine
Fri Oct 8, 2004 07:24 AM ET
RABAT, Oct 8 (Reuters) - Moroccan Managem (MNG.CS: Quote, Profile, Research) mining firm has started operating the new Samira Hill gold mine in Niger which can produce a total of 618,000 ounces (19.2 tonnes), a company senior manager said on Friday.
"We expect to produce 135,000 ounces of gold in the first year but this production will gradually decline over the mine's six-year lifespan," the manager told Reuters.
The mine's cash cost per ounce is $177.
Managem's Canadian subsidiary Semafo (SMF.TO: Quote, Profile, Research) holds 40 percent of the project while 40 percent is held by Canadian firm Etruscan Resources Inc (EET.TO: Quote, Profile, Research) and 20 percent by the state of Niger.
The project required $71 million of investment, of which $40 million is for exploration alone.
Managem now produces 6.5 tonnes of gold each year. Samira Hill is set to help it overcome a tight financial bind after issuing the first profit warning in the history of the Moroccan bourse in June.
The warning, predicting losses of 50 million dirhams ($5.6 million) for 2004, followed excessive estimation of Managem's gold production potential in hedging operations.
Managem is Morocco's largest private mining firm and is owned by ONA Group (ONA.CS: Quote, Profile, Research) conglomerate, in which a holding controlled by the royal family is the main shareholder.
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