Semafo (SMF.TO) Q2 gold output flat, posts $98m revenue
JOHANNESBURG (miningweekly.com)–Megan Wait, 5 Jul 2012
West Africa-focused gold miner Semafo on Thursday reported second-quarter gold production of 60,500 oz, which is in line with first-quarter output, but a 5% decrease on production a year ago.
The Canada-based company, which owns mines in Burkina Faso, Niger and Guinea, sold its gold at an average price of $1,615/oz in the three months to the end of June, generating revenues of $98.4-million.
This compares to an average gold price of $1,519/oz for total revenues of $100.4-million in the corresponding period of 2011.
COO Benoit Desormeaux said that the company's Samira Hill mine, in Niger, had a good quarter, exceeding its expectations with production of 13,800 oz of gold.
Production at its Mana operation, in Burkina Faso, fell to 42,500 oz in the quarter, owing to pit transition, he added.
“Overall production for the second quarter is in line with our objectives and we remain confident that we will achieve our full-year production guidance of between 235,000 oz and 260,000 oz of gold," Desormeaux said.
The TSX-listed miner also disclosed that its second-quarter financial results, which would be published on August 8, would include a nonrecurring loss resulting from the sale of a short-term investment.
“In our first quarter 2012 financial statements, we noted an unrealised loss related to short-term investments in quoted equities that were subject to large downward changes in the fair market value. In the second quarter, we sold an investment and accordingly will record a nonrecurring loss of $24.3-million, for which a $9.5-million loss in value was previously recorded in comprehensive income and already reflected in our equity. Notwithstanding this loss, our cash and working capital position remains strong,” commented CEO Benoit La Salle.
Edited by: Mariaan Webb
