SEMAFO Reports Q1 2017 Production; Revises 2017 Guidance
24 April 2017 - 2:56PM
Montreal, Quebec,
April 24, 2017- SEMAFO Inc. (TSX, OMX: SMF) announced today
gold production for the three-month period ended March 31, 2017 and
the revision of its 2017 guidance.
First Quarter
Operations
During the first quarter of 2017,
the Mana Mine produced 55,400 ounces of gold at a total cash cost
of $6991,2 and an
all-in sustaining cost1,3 of $892 per
ounce. The mill processed 731,000 tonnes at an average grade of
2.55 g/t Au, including 252,400 tonnes of stockpile and low-grade
material at an average grade of 2.24 g/t Au.
The mined grade was adversely
affected by the geological interpretation of the upper portion of
Zone 9, a mineralized zone in the south-west sector of the Siou pit
that was first included in the 2017 mine plan. The upper portion
presents a complex geometry as the area comprises the junction of
three different zones: Zone 9 itself, and two subsidiary zones
known as Zones 55 and 56. This resulted in misleading ore outlines
and led to a significant variation in grade. Figure 1 depicts the
different geological interpretations in the upper portion of Zone
9. In addition, it shows how the geometry becomes simpler and more
rectilinear at depth. Mining will commence in the area at depth in
the coming weeks. Second-quarter production is expected to reach
approximately 45,000 ounces of gold.
Revised
Guidance
We have adjusted our 2017
guidance4 to between
190,000 and 205,000 ounces of gold, at a total cash cost2
of between $685 and $715 per ounce and all-in sustaining
cost3 of between
$920 and $960 per ounce. The reduction of 25,000 ounces is
projected to have minimal impact on our 2017 budgeted cash flow.
This is due to the positive variance between our budgeted gold
price for the year of $1,150 per ounce and the current gold
price.
|
|
|
Mana |
2017 Prior
Guidance |
2017 Revised
Guidance4 |
|
Gold production ('000 oz) |
215 - 235 |
190 - 205 |
|
Total cash cost2 ($/oz) |
585 - 615 |
685 - 715 |
|
All-in sustaining cost3 ($/oz) |
795 - 835 |
920 - 960 |
|
|
|
|
|
Conference
Call
The Corporation will hold a
conference call on Monday, April 24 to discuss the first quarter
2017 production and 2017 revised guidance. Interested parties
are invited to join the call and webcast at 10 a.m. EDT.
Tel. local & overseas: +1 (647) 788
4922
Tel. North America: 1 (877) 223 4471
Webcast: www.semafo.com
Replay number: 1 (800) 585 8367 or 1 (416) 621
4642
Replay pass code: 11869531
Replay expiration: May 8, 2017
Michel Crevier, P.Geo MScA, Vice-President
Exploration and Mine Geology, is SEMAFO's Qualified Person and has
reviewed this press release for accuracy and compliance with
National Instrument 43-101.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and
exploration activities in West Africa. The Corporation
operates the Mana Mine in Burkina Faso, which includes the
high-grade satellite deposit of Siou, and is targeting production
start-up of the Boungou Mine in the second half of 2018. SEMAFO's
strategic focus is to maximize shareholder value by effectively
managing its existing assets as well as pursuing organic and
strategic growth opportunities.
CAUTION
CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and assumptions and accordingly, actual results and
future events could differ materially from those expressed or
implied in such statements. You are hence cautioned not to place
undue reliance on forward-looking statements. Forward-looking
statements include words or expressions such as "guidance", "will",
"expected", "assumptions", "preliminary", "final adjustment",
"targeting", "pursuing", "growth", "opportunities" and other
similar words or expressions. Factors that could cause future
results or events to differ materially from current expectations
expressed or implied by the forward-looking statements include the
ability to commence the mining of the Zones 9, 55 and 56 at depth
in the coming weeks, the ability to produce approximately 45,000
ounces of gold in the second quarter, the ability to meet our
revised 2017 production guidance of between 190,000 and 205,000
ounces of gold at a total cash cost of between $685 and $715 per
ounce and all-in sustaining cost of between $920 and $960 per
ounce, the ability to start production at the Boungou Mine in the
second half of 2018, the accuracy of our assumptions, the ability
to execute on our strategic focus, fluctuation in the price of
currencies, gold or operating costs, mining industry risks,
uncertainty as to calculation of mineral reserves and resources,
delays, political and social stability in Africa (including our
ability to maintain or renew licenses and permits) and other risks
described in SEMAFO's documents filed with Canadian securities
regulatory authorities. You can find further information with
respect to these and other risks in SEMAFO's 2016 Annual
MD&A, and other filings made with Canadian securities
regulatory authorities and available at www.sedar.com. These
documents are also available on our website at www.semafo.com.
SEMAFO disclaims any obligation to update or revise these
forward-looking statements, except as required by applicable
law.
The information in this release is
subject to the disclosure requirements of SEMAFO under the
Swedish Securities Market Act and/or the
Swedish Financial Instruments Trading Act.
This information was publicly communicated on April 24, 2017 at
8:00 a.m., Eastern Daylight Time.
For more information, contact
SEMAFO
Robert LaVallière
Vice-President, Corporate Affairs & Investor
Relations
Cell: +1 (514) 240 2780
Email: Robert.Lavalliere@semafo.com
Ruth Hanna
Analyst, Investor Relations
Email: Ruth.Hanna@semafo.com
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
Website: www.semafo.com |
|
Figure 1 - Siou Cross-Section
Note: Zone 56 does not appear on this section.
1 2017 numbers
are preliminary and are subject to final adjustment. All
amounts are in US dollars unless otherwise indicated.
2 Total cash
cost is a non-IFRS financial performance measure with no standard
definition under IFRS and represents the mining operation expenses
and government royalties per ounce sold.
3 All-in
sustaining cost is a non-IFRS financial performance measure with no
standard definition under IFRS and represents the total cash cost,
plus sustainable capital expenditures and stripping costs per
ounce.
4 The 2017
revised guidance is based on the same assumptions as the 2017 prior
guidance. See press release of February 1, 2017.
SEMAFO Reports Q1 2017 Production;
Revises 2017 Guidance
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: SEMAFO Inc. via Globenewswire
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