MONTREAL, QUEBEC--(Marketwire - Oct. 10, 2012) - SEMAFO Inc. (TSX:SMF)(OMX:SMF) today announced production totalling 52,300 ounces of gold for the three-month period ended September 30, 2012. The Corporation's flagship Mana Mine processed a record 697,700 tonnes of ore at an average grade of 2.04 g/t. Mana produced a total of 36,600 ounces of gold, representing 70% of third quarter total production.
Mana's production was lower than initially expected as a result of the processing of lower grade ore. Due to delays in the Wona push-back and in the pre-stripping activities at Kona, combined with a particularly intense rainy season, we were unable to access the higher grade zones as originally planned. In addition, higher throughput following the commissioning of phase IV of the plant expansion led to the processing of low grade stockpiles.
Fourth quarter production at Mana is expected to return to normal levels, which should enable the Corporation to attain the lower end of its 2012 production guidance of between 235,000 and 260,000 ounces of gold.
The average realized gold price for the quarter was $1,665 per ounce, generating revenues of $79.4 million. This compares to an average realized gold price of $1,717 per ounce for total revenues of $102.3 million for the corresponding period in 2011.
Production numbers are preliminary and are subject to final adjustment. All amounts are in US dollars unless otherwise indicated.
The Corporation's third quarter results of 2012 will be released at TSX market open on Wednesday, November 7, 2012. The financial statements will be available on the Corporation's website at www.semafo.com or at www.sedar.com.
SEMAFO's senior management will host a conference call to discuss the financial and operational results, as well as to provide an update on the Corporation's activities.
||Thursday, November 8, 2012
||10:00 AM (EST)
||Tel. local & overseas:
||+1 (416) 981-9037
||Tel. North America:
||1 (800) 757-9216
The conference call will be archived for replay until November 28, 2012. To access the archived conference call, please dial 1 (800) 558-5253 and enter pass code 21607119 followed by the number sign (#).
A live audio webcast of the conference can be accessed through SEMAFO's website at www.semafo.com. The webcast will be available for replay for a period of 90 days.
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. 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 "expected", "should", "guidance", "committed", "evolve", "become", "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 of the fourth quarter production at Mana to return to normal levels, the ability to attain the lower end of our 2012 production guidance of between 235,000 and 260,000 ounces of gold, 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 2011 Annual MD&A and 2011 Annual Information Form as updated in our 2012 First Quarter MD&A and 2012 Second Quarter 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 above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.