MONTREAL, QUEBEC--(Marketwire -07/05/12)- SEMAFO Inc. (SMF.TO)(SMF.ST) today announced production totalling 60,500 ounces of gold for the three-month period ended June 30, 2012 with gold sales of $98.4 million. The Corporation also disclosed that its second quarter financial results will include a non-recurring loss resulting from the sale of a short-term investment.
The average realized gold price for the quarter was $1,615 per ounce, generating revenues of $98.4 million. This compares to an average realized gold price of $1,519 per ounce for total revenues of $100.4 million in the corresponding period in 2011.
"Gold production decreased slightly at Mana during the second quarter to 42,500 ounces due to pit transition," said Benoit Desormeaux, Executive Vice-President and Chief Operating Officer. "Our Samira Hill Mine had a very good quarter, exceeding our expectations with production of 13,800 ounces of gold. Milling operations resumed at our Kiniero Mine in April with gold production totalling 4,200 ounces for the quarter. Overall production for the second quarter is in line with our objectives and we remain confident that we will achieve our annual production guidance of between 235,000 and 260,000 ounces of gold."
Commenting on the quarter, Benoit La Salle, SEMAFO's President and Chief Executive Officer said, "In our First Quarter 2012 Financial Statements, we noted an unrealized 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 non-recurring 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."
Management reaffirmed that SEMAFO's geology team is working in close collaboration with external consulting firms to finalize the Corporation's updated reserves and resources estimates. Publication of the information is expected in the coming days.
Production numbers are preliminary and are subject to final adjustment. All amounts are in US dollars unless otherwise indicated.
The Corporation's second quarter results for the three-month period ended June 30, 2012 will be released at TSX market open on Wednesday, August 8, 2012. The financial statements will be available on the Corporation's website at www.semafo.com or at www.sedar.com.
SEMAFO will host a conference call to discuss the results, as well as to provide an update on operations.
Conference Call: Date: Thursday, August 9, 2012 Time: 10:00 AM (EDT) Tel. local & overseas: +1 (416) 981-9000 Tel. North America: 1 (800) 736-7549
The conference call will feature Benoit La Salle, FCPA, FCA, President and Chief Executive Officer, Benoit Desormeaux CPA, CA, Executive Vice-President and Chief Operating Officer, Martin Milette, CPA, CA, Chief Financial Officer, Michel Crevier, PGeo, MScA, Vice-President Exploration and Mine Geology and SEMAFO's Qualified Person, and Patrick Moryoussef, Eng., Vice-President Mining Operations.
The conference call will be archived for replay until August 29, 2012. To access the archived conference call, please dial 1 (800) 558-5253 and enter pass code 21599113 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 "exceed", "expectation", "expect", "objective", "remain confident", "will", "achieve", "guidance", "non-recurring", "strong", "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 to meet 2012 production guidance, the ability to timely finalize the Corporation's updated reserves and resources estimates in collaboration with external firms, 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 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.