At a time when miners have been hard pressed to deliver good news, Semafo (SMF-T, SEMFF-O) has managed to pull out a nugget for the market.
The Saint-Laurent, Que.-based miner with operations in West Africa announced record gold production for 2008.
The company says it produced 195,500 oz. last year, eclipsing the previous year’s total of 106,400 oz. and exceeding its own guidance for 2008 of 165,000-185,000 oz. gold.
And while the company has producing mines in Guinea, Mali and Burkina Faso, it was its Mana mine in Burkina Faso that was the key to the boost in output.
Mana went into production in April 2008. In the third quarter of last year, it produced 26,800 oz. of gold from 226,600 tonnes of ore grading 4.18 grams gold per tonne at a cash cost of US$358 per oz.
While fourth-quarter results for Mana have not yet been released, the company did announce at the beginning of December that the mine had churned out a record 10,000 oz. gold for the month of November.
Mana hosts proven and probable reserves of 9.8 million tonnes grading 2.93 grams gold for 924,600 oz. Together, Semafo’s three mines hold reserves of 24 million tonnes with an average grade of 2.4 grams gold for 1.96 million oz. of gold.
“We are extremely pleased with the startup of the Mana mine, which has allowed us to capture the benefits of a strong gold price environment,” Benoit La Salle, Semafo’s president and chief executive said in a statement.
At presstime, Semafo shares traded at $1.50 in a 12-month range of 75¢-$1.72. The company has 232 million shares outstanding.
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