MONTREAL, QUEBEC — (Marketwire) — 11/07/12 — SEMAFO (TSX: SMF)(OMX: SMF) today reported its financial and operating results for the three-month period ended September 30, 2012. All amounts are in US dollars unless otherwise stated.
Third Quarter 2012 Highlights
A Word from the CEO
Mana-s production was less than anticipated due to transient causes such as delays in the Wona push -back and pre- stripping activities at Kona, combined with a particularly intense rainy season. During the quarter, as we were unable to access the higher grade zones as originally planned, our average grade at Mana was 2.04 g/t Au. My short-term priority is to ensure that our fourth quarter results enable us to attain our 2012 production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of $700 to $750 per ounce.
The discovery of the new high-grade Siou zone during the quarter demonstrates the continued potential at Mana and validates our decision to concentrate the majority of 2012 exploration on potential targets and geochemical anomalies identified in 2010 and 2011. Our objective is to add the high-grade Siou zone, which is located in proximity to the current processing plant, to resources in 2013.
SEMAFO declared a third dividend of C$0.02 per share payable on January 15, 2013 to shareholders of record as of the close of business on December 31, 2012. As well, for the first time, we paid annual dividends to the Government of Burkina Faso.
Since becoming President and CEO in August, I have conducted a strategic review of the Company in collaboration with the executive team. My top ensuing priority is to build shareholder value by generating future cash flow while continuing to deliver a solid operational performance. This value will mainly be achieved through the disciplined exploration and development of our core asset, Mana. I believe that this is the most effective and economical way to create future cash flow. We will also increase our activities to optimize and improve efficiencies throughout our operations. In addition, we will continue to look for opportunities to develop our project portfolio.
(1 ) Cash flow from operating activities excludes changes in non-cash working capital items.
SEMAFO-s Consolidated Financial Statements and Management-s Discussion and Analysis and other relevant financial materials are available in the Investor Relations section of the Corporation-s website at . These and other corporate reports are also available on the website maintained by the Canadian Securities regulators at .
Consolidated Results and Mining Operations
SEMAFO-s senior management will host a conference call to discuss the results, as well as to provide an update on operations.
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 . The webcast will be available for replay for a period of 90 days.
About SEMAFO
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 „ensure“, „enable“, „attain“, „guidance“, „continued“, „potential“, „objective“, „build“, „future“, „will“, „achieve“, „develop“, „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 attain the 2012 production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of $700 to $750 per ounce, the ability to concentrate the majority of 2012 exploration on potential targets and geochemical anomalies identified in 2010 and 2011, the ability to add the high-grade Siou zone to resources in 2013, the ability to build shareholder value by generating future cash flow, the ability to deliver a solid operational performance, the ability to achieve shareholder value through the disciplined exploration and development of Mana, the ability to develop our project portfolio, 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 SEMAFO-s 2012 First Quarter MD&A and Second Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at . These documents are also available on our website at . 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.
Contacts: SEMAFO Robert LaValliere Vice-President, Investor Relations Cell: +1 (514) 240 2780
Sofia St Laurent Communications & Investor Relations Tel. local & overseas: +1 (514) 744 4408 North America Toll-Free: 1 (888) 744 4408
Maria Bang Brunswick Group Stockholm +46 (8) 410 32 189
Only registered users can comment.
