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Semafo Inc. T.SMF

Semafo Inc is a Canadian mining company with gold production and exploration activities in Burkina Faso. The company's main operations are in Boungou, Burkina Faso, and Mana, Burkina Faso. Boungou is a relatively new production site that is located in southeastern Burkina Faso. The Mana project, which has been in operation longer, includes the Siou deposit, which is about 20 kilometers from the Mana Mine in Burkina Faso. Semafo has developed exploration strategies for future deposits in West Afr


TSX:SMF - Post by User

Bullboard Posts
Comment by truestaron Apr 16, 2008 3:57pm
288 Views
Post# 14978000

RE: Why suddenly....

RE: Why suddenly....
  The bottom line is that this stock has underperformed due lack of production delivery over the last two years-to get the big money involved, SMF must show that they can CONSISTENTLY hit their production/cost targets.  Once Q1 comes out and they exceed expectations this stock will be close to, or over $2, if you read between the lines on their last press release you can see that they have cash flow of around $14M, and we know their G and A is around $5-$6M per quarter, leaving a positive cash flow of $8-$9M, if read between the lines for Q2, WITH 37000 OZS, AND ASSUME A SIMILAR OPERATING MARGIN YOU WOULD BE LOOKING AT A CASH FLOW OF $12-$13M-this is not very far off-this would likely take the stock price up to $3.00 and start to attract some outside interest, (takeover).  People buying in these ranges will make a lot of money if these targets are met-it's not all that tough to "read between the lines"
Bullboard Posts