Semafo spends $19-million on Samira Hill equipmentSemafo spends $19-million on new Samira Hill equipment
2010-05-06 11:22 ET - News Release
Mr. Benoit La Salle reports
SEMAFO TO REDUCE CASH OPERATING COST BY $70 PER OUNCE AT SAMIRA HILL - $19MINVESTMENT IN NEW MINING FLEET WITH 3.5-YEAR PAYBACK
Semafo Inc. has purchased a new mining fleet for its Samira Hill mine inNiger. As owner miner, Semafo will ensure higher availability and productivity,as well as reduce cash operating costs at Samira Hill. The payback period forthis $19-million investment is approximately 3.5 years.
As a result of this investment, Semafo is forecasting mining cost savings of30 per cent, representing cash operating cost savings of approximately $70 perounce at Samira Hill. Additionally, Samira Hill will benefit from substantialcost savings associated with civil works previously outsourced, such as raisingthe tailings dams, road maintenance, transportation and ore rehandling to themill.
The mining equipment consists mainly of two bulldozers (D275-5R), 10 haultrucks (HD605-7R) and two hydraulic excavators (PC1250SP-8R). Machinery isscheduled to arrive on site in September and October, 2010, and will be fullyoperational in the fourth quarter of 2010. The transition to owner-mining willbe sustained through the efforts of our experienced management and staff. Semafoanticipates a smooth changeover from the incumbent mining contractor.
Semafo is pleased with the progress achieved to date on the selection andprojected delivery dates of the new mining fleet for Samira Hill. Two new Cat988H wheel loaders are already on site and operational.
"Historically Semafo's experience as owner-miner has proved successful,resulting in improved operating costs and productivity," said Benoit Desormeaux,Semafo's executive vice-president and chief operating officer. "Samira willundoubtedly benefit from our vast experience in terms of logistics, inventoriesand management. We are confident that the results of this strategic investmentwill continue to optimize and enhance performance to generate superior cashflows, thereby increasing shareholder value through improved financialperformance."
We seek Safe Harbor.