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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
Post by westhecaton Apr 07, 2011 6:18am
519 Views
Post# 18397502

Short covering

Short coveringI wouldn't get too excited about a short squeeze running the price.

They will cover and not even go through the market.

Case in point BMC went from no shorts to 6 million short on the mid March report. The volume in the market over the 2 week period was only half of what would be required to short it through the market.  The most recent report for BMC at the end of March shows all those shorts were covered over the two weeks with even less volume going through the market.  In that time frame the price was neutral.

I'm still of the opinion that the current short on SMF is a defensive position for a long and that if covering is required they can do it quickly and quietly and not even go through the market.

First qtr production numbers should be out soon. If they are down a bit the increase in POG shoud certainly make up for it. In the last conference call Benoit did say that the grade at Samira would be down some due to expanding the pit. He also said that with the POG where it is,  it has made some of the lower grade areas profitable to mine.

Another 30 or 40 million will be put in the bank.

CIBC still has this targeted at $18.50 with future project development done with internal cash. 

Wes
Bullboard Posts