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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 Jul 07, 2011 11:11am
436 Views
Post# 18806155

Shorts down 5 million

Shorts down 5 millionSignificant drop. Can't tell who they were but most likely the group that piled on in early June.

It will take a while to get rid of those that shorted at $14.00. Quite possible that the majority of the early shorts were defensive positions for some longs.

Yesterday's report highlights two things.  They sold more than they produced therefore the cost per sold ounce for the quarter should be less than last quarter.. Averaging $1519 per oz for the quarter will increase the margin for sure but the costs for almost 4000 oz would have been in last quarter's operating costs.

I think you will see the most profitable quarter ever plus the highest cash flow ever on Aug 15th.  Expect some significant covering before that.

Wes
Bullboard Posts