SEMAFO (TSX: T.SMF, Stock Forum) shares were up 7.4% to $1.74 Thursday as the company provided a summary of its 2008 operating highlights and its production outlook for 2009.
The Quebec-based company which operates three gold mines in Burkina Faso, Niger and Guinea, says gold production for 2008 was 195,500 ounces, which exceeded SEMAFO's guidance of between 165,000 and 185,000 ounces. Average cash operating cost for 2008 is expected to be approximately $465 per ounce, a 7% improvement over 2007.
The company says its 2009 annual production plan is established at between 220,000 and 240,000 ounces of gold, up 18% over 2008, with expected capital expenditures of $13 million this year, including $4 million for the first phase of the Mana expansion project in Burkina Faso.
"SEMAFO is looking forward to another strong year in 2009," said Benoit La Salle, SEMAFO's president and CEO, "We intend to build upon our 2008 achievements, where we delivered record production and completed the smooth, successful start-up of our new Mana mine. In 2008, our goal was to increase gold production by 60% through steady quarterly growth. Not only did we deliver on this promise, but we surpassed our objective, achieving an increase of 84% over our 2007 production,” he added.
"We expect continued stable production at all three mines in 2009, with the Mana mine to account for 55% of our total production" said Benoit Desormeaux, SEMAFO's executive vice-president and COO. "In 2009, as part of our expansion project at Mana, the purchase of additional mining equipment and minor facility modifications will augment plant capacity to 6,000 tonnes per day for saprolite ore. The delivery of mining equipment is expected at Mana in the second quarter of 2009, while increased capacity at the plant is expected be operational in the fourth quarter of 2009," he added.
