PRECIOUS METALS

Semafo shares jump on Boungou plant restart

Gold producer Semafo Inc’s shares climbed about 12% on Thursday after a company announcement that it has restarted the Boungou mill in Burkina Faso following a deadly attack on mine personnel in November last year that halted operations.

Staff Reporter
Semafo says it has restarted the mill at Boungou, with mining set to resume by the December quarter this year

Semafo says it has restarted the mill at Boungou, with mining set to resume by the December quarter this year

Jihadist-driven violence had become a major risk factor in the jurisdiction, which resulted in gunmen attacking a bus convoy of 241 workers on the road between the city of Fada and the Boungou gold mine, killing 39 people and injuring at least 60 others.

The Montreal-headquartered company said as part of a phased plan, it would transport employees between the city and mine site by helicopter until it could complete a landing strip at site, from when it would use airplane.

The initial three-month phase envisions processing the stockpile and using the on-site supplies inventory with limited deliveries of new supplies. During this period, it expects to produce 42,000-46,000 ounces at an all-in sustaining costs of between US$530-$560/oz.

The phased plan includes a restart of mining in the December quarter while stockpile processing continues.

The company called on the Burkina Faso government to improve security on the public road, and in the surrounding region, to allow for deliveries by road-safe passage at regular intervals.

Operations at the Mana mine, also in Burkina Faso, continued mainly to plan. Mana completed the year on a positive note, producing 45,000oz at an AISC of $914/oz in the past two months. Mana produced 135,700oz in 2019.

Semafo has guided for 2020 consolidated production of 315,000-355,000oz at AISC of $895-$960/oz.

The company's Toronto-quoted equity reached an intra-day high of C$3.10, before settling at about $3.02 in the afternoon session. The company has a market capitalisation of $1.01 billion (US$760 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.