Currently viewing Global edition

SEMAFO sags on Q2 headline loss

West Africa-focused Canadian miner SEMAFO (TSX:SMF) has reported a headline loss of US$6.3 million, or 2c a share for the June quarter – more than double the adjusted loss it suffered in the corresponding second-quarter period of 2017.
SEMAFO sags on Q2 headline loss SEMAFO sags on Q2 headline loss SEMAFO sags on Q2 headline loss SEMAFO sags on Q2 headline loss SEMAFO sags on Q2 headline loss

Harder than usual ore at the Mana mine, in Burkina Faso, resulted in fewer gold ounces produced in the second quarter

The Montreal-headquartered company blamed harder than usual ore at the Mana mine, in Burkina Faso, for a 4% year-on-year dip in gold output at 45,700oz for the period.

The harder ore also translated to higher mining operating costs and on a higher stripping ratio. All-in sustaining costs (AISC) rose 2.7% year-on-year to $1,103/oz of gold sold.

SEMAFO repeated its 2018 consolidated production outlook of between 235,000oz and 265,000oz gold, at AISC of $900-940/oz.

The company expects to declare commercial production at the newly commissioned Boungou mine in August, after it poured first gold on June 28. Work on the Siou underground development project continues, with the goal of hitting full production by the first quarter of 2020.

With a company valuation of about C$1.01 billion, SEMAFO's Toronto-quoted equity traded in the red on Wednesday, losing more than 8% to trade at a low of C$3.30 a share.

topics

loader