Record Gold Production, Operating Income and Operating Cash Flow
SEMAFO TSX-SMF
MONTREAL, Aug. 12 /CNW Telbec/ - SEMAFO (TSX: SMF) today reported record
financial and operational results for the three-month period ended June 30,
2008. All amounts are stated in US dollars unless otherwise stated.
Highlights
The Company delivered record results during the second quarter ended
June 30, 2008, with gold sales of $44,826,000 representing an increase of 147%
over the corresponding period in 2007. Gold production reached 54,500 ounces
for the quarter, an increase of 80% over the same period last year. Highlights
for the second quarter include:
- Gold production of 54,500 ounces
- Gold sales of $44,826,000 at an average selling price of $904 per ounce
- Cash operating cost of $394 per ounce
- Total cash cost of $455 per ounce
- Operating income of $13,822,000
- Net income of $11,681,000
- Cash flow from operating activities of $19,304,000
- Commencement of commercial production at the Mana mine in Burkina Faso
A Word from the CEO
With three mines in operation, 2008 marked the beginning of a turning
point for the Company. Since the beginning of this year, the Company delivered
profits in its three operations and has focused on maximizing the cash flow
from operating activities. During the second quarter of 2008, cash flow from
operating activities totalled $19,304,000, representing 188% of the operating
cash flow generated during the entire 2007 year.
Despite the rapid rise of fuel and consumable costs, Semafo has reduced
its cash operating cost by 17% to $394 per ounce for the second quarter of
2008 compared to $473 for the second quarter 2007. The total cash cost during
the three-month period ending June 30, 2008 decreased 12% to $455 per ounce
from $517 per ounce for the corresponding period in 2007.
The second quarter of 2008 marked the commencement of commercial
production at the Mana mine in Burkina Faso, and the third time that Semafo
has successfully brought a West African mine into operation.
