Exceeds Guidance with Gold Production of 261,100 Ounces
MONTREAL, QUEBEC, Jan. 11, 2011 (Marketwire) --
SEMAFO (TSX:SMF) today provided a summary of its 2010 operating results. Effective operations at the Company's Mana Mine spearheaded a new annual production record of 261,100 ounces of gold in 2010, representing an increase of 8% over 2009.
Gold production totaling 261,100 ounces exceeded the upper end of the Company's annual guidance of between 235,000 and 260,000 ounces and the cash operating cost is anticipated to be in line with the Company's guidance of between $485 and $520 per ounce.
"Gold sales for 2010 totaled $323,275,000. The average realized gold price for the fourth quarter was $1,391 per ounce or $24 per ounce above the London Gold Fix (PM) and the average realized gold price for the year was $1,240 per ounce or $15 per ounce above the London Gold Fix (PM)," said Benoit La Salle, SEMAFO's President and Chief Executive Officer. "SEMAFO's average realized gold price has surpassed the average London Gold Fix (PM) for eight consecutive quarters."
"Operationally, we continue to demonstrate our ability to deliver by repeatedly meeting and exceeding production guidance," said Benoit Desormeaux, SEMAFO's Executive Vice-President and COO.
The Mana Mine's production of 179,700 ounces of gold surpassed expectation. Moving forward, we anticipate that Mana will continue to be the cornerstone of our operations and remain optimistic about its potential to become a mining district.
"In 2010, we delivered another solid performance both operationally and financially," added Benoit La Salle, "We believe that SEMAFO is well-positioned for the future. As an integral part of our organic growth strategy, we will continue to actively pursue opportunities to optimize our operations through ongoing aggressive exploration programs."
Production numbers are preliminary and are subject to final adjustment. All amounts are in US dollars unless otherwise indicated.
SEMAFO will release its fourth quarter and 2010 year-end financial results on or about March 16, 2010. The Company will also host a conference call to discuss the results, the details of which will be announced at a later date.
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Company currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities in West Africa.
Caution Concerning Forward-looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "anticipated", "moving forward", "will continue", "optimistic", "evolve", "become", "pursuing" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the final adjustments to our production numbers, the ability of our 2010 cash operating cost to be in line with the Company's guidance of between $485 and $520 per ounce, the accuracy of current economic forecasts for gold, the ability of Mana to become a mining district, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2009 Annual MD&A, as updated by our 2010 First Quarter MD&A, 2010 Second Quarter MD&A and 2010 Third Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
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