SEMAFO: 2016 Production and Cost Guidance Achieved
Provides 2017 Outlook
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 02/01/17 -- SEMAFO Inc. (TSX: SMF)(OMX: SMF) reports full-year 2016 production results of 240,200 ounces at a total cash cost of $548 and all-in sustaining cost of $720 per ounce at its Mana Mine. As a result, the Corporation has met its production guidance for the ninth consecutive year.
Highlights
Natougou
In 2016, the ore processed increased and the head grade decreased compared to 2015. The lower head grade results from a decision to add 425,000 tonnes of low grade material at an average of 0.79 g/t Au to the mix during the year. Absent the impact of this decision, the head grade for the year would have been 3.26 g/t Au.
2016 numbers are preliminary and are subject to final adjustment. All amounts are in US dollars unless otherwise indicated.
2017 Outlook
The general and administrative expense for 2017 has been forecast at $14 million.
A number of assumptions were made in preparing the 2017 guidance, including
In 2017, the Mana mill should process approximately 2.4 million tonnes at an average grade of 3.21 g/t Au, with an average gold recovery rate of 91%. A total of 1.9 million tonnes of ore will be extracted from the Siou, Fofina and Wona North pits at an average grade of 3.82 g/t Au, with the remaining balance sourced from low-grade material. As previously guided, the Fofina deposit is expected to be depleted in the first half of 2017
Update on Natougou
In December, the Corporation was awarded the mining permit for the Natougou Project. Construction is now underway with the mobilization of contractors on site to begin construction of earthworks and civil infrastructure. Compensation has been paid to inhabitants in line with the resettlement action plan, and award of contracts for resettlement of the village has commenced.
Detailed design and engineering, which has now reached the 70% completion stage, should be finished at the beginning of the second quarter of 2017. At year-end 2016, $17 million of the $219 million capital expenditures budget had been spent.
2017 Exploration
Initial exploration expenditure for 2017 has been set at $23 million, $15 million of which will be spent at Natougou, $5 million at the Mana Project and the remaining balance at other properties. At Mana, $1 million of the initial budget will be used to test the underground potential at Siou.
The 2017 budget for Natougou includes a provision of $8.5 million for an infill drill program designed to convert current inferred resources on the West Flank Zone into the indicated category and $1.3 million, which has been earmarked for completing studies in order to evaluate a potential underground operation. The remainder of the Natougou program involves exploration drilling on both proximal and contiguous permits to the Natougou deposit.
Fourth Quarter and 2016 Conference Call
The 2016 fourth-quarter and year-end financial results will be released before market-open on March 8, 2017. Interested parties are invited to join the conference call and webcast at 10.00 a.m. EST.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposits of Siou and Fofina, and is developing the advanced gold deposit of Natougou. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.
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 "guidance", "outlook", "continues, "on track", "scheduled", "preliminary", "final adjustment", "forecast", "assumptions", "should", "will", "expected", "initial", "designed to"," earmarked for", "in order to", "potential", "pursuing", "growth", "opportunities" 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 ability to achieve first gold pour at Natougou in the second half of 2018, the ability to meet our 2017 production guidance of between 215,000 and 235,000 ounces of gold at a total cash cost of between $585 and $615 per ounce and all-in sustaining cost of between $795 and $835 per ounce, the ability to incur $46 million of capital expenditures at Mana in 2017, the ability to invest $23 million in our initial exploration program in 2017, the ability to keep our general and administrative expenditures at $14 million, the accuracy of our assumptions, the ability of the Mana mill to process approximately 2.4 million tonnes at an average grade of 3.21 g/t Au with an average gold recovery rate of 91%, the ability to extract a total of 1.9 million tonnes of ore from the Siou, Fofina and Wona North pits at an average grade of 3.82 g/t Au, the ability to finish Natougou's detailed design and engineering at the beginning of the second quarter of 2017, the ability to convert current inferred resources on Natougou's West Flank Zone into the indicated category, 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 2015 Annual MD&A, as updated in SEMAFO's 2016 First Quarter MD&A, 2016 Second Quarter MD&A and 2016 Third Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at . These documents are also available on our website at . SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
The information in this release is subject to the disclosure requirements of SEMAFO under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on February 1, 2017 at 7:00 a.m., Eastern Standard Time.
Contacts:
SEMAFO
Robert LaValliere
Vice-President, Corporate Affairs & Investor Relations
Cell: +1 (514) 240 2780
Ruth Hanna
Analyst, Investor Relations
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
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Datum: 01.02.2017 - 12:00 Uhr
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