The start of mining at the Kiniero gold project in Guinea provided Semafo (SMF-T) with substantial cash flow in the second quarter of 2002, although the new producer still posted a loss.
Kiniero (formerly called the Jean-Gobele project) poured 11,987 oz. gold between the start of production on April 25 and the end of the quarter on June 30. The production came from 94,000 tonnes of ore grading 6.4 grams gold per tonne. After some initial recovery problems, production is now meeting budget.
With early capital costs at Kiniero still being paid down, Semafo lost US$329,000 on revenues of US$3.4 million in the three months ended June 30. In the corresponding period of 2001, the company had no revenues and lost US$400,000. Operating cash flow, however, was US$1.1 million, against an operating outflow of US$505,000 in the second quarter of 2001.
For the first half of the year, Semafo’s loss was US$625,000, on the identical US$3.4 million in revenues, and the company had an operating cash flow of US$834,000. It had about US$3.8 million in cash at the end of June.
Be the first to comment on "Kiniero startup positive for Semafo"