Semafo soars on production projection

Shares in Semafo (SMF-T) jumped more than 10% on Jan. 20, after the company said it had boosted gold production by more than a third in 2004; the company also said it expects to nearly triple production in 2005.

During 2004, Semafo poured 63,055 oz., up 35% from the 46,728 oz. produced in 2003. The company expects to produce 180,000 oz. in 2005.

The increase is owing to the start up of the Samira Hill mine in Niger, which began producing in late September. The mine has since entered commerical production, and produced 22,006 oz.; another 4,234 oz. remain in the processing plant’s circuit. Semafo expects Samira to spit out 120,000 oz. of gold in 2005.

Semafo operates and owns 40% of Samira; Etruscan Resources (EET-T) also has 40%, with the balance held by the government of Niger.

In Guinea, the Kiniero mine chipped in 41,049 oz., off from 46,728 oz. in 2003 thanks to mechanical problems during the fourth quarter. Those problems forced the mill to remain idle for more than a month. Semafo expects Kiniero to pour 60,000 oz. in 2005.

Semafo has budgeted $1.7 million for exploration aimed at increasing reserves and replacing produced ounces at Samira and Kiniero in 2005. Exploration will also continue on the Mana property in Burkina Faso, where the company is currently revising a feasibility study.

Semafo was 12 higher at $1.28 in late afternoon trading in Toronto on Jan. 20.