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GOLD: Semafo revises 2019 guidance after Mana pit wall failure



BURKINA FASO – Semafo has cut 2019 production guidance for its Mana mine in Burkina Faso by 40,000 to 50,000 oz. of gold, following a wall failure in the northern part of the Wona pit on Aug. 2.

The intermediate gold producer now expects the mine will produce between 130,000 and 140,000 oz. of gold this year, down from its earlier guidance of 170,000 to 190,000 oz. of gold.

According to Semafo’s 2019 mine plan, about 45,000 oz. of gold had been expected to come from the northern portion of the pit between late August and year-end.

Mining in the northern part of the pit will not resume until the first quarter of 2020, the company says. Semafo continues to mine in the southern part of Wona pit.

The company plans to suspend processing at Mana for 10 weeks, from mid-August to the end of October.

The company’s annual guidance for its Boungou mine, also in Burkina Faso, remains unchanged at between 220,000 and 240,000 oz. of gold.

Development of the Siou open pit, a high grade gold deposit 20 km from the Mana mine, is proceeding on time and budget.

Semafo closed at $5.40 per share within a 52-week trading range of $2.24 and $5.58 per share.

The company has 334 million common shares outstanding for a market cap of about $1.68 billion.

This story first appeared on www.NorthernMiner.com.