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Semafo misses Q1 profit estimates

The Canadian gold miner said quarterly profit, which came in lower than analyst estimates, was hit by a drop in production caused by an expansion programme

Posted: Tuesday , 31 May 2011

(Reuters) - 

Canadian gold miner Semafo Inc's quarterly profit missed analyst expectations hurt by a fall in production due to an expansion program and expects the surge in fuel prices to push full-year operating costs higher.

The company raised its 2011 operating cost outlook to $595-$645 an ounce, from its earlier view of $540-$580.

In January, the company had said it expected production to stay flat this year and growth to be constrained by work at the Samira Hill mine in Niger.

However, the company, whose production fell 9 percent during the quarter, expects to meet its 2011 gold production target of 238,000-263,000 ounces, it said in a statement.

Semafo sees its main property -- the Mana mine in Burkina Faso in West Africa -- contributing 72 percent of full-production this year.

January-March profit rose to $18.2 million, or 7 cents a share, from $11.8 million, or 5 cents a share, a year ago.

Analysts had expected the company to earn 9 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose by a fourth to $79.4 million, but missed analyst expectations of $81.5 million.

Semafo's average realized price per ounce rose 26 percent during the quarter.

During the first quarter spot gold prices topped $1,400 an ounce.

Quebec-based Semafo's shares closed at C$8.96 on Monday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)

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