Flex Point On May 12, 2009

May 10th, 2009 – Comment

Lou, Semafo reached about $4 a few years ago, before production started up………They are now at 225,000 ounces of gold production a year. The shares are at about $2.15 now…….What do you think about this one? Thank you, Bruce. Hi Bruce, Semafo Inc. ( SMF TSX)  which operates three mines in West Africa has had a great […]


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Lou,
Semafo reached about $4 a few years ago, before production started up………They are now at 225,000 ounces of gold westafricaproduction a year. The shares are at about $2.15 now…….What do you think about this one?

Thank you,
Bruce.

Hi Bruce,

Semafo Inc. ( SMF TSX)  which operates three mines in West Africa has had a great run from its October 2008 lows at $0.75  to its $2.16 close on Friday May 08, 2009. When I look at the chart for SMF it is indicating that……
it needs to breakthrough resistance at $2.25 if its going to get back to the $4.00 level. The company will be reporting its first quarter financial results on Tuesday May 12, 2009. SMF has already reported gold production for Q1 of 57,600 ounces of gold and management is sticking to its production forecast of between 220,00 oz. – 240,000 oz. for 2009. smf

Production in 2008 was 195,400 oz. up 84% from 2007 levels. The Mana mine in Burkina Faso came on stream in 2008 and has been the major contributor to the improved output. Current cash cost per ounce is $461 which is seen as a bit on the high side, however management has forecast a reduction to $400 an ounce by 2010.

Semafo has a land position of close to 5,000 square kilometers around its mines and will maintain its 2009 exploration budget at 2008 levels of $6 million.

The SMF story has quite a few good features and the downtrend has been broken. Over the last 6 months the stock has been range bound between $1.80 and $2.25 which if it could trade in that range dependably would provide a nice producer for you.

After Tuesday’s Q1 report you will know if it is going to break resistance or head back to test support.

Happy capitalism!

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