SEMAFO Lists Adjusted Loss In First Quarter; Output Falls
SEMAFO Inc. (TSX, OMX: SMF) reports an adjusted operating loss of $1.9 million in the first quarter, saying this was mainly due to an increase in depreciation expense, compared to adjusted operating income of $20.1 million for the same period in 2016. The net loss was $4.4 million, or a penny per share, compared to adjusted net income of $11 million, or 4 cents, for the same period in 2016. However, cash flow from operating activities was $23.1 million, or 7 cents per share, although this was down from $35.2 million, or 12 cents, for the year-ago period. Gold production fell as a result of lower grades to 55,400 ounces, compared to 61,300 ounces for the same period in 2016. All-in sustaining costs rose to $892 from $695, SEMAFO says. The company adjusted its 2017 guidance due to “geological interpretation challenges at Mana,” saying it now looks for between 190,000 and 205,000 ounces of gold at a total cash costs of between $685 and $715 per ounce and all-in sustaining cost of between $920 and $960 per ounce.