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SEMAFO Trims 2017 Guidance After 1Q Production Results

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SEMAFO Inc. (TSX, OMX: SMF) has trimmed 2017 production guidance for its Mana Mine after first-quarter output of 55,400 ounces at all-in sustaining costs of $892 an ounce. The company says the mined grade was “adversely affected by the geological interpretation” of one zone. “This resulted in misleading ore outlines and led to a significant variation in grade,” the company says. Second-quarter output is expected to be 45,000 ounces. The company says it now projects 2017 output of between 190,000 and 205,000 ounces of gold, down from the previous range of 215,000 to 235,000. AISC are seen between $920 and $960. “The reduction of 25,000 ounces is projected to have minimal impact on our 2017 budgeted cash flow,” SEMAFCO says. “This is due to the positive variance between our budgeted gold price for the year of $1,150 per ounce and the current gold price.”

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