For best results when printing this announcement, please click on link below: MONTREAL, Feb. 15, 2018 (GLOBE NEWSWIRE) -- SEMAFO Inc. (TSX:SMF) (OMX:SMF)today announced 2018 production and cost guidance for its Mana and BoungouMines in Burkina Faso. All amounts are in US dollars unless otherwise stated.Highlights* Consolidated production of between 235,000 and 265,000 ounces of gold,representing a 21% increase over 2017 production* All-in sustaining cost(1) for 2018 of between $900 and $940 per ounce* Total production of 75,000 ounces at Boungou in 2018, of which 60,000 to70,000 ounces in commercial production2018 Outlook 2018 Guidance Consolidated Mana Boungou
(Commercial) Gold production ('000 oz) 235 - 265 175 - 195 60 - 70 All-in sustaining cost ($/oz) 900 - 940 1,020 - 1,070 545 - 570
Capital Expenditure (included in AISC) (in millions of $) Sustaining 13 10 3 Stripping 55 44 11
68 54 14
Development capital expenditures that are not included in the AISC for 2018are $14.5 million out of the total of $51.7 million for Siou underground.The general and administrative expense for 2018 has been forecast at $16million.(1 )All-in sustaining cost is a non-IFRS financial performance measure with nostandard definition under IFRS and represents the total cash cost, plussustainable capital expenditures and stripping costs per ounce.A number of assumptions were made in preparing the 2018 guidance, including* Price of gold: $1,250 US dollars per ounce* Price of fuel: $1.08 US dollars per litre* Exchange rate: $0.80 US dollars to the Canadian dollar* Exchange rate: $1.20 US dollars to the Euro* Four months of commercial production at BoungouIn 2018, the Mana mill should process approximately 2.6 million tonnes at anaverage grade of 2.52 g/t Au, with an average gold recovery rate of 89%. Atotal of 2.1 million tonnes of ore will be extracted from the Siou and Wonapits at an average grade of 2.71 g/t Au, with the remaining balance sourcedfrom stockpiles and low-grade material.The lower production and higher cost in 2018 result from the mine sequencing,the lower recovery rate, and the negative effect of foreign exchange.Following the PFS results, mining at Siou in 2018 is restricted to thenorthern part since underground development of the southern portion of Siouwill begin in the third quarter. The lower recovery rate is attributable tothe higher proportion of ore sourced from the Wona pit. The 10% increase inthe value of the Euro affected approximately 75% of our costs, which aredenominated in Euro or Euro-equivalent currencies.During the year, we expect to produce about 75,000 ounces at Boungou, of which60,000-70,000 ounces in commercial production. Once in commercial production,Boungou should process approximately 0.45 million tonnes of ore at an averagegrade of 4.87 g/t Au with an average gold recovery rate of 93%.2018 ExplorationInitial exploration expenditure for 2018 has been set at $26 million, $9million of which will be spent at Boungou, $7 million at the Mana Project, $4million at Nabanga, $3 million at Korhogo and the remaining $3 million in theBantou area.The 2018 exploration program at Mana includes 10,000 meters of core, 25,000meters of reverse-circulation and 60,000 meters of auger drilling. The coredrill program will primarily target the Siou area with the aim of assessingthe north part of Siou at depth. The Bara Trend located some 20 kilometersfrom the Mana mill will see extensive drilling in the first quarter, includingfollow-up work on significant RC results and untested auger anomalies.At Boungou, the 2018 exploration program comprises 42,000 meters of RC and60,000 meters of auger drilling. The bulk of the RC drill work will testregional gold anomalies on the Boungou proximal, Dangou, Pambourou and 045Trend Sectors.The 2018 core drill program at the Nabanga deposit, which will be carried outin the first half of the year, will test lateral and-at depth extension of themineralization. Furthermore, the Corporation will carry out core and RCdrill programs on the Korhogo and Bantou areas following a series ofprospective results in 2017.About SEMAFOSEMAFO is a Canadian-based mining company with gold production and explorationactivities in West Africa. The Corporation operates the Mana Mine in BurkinaFaso, which includes the high-grade satellite deposits of Siou and Fofina, andis targeting production start-up of the Boungou Mine in the third quarter of2018. SEMAFO's strategic focus is to maximize shareholder value by effectivelymanaging its existing assets as well as pursuing organic and strategic growthopportunities.CAUTION CONCERNING FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements. Forward-lookingstatements involve known and unknown risks, uncertainties and assumptions andaccordingly, actual results and future events could differ materially fromthose expressed or implied in such statements. You are hence cautioned not toplace undue reliance on forward-looking statements. Forward-looking statementsinclude words or expressions such as "outlook", "guidance", "forecast","assumptions", "should", "will", "initial", "maximise", "growth","opportunities" and other similar words or expressions. Factors that couldcause future results or events to differ materially from current expectationsexpressed or implied by the forward-looking statements include the ability tomeet our 2018 production guidance of between 235,000 and 265,000 ounces ofgold at an all-in-sustaining cost of between $900 and $940 per ounce, theability to incur a total of $68 million capital expenditures at Mana andBoungou in 2018, the ability to keep our general and administrativeexpenditures at $16 million, the accuracy of our assumptions, the ability ofthe Mana mill to process approximately 2.6 million tonnes at an average gradeof 2.52 g/t Au with an average gold recovery rate of 89%, the ability toextract a total of 2.1 million tonnes of ore from the Siou, Fofina and Wonapits at an average grade of 2.71 g/t Au, the ability to begin the undergrounddevelopment of the southern portion of Siou in the third quarter of 2018, theability to produce a total of about 75,000 ounces at Boungou in 2018 of which60,000 to 70,000 ounces in commercial production, the ability to process 0.45million tonnes of ore at an average grade of 4.87 g/t with an average goldrecovery rate of 93%, the ability to invest a total of $26 million in ourinitial exploration program, the ability to follow our initial explorationprogram, the ability to start production start-up of the Boungou Mine in thethird quarter of 2018, the ability to execute on our strategic focus,fluctuation in the price of currencies, gold or operating costs, miningindustry risks, uncertainty as to calculation of mineral reserves andresources, delays, political and social stability in Africa (including ourability to maintain or renew licenses and permits) and other risks describedin SEMAFO's documents filed with Canadian securities regulatory authorities.You can find further information with respect to these and other risks inSEMAFO's 2016 Annual MD&A, as updated in SEMAFO's 2017 First Quarter MD&A,2017 Second Quarter MD&A and 2017 Third Quarter MD&A and other filings madewith Canadian securities regulatory authorities and available at . These documents are also available on our website at . SEMAFO disclaims any obligation to update or revise theseforward-looking statements, except as required by applicable law.The information in this release is subject to the disclosure requirements ofSEMAFO under the Swedish Securities Market Act and/or the Swedish FinancialInstruments Trading Act. This information was publicly communicated onFebruary 15, 2018 at 5:00 p.m., Eastern Standard Time.For more information, contact SEMAFO John Jentz Vice-President, Corporate Development & Investor Relations Email: John.Jentz@semafo.com Ruth Hanna Analyst, Investor Relations Email: Ruth.Hanna@semafo.com Tel. local & overseas: +1 (514) 744 4408 North America Toll-Free: 1 (888) 744 4408 Website: This announcement is distributed by Nasdaq Corporate Solutions on behalf ofNasdaq Corporate Solutions clients.The issuer of this announcement warrants that they are solely responsible forthe content, accuracy and originality of the information contained therein.Source: SEMAFO Inc. via Globenewswire Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.