November 9, 2009 / 7:26 PM / 8 years ago

UPDATE 2-Semafo posts 18 pct rise in Q3 profit

* Q3 net income $13.4 mln vs $11.4 mln yr ago

* Gold production up 13 pct

* Gold sales up 16 pct

* Says will meet 2009 production outlook

* Shares rise 9 pct

(Adds details, analyst comments, updates stock movement)

BANGALORE, Nov 9 (Reuters) - Canadian gold miner Semafo Inc SMF.TO reported an 18 percent increase in quarterly profit, helped by improved production and higher sales.

Semafo said it would attain the upper bracket of its 2009 production guidance of between 220,000 and 240,000 ounces.

Jennings Capital analyst Stuart McDougall, who expects Semafo to produce about 250,000 to 275,000 ounces of gold in 2010, said the company should focus on improving its reserve base.

The company said it increased exploration activities at its flagship Mana mine in Burkina Faso to validate the presence of significant mineralized zones at-depth and identify new target areas.

However, Semafo said it had decided to suspend any additional cash investment at its Kiniero mine in Guinea, taking into consideration the current situation in the country.

Guinea’s military leader, Captain Moussa Dadis Camara, is facing increasing international criticism after a crackdown on protesters on Sept. 28 that a local human rights group said killed 157 people and injured hundreds more. [ID:nL6471551]

For the third quarter, the company posted a net income of $13.4 million, compared with $11.4 million a year ago.

Gold production rose 13 percent to 62,300 ounces, while sales were up 16 percent to $59.4 million.

The company said it sold 61,200 ounces of gold at an average price of $969 per ounce in the quarter, compared with 59,200 ounces at $864 per ounce a year ago.

Shares of Semafo, which has gold mines in Burkina Faso, Niger and Guinea, were up 13 Canadian cents at C$3.94 Monday afternoon on the Toronto Stock Exchange. They touched a high of C$4.15 earlier in the day. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

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