April 11, 2011 / 3:37 PM / in 7 years

UPDATE 1-Semafo Q1 production falls 9 pct

* Q1 output 60,000 ounces vs 65,800 ounces yr ago

* Revenue up 25 pct (Adds details, share movement)

April 11 (Reuters) - Semafo Inc reported a 9 percent drop in first-quarter gold production, hurt by expansion of the mining pit area at Samira Hill in west Africa.

In January, the Canadian gold miner had said it expected production to stay flat this year and growth to be constrained by work at Samira Hill mine in Niger. [ID:nSGE70Q0DB]

However, production at Semafo’s flagship Mana mine in Burkina Faso, also in west Africa, was up 9 percent in the quarter.

The company had earlier said it expected Mana mine to contribute more than 72 percent to full-year production.

Quebec-based Semafo said it expects production to increase as it has a stronger budget for the last three quarters of the year.

First-quarter gold production fell to 60,000 ounces from 65,800 ounces a year ago.

Gold sales were 56,700 ounces at an average realized gold price of $1,400 per ounce, compared with 57,200 ounces at an average realized gold price of $1,111 per ounce, last year.

Revenue rose 25 percent to $79.4 million.

Semafo shares were down 10 Canadian cents at C$9.16 on Monday morning on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)

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