May 30, 2011 / 9:36 PM / 7 years ago

UPDATE 2-Semafo's Q1 misses estimates on lower output

* Q1 rev $79.4 mln vs est $81.5 mln

* Raises ops cost view

* Backs 2011 output view (Adds outlook)

May 30 (Reuters) - Canadian gold miner Semafo Inc’s quarterly profit missed analyst expectations hurt by a fall in production due to an expansion program and expects the surge in fuel prices to push full-year operating costs higher.

The company raised its 2011 operating cost outlook to $595-$645 an ounce, from its earlier view of $540-$580.

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

However, the company, whose production fell 9 percent during the quarter, expects to meet its 2011 gold production target of 238,000-263,000 ounces, it said in a statement.

Semafo sees its main property — the Mana mine in Burkina Faso in West Africa — contributing 72 percent of full-production this year.

January-March profit rose to $18.2 million, or 7 cents a share, from $11.8 million, or 5 cents a share, a year ago.

Analysts had expected the company to earn 9 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose by a fourth to $79.4 million, but missed analyst expectations of $81.5 million.

Semafo’s average realized price per ounce rose 26 percent during the quarter.

During the first quarter spot gold prices topped $1,400 an ounce.

Quebec-based Semafo’s shares closed at C$8.96 on Monday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)

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