Semafo Recovering Today after Clarus Analyst Sees No Longterm Harm From Protests
Shares of gold miner Semafo Inc (SMF.TO) were up 5% in steady volume this morning after Clarus Securities analyst Nana Sangmuah said recent reports of violent protests near its Kiniero gold processing plant in Guinea likely will not have a lasting impact on production.
The stock slid 3% yesterday afer Semafo shut down Kiniero following a third day of protests and evacuated about a dozen expatriate workers when the unrest escalated to attacks on their homes. A government delegation later was sent to Kiniero to help resolve the dispute. The facility produced 5,400 ounces of gold during the three months ended June 30, or about 10% of the company's total output during the period.
"We will however continue to monitor this issue and expect to see further light shed on the matter as the community in protest plans to meet with the governor of the region," Sangmuah wrote in a research note today obtained by the Financial Post. The analyst also is maintaining his Buy rating and a $14.25 price target for Semafo shares, the newspaper reported.
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