Record Operating Cash Flow of $56.3 Million and Record Gold Production of
195,400 oz.
SEMAFO TSX-SMF
MONTREAL, March 17 /CNW Telbec/ - SEMAFO (TSX: SMF) today announced its
unaudited financial and operational results for the year ended December 31,
2008. All amounts are in US dollars unless otherwise stated.
Highlights
Semafo delivered record gold production for a fourth consecutive quarter.
For the year, Semafo's gold production totaled 195,400 ounces, an 84% increase
over 2007. Cash flow from operating activities totaled $56,339,000, compared
to $10,245,000 for the year in 2007. Highlights for the year ended December
31, 2008 include:- Successful start-up and commissioning of the Mana mine in Burkina Faso
- Gold production of 195,400 ounces
- Cash operating cost of $461 per ounce
- Gold sales of $169,911,000 at an average selling price of $858 per
ounce
- Operating income of $33,108,000
- Net income of $39,529,000
- Cash flow from operating activities of $56,339,000
- Return to profitability at the Kiniero mine
- Positive drilling results at the Mana mine
- Successful equity financing of $18,782,000
A Word from the CEO
Semafo delivered another solid operational and financial performance
during the fourth quarter of 2008, successfully culminating one of the best
years in our Company's history.
Operationally, we achieved record production for the year with a total of
195,400 ounces of gold. Cash operating cost in 2008 decreased by 7%
year-over-year to an average of $461 per ounce. In 2008, Semafo achieved
record gold sales revenues of almost $170 million, representing an increase of
129% over 2007.
Increased production and reduced costs were key to our improved cash flow
from operating activities. In 2008, we established a new record with cash flow
from operating activities exceeding $56 million; more than five times that of
the year prior. The average selling price of gold was $858 per ounce for the
full year, which resulted in an operating income of $33.1 million.
Semafo completed an equity financing of $18.7 million in December 2008 to
end the year with a strong financial position of $28.7 million in cash and
cash equivalents and restricted cash.
Semafo's complete 2008 financial results, accompanying Management's
Discussion and Analysis and reserves and resources update will be released
after market close on March 23, 2009.
The Company will host a conference call for the investor community to
discuss the results and to provide an update on operations as follows:
Conference Call: Date: Tuesday, March 24, 2009
Time: 3:00 PM (ET)
Tel. local & overseas: 1-514-807-8791
Tel. North America: 1-800-731-6941
The conference call will feature Benoit La Salle, President and Chief
Executive Officer, Benoit Desormeaux, Executive Vice-President and Chief
Operation Officer and Martin Milette, Chief Financial Officer.
Replay information: The conference call will be archived for replay until
April 7, 2009. To access the archived conference
call, please dial 1-877-289-8525 and enter pass
code 2130 1344 followed by the number sign.
Semafo's Annual Meeting of Shareholders is scheduled for Tuesday, May 12,
2009 at 2:00 p.m. at the Centre Sheraton Hotel Montréal, Salon 1, 1201
René-Lévesque Blvd. West, in Montreal. Attendees will have the opportunity to
ask questions and meet the management team and Board of Directors.
Financial and Operating Highlights
---------------------------------------------
2008 2007 Variation
(Unaudited)
---------------------------------------------
Operating Highlights
Gold ounces produced 195,400 106,400 84%
Gold ounces sold 198,000 105,300 88%
(In thousands of dollars,
except amounts per ounce and
per tonne)
Revenues - Gold sales 169,911 74,070 129%
Operating costs 100,676 57,557 75%
Operating income (loss) 33,108 (5,022) 759%
Net income (loss) 39,529 (23,110) 271%
Average selling price (per ounce) 858 703 22%
Cash operating cost (per ounce
produced)(1) 461 497 (7%)
Cash operating cost (per tonne
processed)(1) 33 26 27%
Total cash cost (per ounce sold)(2) 508 534 (5%)
(1) Cash operating cost is calculated using ounces produced and tonnes
processed. See the section "Non-GAAP measures" of the MD&A.
(2) Total cash cost represents the cash operating cost plus royalties and
selling expenses and also the effects of inventory adjustments.
Consolidated Balance Sheets
As at December 31, 2008 and 2007
-------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)
2008 2007
$ $
(Unaudited)
Assets
Current assets
Cash and cash equivalents 23,442 30,044
Restricted cash 1,250 7,000
Accounts receivable 5,067 6,426
Inventories 49,152 28,810
Other short-term assets 3,546 5,470
------------ ----------
82,457 77,750
Restricted cash 4,050 1,550
Property, plant and equipment 202,980 188,916
Investment and other assets 25,186 4,022
314,673 272,238
------------ ----------
------------ ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 28,843 21,685
Current portion of long-term debt 22,390 15,637
Current portion of fair value of derivative
financial instruments 15,020 22,243
------------ ----------
66,253 59,565
Long-term debt 38,076 45,327
Fair value of derivative financial instruments - 16,389
Advances payable 8,890 10,195
Asset retirement obligations for property,
plant and equipment 4,846 4,408
Future income taxes 2,288 -
------------ ----------
120,353 135,884
------------ ----------
Shareholders' Equity
Share capital 293,910 275,682
Contributed surplus 4,797 3,022
Deficit (104,387) (142,600)
Accumulated other comprehensive income - 250
------------ ----------
194,320 136,354
------------ ----------
314,673 272,238
------------ ----------
------------ ----------
Consolidated Statements of Operations
For the years ended December 31, 2008 and 2007
-------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)
2008 2007
$ $
(Unaudited)
Revenue - Gold sales 169,911 74,070
-----------------------
Expenses
Mining operations 100,676 57,557
Amortization of property, plant and equipment 25,445 12,324
Administration 10,250 8,990
Accretion expense of asset retirement
obligations for property, plant and equipment 432 221
-----------------------
136,803 79,092
-----------------------
Operating income (loss) 33,108 (5,022)
Interest, financing fees and other income (638) (1,761)
Interest on long-term debt 4,621 1,908
Stock-based compensation 1,186 1,357
Change to the fair value of derivative financial
instruments 5,077 17,923
Gain on disposal of investment in subsidiaries (17,849) -
Loss on disposal of portfolio investments 317 -
Foreign exchange gain (1,423) (1,339)
-----------------------
Net income (loss) before taxes 41,817 (23,110)
Future income tax expense (2,288) -
-----------------------
Net income (loss) for the year 39,529 (23,110)
-----------------------
Basic and diluted net income (loss) per share 0.19 (0.12)
-----------------------
Consolidated Statements of Cash Flows
-------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars)
2008 2007
$ $
(Unaudited)
Cash flows from
Operating activities
Net income (loss) for the year 39,529 (23,110)
Adjustment for :
Change to fair value of derivative financial
instruments 5,077 17,923
Loss on disposal of investment in portfolio
investments 317 -
Amortization of property, plant and equipment 25,445 12,324
Amortization of stripping costs 452 -
Stock-based compensation 1,186 1,357
Accretion expense of asset retirement obligations 432 221
Amortization of deferred financing costs 767 460
Gain on disposal of investment in subsidiaries (17,849) -
Unrealized foreign exchange loss (gain) (1,305) 1,070
Future income taxes 2,288 -
-----------------------
56,339 10,245
-----------------------
Changes in non-cash working capital items and
settlement of liabilities related to asset
retirement obligations for property,
plant and equipment (9,939) (9,444)
-----------------------
46,400 801
Financing activities
Reimbursement of long-term debt (7,768) (5,536)
Term facility, net of financing costs 4,250 39,564
Issuance of share capital 18,817 26,461
Share issue expenses (1,316) (1,918)
-----------------------
13,983 58,571
-----------------------
Investing activities
Additions to property, plant and equipment (41,093) (85,245)
Disposal of portfolio investments 702 -
Acquisition of financial instruments - (1,000)
Financial instruments settled (29,844) (18,388)
Decrease (increase) in restricted cash 3,250 (7,300)
-----------------------
(66,985) (111,933)
-----------------------
Change in cash and cash equivalents during
the year (6,602) (52,561)
Cash and cash equivalents - beginning of year 30,044 82,605
-----------------------
Cash and cash equivalents - end of year 23,442 30,044
-----------------------
-----------------------About SEMAFO
Semafo is a Canadian-based mining company with gold production and
exploration activities in West Africa. The Company currently operates three
gold mines in Burkina Faso, Niger and Guinea. Semafo is committed to evolve in
a conscientious manner to become a major player in its geographical area of
interest, while maintaining principles and strengthening relationships to
increase shareholder value.
Forward-looking Statements
This press release may contain forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding expectations of the Company as to the market price of gold,
strategic plans, future commercial production, production targets, timetables,
mining operating expenses, capital expenditures, and mineral reserve and
resource estimates. Forward-looking statements involve known and unknown risks
and uncertainties and accordingly, actual results and future events could
differ materially from those anticipated in such statements. Factors that
could cause future results or events to differ materially from current
expectations expressed or implied by the forward-looking statements include,
but are not limited to, fluctuations in the market price of precious metals,
mining industry risks, uncertainty as to calculation of mineral reserves and
resources, risks related to hedging strategies, risks of delays in
construction, requirements of additional financing and other risks described
in the Company's documents filed from time to time with Canadian securities
regulatory authorities. Although the Company is of the opinion that these
forward-looking statements are based on reasonable assumptions, those
assumptions may prove to be incorrect. Accordingly, readers should not place
undue reliance on forward-looking statements. Readers can find further
information with respect to risks in the Annual Information Form of the
Company and other filings of the Company with Canadian securities regulatory
authorities available at www.sedar.com. The Company disclaims any obligation
to update or revise these forward-looking statements, except as required by
applicable law.
For further information: SEMAFO Benoit La Salle, President & CEO, (514)
744-4408, Toll-Free: 1-888-744-4408, blasalle@semafo.com; Sofia St Laurent,
Communications, (514) 744-4408, Toll-Free: 1-888-744-4408,
sstlaurent@semafo.com
