MONTRÉAL, QUÉBEC--(Marketwire - March 21, 2013) - SEMAFO (TSX:SMF)(OMX:SMF) today reported its financial and operational results for the fourth quarter and year ended December 31, 2012. All amounts are in US dollars unless otherwise stated.
2012 - The Year in Review
- Gold production of 236,100 ounces
- Gold sales of $388.5 million, a 2% decrease compared to 2011
- Operating income of $34.6 million compared to $154.2 million in 2011
- Net loss attributable to equity shareholders of $6.6 million or $(0.02) per share compared to net income attributable to equity shareholders of $111.8 million or $0.41 per share in 2011
- Cash flow from operating activities(1) of $155.4 million or $0.57 per share
- Discovery of the high-grade Siou Sector at Mana, with one-million ounces of initial in-pit inferred resources at an average grade of 4.62 g/t Au
- Decision to move from an underground mining project to an improved overall economic super pit scenario resulted in a non-recurring loss of $17.0 million
- Non-cash impairment charge of $60.0 million on the Samira Hill Mine
- Sale of current investment resulted in a non-recurring loss of $24.3 million
- Declaration of C$0.04 per share dividends to equity shareholders
- Completed 60-kilometer water pipeline to accommodate Mana processing plant at a cost of $5.8 million less than the originally budgeted $30.2 million
- Record throughput at Mana following the commissioning of Phase IV of the plant expansion
- SEMAFO's Board of Directors appointed Benoit Desormeaux, formerly Executive Vice-President and Chief Operating Officer to the position of President and Chief Executive Officer of the Corporation
Fourth Quarter Review
- Gold production of 62,400 ounces, a decrease of 4% compared to the same period in 2011
- Gold sales of $110.3 million, a 3% decrease compared to the same period in 2011
- Non-cash impairment charge of $60.0 million on the Samira Hill Mine
- Net loss of $25.2 million compared to net income of $33.3 million for the same period in 2011
- Cash flow from operating activities(1) of $48.6 million or $0.18 per share compared to $54.3 million or $0.20 per share for the same period in 2011
(1) Cash flow from operating activities excludes changes in non-cash working capital items.
A Word from the CEO
For SEMAFO, 2012 was a year of transition on many levels. Although disappointing in terms of shareholder value, it nevertheless gave rise to numerous positive aspects with regard to our core business, from both strategic and operational perspectives. We achieved production and cost guidance for a fifth consecutive year. Our production totalled 236,100 gold ounces, just slightly below our 2011 results. Our annual revenues from gold sales posted only a 2% decrease from 2011 to stand at $388.5 million.
The highlight of the year from our standpoint was the discovery of the new high-grade Siou Sector at Mana. This vastly prospective area located approximately 15 kilometers east of our processing plant holds one million ounces of initial in-pit inferred resources at an average 4.62 g/t Au and a gold recovery rate of over 95%. Based on results to date, the Siou Sector where ongoing exploration work is being carried out has already become SEMAFO's most important find ever.
Another important event was the conversion of the Mana underground project to a super-pit. This decision, although it led to a $17 million write-off, was purely an economic decision based on the best return on investment as capital expenditures are spread out over the life of mine.
SEMAFO's reserves and resources decreased slightly to 6.6 million ounces in 2012. This is due to the removal of refractory sulphides from the south sector at Mana and the revision of Samira Hill's reserves and resources that became uneconomic following the review of technical and economic parameters. The revision at Samira Hill resulted in a non-cash impairment of $60 million in the fourth quarter of 2012. At Mana, the inferred category grade, however, almost doubled to 3.18 g/t Au as we included the high-grade Siou Sector in this category.
A comprehensive strategic review of the Corporation conducted during the latter part of the year facilitated the establishment of a realistic plan to move forward. We validated our top ensuing long-standing priority: to create value by generating future cash flow, while maintaining our solid operational performance. As the world economy continues to change shape, we will continue to focus on quality ounces as part of our strategy and ongoing efforts to reduce costs and optimize cash flow.
Our short-term priorities are to bring the Siou Sector to reserves by the third quarter of 2013, initiate the permitting process and begin mining by the end of 2014 or early 2015. We also intend to focus exploration activities within the 20-kilometer radius of the Mana processing plant and carry out exploration on the 30-kilometer Kokoi Trend, host to the high-grade Siou Sector.
Today, with ore sourced almost exclusively from the super pit, we can sustain operations at the plant at full capacity for the next eight to ten years. Owing to the Siou's high-grade mineralization, however, development of the sector could represent an opportunity to reduce our operating cost, boost production and ultimately increase cash flow within the next 18 to 24 months. Moreover, the south sector has yet to be added to the scenario. We believe that the Corporation's fundamentals and potential for creating shareholder value are as strong as ever.
We believe that SEMAFO represents an undeniable investment opportunity. Today, our Corporation's share price is significantly undervalued and far from indicative of the numerous opportunities on the horizon. We are cognizant that our Mana property will serve as the cornerstone of our Corporation's evolution and approach to intelligently grow our business.
SEMAFO is financially sound, has a solid cash position, is debt-free and completely unhedged. Since November 2011, our Corporation has paid out three dividends. We continue to strive for excellence in health and safety and lead the way in corporate responsibility. Our dedicated team continues to pull together in the pursuit of excellence and an overall commitment to simply doing more. We are determined to optimize operations at all levels, improve efficiencies and contain costs.
We are optimistic for 2013. We have established a clear strategy to identify new quality ounces, expand reserves and resources, and build future cash flow. The task at hand is to create value and, moving forward, we are confident that we have the assets, the talent and the ability to do just that.
2012 Mineral Reserves and Resources
SEMAFO's 2012 year-end mineral reserves totalled 36.7 million tonnes at an average grade of 2.08 g/t Au for 2.5 million ounces compared to 37.9 million tonnes at 2.18 g/t Au for 2.7 million ounces in 2011. The decrease in reserves is mainly due to 2012 production and the reduction in Samira Hill's reserves.
The 2012 measured and indicated resources average grade increased by 15% to 1.89 g/t Au for a total 4.2 million ounces as compared to 4.7 million ounces in 2011. The decrease in resources is due to the Samira Hill revision as well as the removal of most of the refractory sulphide material from the south sector deposits (Yaho, Fofina and Fobiri), which was uneconomical according to various metallurgical tests conducted during the year. The 2012 measured, indicated and inferred resources in Mana's south sector are mainly composed of oxide and transitional mineralization and are not refractory.
Total inferred resources amounted to 36.3 million tonnes at an average grade of 2.57 g/t Au for 3.0 million ounces as compared to 61.4 million tonnes at 1.51 g/t Au for 3.0 million ounces in 2011. A slight gain in inferred resource ounces and the 89% increase in grade, despite the removal of the majority of the refractory sulphide material from the 2012 inferred resources are due to the inclusion of the initial in-pit inferred resources from the high-grade Siou Zone. Discovered in August 2012, Siou hosts 6.7 million tonnes at 4.62 g/t Au for close to one million ounces.
Our Flagship Mana Mine, Burkina Faso
Highlights:
- Mana's reserves totalled 1.9 million ounces
- Mana's measured and indicated resources increased by 8% to 3.0 million ounces and the average grade increased by 14% to 1.93 g/t Au
- The Wona-Kona super pit reserves stand at 1.6 million ounces at an average grade of 2.21 g/t Au
- Mana's inferred resources' average grade increased by 89% to 3.18 g/t Au resulting from the addition of the Siou Zone initial in-pit inferred resources of 999,200 ounces, bringing total inferred resources to 18.3 million tonnes at an average grade of 3.18 g/t Au for 1.9 million ounces.
Mana's mineral reserves total 25.1 million tonnes at an average grade of 2.31 g/t Au at year-end 2012 compared to 25.7 million tonnes at an average grade of 2.40 g/t Au in 2011.
Total measured and indicated mineral resources at Mana increased by 8% in 2012 to 48.6 million tonnes at an average grade of 1.93 g/t Au, representing 3.0 million ounces. This compares to 51.4 million tonnes at an average grade of 1.69 g/t Au for 2.8 million ounces at the end of 2011. The slight increase in ounces, despite the removal of the majority of the refractory sulphide material in the south sector is due to the higher grade material at Kona at depth and the inclusion of the high-grade mineralization from the Fofina Zone.
Mana's 2012 inferred resources totalled 18.3 million tonnes at a grade of 3.18 g/t Au, representing 1.9 million ounces as at December 31, 2012. The higher grade is due to the inclusion of the initial in-pit resources of our high-grade Siou Sector discovered in August 2012, representing 6.7 million tonnes at a grade of 4.62 g/t Au. The decrease of the overall inferred tonnage, despite of a higher resource grade is due to the removal of most of the inferred refractory sulphide resources from the south sector deposits (Yaho, Fofina and Fobiri).
Metallurgical Tests
In 2012, metallurgical tests showed that the sulphide portions for the Fofina, Fobiri and Yaho deposits had low recoveries (20% to 48%) with CIL treatment. Consequently, SEMAFO decided to investigate other process routes such as sulphide flotation, sulphide concentrate regrinding and ultimately oxidation to seek better gold recoveries. Although a combination of ultrafine grinding followed by oxidation at Fofina significantly improved recoveries to 88%, the tests also indicate that the capital expenditures and consumable costs required to achieve optimal results are not justified at current gold prices.
The Corporation, however, is currently conducting heap leaching tests on the oxide portion of the Yaho deposit to seek better economics for the south sector. The results should be available during the third quarter of 2013.
SEMAFO's Consolidated Financial Statements and Management's Discussion and Analysis and other relevant financial materials are available in the Investor Relations section of the Corporation's website at www.semafo.com. These and other corporate reports are also available on the website maintained by the Canadian Securities regulators at www.sedar.com.
2012 Fourth Quarter and Year-End Conference Call
SEMAFO will host a conference call today, Thursday March 21, 2013 at 10:00 EDT to discuss this press release. Investors are invited to call the following telephone numbers to participate in the conference:
Tel. local & overseas: +1 (416) 641-6715
Tel. North America: 1 (800) 616-7436
The conference call will be archived for replay until April 10, 2013. To access the archived conference call, please dial 1 (800) 558-5253 and enter pass code 216461101 followed by the number sign (#).
A live audio webcast of the conference can be accessed through SEMAFO's website at www.semafo.com. The webcast will be available for replay for a period of 90 days.
Annual Shareholders Meeting
SEMAFO's Annual General Shareholders Meeting will be held on Monday, May 13, 2013 at 4:00 p.m. (EDT) at Le Centre Sheraton Montréal, Salle Drummond, 1201 René-Lévesque Boulevard West, in Montreal, Quebec. Attendees will have the opportunity to ask questions and meet the management team and members of the Board of Directors.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "ongoing", "being carried out", "move forward", "priority", "create", "generating", "future", "will", "strategy", "increase", "added", "potential", "optimistic", "expand", "committed", "evolve", "become", "pursuing", "growth", "opportunities" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to generate future cash flow, the ability to deliver on our strategy, the ability to bring the Siou Sector to reserves by the third quarter of 2013, initiate the permitting process and begin mining by the end of 2014 or early 2015, the ability to sustain operations at the Mana plant at full capacity for the next eight to ten years, the ability of the Siou Sector to reduce our operating cost, boost production and ultimately increase cash flow within the next 18 to 24 months, the ability to expand reserves and resources and build future cash flow, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2012 Annual MD&A and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
Table 1
MINERAL RESERVES AND RESOURCES (As at December 31, 2012)
| MINERAL RESERVES | ||||||
| Mines | Mana(1)(2) Burkina Faso |
Samira Hill(2)(3) Niger |
Kiniero(2)(4) Guinea |
Total | ||
| Proven Mineral Reserves | ||||||
| Tonnes | 12,561,600 | 5,237,600 | 1,082,300 | 18,881,500 | ||
| Grade (g/t Au) | 2.41 | 1.33 | 2.37 | 2.11 | ||
| Ounces(5) | 974,400 | 223,700 | 82,500 | 1,280,600 | ||
| Probable Mineral Reserves | ||||||
| Tonnes | 12,510,800 | 2,661,400 | 2,628,100 | 17,800,300 | ||
| Grade (g/t Au) | 2.20 | 1.10 | 2.23 | 2.04 | ||
| Ounces(5) | 886,300 | 94,200 | 188,800 | 1,169,300 | ||
| TOTAL MINERAL RESERVES | ||||||
| Tonnes | 25,072,400 | 7,899,000 | 3,710,400 | 36,681,800 | ||
| Grade (g/t Au) | 2.31 | 1.25 | 2.27 | 2.08 | ||
| Ounces(5) | 1,860,700 | 317,900 | 271,300 | 2,449,900 | ||
| MINERAL RESOURCES | ||||
| Mines | Mana Burkina Faso |
Samira Hill Niger |
Kiniero Guinea |
Total |
| Measured | ||||
| Tonnes | 10,022,300 | 6,772,100 | 1,660,100 | 18,454,500 |
| Grade (g/t Au) | 1.54 | 1.58 | 2.38 | 1.63 |
| Ounces(5) | 496,100 | 344,000 | 126,800 | 966,900 |
| Indicated | ||||
| Tonnes | 38,579,900 | 4,937,400 | 6,834,800 | 50,352,100 |
| Grade (g/t Au) | 2.03 | 1.23 | 2.31 | 1.99 |
| Ounces(5) | 2,521,300 | 195,400 | 507,100 | 3,223,800 |
| TOTAL MINERAL RESOURCES | ||||
| Tonnes | 48,602,200 | 11,709,500 | 8,494,900 | 68,806,600 |
| Grade (g/t Au) | 1.93 | 1.43 | 2.32 | 1.89 |
| Ounces(5) | 3,017,400 | 539,400 | 633,900 | 4,190,700 |
| TOTAL MINERAL RESERVES AND RESOURCES | ||||
| Tonnes | 73,674,600 | 19,608,500 | 12,205,300 | 105,488,400 |
| Grade (g/t Au) | 2.06 | 1.36 | 2.31 | 1.96 |
| Ounces(5) | 4,878,100 | 857,300 | 905,200 | 6,640,600 |
| INFERRED MINERAL RESOURCES | ||||
| Tonnes | 18,252,800 | 10,161,600 | 7,929,400 | 36,343,800 |
| Grade (g/t Au) | 3.18 | 1.49 | 2.55 | 2.57 |
| Ounces(5) | 1,867,400 | 487,600 | 649,400 | 3,004,400 |
| (1) | The Corporation indirectly owns 90% of SEMAFO Burkina, which directly holds the interest in the Mana Mine reserves and resources. |
| (2) | Mineral reserves and resources were estimated using a gold price of US$1,300 and US$1,600 per ounce respectively. |
| (3) | Mineral reserves and resources at the Samira Hill Mine represent the combined reserves and resources of SML and AGMDC. The Corporation indirectly owns 80% of SML. |
| (4) | The Corporation indirectly owns 85% of SEMAFO Guinée, which directly holds the interest in the Kiniero Mine reserves and resources. |
| (5) | Rounding of numbers to the nearest hundreds of tonnes may present slight differences in the figures representing the ounces contained. |
Table 2
| MANA PROPERTY - MINERAL RESERVES AND RESOURCES (As at December 31, 2012) |
| DEPOSITS | DECEMBER 31, 2012 | ||||||||
| PROVEN RESERVES | PROBABLE RESERVES | TOTAL RESERVES | |||||||
Tonnes |
Grade (g/t Au) |
Ounces |
Tonnes |
Grade (g/t Au) |
Ounces |
Tonnes |
Grade (g/t Au) |
Ounces |
|
| WONA-KONA | 10,525,800 | 2.29 | 774,800 | 11,552,500 | 2.13 | 790,700 | 22,078,300 | 2.21 | 1,565,500 |
| NYAFÉ | 270,300 | 5.71 | 49,600 | 4,600 | 4.67 | 700 | 274,900 | 5.69 | 50,300 |
| FOFINA | 1,684,500 | 2.64 | 143,100 | 953,700 | 3.10 | 94,900 | 2,638,200 | 2.81 | 238,000 |
| ROMPAD | 81,000 | 2.64 | 6,900 | 0 | 0.00 | 0 | 81,000 | 2.64 | 6,900 |
| TOTAL MANA | 12,561,600 | 2.41 | 974,400 | 12,510,800 | 2.20 | 886,300 | 25,072,400 | 2.31 | 1,860,700 |
| DEPOSITS | DECEMBER 31, 2012 | ||||||||
| MEASURED RESOURCES | INDICATED RESOURCES | TOTAL RESOURCES | |||||||
Tonnes |
Grade (g/t Au) | Ounces |
Tonnes |
Grade (g/t Au) | Ounces |
Tonnes |
Grade (g/t Au) | Ounces |
|
| WONA-KONA | 1,903,600 | 1.86 | 113,700 | 23,925,200 | 2.45 | 1,884,300 | 25,828,800 | 2.41 | 1,998,000 |
| NYAFÉ | 589,800 | 4.36 | 82,700 | 586,900 | 4.30 | 81,100 | 1,176,700 | 4.33 | 163,800 |
| FOFINA | 958,400 | 2.00 | 61,500 | 1,346,500 | 3.32 | 143,900 | 2,304,900 | 2.77 | 205,400 |
| YAHO | 5,832,500 | 0.98 | 183,500 | 12,544,800 | 0.99 | 399,700 | 18,377,300 | 0.99 | 583,200 |
| FILON 67 | 58,100 | 3.61 | 6,700 | 23,900 | 3.79 | 2,900 | 82,000 | 3.66 | 9,600 |
| FOBIRI | 679,900 | 2.20 | 48,000 | 152,600 | 1.91 | 9,400 | 832,500 | 2.14 | 57,400 |
| TOTAL MANA | 10,022,300 | 1.54 | 496,100 | 38,579,900 | 2.03 | 2,521,300 | 48,602,200 | 1.93 | 3,017,400 |
| DEPOSITS | DECEMBER 31, 2012 | ||
| INFERRED | |||
Tonnes |
Grade (g/t Au) |
Ounces |
|
| WONA-KONA | 6,714,000 | 2.44 | 526,900 |
| NYAFÉ | 365,600 | 4.26 | 50,000 |
| FOFINA | 713,200 | 3.60 | 82,600 |
| YAHO | 1,430,100 | 1.64 | 75,500 |
| FILON 67 | 27,400 | 3.79 | 3,300 |
| FOBIRI | 1,182,400 | 2.16 | 81,900 |
| MAOULA | 1,089,400 | 1.37 | 48,000 |
| SIOU | 6,730,700 | 4.62 | 999,200 |
| TOTAL MANA | 18,252,800 | 3.18 | 1,867,400 |
We are presenting 100% of the reserves and resources of the mines in the above table. Regarding open pit reserves, cut-off grades are established with the Ultimate Pit software in consideration of the rock type and haulage distance.
The mineral reserves and resources were estimated as at December 31, 2012 in accordance with the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum and incorporated into National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mineral reserves and resources estimates for the Mana Mine were carried out internally under the guidance of Michel Crevier P.Geo MScA, Vice-President Exploration and Mine Geology and SEMAFO's Qualified Person who has reviewed this press release for accuracy and compliance.
Consolidated Results and Mining Operations
| 2012 | 2011 | Variation | |||
| Operating Highlights | |||||
| Gold ounces produced | 236,100 | 250,100 | (6 | %) | |
| Gold ounces sold | 231,500 | 249,600 | (7 | %) | |
| (in thousands of dollars, except amounts per ounce, per tonne and per share) | |||||
| Revenues - Gold sales | 388,501 | 395,916 | (2 | %) | |
| Mining operating expenses (excluding government royalties) | 164,393 | 150,535 | 9 | % | |
| Government royalties | 19,979 | 19,857 | 1 | % | |
| Write-off of property, plant and equipment | 16,998 | - | - | ||
| Impairment of property, plant and equipment | 60,000 | - | - | ||
| Operating income | 34,626 | 154,164 | (78 | %) | |
| Loss on sale of current investment | 24,297 | - | - | ||
| Income tax expense | 18,392 | 29,869 | (38 | %) | |
| Net income (loss) attributable to equity shareholders | (6,604 | ) | 111,759 | (94 | %) |
| Cash flow from operating activities(1) | 155,406 | 171,875 | (10 | %) | |
| Basic earnings (loss) per share | (0.02 | ) | 0.41 | (105 | %) |
| Diluted earnings (loss) per share | (0.02 | ) | 0.40 | (105 | %) |
| Operating cash flow per share(2) | 0.57 | 0.63 | (10 | %) | |
| Adjusted operating income(3) | 111,624 | 154,164 | (28 | %) | |
| Adjusted net income attributable to equity shareholders(3) | 75,314 | 111,759 | (33 | %) | |
| Adjusted basic earnings per share(3) | 0.28 | 0.41 | (32 | %) | |
| Average realized selling price (per ounce) | 1,678 | 1,586 | 6 | % | |
| Cash operating cost (per ounce produced)(4) | 704 | 591 | 19 | % | |
| Cash operating cost (per tonne processed)(4) | 35 | 35 | - | ||
| Total cash cost (per ounce sold)(5) | 793 | 677 | 17 | % | |
| Total cash margin (per ounce sold)(6) | 885 | 909 | (3 | %) | |
| (1) | Cash flow from operating activities excludes changes in non-cash working capital items. |
| (2) | Operating cash flow per share is a non-IFRS financial performance measure with no standard definition under IFRS. See the "Non-IFRS financial performance measures" section of the Corporation's MD&A. |
| (3) | Adjusted operating income, adjusted net income attributable to equity shareholders and adjusted basic earnings per share are non-IFRS financial performance measures with no standard definition under IFRS. In 2012, the adjusted operating income excludes the write-off of property, plant and equipment of $16,998,000 related to the underground project and $60,000,000 related to the impairment of non-financial assets of the Samira Hill Mine, while the adjusted net income attributable to equity shareholders and the adjusted basic earnings per share also exclude the loss on the sale of a current investment totalling $24,297,000, as well as the income tax expense and the non-controlling interest impact totalling $7,377,000 related to these non-recurring transactions. |
| (4) | Cash operating cost is a non-IFRS financial performance measure with no standard definition under IFRS and is calculated using ounces produced and tonnes processed. See the "Non-IFRS financial performance measures" section of the Corporation's MD&A. |
| (5) | Total cash cost is a non-IFRS financial performance measure with no standard definition under IFRS and represents the mining operation expenses and the government royalties per ounce sold. |
| (6) | Total cash margin is a non-IFRS financial performance measure with no standard definition under IFRS and is calculated using the average realized selling price and the total cash cost. |
Fourth Quarter Financial and Operating Highlights
| Three-month period | |||||
| ended December 31, | |||||
| 2012 | 2011 | Variation | |||
| Gold ounces produced | 62,400 | 64,800 | (4 | %) | |
| Gold ounces sold | 64,200 | 67,200 | (4 | %) | |
| (in thousands of dollars, except amounts per ounce, per tonne and per share) | |||||
| Revenues - Gold sales | 110,305 | 113,854 | (3 | %) | |
| Operating income (loss) | (28,055 | ) | 47,448 | (159 | %) |
| Net income (loss) attributable to equity shareholders | (25,156 | ) | 33,277 | (176 | %) |
| Basic earnings (loss) per share | (0.09 | ) | 0.12 | (175 | %) |
| Diluted earnings (loss) per share | (0.09 | ) | 0.12 | (175 | %) |
| Adjusted operating income(1) | 31,945 | 47,448 | (33 | %) | |
| Adjusted net income attributable to equity shareholders(1) | 22,339 | 33,277 | (33 | %) | |
| Adjusted basic earnings per share(1) | 0.08 | 0.12 | (33 | %) | |
| Cash flow from operating activities(2) | 48,564 | 54,325 | (11 | %) | |
| Operating cash flow per share(3) | 0.18 | 0.20 | (10 | %) | |
| Average realized selling price (per ounce) | 1,718 | 1,694 | 1 | % | |
| Cash operating cost (per ounce produced)(4) | 695 | 559 | 24 | % | |
| Cash operating cost (per tonne processed)(4) | 34 | 35 | (3 | %) | |
| Total cash cost (per ounce sold)(5) | 788 | 665 | 18 | % | |
| Total cash margin (per ounce sold)(6) | 930 | 1,029 | (10 | %) | |
| (1) | Adjusted operating income, adjusted net income attributable to equity shareholders and adjusted basic earnings per share are non-IFRS financial performance measures with no standard definition under IFRS. In 2012, the adjusted operating income excludes the write-off of property, plant and equipment of $60,000,000 related to the impairment of non-financial assets of the Samira Hill Mine, while the adjusted net income attributable to equity shareholders and the adjusted basic earnings per share also exclude the income tax recovery expense and the non-controlling interest impact totalling $12,505,000 related to this non-recurring transaction. |
| (2) | Cash flow from operating activities excludes changes in non-cash working capital items |
| (3) | Operating cash flow per share is a non-IFRS financial performance measure with no standard definition under IFRS. See the "Non-IFRS financial performance measures" section of this MD&A. |
| (4) | Cash operating cost is a non-IFRS financial performance measure with no standard definition under IFRS and is calculated using ounces produced and tonnes processed. See the "Non-IFRS financial performance measures" section of this MD&A. |
| (5) | Total cash cost is a non-IFRS financial performance measure with no standard definition under IFRS and represents the mining operation expenses and the government royalties per ounce sold. |
| (6) | Total cash margin is a non-IFRS financial performance measure with no standard definition under IFRS and is calculated using the average realized selling price and the total cash cost. |
| Consolidated Statement of Financial Position |
| (Expressed in thousands of US dollars) |
| As at | As at | |
| December 31, | December 31, | |
| 2012 | 2011 | |
| $ | $ | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 139,451 | 178,713 |
| Trade and other receivables | 30,395 | 43,022 |
| Investment | - | 22,307 |
| Inventories | 96,829 | 81,639 |
| Other current assets | 6,432 | 5,517 |
| 273,107 | 331,198 | |
| Non-current assets | ||
| Restricted cash | 923 | 1,226 |
| Property, plant and equipment | 406,030 | 362,187 |
| Investment | 19,600 | 29,400 |
| Deferred income tax asset | 3,000 | - |
| 429,553 | 392,813 | |
| Total assets | 702,660 | 724,011 |
| Liabilities | ||
| Current liabilities | ||
| Trade payables and accrued liabilities | 67,020 | 58,010 |
| Provisions | 2,588 | - |
| Advance payable | 915 | - |
| Income tax payable | 8,276 | 15,509 |
| Dividends payable | 5,492 | 5,348 |
| 84,291 | 78,867 | |
| Non-current liabilities | ||
| Restricted share unit liabilities | 2,001 | 1,090 |
| Advance payable | - | 2,102 |
| Provisions | 12,487 | 8,505 |
| Deferred income tax liabilities | 2,040 | 6,954 |
| Total liabilities | 100,819 | 97,518 |
| Equity | ||
| Equity Shareholders | ||
| Share capital | 455,179 | 454,746 |
| Contributed surplus | 12,232 | 10,935 |
| Accumulated other comprehensive income | - | 5,686 |
| Retained earnings | 120,152 | 138,467 |
| 587,563 | 609,834 | |
| Non-controlling interests | 14,278 | 16,659 |
| Total equity | 601,841 | 626,493 |
| Total liabilities and equity | 702,660 | 724,011 |
| Consolidated Statement of Income (Loss) |
| For the Years Ended December 31, 2012 and 2011 |
| (Expressed in thousands of US dollars, except per share amounts) |
| 2012 | 2011 | |||
| $ | $ | |||
| Revenue - Gold sales | 388,501 | 395,916 | ||
| Costs of operations | ||||
| Mining operation expenses | 184,372 | 170,392 | ||
| Depreciation of property, plant and equipment | 59,248 | 41,210 | ||
| General and administrative | 24,834 | 22,224 | ||
| Corporate social responsibility expenses | 5,377 | 3,393 | ||
| Share-based compensation | 3,046 | 4,533 | ||
| Write-off of property, plant and equipment | 16,998 | - | ||
| Impairment of property, plant and equipment | 60,000 | - | ||
| Operating income | 34,626 | 154,164 | ||
| Other expenses (income) | ||||
| Finance income | (295 | ) | (439 | ) |
| Finance costs | 2,023 | 1,728 | ||
| Foreign exchange loss (gain) | (735 | ) | 247 | |
| Loss on the sale of current investment | 24,297 | - | ||
| Income before income taxes | 9,336 | 152,628 | ||
| Income tax expense (recovery) | ||||
| Current | 24,883 | 25,858 | ||
| Deferred | (6,491 | ) | 4,011 | |
| 18,392 | 29,869 | |||
| Net income (loss) for the year | (9,056 | ) | 122,759 | |
| Attributable to: | ||||
| Equity shareholders | (6,604 | ) | 111,759 | |
| Non-controlling interests | (2,452 | ) | 11,000 | |
| (9,056 | ) | 122,759 | ||
| Earnings (loss) per share | ||||
| Basic | (0.02 | ) | 0.41 | |
| Diluted | (0.02 | ) | 0.40 | |
| Consolidated Statement of Income (Loss) |
| For the Years Ended December 31, 2012 and 2011 |
| (Expressed in thousands of US dollars, except per share amounts) |
| 2012 | 2011 | |||
| $ | $ | |||
| Net income (loss) for the year | (9,056 | ) | 122,759 | |
| Other comprehensive loss | ||||
| Changes in fair value of investment in GoviEx (net of tax impact of $1,320) | (8,480 | ) | - | |
| Changes in fair value of current investment (net tax impact of nil) | (21,503 | ) | (2,794 | ) |
| Reclassification of accumulated other comprehensive loss to net loss related to current investment sold (net of tax impact of nil) | 24,297 | - | ||
| Other comprehensive loss for the year, net of tax | (5,686 | ) | (2,794 | ) |
| Total comprehensive income (loss) for the year | (14,742 | ) | 119,965 | |
| Attribuable to: | ||||
| Equity shareholders | (12,290 | ) | 108,965 | |
| Non-controlling interests | (2,452 | ) | 11,000 | |
| (14,742 | ) | 119,965 | ||
| Consolidated Statements of Cash Flows |
| For the Years Ended December 31, 2012 and 2011 |
| (Expressed in thousands of US dollars) |
| 2012 | 2011 | ||||
| $ | $ | ||||
| Cash flows from (used in): | |||||
| Operating activities | |||||
| Net income (loss) for the year | (9,056 | ) | 122,759 | ||
| Adjustments for: | |||||
| Depreciation of property, plant and equipment | 59,248 | 41,210 | |||
| Share-based compensation | 3,046 | 4,533 | |||
| Non-cash finance costs | 1,409 | 874 | |||
| Unrealized foreign exchange loss (gain) | 1,975 | (1,512 | ) | ||
| Write-off of property, plant and equipment | 16,998 | - | |||
| Loss on the sale of current investment | 24,297 | - | |||
| Impairment of property, plant and equipment | 60,000 | - | |||
| Deferred income taxes expense (recovery) | (6,491 | ) | 4,011 | ||
| Provisions | 3,980 | - | |||
| 155,406 | 171,875 | ||||
| Changes in non-cash working capital items | (750 | ) | (33,828 | ) | |
| 154,656 | 138,047 | ||||
| Financing activities | |||||
| Reimbursement of long-term debt | - | (15,000 | ) | ||
| Proceeds on issuance of share capital | 315 | 1,643 | |||
| Reimbursement of advance payable | (2,000 | ) | - | ||
| Payment of dividends to non-controlling interest | (787 | ) | - | ||
| Payment of dividends to equity shareholders | (10,709 | ) | - | ||
| (13,181 | ) | (13,357 | ) | ||
| Investing activities | |||||
| Current investment | (4,813 | ) | (25,101 | ) | |
| Proceeds from the sale of current investment | 5,617 | - | |||
| Acquisitions of property, plant and equipment | (180,766 | ) | (145,634 | ) | |
| Decrease in restricted cash | 303 | 3,181 | |||
| (179,659 | ) | (167,554 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | (1,078 | ) | 1,138 | ||
| Change in cash and cash equivalents during the year | (39,262 | ) | (41,726 | ) | |
| Cash and cash equivalents - beginning of year | 178,713 | 220,439 | |||
| Cash and cash equivalents - end of year | 139,451 | 178,713 | |||
| Interest paid | - | 724 | |||
| Interest received | 295 | 439 | |||
| Income tax paid | 29,377 | 29,694 | |||
Contact Information:
Robert LaValliere
Vice-President, Investor Relations
Cell: +1 (514) 240 2780
robert.lavalliere@semafo.com
Sofia St Laurent
Communications & Investor Relations
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
sofia.stlaurent@semafo.com
www.semafo.com
Maria Bang
Brunswick Group Stockholm
+46 (8) 410 32 189
mbang@brunswickgroup.com