SEMAFO Releases Second Quarter 2012 Results
- Cash Flow from Operating Activities Total $41.8 Million - Wona-Kona Super Pit Improves Overall Economics at Mana
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwire) -- 08/08/12 -- SEMAFO (TSX: SMF)(OMX: SMF) today reported its financial and operating results for the three-month period ended June 30, 2012. All amounts are in US dollars unless otherwise stated.
Second Quarter 2012 Highlights
A Word from the CEO
During the second quarter of 2012 some non-recurring losses, the publication of our 2011 mineral reserves and resources update, the recovery in the south sector at Mana and capital investment concerns related to the super pit mining scenario at Wona-Kona disappointed shareholders. We realize that expectations for our Corporation were high. We are disappointed with SEMAFO's recent share price performance and in this regard, I would like to provide our shareholders with a candid perspective on why our growth story has not come to an end.
Our decision to proceed with the super pit scenario is the highlight of the year to date. We are improving the overall economics of the project, minimizing risks, maximizing flexibility and significantly reducing capital investments during the first few years. The total cash cost should be positively impacted by this decision. We also remain optimistic at the potential to add reserves in the future.
With regard to our mineral reserves and resources update, our flagship Mana property continues to be a growing mining project. Over the past two years, SEMAFO's exploration team has provided outstanding results which have included the discovery of four new deposits (Kona, Fobiri, Fofina and Yaho). Accordingly, we increased reserves and resources by 2.9 million ounces and inferred mineral resources by 1.3 million ounces, essentially doubling the mineral inventory of the Corporation. These results were achieved by maintaining our systematic approach to exploration and ensuring that priority targets remain in line with our corporate objective to maximize cash flow.
At Mana's south sector, approximately 550,000 ounces representing sixty percent of measured and indicated resources are in oxide and transitional zones with no recovery issue. As well, in 2011 we added almost 200,000 ounces in reserves from the south sector and we remain optimistic that these zones will continue to contribute to Mana's overall economics and life of mine. Preliminary results also revealed some recovery challenges with respect to the sulfides in this area. We are currently investigating other processes that may improve recovery rates to ultimately increase the economics of the south sector.
Excluding non-recurring losses recorded in the second quarter, our first six months of 2012 is better than the first half of 2011. During the first six months of 2012, despite a slight decrease in our production, revenues increased by 11% to $198.8 million and cash flow from operating activities increased by 10% to $82.0 million. Our total cash margin was $924 per ounce for the first six months of 2012 compared to an average of $807 per ounce in the first half of 2011. Furthermore, our cash operating cost per tonne processed remained stable at $35 for the first half of 2012, literally unchanged compared to the same period last year.
Overall production and cash operating cost for the second quarter are in line with our objectives and we remain confident that we will achieve our annual production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of between $700 and $750 per ounce.
We are not pleased with a share price that does not reflect the value and the potential of our company. We will continue to work diligently in all areas of the organization to demonstrate that confidence in the Corporation is fully warranted. We remain financially healthy; we have no debt, we are unhedged, we have $148 million in cash and we are generating approximately $100 million of gold sales per quarter. Moving forward, our production will remain constant while we continue to invest in organic growth.
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 . These and other corporate reports are also available on the website maintained by the Canadian Securities regulators at .
SEMAFO will host a conference call to discuss the results, as well as to provide an update on operations.
The conference call will feature Benoit La Salle, FCPA, FCA, President and Chief Executive Officer, Benoit Desormeaux, CPA, CA, Executive Vice-President and Chief Operating Officer, Martin Milette, CPA, CA, Chief Financial Officer, Michel Crevier, Vice-President Exploration and Mine Geology and SEMAFO's Qualified Person, and Patrick Moryoussef, Vice-President Mining Operations.
The conference call will be archived for replay until August 29, 2012. To access the archived conference call, please dial 1 (800) 558-5253 and enter pass code 2199113 followed by the number sign (#).
A live audio webcast of the conference can be accessed through SEMAFO's website at . The webcast will be available for replay for a period of 90 days.
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 "improving", "should", "optimistic", "potential", "add", "continues", "will", "investigating", "may", "increase", "guidance", "moving forward", "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 of the super pit to improve the overall economics of the project and to positively impact the total cash cost, the ability to add reserves in the future, the ability to find processes that will improve recovery rates to ultimately increase the economics of the south sector, the ability to achieve our annual production guidance of between 235,000 to 260,000 ounces of gold at a cash operating cost of between $700 and $750 per ounce, the ability to maintain constant production moving forward, 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 2011 Annual MD&A and 2011 Annual Information Form, as updated in SEMAFO's 2012 First Quarter MD&A and 2012 Second Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at . These documents are also available on our website at . 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.
Contacts:
SEMAFO
Sofia St Laurent
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
Maria Bang
Brunswick Group Stockholm
+46 (8) 410 32 189
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Datum: 08.08.2012 - 14:35 Uhr
Sprache: Deutsch
News-ID 172842
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