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 Montreal, Salon 1, 1201
Rene-Levesque 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
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(Expressed in thousands of U.S.
