Cash Flow from Operating Activities up by 32%, to $25.4 million
SEMAFO TSX-SMF

MONTREAL, Aug. 11 /CNW Telbec/ - SEMAFO (TSX: SMF) today reported its second quarter financial and operational results for the three-month period ended June 30, 2009. All amounts are in US dollars unless otherwise stated.

Highlights for the Three-Month and Six-Month Periods Ended June 30, 2009

- Record gold production, with a total of 64,100 ounces for the three-
  month period ended June 30, 2009, representing an 18% increase over the
  corresponding period in 2008 and 10% over the previous quarter.
- For the first half of 2009, production from all mines totalled
  122,200 ounces, an increase of 47% over the first six months of 2008.
- Gold sales revenues totalled $58.6 million for the second quarter,
  representing a 31% increase over the corresponding period in 2008 and
  18% over Q1 2009. For the first six months of 2009, gold sales revenues
  totalled $108.1 million, representing a 54% increase over the same
  period in 2008.
- Operating income increased by 23% to $17 million in the second quarter
  2009 compared to the same period the year prior; and by 70%, to
  $28.2 million, for the first six-month period of 2009 compared to the
  same period in 2008. Operating income increased by 53% over Q1 2009.
- Net income reached $10.7 million, an increase of 20% over the previous
  quarter of 2009. Net income totalled $19.6 million for first six months
  of 2009.
- Cash flow from operating activities reached $25.4 million for the
  second quarter and $43.9 million since the beginning of 2009. This
  represents an increase of 32% over the same period last year and 37%
  when compared with the first quarter of 2009.
- The Company's cash operating cost for the quarter decreased to $419 per
  ounce from $460 in the first quarter of 2009.
- Net income per share of $0.05 and $0.08 respectively.
- Close-out of hedge program; the Company is 100% unhedged.
- Commencement of extensive exploration program on the high potential
  Hounde belt in Burkina Faso.
- Positive at-depth drilling results at Mana.
- Improved balance sheet - with a 20% debt to equity ratio, compared to
  38% as at December 31, 2008.

A Word from the CEO

SEMAFO continued to build on the positive momentum established in 2008. Our second quarter 2009 results created a new precedent for our Company, bringing the cash flow from operating activities to more than $25.4 million, representing a 37% increase over the previous quarter.