SEMAFO Reports Record 2010 Cash Flow from Operations of $147.5 Million
Record Production � Revenues � Net Income � Cash Margins
Montreal,
QC - March 16, 2011 - SEMAFO (TSX: SMF) today announced its financial and operational
results for the fourth quarter and year ended December 31, 2010. All
amounts are in US dollars unless otherwise stated.
2010
Highlights
In 2010 SEMAFO had its best year ever with production totaling 261,100
ounces of gold for sales of $323.3 million, compared to gold production
of 242,400 ounces and sales of $240.8 million in 2009. Cash flow from operating
activities increased to a record $147.5 million, compared to $92.1
million in 2009. Highlights
for the year ended December 31, 2010 include:
- Record
gold production of 261,100 ounces, a 8% increase over the same
period last year
- Record
gold sales of $323.3 million, an increase of 34% compared to last
year
- Cash
operating cost of $466 per ounce produced compared to $463 for the
same period in 2009
- Record
operating income of $128.9 million, an increase of 112% compared to
2009
- Record
total cash margin of $723 per ounce
- Record
net income of $103.2 million or $0.39 per share, an improvement of
137% over the same period last year
- Record
cash flow from operating activities of $147.5 million or $0.56 per
share, an increase of 60% over last year
- Increase
of 180% in proven and probable reserves at Mana
- Continued exploration success at Mana
- Successful
completion of Phases I, II and III of the Mana
plant expansion
- Encouraging
exploration results at Samira Hill
Fourth
Quarter Highlights
- Gold
production of 61,500 ounces, a 6% increase over the same period last
year
- Gold
sales of $86.4 million, an increase of 18% compared to last year
- Cash
operating cost of $533 per ounce produced compared to $506 for the
fourth quarter 2009
- Cash
operating cost of $ $408 per ounce produced at Mana
compared to $399 for the same period in 2009
- Operating
income of $33.2 million, an increase of 90% compared to 2009
- Record
total cash margin of $795 per ounce
- Net
income of $27.0 million or $0.09 per share, an improvement of 157%
over the same period last year
- Cash
flow from operating activities of $38.7 million or $0.14 per share,
an increase of 62% over last year
- Successful
completion of Phase III of the Mana plant
expansion
A Word from the
CEO
SEMAFO has
grown from a grassroots exploration company to a three-mine gold
producer. Our operations have evolved, essentially owing to our unique
savoir-faire, and today provide our Corporation with a solid platform for
sustainable growth. In 2010, we achieved record production, revenues, net
income, cash flow from operating activities and operating cash flow per
share, while our cash operating cost remained comparable to the previous
year.
Over the past
five years our cash margin rose from $45 to $723 per ounce, outpacing the
average gold price increase. Our cash flow from operating activities
totaled $147.5 million in 2010 compared to negative cash flow of $ 4
million in 2006, and our basic net income per share increased from a
$0.11 basic net loss per share to a $0.39 basic net income per share for
the same period.
In 2010, we
celebrated the production of our one-millionth ounce of gold, an
accomplishment unmatched by the majority of companies in our industry.
Energized by
a 180% increase in reserves and 195% in inferred resources at Mana, our team continues to focus on this property as
a flagship asset in our value creation model. Recognizing that the
structures identified thus far represents less than 10% of the property,
in 2010 we invested $18 million in accelerated exploration programs. We
are motivated by the excellent 2010 exploration results and hence have
established an initial $30-million exploration budget for the Mana property in 2011.
We are
pleased with the successful completion of our Mana
plant expansion, which increased plant capacity from 4,000 tonnes per day to 6,000 tonnes
per day in hard rock. The construction and commissioning of all three
phases of the plant expansion were efficiently scheduled and executed on
time and on budget with little or no impact on our operations.
The next few
years promise to be an exciting time for SEMAFO, as our expanded Mana property continues to strengthen our production
profile. As part of this initiative, we will continue to maximize Mana�s on-surface and at-depth exploration programs
to ultimately increase shareholder value.
In the past
five years we have proven that our growth is sustainable and that our
unique savoir-faire is present at all levels of our operations. We are
now considered a significant player in our industry and remain committed
to continue to grow responsibly to create value for our shareholders.
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 Company's website at www.semafo.com. These and other Company reports are also available on the
website maintained by the Canadian Securities regulators at www.sedar.com.
2010
Fourth Quarter and Year-End Conference Call
SEMAFO will host a conference call to discuss the results, as well as to
provide an update on operations.
Date: Thursday,
March 17, 2011
Time: 10:00
AM (ET)
Tel. local &
overseas: 416 641-6699
Tel. North
America: 1 888 223-4512
The
conference call will feature Benoit La Salle, President and Chief
Executive Officer, Benoit Desormeaux, Executive
Vice-President and Chief Operating Officer, Martin Milette,
Chief Financial Officer, Michel Crevier,
SEMAFO�s Geology Manager and Qualified Person, and Patrick Moryoussef, Mining Operations Manager.
The
conference call will be archived for replay until April 7, 2011. To
access the archived conference call, please dial 1 800 558-5253 and enter
pass code 21512810.
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 and Special
Shareholders Meeting
SEMAFO�s Annual Meeting of Shareholders will be held on Tuesday, May 10,
2011 at 4:00 p.m. at Hotel Reine-�lizabeth,
Salle Duluth, 900 Ren�-L�vesque Boulevard West, in Montreal, Quebec.
Attendees will have the opportunity to ask questions and meet the
management team and Board of Directors.
THIS
PRESS RELEASE CONTAINS TABLES, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN
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About
SEMAFO
SEMAFO Inc.
is a Canadian-based mining company with gold production and exploration
activities in West Africa. The Company 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.
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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 �continues�, �will�,
�growth�, �create�, �evolve�, �become�, �focus�, �maximize�, �pursuing�
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 complete our $30 million exploration program for the Mana property in 2011, the ability to continue to
maximize Mana�s on-surface and at-depth
exploration programs to
ultimately increase shareholder
value, the ability to continue to grow responsibly to create value for
our shareholders, 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 2010 Annual MD&A and other
filings made with Canadian securities regulatory authorities and
available at ww w.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.
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