SEMAFO REPORTS RECORD NET EARNINGS OF $39.5 MILLION FOR 2008
Record Operating Cash Flow of $56.3 Million and Record Gold Production of 195,400 oz.
Montreal, Quebec, March 17, 2008 � 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:
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Successful start-up and commissioning of the Mana mine in Burkina Faso
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Gold production of 195,400 ounces
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Cash operating cost of $461 per ounce
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Gold sales of $169,911,000 at an average selling price of $858 per ounce
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Operating income of $33,108,000
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Net income of $39,529,000
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Cash flow from operating activities of $56,339,000
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Return to profitability at the Kiniero mine
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Positive drilling results at the Mana mine
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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 Montr�al, Salon 1, 1201 Ren�-L�vesque Blvd. West, in Montreal. Attendees will have the opportunity to ask questions and meet the management team and Board of Directors.
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About SEMAFO
Semafo is a Canadian-based mining company with gold production and exploration activities in West Africa. The Company currently operates three gold mines in Burkina Faso, Niger and Guinea. Semafo is committed to evolve in a conscientious manner to become a major player in its geographical area of interest, while maintaining principles and strengthening relationships to increase shareholder value.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding expectations of the Company as to the market price of gold, strategic plans, future commercial production, production targets, timetables, mining operating expenses, capital expenditures, and mineral reserve and resource estimates. Forward-looking statements involve known and unknown risks and uncertainties and accordingly, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, fluctuations in the market price of precious metals, mining industry risks, uncertainty as to calculation of mineral reserves and resources, risks related t o hedging strategies, risks of delays in construction, requirements of additional financing and other risks described in the Company�s documents filed from time to time with Canadian securities regulatory authorities. Although the Company is of the opinion that these forward-looking statements are based on reasonable assumptions, those assumptions may prove to be incorrect. Accordingly, readers should not place undue reliance on forward-looking statements. Readers can find further information with respect to risks in the Annual Information Form of the Company and other filings of the Company with Canadian securities regulatory authorities available at www.sedar.com. The Company disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
For more information contact:
SEMAFO
Benoit La Salle,
President & CEO
Tel: (514) 744-4408
Toll-Free: 1 (888) 744-4408
E-Mail : blasalle@semafo.com
Sofia St Laurent
Communications
Tel: (514) 744-4408
Toll-Free: 1 (888) 744-4408
E-Mail : sstlaurent@semafo.com
Renmark Financial Communications Inc.
Maurice Dagenais : mdagenais@renmarkfinancial.com
John Boidman : jboidman@renmarkfinancial.com
Montreal - Tel.: 514 939-3989 / Fax: 514 939-3717
Toronto - Tel.: 416 644-2020 / Fax: 416 644-2021
www.renmarkfinancial.com
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