SEMAFO: Cash Flow from Operating Activities before Changes in non-Cash Working Capital of $74 Million

August 06, 2019

Bantou Resource Goal of 2.5 - 3.0 Million Ounces by End of 2020

MONTREAL, Aug. 6, 2019 /CNW Telbec/ - SEMAFO Inc. (TSX: SMF) (OMX: SMF) is pleased to announce another solid quarter of operations, development and exploration activities for the three-month period ended June 30, 2019. All amounts are in US dollars unless otherwise stated.

Highlights

  • Consolidated gold production of 99,800 ounces
  • Cash flow from operating activities before changes in non-cash working capital1 of $74.3 million or $0.22 per share1
  • Net income attributable to shareholders of $15.7 million or $0.05 per share
  • Acquisition of Savary Gold closed April 30, 2019
  • Discovery of new Bantou Nord Zone, 1.5km northeast of Bantou Zone
  • Three rigs drilling at Bantou with resource goal of 2.5 - 3.0M ounces by end of 2020
  • Balance sheet remains conservative with net cash and 100% exposure to upside in gold price

Benoit Desormeaux, President and Chief Executive Officer of SEMAFO, states: "We had a strong second quarter where our operations performed well and with the discovery of the Bantou Nord Zone, our resource goal of 2.5 - 3.0M ounces by end of 2020 for Bantou and Karankasso is well within reach. Our two investor days in the quarter highlighted a team that has been working together at SEMAFO for over 15 years, and we saw the benefits of this in our results. After quarter-end, a pit wall failure occurred at Mana. While we are disappointed that this will affect our 2019 production and results, we are pleased to note that no-one was injured and that the ounces have only been deferred to 2020."

 

_________________________________



1

Cash flow from operating activities before changes in non-cash working capital and per share are a non-IFRS financial performance measure with no standard definition under IFRS. See the "Non-IFRS Financial Performance Measures" section of the MD&A, note 19.

 

Consolidated Results and Mining Operations





Three-month period

ended June 30,

Six-month period

ended June 30,


2019

2018

Variation

2019

2018

Variation

Gold ounces produced

99,800

45,700

118%

202,200

91,200

122%

Gold ounces sold

102,700

45,100

128%

208,800

92,000

127%








(in thousands of dollars, except amounts per ounce, per tonne and per share)







Revenues – Gold sales

134,985

58,517

131%

273,526

121,215

126%

Operating income (loss)

32,741

(7,558)

73,100

(15,623)








Net income (loss) attributable to shareholders of the Corporation

15,705

(10,431)

33,371

(15,141)

 Basic earnings per share

0.05

(0.03)

0.10

(0.05)

 Diluted earnings per share

0.05

(0.03)

0.10

(0.05)















Cash flow from operating activities before changes in non-cash working capital1

74,339

15,839

369%

153,319

34,230

348%

 Per share1

0.22

0.05

340%

0.47

0.11

327%








Average realized selling price (per ounce)

1,313

1,298

1%

1,310

1,317

(1%)

Total cash cost (per ounce sold)¹

522

858

(39%)

503

853

(41%)

All-in sustaining cost (per ounce sold)¹

732

1,103

(34%)

739

1,093

(32%)

 

2019 Guidance - Consolidated


2019 Guidance

Initial Outlook -
Consolidated

Revised
Outlook -
Consolidated

Outlook -
Boungou

Initial Outlook  -
Mana

Revised
Outlook - Mana

Gold production ('000 oz).

390-430

350-380

220-240

170-190

130-140

All-in sustaining cost1 ("AISC") ($/oz)

685-735

685-735

470-510

950-1020

950-1020







Capital Expenditure (included in AISC)
(in millions of $)






Sustaining

14

14

4

10

10

Stripping

64

56

21

43

35


78

70

25

53

45







Non-recurring Development Expenditure (not included in AISC) 
(in millions of $)






Siou underground development

41

41

41

41

Air strips & mill optimisations

8

8

6

2

2

Mining costs during Mana's shutdown

22

22


49

71

6

43

65



1

Cash flow from operating activities before changes in non-cash working capital and per share, total cash cost and all-in sustaining cost are non-IFRS financial performance measures with no standard definition under IFRS. See the "Non-IFRS Financial Performance Measures" section of the MD&A, note 19.

 

Our 2019 Boungou guidance remains unchanged. Operations are tracking according to plan and in line with annual targets. In the first quarter, we noted that the all-in sustaining cost (AISC) for Boungou was slightly above the top end of the 2019 AISC guidance range. We further noted that this was expected and that over the remainder of the year, the AISC will track back into the 2019 annual guidance range.  In the second quarter, we see that the strip ratio decreased (as per the mine plan) with a corresponding reduction in AISC.

Mana Revised Guidance

A pit wall failure occurred in early August in the northern part of the Wona pit where there is no active mining. No-one was injured, and no equipment was damaged.

Currently, we are mining in the southern part of Wona pit. However, under the 2019 mine plan, some 45,000 ounces were expected from the northern portion of the pit between late August and year-end. To mine securely and regain access to ore in Wona North, we will have to push back the pit wall and mine approximately 6 million tonnes of waste material. As a result, mining of ore in the northern part of the pit will be deferred until the first quarter of 2020. These 6 million tonnes were part of the life of mine plan in 2021 and therefore do not represent additional tonnes or cost.

After evaluating multiple scenarios to compensate for the ore from Wona North in 2019, we established that there would be insufficient ore to feed the mill for approximately ten weeks. We now expect to suspend the processing of ore at Mana between mid-August and end of October.

The mining plan for the Siou pit remains unchanged: Development of Siou open pit is ongoing with ore expected in the fourth quarter; and development of Siou underground is proceeding on time and on budget.

We estimate the impact at Mana to be approximately 40,000 – 50,000 ounces of lower production than originally contemplated. Therefore, annual guidance at Mana has been revised to 130,000 – 140,000 from the original 170,000 – 190,000 ounces. There is no change to our Mana all-in sustaining cost (AISC) guidance. During the shutdown, mining costs of approximately $22 million for Siou and Wona will be capitalized in development and there will be a non-recurring charge of approximately $7 million mostly representing fixed costs for the period.

Siou Underground Continues on Time, on Budget

Underground development at Siou continued to advance well with 4,400 meters completed at end of July. The pace of development continues in line with our goal of reaching full production in the first quarter of 2020. At quarter-end, development continued on budget, with $31.2 million of the total $51.7 million budget incurred. Further grade control drilling in the quarter remained consistent with the block model.

Exploration & Development

Bantou

Exploration in the second quarter continued to focus on Bantou where a total of 190 RC holes (29,899 meters) and 17 core holes (3,307 meters) was completed. On June 3, we announced the discovery of a significant new gold zone called Bantou Nord. The Bantou Nord Zone is located 1.5 kilometers northeast of the Bantou Zone, which hosts an inferred resource estimate of 361,000 oz at 5.35 g/t Au.

The 2019 Bantou exploration budget was originally set at $3 million and involved one drill rig. Given Bantou's prospectivity and exploration success to date, its 2019 budget was increased to $11 million. The updated exploration program includes three rigs: i) one dedicated to follow-up drilling at the new Bantou Nord discovery; ii) a second testing the Bantou Zone along the plunge of the mineralization; and iii) a third one exploring grassroots targets over the entire property including follow-up drilling on the Bantou Proximal Zone located immediately west of the Bantou Zone.

Bantou Nord Zone

Following the June 3 discovery, the Bantou Nord drill program consisted of north-south lines almost perpendicular to the original discovery lines. The objective was to confirm the disseminated nature of the mineralization in addition to provide a better understanding of the geometry of the deposit. Results to date confirm the disseminated nature with grades and widths similar to those previously reported (see Table 1 with multiple intersections of +/- 100-meter lengths with grades ranging from 1.0 g/t Au to 1.4 g/t Au). In addition, the drilling appears in line with the original interpreted surface area of mineralization of 300 meters by 250 meters.

Table 1 - Q2 Select Drill Results from Bantou Nord Zone

 

Section

Hole No.

From (m)

To (m)

Length (m)

Au (g/t)

407750E

KRC19-0431

125

165*

40

0.96

407750E

KRC19-0432

96

162*

66

1.78

407750E

KRC19-0434

64

136

72

1.03

407750E

KRC19-0436

3

161*

158

1.26

407750E

KRC19-0437

5

114

109

1.41

407650E

KRC19-0440

4

174

170

1.16

407650E

KRC19-0441

23

88

65

1.28


* Hole ends in mineralization

 

Bantou Zone

At the Bantou Zone, high grade intersections were obtained along the moderate north plunge as interpreted by the block model (Table 2). Following completion of the programs, a revised resource estimate will be completed for the Bantou and Bantou Nord Zones that will be included in the year-end resource statement.

Table 2 - Q2 Select Drill Results from Bantou Zone

 

Zone

Hole No.

From (m)

To (m)

Length (m)

Au (g/t)

Chert

DMP010

277.7

279

1.3

14.92

Chert

DMP010

284.2

302,9

18.7

7.43

BIF

DMP013

95.3

104

8.7

2.85

Chert

DYDD020

176.6

178

1.4

9.72


* All assays are uncut

 

Bantou Proximal Zone and Regional Targets

As shown in Table 3, Bantou Proximal Zone continues to return excellent results that will be followed up in the fourth quarter.  In addition, the exploration drill returned interesting intersections at two new areas, called Peni and Sikongo. Peni is located 6 kilometers north-northeast of Bantou Nord, with Sikongo located 12 kilometers directly north of Bantou Nord. Further drilling has been scheduled in the second half of the year.

Table 3 - Q2 Select Drill Results from Bantou Proximal Zone and Regional Targets

 

Zone

Hole No.

From (m)

To (m)

Length (m)

Au (g/t)

Bantou Prox

KRC19-0454

27

32

5

2.32

Bantou Prox

KRC19-0456

75

78

3

4.22

Bantou Prox

KRC19-0458

46

48

2

8.47

Bantou Prox

KRC19-0460

63

70

7

44.16

Peni

KRC19-0388

25

28

3

2.53

Peni

KRC19-0393

41

49

8

8.04

Peni

KRC19-0393

111

121

10

1.59

Sikongo

KRC19-0358

5

11

6

4.28

Sikongo

KRC19-0359

149

150

1

5.37


* All assays are uncut

 

Karankasso

Since closing the Savary Gold Corporation (''Savary Gold'') acquisition on April 30, the Karankasso database has been merged with the Bantou database. During the quarter, the transition with the Savary Gold team continued in an orderly fashion with everyone working together towards the common goal of maximizing the potential of the combined 1,250 km² district-scale property. In the third quarter, we will provide an updated budget and exploration plan.

Boungou

A total of 1,333 holes (13,361 meters) of auger drilling was completed north of the Boungou Mine in the second quarter in order to evaluate exploration targets in close proximity to the plant. No RC drilling was conducted during the quarter. Drilling is expected to resume after the rainy season.

Mana

During the quarter, a total of 96 holes (12,822 meters) was completed at Mana to test potential satellite targets proximal to existing deposits, including 4,519 meters at the Pompoi target east of Yaramoko Mine. The drilling program at Pompoi is approximately half-complete with no significant findings to date. Significant intersections were obtained on two satellite targets. The first is located six kilometers north of the Siou deposit, and the second is located five kilometers south of the Fofina deposit (see Table 4 below). Among these, hole MRC19-5206, which was drilled down dip of the zone, helped to confirm the orientation. Following detailed interpretation, an additional drill program will be completed with the aim of identifying a near-surface deposit.

Table 4 - Q2 Select Drilling Results at Mana Satellite Targets

 

Zone

Hole No.

From (m)

To (m)

Length (m)

Au (g/t)

Siou Satellite North

MRC19-5149

64

71

7

1.68

Siou Satellite North

MRC19-5150

71

78

7

1.76

Fofina South

MRC19-5206

4

10

6

2.75

45

53

8

1.88

87

123

36

1.40

Fofina South

MRC19-5218

97

104

7

1.46

 

Geologic Review at Mana

At the end of the second quarter, we hired a geological consulting firm to carry out an external review at Mana. Analysis and compilation are expected to be completed by year-end and to generate new targets for 2020 within trucking distance to the plant.

Nabanga

As planned, no drilling was done at Nabanga in the second quarter. Work on the preliminary economic assessment ("PEA") continues and is scheduled for release in the third quarter.

Korhogo

In the quarter, 600 holes of auger drilling (10,835 meters) and 1,306 meters of trenching were completed on the Korhogo property in Cote d'Ivoire. Two trenches in the northern part of the permit returned values of up to 6.10 g/t Au over 2 meters and 1.13 g/t Au over 3 meters. The program is expected to be completed before year-end.

Board of Directors Appointment

SEMAFO is pleased to announce the appointment of Daniel Buron to its Board of Directors, effective August 5, 2019. Mr. Buron joined the Audit Committee and the Human Resources and Corporate Governance Committee.

Mr. Buron has served as Senior Vice-President and Chief Financial Officer of Domtar Corporation and Domtar Inc. since 2004 and previously held other senior finance positions within Domtar. Before joining Domtar in 1999, he held various finance positions with a leading firm in the commercialization and development of IT applications, solutions and tools as well as with a major international accounting firm.

Holder of a bachelor of commerce degree from Université Laval, Mr. Buron has 30 years of experience in finance.  He is a member of the Quebec Chartered Professional Accountants (CPA) Order and a member of the Institute of Corporate Directors. He currently sits on the board of the McGill University Health Center Foundation.

Second Quarter Conference Call

A conference call will be held tomorrow, August 7, 2019 at 10:00 EDT, to discuss the second quarter results. Interested parties are invited to call the following telephone numbers to participate in the call. A live audio webcast of the conference call will be accessible for a period of 90 days through SEMAFO's website at www.semafo.com.

Tel. local & overseas: +1 (514) 225 7341
Tel. North America: 1 (888) 390 0605
Webcast: www.semafo.com
Replay overseas: +1 (416) 764 8677
Replay N. America: 1 (888) 390 0541
Replay pass code: 921499#
Expiration: September 7, 2019

About SEMAFO

SEMAFO is a Canadian-based intermediate gold producer with over twenty years' experience building and operating mines in West Africa. The Corporation operates two mines, the Boungou and Mana Mines in Burkina Faso. SEMAFO is committed to building value through responsible mining of its quality assets and leveraging its development pipeline.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. All statements other than statements of present or historical facts are forward-looking. 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 "goal", "by end of 2020",, "within reach",, "deferred to", "deliver", "long-term", "guidance", "targets", "will", "on time, on budget", "objective", "scheduled", "expect", "aim", "generate", "committed", "building", "leveraging" 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  (i) achieve the resource goal of 2.5 - 3.0M ounces at Bantou by 2020, (ii) deliver long term shareholder value, (iii) meet our 2019 revised guidance, (iv) resume the processing of ore at Mana at the end of October, (v) deliver the Siou Underground on-time and on-budget, (vi) achieve full production from Siou Underground in the first quarter of 2020, (vii) provide an updated budget and exploration plan for Karankasso in the third quarter, (viii) identify a near-surface deposit at Mana and generate new targets for 2020 within trucking distance to the plant, (ix) complete the Nabanga PEA by the third quarter,  the ability to increase reserves and resources, 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 2018 Annual MD&A, as updated in SEMAFO's 2019 First and Second Quarter MD&As, and other filings made with Canadian securities regulatory authorities and available at www.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.

 

Interim Consolidated Statements of Financial Position

(Expressed in thousands of US dollars - unaudited)



As at
June 30,
2019

As at

December 31,

2018


$

$




Assets






Current assets



Cash and cash equivalents

108,858

96,519

Trade and other receivables

46,397

29,434

Income tax receivable

5,870

6,390

Inventories

86,355

83,211

Other current assets

5,601

5,378


253,081

220,932

Non-current assets



Advance receivable

1,779

2,117

Restricted cash

25,305

25,340

Property, plant and equipment

835,787

782,060

Intangible asset

1,133

1,204

Other non-current financial assets

1,110

2,622


865,114

813,343

Total assets

1,118,195

1,034,275




Liabilities






Current liabilities



Trade payables and accrued liabilities

66,878

63,905

Current portion of long-term debt

60,026

60,181

Current portion of lease liabilities

12,325

7,820

Current portion of share unit plan liabilities

6,078

3,311

Provisions

2,930

3,051


148,237

138,268

Non-current liabilities



Long-term debt

28,476

57,388

Lease liabilities

22,887

20,144

Share unit plan liabilities

3,873

2,263

Provisions

24,581

23,561

Deferred income tax liabilities

65,044

39,548


144,861

142,904

Total liabilities

293,098

281,172




Equity






Shareholders of the Corporation



Share capital

646,005

623,604

Contributed surplus

6,555

6,771

Accumulated other comprehensive (loss)

(18,427)

(18,909)

Retained earnings

144,281

109,216


778,414

720,682

Non-controlling interests

46,683

32,421




Total equity

825,097

753,103

Total liabilities and equity

1,118,195

1,034,275

 

Interim Consolidated Statements of Income (loss)

For the three-month and six-month periods ended June 30, 2019 and 2018, respectively

(Expressed in thousands of US dollars, except per share amounts - unaudited)





Three-month period

ended June 30,

Six-month period

ended June 30,


2019

2018

2019

2018


$

$

$

$






Revenue – Gold sales

134,985

58,517

273,526

121,215






Costs of operations





Mining operation expenses

53,653

38,679

105,058

78,457

Depreciation of property, plant and equipment

40,938

22,583

80,566

48,011

General and administrative

3,949

3,859

7,909

7,776

Corporate social responsibility expenses

17

341

374

563

Share-based compensation

3,687

613

6,519

2,031






Operating income (loss)

32,741

(7,558)

73,100

(15,623)






Other expenses (income)





Finance income

(612)

(612)

(1,160)

(1,253)

Finance costs

3,065

287

6,621

600

Foreign exchange (gain) loss

(286)

1,292

210

864






Income (loss) before income taxes

30,574

(8,525)

67,429

(15,834)






Income tax expense (recovery)





Current

1,139

(238)

1,873

289

Deferred

10,573

2,826

25,572

(110)


11,712

2,588

27,445

179






Net income (loss) for the period

18,862

(11,113)

39,984

(16,013)






Attributable to:





Shareholders of the Corporation

15,705

(10,431)

33,371

(15,141)

Non-controlling interests

3,157

(682)

6,613

(872)


18,862

(11,113)

39,984

(16,013)






Earnings (loss) per share





Basic

0.05

(0.03)

0.10

(0.05)

Diluted

0.05

(0.03)

0.10

(0.05)

 

Interim Consolidated Statements of Cash Flows

For the three-month and six-month periods ended June 30, 2019 and 2018, respectively

(Expressed in thousands of US dollars - unaudited)



Three-month period

ended June 30,

Six-month period

ended June 30,


2019

2018

2019

2018


$

$

$

$

Cash flows from (used in):










Operating activities





Net income (loss) for the period

18,862

(11,113)

39,984

(16,013)

Adjustments for:





Depreciation of property, plant and equipment

40,938

22,583

80,566

48,011

Share-based compensation

3,687

613

6,519

2,031

Amortization of deferred transaction costs

377

877

Unrealized foreign exchange loss (gain)

(332)

991

(216)

439

Deferred income tax expense (recovery)

10,573

2,826

25,572

(110)

Other

234

(61)

17

(128)

Cash flow from operating activities before changes in non-cash working capital

74,339

15,839

153,319

34,230

Changes in non-cash working capital items

(4,246)

5,039

(19,982)

(10,597)

Net cash provided by operating activities

70,093

20,878

133,337

23,633






Financing activities





Repayment of long-term debt

(15,000)

(30,000)

Repayment of equipment financing

(78)

(78)

(155)

(155)

Payments of lease liabilities

(3,261)

(1,165)

(5,386)

(2,310)

Proceeds on issuance of share capital, net of expenses

1,056

120

1,486

861

Net cash used in financing activities

(17,283)

(1,123)

(34,055)

(1,604)






Investing activities





Acquisition of property, plant and equipment

(44,237)

(48,700)

(87,416)

(109,856)

Net cash received on acquisition of Savary Gold Corporation

232

232

Proceeds (acquisitions) from equity investments

63

98

63

(1,508)

Net cash used in investing activities

(43,942)

(48,602)

(87,121)

(111,364)






Effect of exchange rate changes on cash and cash equivalents

1,005

(1,702)

178

(744)

Change in cash and cash equivalents during the period

9,873

(30,549)

12,339

(90,079)

Cash and cash equivalents – Beginning of period

98,985

139,420

96,519

198,950

Cash and cash equivalents – End of period

108,858

108,871

108,858

108,871

Interest paid

2,611

2,406

5,386

4,736

Interest received

615

739

1,163

1,449

Income tax paid

2,010

851

3,366

 


Boungou, Burkina Faso

Mining Operations 



Three-month period

ended June 30,

2019

Six-month period

ended June 30,

2019

Operating Data






Mining



Waste mined (tonnes)

3,539,500

5,645,500

Ore mined (tonnes)

470,700

750,700

Operational stripping ratio

7.5

7.5

Capitalized Stripping Activity



Waste material – Boungou (tonnes)

3,183,800

8,228,400

Total strip ratio

14.3

18.5




Processing



Tonnes processed (tonnes)

282,700

591,400

Head grade (g/t)

7.19

6.83

Recovery (%)

96

96

Gold ounces produced

62,800

124,700

Gold ounces sold

63,800

128,500




Financial Data (in thousands of dollars)



Revenues – Gold sales

84,144

168,636

Mining operation expenses

17,619

34,689

Government royalties and development taxes

4,701

9,425

Depreciation of property, plant and equipment

24,643

49,591

General and administrative

278

495

Corporate social responsibility expenses

5

87

Segment operating income

36,898

74,349




Statistics (in dollars)



Average realized selling price (per ounce)

1,318

1,312

Cash operating cost (per tonne processed)1

61

57

Cash operating cost, including stripping (per tonne processed)1

86

87

Total cash cost (per ounce sold)1

350

343

All-in sustaining cost (per ounce sold)1

476

505

Depreciation (per ounce sold)2

386

386



1

Cash operating cost, cash operating cost including stripping, total cash cost and all-in sustaining cost are non-IFRS financial performance measures with no standard definition under IFRS. See the "Non-IFRS Financial Performance Measures" section of the MD&A, note 19.

2

Depreciation per ounce sold is a non-IFRS financial performance measure with no standard definition under IFRS and represents the depreciation expense per ounce sold.

 

Mana, Burkina Faso

Mining Operations 



Three-month period

ended June 30,

Six-month period

ended June 30,


2019

2018

Variation

2019

2018

Variation

Operating Data







Mining







Waste mined (tonnes)

3,366,700

5,121,300

(34%)

6,133,000

10,327,100

(41%)

Ore mined (tonnes)

478,600

478,200

886,700

1,070,500

(17%)

Operational stripping ratio

7.0

10.7

(35%)

6.9

9.6

(28%)

Capitalized Stripping Activity







Waste material – Siou (tonnes)

2,048,700

4,454,600

Waste material – Wona (tonnes)

1,586,000

3,513,700

(55%)

3,411,000

6,717,900

(49%)


3,634,700

3,513,700

3%

7,865,600

6,717,900

17%

Total strip ratio

14.6

18.1

(19%)

15.8

15.9

(1%)








Processing







Ore processed (tonnes)

502,900

604,200

(17%)

930,800

1,216,200

(23%)

Low grade material (tonnes)

116,200

32,600

256%

328,500

72,300

354%

Tonnes processed (tonnes)

619,100

636,800

(3%)

1,259,300

1,288,500

(2%)

Head grade (g/t)

2.12

2.35

(10%)

2.20

2.30

(4%)

Recovery (%)

88

95

(7%)

87

96

(9%)

Gold ounces produced

37,000

45,700

(19%)

77,500

91,200

(15%)

Gold ounces sold

38,900

45,100

(14%)

80,300

92,000

(13%)








Financial Data
(in thousands of dollars)







Revenues – Gold sales

50,841

58,517

(13%)

104,890

121,215

(13%)

Mining operations expenses

29,026

36,139

(20%)

56,208

72,773

(23%)

Government royalties

2,307

2,540

(9%)

4,736

5,684

(17%)

Depreciation of property, plant and equipment

16,146

22,488

(28%)

30,677

47,820

(36%)

General and administrative

584

699

(16%)

1,127

1,334

(16%)

Corporate social responsibility expenses

12

212

(94%)

287

397

(28%)

Segment operating income (loss)

2,766

(3,561)

11,855

(6,793)








Statistics (in dollars)







Average realized selling price (per ounce)

1,306

1,298

1%

1,306

1,317

(1%)

Cash operating cost (per tonne processed)¹

47

56

(16%)

44

55

(20%)

Cash operating cost, including stripping (per tonne processed)1

65

70

(7%)

63

69

(9%)

Total cash cost (per ounce sold)¹

805

858

(6%)

759

853

(11%)

All-in sustaining cost (per ounce sold)¹

1,152

1,103

4

1,113

1,093

2%

Depreciation (per ounce sold)²

415

499

(17%)

382

520

(27%)



1

Cash operating cost, cash operating cost including stripping, total cash cost and all-in sustaining cost are non-IFRS financial performance measures with no standard definition under IFRS. See the "Non-IFRS Financial Performance Measures" section of the MD&A, note 19.

2

Depreciation per ounce sold is a non-IFRS financial performance measure with no standard definition under IFRS and represents the depreciation expense per ounce sold.

 

SOURCE SEMAFO