INVESTOR PRESENTATION DECEMBER 2013

Transcription

1 INVESTOR PRESENTATION DECEMBER 2013

2 FORFOWARD-LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS This presentation 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 growth, estimated, simulation, guidance, strategy, pursue, reduce, will, maintaining, anticipated, committed, create, prospective, committed, evolve, become, pursuing, growth, opportunities 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 commence mining and production activities at Siou in the second quarter of 2014, Siou s ability to boost production and lower all-in sustaining costs, the ability to produce 153,000 to 168,000 ounces at Mana at a total cash cost of $805 to $855 per ounce in 2013, the ability to bring Siou from discovery to production in less than two years, the ability of our actual results to match our simulations over time, the ability to maintain our expected life of mine, the ability to meet our development schedule for the Siou Sector, the ability to begin pre-stripping Siou in Q1 2014, the ability to meet our 2013 estimated CAPEX, the ability of our strategy to increase shareholder value, the ability to commence pre-stripping and road construction work at Siou in the coming months, the ability to commence production from the Fofina deposit in 2015, 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 2012 Annual MD&A, as updated in SEMAFO s 2013 First Quarter MD&A, 2013 Second Quarter MD&A and 2013 Third Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at Documents are also available on our website at These forward-looking statements are dated as of December 2, 2013 and we disclaim any obligation to update or revise these forward-looking statements, except as required by applicable law. We also advise you that the terms Inferred Resources and Indicated Resources, although recognized and required by the Canadian Securities Administrators, are not recognized by the US Securities and Exchange Commission. There is no certainty that Inferred Resources or Indicated Resources will be economically mineable. In this presentation, all amounts are in US dollars unless otherwise indicated. M O V I N G F O R W A R D 2

3 INVESTMENT SUMMARY Operator of the high potential Mana mine, Burkina Faso Large land package totalling 2,119 km 2 Cumulative production since 2008: 1 million ounces Mining and production activities at the high-grade Siou Sector are scheduled to commence in the second quarter of 2014, boosting production and lowering all-in sustaining costs No debt, unhedged, healthy cash position M O V I N G F O R W A R D 3

4 STRATEGY: GENERATE FUTURE CASH FLOW Cost control and optimization programs Disciplined capital allocation Solid balance sheet Strong operational performance Disciplined exploration Quality ounces M O V I N G F O R W A R D 4

5 MANA: EXTENSIVE PROPERTY Exploration permits: 2,119 km 2 Niger Mali Burkina Faso 260 km Mana Mana s 2013 exploration budget: $22M focused on the 20-km radius from the processing plant Ivory Coast Ghana Togo Benin M O V I N G F O R W A R D 5

6 MANA 2013 guidance: 153, ,000 oz at a total cash cost of $805-$855/oz Open-pit operation inaugurated in mid-2008 M O V I N G F O R W A R D 6

7 MANA: EXPLORATION SUCCESS MANA: EXPLORATION SUCCESS Discoveries 2010: Fofina, Fobiri 2011: Yaho 2012: Siou RESERVES & RESOURCES (Moz) (As at December 31) RESERVES (P&P) g/t Au 2, , , , Moz 10% 32% Fofina g/t Au 237,700 oz 2, , , , , , , , , , June 30, 2013 FOCUS ON QUALITY OUNCES 55% Siou g/t Au 769,300 oz Wona-Kona g/t Au 1,324,500 oz Reserves $1,300/oz Resources $1,600/oz Reserves $1,100/oz Resources $1,400/oz Reserves: 28% increase* Grade: 20% increase* Inferred Resources Measured & Indicated Resources Proven & Probable Reserves * Compared to December 31, 2012 Note: All mineral resources are exclusive of mineral reserves M O V I N G F O R W A R D 7

8 MANA: PRIORITY FOR GROWTH SIOU AS AT JUNE 30, 2013 Wona-Kona Zone Reserves: 18,832, g/t Au 1,324,500 oz Mana processing plant Fofina Zone Reserves: 2,757, g/t Au 237,700 oz 20-km radius from the plant Siou Sector Reserves: 4,842, g/t Au 769,300 oz Inferred Resources: 3,97 g/t Au 795,300 oz *As at June 30, 2013 Note: All mineral resources are exclusive of mineral reserves M O V I N G F O R W A R D 8

9 SEMAFO S MOST IMPORTANT DISCOVERY SEMAFO S MOST IMPORTANT DISCOVERY SIOU SECTOR P&P reserves: g/t Au (769,300 oz) Inferred resources: g/t Au (795,300 oz) 96% gold recovery (CIL) Reserves to a depth of 180 meters Zone dips 45 to 60 degrees Siou Sector thickness averages between 4 to 4.5 m Open laterally and at depth Located 15 km from Mana processing plant, within trucking distance Minimally affected by variations in the price of gold M O V I N G F O R W A R D 9

10 SIOU SECTOR LONGITUDINAL SECTION VIEW LOOKING WEST Surface Siou Pit Shell (based on June 30, 2013 Reserves) SIOU ZONE Surface Siou Pit Shell (based on June 30, 2013 Reserves) ZONE 9 M O V I N G F O R W A R D 10

11 SIOU SECTOR: RESERVES & RESOURCES AS AT JUNE 30, 2013 Note: All mineral resources are exclusive of mineral reserves M O V I N G F O R W A R D 11

12 MANA: SIOU SECTOR CROSS SECTION MANA: SIOU SECTOR CROSS SECTION Note: All mineral resources are exclusive of mineral reserves M O V I N G F O R W A R D 12

13 MANA: KOKOI Contact Tonalite/Granodiorite Mafic Volcanics Andesite Wackes Mineralized Zone Undifferentiated Sediments Taoudenni Sediments M O V I N G F O R W A R D 13

14 DEVELOPMENT SCHEDULE OF HIGH-GRADE SIOU SECTOR DEVELOPMENT SCHEDULE OF HIGH-GRADE SIOU SECTOR Completion of delineation drilling Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Reserves/resources estimate Permitting process (EIA filed) Road construction to Mana processing plant ( 15 km) Pre-stripping activities Production Estimated time to bring Siou from discovery to production: less thant 2 years Completed Scheduled M O V I N G F O R W A R D 14

15 MANA S LIFE OF MINE PRODUCTION SIMULATION (1) COMBINING WONA-KONA, SIOU AND FOFINA PITS Year 1 Year 2 Year 3 Total LOM 1-10 years Ore processed (Kt) 2,519 2,485 2,547 26,830 Head grade (g/t) Recovery (%) Total gold ounces recovered (K) ,056 Total operating cost/tonne ($) Total cash cost/ounce (2) ($) Pre-stripping costs (M$) Sustaining CAPEX (M$) All-in-sustaining cost/ounce (3) ($) 1, (1) Excerpt from the National Intrument technical report. (2) Total cash cost per ounce is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold. (3) All-in sustaining cost is a non-ifrs financial performance measure with no standard definition under IFRS and represents the total cash cost, plus sustainable capital expenditures and pre-stripping costs per ounce. M O V I N G F O R W A R D 15

16 SIOU: MINE SIMULATION (1) Year 1 Year 2 Year 3 Waste (Kt) 2,766 11,942 14,250 Pre-stripping waste (Kt) 2,925 9,416 3,411 Ore processed (Kt) Head grade (g/t) Gold recovery (%) Gold recovered (oz) 27, , ,774 Cash operating cost/tonne (2) ($) Total cash cost/ounce (3) ($) Pre-stripping cost (K$) 3,752 14,804 4,424 (1) Excerpt from the National Intrument technical report. (2) Cash operating cost per tonne is a non-ifrs financial performance measure with no standard definition under IFRS and is calculated using tonnes processed. (3) Total cash cost per ounce is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold. LOM strip ratio: 1:18.8 Use of local contractors for transportation of the ore to the Mana processing plant over 15 km. M O V I N G F O R W A R D 16

17 LIFE OF MINE SIMULATION (1) COMBINING WONA-KONA, SIOU AND FOFINA PITS 2.1Moz Recovered All-in sustaining cost/oz $1,025 Total cash cost/oz $ Koz Recovered 249Koz Recovered $ Koz (2) Recovered $580 $765 $621 All-in sustaining cost/oz Total cash cost/oz $490 $476 Year 1 Year 2 Year 3 Total LOM Mana consolidated 1-10 years All-in sustaining cost (3) ($/oz) Total cash cost (4) ($/oz) Gold recovered: Wona-Kona, Siou and Fofina pits (oz) (1) Excerpt from the National Intrument technical report. (2) Production at Fofina expected to commence in year 3. (3) All-in sustaining cost is a non-ifrs financial performance measure with no standard definition under IFRS and represents the total cash cost, plus sustainable capital expenditures and pre-stripping costs per ounce. (4) Total cash cost per ounce is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold. M O V I N G F O R W A R D 17

18 OPERATING ON A SOLID FOUNDATION M O V I N G F O R W A R D 18

19 MANA: MINING OPERATIONS Mining Operations Q months 2013 Ore mined (tonnes) 618,500 2,034,800 Ore processed (tonnes) 714,400 2,138,400 Head grade (g/t) Recovery (%) Gold ounces produced 38, ,900 Total cash cost per ounce sold (1) ($) Cash operating cost per tonne processed (2) ($) production guidance: 153, ,000 oz at a total cash cost (1) of $805 $855 per ounce 2013 Estimated CAPEX (in millions of $) Stripping Costs 49.5 Sustaining Capital 2013 and 2012 Deferred 13.4 Growth Capital 2013 and 2012 Deferred 20.3 TOTAL 83.2 (1) Total cash cost per ounce is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold. (2) Cash operating cost per tonne is a non-ifrs financial performance measure with no standard definition under IFRS and is calculated using tonnes processed. M O V I N G F O R W A R D 19

20 MANA MANA (1) (2) (1) Total cash cost per ounce is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold. (2) Cash operating cost per tonne is a non-ifrs financial performance measure with no standard definition under IFRS and is calculated using tonnes processed. M O V I N G F O R W A R D 20

21 SEMAFO S STRATEGY IN A WEAK GOLD PRICE ENVIRONMENT Continue to pursue successful cost control and optimization programs Reduced our G&A trimmed corporate office headcount by 19% since the beginning of 2013 Lowered cash operating cost per ounce produced by 4% in the first nine months of 2013 compared to the same period in 2012 No longer invest in non-core assets both are for sale Samira Hill operations have been placed in care and maintenance in August 2013 Kiniero Mine will be placed in care and maintenance in Q Restrict funding to exploration projects with a focus on quality ounces Focus on maintaining financial flexibility Solid financial position debt-free, cash of $83.6M (as at September 30, 2013) Siou minimally affected by gold price variations Receipt of authorization to begin development at Siou for anticipated production in Q Siou capital expenditures halved to $12.5M from the $25.0M initial budget M O V I N G F O R W A R D 21

22 IN SUMMARY Committed to creating value by generating future cash flow Disciplined exploration program focused on the 20-km radius from the Mana processing plant Highly prospective Mana property 2,119 km 2 Solid balance sheet $83.6M in cash (as at September 30, 2013) Debt-free Successful track record Five consecutive years of achieving guidance Estimated time to bring Siou from discovery to production: less than 2 years Significant cost containment and optimization in 2013 YTD, and ongoing M O V I N G F O R W A R D 22

23 COMPANY PROFILE TSX, OMX: SMF Average Daily Trading Volume (1) 3.8M Close C$2.75* Market Cap C$0.7B* Cash (As at September 30, 2013) $83.6M No Debt *As at November 28, 2013 O/S 274M SHARES Geographic Distribution of Shares (2) (1) Three-month moving average as at November 25, 2013 TSX (2) Estimated - CDS (Canadian Clearing and Depository Services), Computershare, Euroclear M O V I N G F O R W A R D 23

24 APPENDICES M O V I N G F O R W A R D 24

25 Excerpt from the National Intrument technical report. M O V I N G F O R W A R D 25

26 All mineral resources are exclusive of mineral reserves. M O V I N G F O R W A R D 26

27 MANA: WONA-KONA SUPER PIT MANA: WONA-KONA PIT Dimensions: 5 km x 0.5 km x 300 m deep 18.8 million 2.19 g/t Au (non-refractory) M O V I N G F O R W A R D 27

28 RESULTS CONTINUING OPERATIONS (in thousands of $) Q MONTHS 2013 Revenues gold sales 49, ,847 Mining operating expenses 1 27,130 79,134 Government royalties 2,355 8,781 Depreciation and other 19,605 47,212 Operating income ,720 Impairment of investment in GoviEx 19,600 Income tax expense (recovery) (1,152) 8,517 Net income from continuing operations 2 1,660 7,798 - per share Cash flow from operating activities from continuing operations 15,575 61,365 - per share (1) Excluding government royalties (2) Attributable to equity shareholders M O V I N G F O R W A R D 28

29 RESPONSIBLE MINING CSR SEMAFO remains committed to making significant contributions to improving the quality of life in the communities in which we operate. Fondation SEMAFO focuses primarily on developing education, health and revenuegenerating programs and projects. SEMAFO pledges to contribute up to 2% of its net income to support Fondation SEMAFO. Together for a Better Society A national radio campaign in Burkina Faso aimed at raising awareness and providing information to favor development M O V I N G F O R W A R D 29

30 CONTACT Robert LaVallière Vice-President, Investor Relations Tel: ext Cell: M O V I N G F O R W A R D 30