TORONTO September 4-5, 2014

Transcription

1 TORONTO September 4-5, 2014

2 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 anticipated, expected, growth, strategy, generate, future, create, builds, continue, expand, guidance, objective, focus, priority, short-term catalysts 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 fund exploration and obtain drill results for the Bilakongo, Tigan, Kana permits and the permits on the Banfora Gold Belt in the fourth quarter, the ability to execute on our strategy, the ability of our shortterm catalysts to materialize, the ability to generate future cash flow, the ability to attain the upper end of our production guidance of between 200,000 and 225,000 ounces of gold and the lower end of our 2014 total cash cost guidance of between $695 and $745 per ounce, and an all-in sustaining cost of between $840 and $890 per ounce and G&A of $16 million in 2014, the ability to continue to expand our project pipeline, the ability to incur $30.6 million of sustaining capital expenditures and $17.9 million of growth capital expenditures, the ability of the infill drilling program to replace and increase the reserves base at Siou, the ability to optimize and improve efficiencies throughout the Corporation, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to the 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 2013 Annual MD&A as updated in our 2014 First and Second 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 September 3, 2014 and we disclaim any obligation to update or revise these forwardlooking statements, except as required by applicable law. This text is warranted only for presentations in the US. 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. All mineral resources are exclusive of mineral reserves. In this presentation, all amounts are in US dollars unless otherwise indicated. 2

3 INVESTMENT SUMMARY An established gold producer in West Africa Burkina Faso: owner and operator of the Mana Mine 2014 production guidance of between 200,000 and 225,000 ounces of gold 2014 total cash guidance of between $695 and $745 per ounce Record Q2, 2014 production of 72,700 ounces at a total cash cost of $602 per ounce Lower cost production growth from newly ramped-up, high-grade Siou and Fofina deposits Growth pipeline Siou: reserves extension Siou intrusive Mana property²: 3,315 km² Banfora Gold Belt²: 1,351 km² Strong balance sheet $93M in cash and no debt (as at June 30, 2014) $38M in cash flow from operating activities in Q Total cash cost per ounce is a non-irfs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties sold. ² Area includes permitted land and farm-in agreements. 3

4 BURKINA FASO A FAST-GROWING MINING POWERHOUSE Seven new gold mines since 2007 and ~15 exploration/development companies Gold is Burkina Faso s first export product, accounting for 20% of GDP National production of 35 tonnes of gold projected for 2014, up 9% from 2013 Corporate tax rate of 17.5% 3%-5% sliding royalty on gold produced Ranked 3rd Africa for the jurisdiction with most favorable policies towards mining by The Fraser Institute of Canada* Democratic and stable government Houndé Belt Banfora Belt Presidential election in November 2015 SEMAFO - a first mover in the mining sector in 1995 * 2013/2014 Annual Survey of Mining Companies 4

5 SEMAFO S EXTENSIVE LAND PACKAGE Permitted land and farm-in agreements: 3,315 km² Mali Niger Farm-in agreements on 13 permits: 1,351 km² Benin Ghana Togo Power line 5

6 PRIORITY FOR GROWTH - SIOU 6

7 MANA: EXPLORATION SUCCESS Discoveries 2010: Fofina, Fobiri 2011: Yaho 2012: Siou RESERVES & RESOURCES (Moz) (As at December 31) RESERVES (P&P) g/t Au Moz 11% 34% Fofina g/t Au 237,700 oz % Siou g/t Au 769,300 oz FOCUS ON QUALITY OUNCES Wona-Kona g/t Au ,239,900 oz Reserves $1,300/oz Resources $1,600/oz Reserves $1,100/oz Resources $1,400/oz Reserves: 24% increase* Grade: 22% increase* Inferred Resources Measured & Indicated Resources Proven & Probable Reserves * Compared to December 31, 2012 Note: All mineral resources are exclusive of mineral reserves 7

8 STRATEGY: GENERATE FUTURE CASH FLOW 8

9 DISCIPLINED EXPLORATION BUILDS FUTURE CASH FLOW AUGUST 2012 Discovery of Siou, 15 kilometers from Mana Q Siou generating free cash flow 18 months later 9

10 RUNDOWN OF STRATEGY Continue to grow Mana through disciplined and intensive exploration programs Budget of $20M, mainly focusing on vicinity of Mana Continue to expand our project pipeline Quality ounces approach Mana reserves calculated at a gold price of $1,100/oz Maximising throughput from high-grade Siou (4.94 g/t) and Fofina (2.68 g/t) open-pit deposits Cost control and optimization program G&A guidance of ~$16M for 2014, 18% from $19.6M in 2013 (and 28% from 2012) Recently divested two non-core assets Solid operational performance Met production guidance for six consecutive years 10

11 K oz. Au $/oz. Au STRONG GUIDANCE FOR 2014 We expect to attain the upper end of our 2014 production guidance of between 200, ,000 ounces and the lower end of our 2014 total cash cost guidance of between $695 and $745 per ounce Production and Total Cash Costs ,8 172,7 158,6 H Experienced 40 Team Committed 20 to Delivering Results 0 H Guidance Production '000 oz Total cash costs per ounce ($) 11

12 MAINTAINING A SOLID EXPLORATION PROGRAM 2014 exploration budget $20M Siou intrusive area: $14.0M Siou infill program: $4.5M Banfora Gold Belt: $1.5M $45 $40 Exploration Investment (in $M) in Burkina Faso $39 $40 Siou reserves focus Extend reserves between 180m-225m at depth in the resources pit shell $35 $30 $25 $20 $22 $20 $15 Siou intrusive area focus RC drilling on Siou Sector, Pompoi, and Pompoi Nord $10 $5 $ E Yaho Siou 75% for discovery discovery Infill for Siou reserves 12

13 SIOU OBJECTIVE: INCREASE RESERVES BY YEAR-END In 2014, 24,000 meters of infill drilling are planned, focusing on meters ($4.5M). Initial infill drilling results are in line with expectations. 13

14 ONGOING INFILL DRILLING PROGRAM FOCUSING ON METERS 14

15 MANA: EXPLORATION FOCUS 2014 exploration budget: $18.5M 15

16 EXPLORATION PRIORITY: SIOU INTRUSIVE AREA The balance of the exploration budget ($14M) has been allocated as follows: 103,000m of RC drilling 290,000m of auger drilling 8,400 soil samples Currently, four diamond drills and two RC drills are active in the area 16

17 FARM-IN AGREEMENT OVER THREE PERMITS Three permits totalling 293 km 2, located northeast of Mana Bilakongo, Tigan and Kana permits Auger drilling program to resume after rainy season Results should be forthcoming in Q

18 FARM-IN AGREEMENTS OVER THIRTEEN PERMITS Thirteen permits totalling 1,351 km 2, located on the Banfora Gold Belt Four auger drills are on site on the southern and northern portions of the Banfora Project permits Results should be forthcoming in Q

19 OPERATING ON A SOLID FOUNDATION 19

20 Q OPERATIONS HIGHLIGHTS Q Q % change H GUIDANCE Ore processed (t) 723, ,100 2% 1,365,900 2,495,000 Head grade (g/t) ,00 69% Recovery (%) % Total gold ounces produced (K) Total cash operating cost/tonne processed($) Total cash cost/ounce sold (1) ($) ,5 75% % % Achieved full mining rates at Siou and Fofina in the second quarter (1) Total cash cost 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. 20

21 2014 ESTIMATED CAPEX AND PRODUCTION GUIDANCE 2014 production guidance: upper end of 200, ,000 ounces Total cash cost (1) : lower end of between $695 $745 per ounce All-in sustaining cost (2) : $840 $890 per ounce Estimated CAPEX (in millions of $) 2014 Guidance Sustaining Capital 18.5 Stripping Costs 12.1 Total Sustaining Capital Expenditures 30.6 Siou Development* 12.4 Fofina Development* 5.5 Total Growth Capital Expenditures 17.9 (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) 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 prestripping costs per ounce. * Includes initial pre-stripping. 21

22 SHORT-TERM CATALYSTS Optimised throughput from Siou and Fofina Focused exploration efforts in the vicinity of the Mana Mine Extending Siou reserves at depth RC drilling on Siou Sector, Pompoi and Pompoi Nord With the objective of finding quality ounces Connection to the grid in Q Targeted exploration on the Banfora Gold Belt permits 22

23 IN SUMMARY Committed to generating future cash flow through operational efficiency and disciplined exploration Ongoing operations optimisation programs Targeted exploration program focused on the vicinity of the Mana processing plant Sound balance sheet $93M in cash (as at June 30, 2014), no debt $38M in cash flow from operating activities in Q Successful track record Six consecutive years of achieving production guidance Time to bring Siou from discovery to production: 18 months Exploration success: Mana reserves and resources have more than doubled since the mine start-up in

24 RESPONSIBLE MINING - CSR PROGRAM 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. Fondation SEMAFO is a benchmark for other mining companies in Burkina Faso Together for a Better Society A national radio campaign in Burkina Faso aimed at raising awareness and providing information to favor development 24

25 SMF: HIGH LIQUIDITY AND BROAD COVERAGE TSX, OMX: SMF Average Daily Trading Volume (1) 2.9M Coverage 16 analysts* Close C$4.85* Market Cap C$1.3B* Cash (As at June 30, 2014) $93M No Debt *As at September 2, 2014 O/S 277M SHARES Geographic Distribution of Shares (2) Top 5 Shareholders Fund Ownership Position in % In M. shares 1 Van Eck 15,5 42,8 2 Sentry Investments 8,4 23,1 3 USAA 3,6 9,8 4 Caisse de Dépôt 3,2 9,0 5 Tocqueville 3,1 8,6 As of Q2, ,8 93,3 CONTACT Robert LaVallière Vice-President, Corporate Affairs and Investor Relations Tel: ext Cell: Robert.LaValliere@semafo.com (1) Three-month moving average as at September 2, 2014 TSX (2) Estimated - CDS (Canadian Clearing and Depository Services), Computershare, Euroclear 25

26 APPENDICES 26

27 Mana, Burkina Faso 1, 2, 4 1 The Corporation indirectly owns 90% of SEMAFO Burkina, which directly holds the interest in the Mana Mine reserves and resources. 2 Mineral reserves and resources were estimated using a gold price of $1,100 and $1,400 per ounce respectively. 3 Rounding of numbers to the nearest hundreds of tonnes may present slight differences in the figures representing the ounces contained. 4 All mineral resources reported are exclusive of mineral reserves. 27

28 * *Excerpt from the National Instrument technical report. 28

29 Press Release August 7,

30 Press Release August 7, 2014 (cont d) 30

31 Press Release August 7, 2014 (cont d) 31

32 Press Release August 7, 2014 (cont d) 32

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