UNEARTHING THE FUTURE. THE 28 TH ANNUAL GOLD FORUM The Broadmoor, Colorado Springs, Colorado September 2017

Transcription

1 UNEARTHING THE FUTURE THE 28 TH ANNUAL GOLD FORUM The Broadmoor, Colorado Springs, Colorado September 2017

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 growth, strategy, targeted, "expected", "guidance", during the first three years, projected, payback period, "continues", "on time and on budget", aiming, highest ever, next step, potential, targets, promising 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 execute our growth strategy, the ability to begin production at Boungou in Q3 2018, the ability to produce 52,000 oz in Q3 2017, the ability to mine Zone 9 as planned through December 2017, the ability to reach the upper end of our 2017 production guidance of between 190,000 and 205,000 ounces of gold at a total cash cost of between $685 and $715 per ounce and all-in sustaining cost of between $920 and $960 per ounce, the ability to meet the various highlights of the positive feasibility study of Boungou, including with respect to the (i) project economics at $1,100/oz, (ii) anticipated average annual production, total cash cost, AISC and head grade during the first three years, (iii) ability to produce some 1.2 million ounces over a projected LOM in excess of 7 years, and (iv) projected LOM total cash cost and AISC, the ability to complete the construction of Boungou on time and on budget, the ability to meet our expected consolidated production in 2018 and 2019, the ability to convert inferred resources in the West and East Boungou flanks to indicated resources, the ability to execute our 2017 Mana exploration strategy, the ability to complete a Mana PFS in Q1 2018, the ability to develop an underground at Siou, the accuracy of our assumptions, fluctuation in the price of currencies, gold prices and 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 2016 Annual MD&A, as updated in SEMAFO s 2017 First Quarter MD&A, 2017 Second Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at These documents are also available on our website at SEMAFO disclaims 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. All mineral resources are exclusive of mineral reserves. All amounts are in US dollars unless otherwise indicated. 2 Unearthing the future

3 Unearthing the future 3 OUR ASSETS STRONG IN-HOUSE TECHNICAL TEAM TRACK RECORD OF OPERATING SUCCESS IN WEST AFRICA HIGH-GRADE DEPOSITS FINANCIAL STRENGTH LARGE EXPLORATION PACKAGE DISCIPLINED GROWTH STRATEGY RESPECTED CSR PROGRAMS

4 LONG-STANDING PRESENCE IN WEST AFRICA Commissioned 3 mines in West Africa over 20 YEARS 5,000 km 2 in Burkina Faso over three prospective belts BOUNGOU Construction under way Targeted Production Q Niger MANA MINE in Burkina Faso Mana Ouagadougou (Capital) BOUNGOU NABANGA BANFORA BANTOU Ghana Benin KORHOGO Togo Côte d Ivoire Unearthing the future 4

5 EXPLORATION AND ACQUISITION SUCCESS Exploration at Mana Acquisition of Boungou Discovery of West Flank Proven and Probable Reserves Measured and Indicated Resources Inferred Resources % Others 126,000 oz 23% Siou g/t Au 689,000 oz 30% Wona g/t Au 913,000 oz 42% Boungou g/t Au 1,276,000 oz * All mineral resources are exclusive of mineral reserves. - Reserves estimate using a gold price of $1,100/oz - Resources estimate using a gold price of $1,400/oz Unearthing the future 5

6 MANA PRODUCTION AND COST PROFILE 52,000 oz expected in Q to reach the upper end of guidance GUIDANCE 2017 H Total gold ounces produced (K) Total cash cost /ounce sold 1 ($) All-in sustaining cost /ounce 2 ($) 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. 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 stripping costs per ounce. 6

7 UPPER PORTION OF SIOU S ZONE 9 CHALLENGING Caused by: Geological interpretation issues Complex geometry Junction of 3 different zones Action plan: We changed grade control method to RC drilling We drilled 200 holes over 7,500 meters to a vertical depth of 30 meters over a grid of 12.5 meters by 6.25 meters over 500 meters on strike of mineralization Thus covering what is to be mined from May through December 2017 on Zone 9 7

8 ZONE 9 BACK ON TRACK Grade control drilling on the test zone resulted in: 668,000 tonnes at 4.52 g/t for 97,000 oz compared to reserves of 633,500 tonnes at 4.82 g/t for 98,100 oz As expected, the zone is simpler and more rectilinear at depth Ore mined between May and August is in line with reserves Q3 production includes 240,000 tonnes at 5 g/t from Zone 9 Unearthing the future 8

9 NEAR -TERM GROWTH: BOUNGOU 9

10 BOUNGOU: A HIGH QUALITY PROJECT A $155M ACQUISITION IN 2015 FROM SCOPING STUDY TO PRODUCTION IN THREE YEARS Feasibility study at $1,100/oz: CAPEX $231M After-tax NPV 5%: $262 million After-tax IRR: 48% Payback period: 1.5 years During the first three years Average annual production of more than 226,000 ounces Average total cash cost of $283/oz and AISC of $374/oz Average head grade 5.72 g/t at a gold recovery rate of 93.8% Production of some 1.2 million ounces over a projected LOM in excess of 7 years Projected LOM total cash cost of $408/oz and AISC of $518/oz Maiden open pit mineral reserves of 9.6 million tonnes at a grade of 4.15 g/t Au for 1,276,000 ounces of gold Unearthing the future 10

11 ROBUST PROJECT ECONOMICS GOLD PRICE SENSITIVITY ANALYSIS Base Case Gold Price ($/oz) $1,100 $1,200 $1,300 After-tax NPV 5% ($M) $262 $334 $400 After-tax IRR (%) Payback period (years)

12 CONSTRUCTION CONTINUES ON TIME AND ON BUDGET 51% complete $94M out of $231M spent All major long-lead items on site On time for first gold pour in Q ,900 workers on site 2.1 M man-hours without lost time injury Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 % complete Mining Permit Award 100% Detailed Engineering 100% Earthworks 41% Accommodation Construction Water Storage Facility & Dams Process Plant Tailing Storage Facility Milling Feed Preparation 88% 71% 12% 17% 23% Leaching & CIP Circuit Gold Room Plant Services Power Plant Fuel Depot 70% 0% 22% 55% 30% Pre-Stripping 24% Mining Ore 0% 1 st Gold Pour *Schedule milestones as at August 31, 2017 The water storage facility is already functional 0% Unearthing the future 12

13 PROCESS PLANT PROGRESS AS AT AUGUST 31, 2017 Surge Bin Vertimill SAG mill Crusher ROM Pad Leach Tanks 14 13

14 Water Storage Facility holds currently 500k m 3 water Pre-stripping Boungou Pit: 3.7 Mt moved Installation of Vertimill Delivery of SAG Mill 14

15 BOUNGOU: NEXT STEP FOR GROWTH AIMING FOR HIGHEST CONSOLIDATED PRODUCTION EVER Mana oz (E) 2019(E) Guidance Target 15

16 CREATING VALUE THROUGH EXPLORATION Boungou $15M Initial exploration budget of $23M Mana $5M Other properties $3M H1 2017: $14M Mostly in-fill drilling to complete studies on Siou and Boungou H2 2017: $9M Regional exploration programs 16

17 NEAR-TERM UPSIDE AT BOUNGOU WEST AND EAST FLANKS EAST FLANK WEST FLANK Discovery of West and East Flanks in 2016 Our objectives: To convert inferred to indicated resources To complete a PFS in Q To improve production and economics as of year 4 Unearthing the future 17

18 NEXT STEP IN OUR GROWTH STORY REGIONAL EXPLORATION AT BOUNGOU Pambourou Nord 1,500m Dangou Nord 2,000m Boungou 4,000m Scheduled RC drilling 15,000m in H Porphyre 3,000m Pambourou 3,000m Boungou Mine Bossoari 1,600m Unearthing the future 18

19 2017 MANA EXPLORATION STRATEGY 2017 budget of $5M Siou To expand resources To convert inferred into indicated resources To evaluate the underground potential Regional exploration To find satellite deposits within trucking distance of the mine Yama Unearthing the future 19

20 SIOU UNDERGROUND POTENTIAL 2,565, g/t for 197,900 ounces Au 5,834, g/t for 693,200 ounces Au From To Length Au cut (40 g/t Au) 1 MMP MMP MMP WDC WDC WDC WDC WDC WDC WDC Unearthing the future 20 20

21 RC DRILL TARGETS IN H FOLLOW-UP OF PROSPECTIVE AUGER RESULTS Scheduled RC 20,000m Bara 8,000m Mouni 1,800m Fobiri Sud 1,200m Wona SO 2,000m Datomo 2,000m Kokoi 1,500m Pompoi 2,000m Unearthing the future 21

22 OTHER PROSPECTIVE PROPERTIES Korhogo - Côte d Ivoire Trenching program completed RC drilling program of 6,000 m on best targets Kongolokoro Sector Four exploration permits on the Houndé Belt Drilling program completed Evaluation underway Nabanga - Inferred resources of g/t Au for 590,000 ounces Next step: investigate the mineralized structure at depth Niger MANA MINE in Burkina Faso Mana Ouagadougou (Capital) BOUNGOU NABANGA BANFORA BANTOU Ghana Benin KORHOGO Togo Côte d Ivoire Unearthing the future 22

23 KORHOGO: PROMISING GOLD ANOMALIES IN CÔTE D IVOIRE Permit located south of Tongon Mine H1 2017: 11 trenches completed 7 returned anomalous gold values H Ongoing RC program on Chigata Zone Significant gold values obtained Unearthing the future 23

24 FINANCIAL FLEXIBILITY Cash as at June 30, $304M Credit facility (LIBOR +4.75%) of $120M as at June 30, 2017 Unearthing the future 24

25 SOCIAL INVESTMENT AT THE HEART OF OUR VALUE CREATION Strong Safety Record Accident frequency rate of 1.85 per 200,000 HOURS worked as of December 31, 2016 National Workforce Development Program Training of promising national employees for management or trainer positions Training 5,270 HOURS of training were dispensed in 2016 to our Burkinabe employees C$5.5M SEMAFO Foundation Seven years of activities generated revenues of to the benefit of communities 25