This is information that
The information was submitted for publication, through the agency of the contact person set out below,
at
Highlights
The following 2020 highlights include a 4-week suspension of operations at the
· Signing of definitive agreement with
· Consolidated gold production of 81,900 ounces
· Gold sales of
· All-in sustaining cost1 of
· Operating income of
· Net income attributable to shareholders of the Corporation of
· Adjusted net income attributable to shareholders of the Corporation1 of
· Cash flow from operating activities before changes in non-cash working capital1 of
· Full production rate of 2,000 tpd reached at Siou underground (UG)
·
(1) All-in sustaining cost, adjusted net income attributable to shareholders of the Corporation and per share, cash flow from operating activities before changes in non-cash working capital and per share are non-IFRS financial performance measures with no standard definition under IFRS. See the "Non-IFRS Financial Performance Measures" section of the 2020 First Quarter MD&A, note 18.
Consolidated Results and Mining Operations
Three
-month
period
ended
2020 2019 Variation
Gold ounces 81,900 102,400 (20 %)
produced
Gold ounces sold 76,800 106,100 (28 %)
(in thousands of
dollars, except
amounts
per ounce and per
share)
Revenues - Gold 123,211 138,541 (11 %)
sales
Operating income 33,217 40,359 (18 %)
Net income 14,066 17,666 (20 %)
attributable to
shareholders
of the Corporation
Basic earnings 0.04 0.05 (20 %)
per share
Diluted earnings 0.04 0.05 (20 %)
per share
Adjusted net income 20,793 22,632 (8 )%
attributable to
shareholders of the
Corporation(1)
Per share(1) 0.06 0.07 (14 )%
Cash flow from 59,985 78,980 (24 %)
operating
activities
before changes in
non-cash working
capital(1)
Per share(1) 0.18 0.24 (25 %)
Average realized 1,604 1,306 23 %
selling price (per
ounce)
Total cash cost 661 484 37 %
(per ounce
sold)(1)
All-in sustaining 888 745 19 %
cost (per ounce
sold)(1)
Consolidated Operational Overview
Financial results for Boungou and Mana are provided at the end of this press release. In early
The year-over-year decrease in gold sales and gold ounces produced and sold is mainly due to the four-week suspension of operations at the
The decrease in cash flow from operating activities before changes in non-cash working capital1in the first quarter of 2020 compared to the same period in 2019 mainly reflects the four-week suspension of operations at the
(1) Adjusted net income attributable to shareholders of the Corporation, adjusted basic earnings per share, 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 2020 First Quarter MD&A, note 18.
Update on COVID-19
Over the past months,
In parallel, the Corporation instigated early preventive measures to mitigate impact on the supply chain. These include increasing stock levels from suppliers from certain regions and stock levels of key supplies in addition to alternate sourcing of key spare parts and reagents.
Endeavour Transaction Update
As previously announced by the Corporation, in connection with the transaction with Endeavour, a Special Meeting of
In addition,
Finally, in response to the COVID-19 pandemic, the Corporation intends to rely on the exemption provided by AMF Decision No. 2020-PDG-0034 (the "Blanket Relief Order") from the requirement to file its executive compensation disclosure within 140 days following the end of its most recently completed financial year. The Corporation will file its executive compensation disclosure in due course in accordance with the requirements set forth in the Blanket Relief Order, and will hold its annual general meeting of shareholders at the appropriate time.
Delisting from Nasdaq Stockholm
In conjunction with the anticipated closing of the
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 "expected", "pending", "continues", "will", "seek", "committed", "building", "leveraging", "pipeline" 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 complete the transaction with
Interim Consolidated Statements of Financial Position
(Expressed in thousands of US dollars - unaudited)
As at As at
2020 2019
$ $
Assets
Current assets
Cash and cash 96,681 98,297
equivalents
Trade and other 39,684 44,645
receivables
Income tax receivable 1,545 4,434
Inventories 99,900 98,072
Other current assets 5,073 5,380
242,883 250,828
Non-current assets
Advance receivable 1,227 1,421
Restricted cash 9,736 9,964
Property, plant and 828,114 843,123
equipment
Intangible asset 1,034 1,079
Other non-current 1,532 3,698
financial assets
841,643 859,285
Total assets 1,084,526 1,110,113
Liabilities
Current liabilities
Trade payables and 51,720 67,819
accrued liabilities
Debt 29,565 59,275
Current portion of 12,125 13,073
lease liabilities
Current portion of 4,036 3,269
share unit plan
liabilities
Provisions 2,788 2,843
100,234 146,279
Non-current
liabilities
Lease liabilities 14,276 15,244
Share unit plan 1,882 2,755
liabilities
Provisions 26,111 25,617
Deferred income tax 79,786 72,478
liabilities
122,055 116,094
Total liabilities 222,289 262,373
Equity
Shareholders of the
Corporation
Share capital 647,251 647,251
Contributed surplus 6,105 6,105
Accumulated other (19,517 ) (17,351 )
comprehensive loss
Retained earnings 176,193 162,127
810,032 798,132
Non-controlling 52,205 49,608
interests
Total equity 862,237 847,740
Total liabilities and 1,084,526 1,110,113
equity
Interim Consolidated Statements of Income
For the three-month ending
(Expressed in thousands of US dollars, except per share amounts - unaudited)
Three-month period
ended
2020 2019
$ $
Revenue - Gold sales 123,211 138,541
Costs of operations
Mining operation expenses 52,165 51,405
Depreciation of property, plant and equipment 31,532 39,628
General and administrative 4,461 3,960
Corporate social responsibility expenses 262 357
Share-based compensation 1,574 2,832
Operating income 33,217 40,359
Other expenses (income)
Finance income (452 ) (548 )
Finance costs 2,796 3,556
Foreign exchange loss 588 496
Transaction costs 1,578 -
Income before income taxes 28,707 36,855
Income tax expense
Current 3,341 734
Deferred 8,703 14,999
12,044 15,733
Net income for the period 16,663 21,122
Attributable to:
Shareholders of the Corporation 14,066 17,666
Non-controlling interests 2,597 3,456
16,663 21,122
Earnings per share
Basic 0.04 0.05
Diluted 0.04 0.05
Interim Consolidated Statements of Cash Flows
For the three-month period ended
(Expressed in thousands of US dollars - unaudited)
Three-month period
ended
2020 2019
$ $
Cash flows from (used in):
Operating activities
Net income for the period 16,663 21,122
Adjustments for:
Depreciation of property, plant and 31,532 39,628
equipment
Share-based compensation 1,574 2,832
Amortization of deferred financing 290 -
costs
Unrealized foreign exchange loss 839 116
Deferred income tax expense 8,703 14,999
Other 384 283
Cash flow from operating activities 59,985 78,980
before changes in non-cash working
capital
Changes in non-cash working capital 874 (15,736 )
items
Net cash provided by operating 60,859 63,244
activities
Financing activities
Repayment of debt (30,000 ) (15,000 )
Repayment of equipment financing - (77 )
Payments of lease liabilities (3,532 ) (2,125 )
Proceeds on issuance of share capital, - 430
net of expenses
Net cash used in financing activities (33,532 ) (16,772 )
Investing activities
Acquisition of property, plant and (26,810 ) (43,179 )
equipment
Net cash used in investing activities (26,810 ) (43,179 )
Effect of exchange rate changes on cash (2,133 ) (827 )
and cash equivalents
Change in cash and cash equivalents (1,616 ) 2,466
during the period
Cash and cash equivalents - Beginning 98,297 96,519
of period
Cash and cash equivalents - End of 96,681 98,985
period
Interest paid 1,500 2,775
Interest received 452 548
Income tax paid 275 851
Boungou, Burkina Faso
Mining Operations
Three-month period
ended
2020 2019 Variation
Operating Data
Mining
Waste mined (tonnes) - 2,106,000 (100 %)
Ore tonnes mined - 280,000 (100 %)
Operational stripping ratio - 7.5 (100 %)
Capitalized Stripping Activity
Waste material - Boungou - 5,044,600 (100 %)
(tonnes)
Total strip ratio - 25.5 (100 %)
Processing
Tonnes processed (tonnes) 199,800 308,700 (35 %)
Head grade (g/t) 5.29 6.50 (19 %)
Recovery (%) 94 96 (2 %)
Gold ounces produced 32,000 61,900 (48 %)
Gold ounces sold 25,000 64,700 (61 %)
Financial Data (in thousands of
dollars)
Revenues - Gold sales 40,793 84,492 (52 %)
Mining operation expenses 12,247 17,070 (28 %)
Government royalties and 2,385 4,724 (50 %)
development taxes
Depreciation of property, plant 10,624 24,948 (57 %)
and equipment
General and administrative 425 217 96 %
Corporate social responsibility 8 82 (90 %)
expenses
Segment operating income 15,104 37,451 (60 %)
Statistics (in dollars)
Average realized selling price 1,629 1,306 25 %
(per ounce)
Cash operating cost (per tonne 68 53 28 %
processed)¹
Cash operating cost including 68 88 (23 %)
stripping (per tonne
processed)¹
Total cash cost (per ounce 530 337 57 %
sold)¹
All-in sustaining cost (per 550 534 3 %
ounce sold)¹
Depreciation (per ounce sold)² 425 386 10 %
(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 2020 First Quarter MD&A, note 18.
(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
2020 2019 Variation
Operating Data
Mining - Open pit
Waste mined (tonnes) 1,771,500 2,766,300 (36 %)
Ore tonnes mined 211,200 408,100 (48 %)
Operational 8.4 6.8 24 %
stripping ratio
Capitalized
Stripping Activity
Waste material - 117,600 2,405,900 (95 %)
Siou (tonnes)
Waste material - 2,486,700 1,825,000 36 %
Wona (tonnes)
2,604,300 4,230,900 (38 %)
Total strip ratio 20.7 17.1 21 %
Mining - Underground
(UG)
Ore tonnes mined 163,560 - -
Processing
Ore processed 407,000 427,900 (5 %)
(tonnes)
Low grade material 257,700 212,300 21 %
(tonnes)
Tonnes processed 664,700 640,200 4 %
(tonnes)
Head grade (g/t) 2.49 2.27 10 %
Recovery (%) 94 87 8 %
Gold ounces produced 49,900 40,500 23 %
Gold ounces sold 51,800 41,400 25 %
Financial Data (in
thousands of
dollars)
Revenues - Gold 82,418 54,049 52 %
sales
Mining operations 33,414 27,182 23 %
expenses
Government royalties 4,119 2,429 70 %
Depreciation of 20,768 14,531 43 %
property, plant and
equipment
General and 588 543 8 %
administrative
Corporate social 254 275 (8 %)
responsibility
expenses
Segment operating 23,275 9,089 156 %
income
Statistics (in
dollars)
Average realized 1,592 1,306 22 %
selling price (per
ounce)
Cash operating cost 56 41 37 %
(per tonne
processed)¹
Cash operating cost 79 61 30 %
including stripping
and UG development
(per tonne
processed)¹
Total cash cost (per 725 715 1 %
ounce sold)¹
All-in sustaining 1,052 1,075 (2 %)
cost (per ounce
sold)¹
Depreciation (per 401 351 14 %
ounce sold)²
(1) Cash operating cost, cash operating cost including stripping and UG development, 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 2020 First Quarter MD&A, note 18.
(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.
Interim Consolidated Statements of Financial Position
(Expressed in thousands As at As at
of US dollars -
unaudited)
2020 2019
$ $
Assets
Current assets
Cash and cash 96,681 98,297
equivalents
Trade and other 39,684 44,645
receivables
Income tax receivable 1,545 4,434
Inventories 99,900 98,072
Other current assets 5,073 5,380
242,883 250,828
Non-current assets
Advance receivable 1,227 1,421
Restricted cash 9,736 9,964
Property, plant and 828,114 843,123
equipment
Intangible asset 1,034 1,079
Other non-current 1,532 3,698
financial assets
841,643 859,285
Total assets 1,084,526 1,110,113
Liabilities
Current liabilities
Trade payables and 51,720 67,819
accrued liabilities
Debt 29,565 59,275
Current portion of lease 12,125 13,073
liabilities
Current portion of share 4,036 3,269
unit plan liabilities
Provisions 2,788 2,843
100,234 146,279
Non-current liabilities
Lease liabilities 14,276 15,244
Share unit plan 1,882 2,755
liabilities
Provisions 26,111 25,617
Deferred income tax 79,786 72,478
liabilities
122,055 116,094
Total liabilities 222,289 262,373
Equity
Shareholders of the
Corporation
Share capital 647,251 647,251
Contributed surplus 6,105 6,105
Accumulated other (19,517 ) (17,351 )
comprehensive loss
Retained earnings 176,193 162,127
810,032 798,132
Non-controlling 52,205 49,608
interests
Total equity 862,237 847,740
Total liabilities and 1,084,526 1,110,113
equity
Interim Consolidated Statements of Income
For the three-month ending
(Expressed in thousands of US dollars, except per share amounts - unaudited)
Three-month period
ended
2020 2019
$ $
Revenue - Gold sales 123,211 138,541
Costs of operations
Mining operation expenses 52,165 51,405
Depreciation of property, plant and equipment 31,532 39,628
General and administrative 4,461 3,960
Corporate social responsibility expenses 262 357
Share-based compensation 1,574 2,832
Operating income 33,217 40,359
Other expenses (income)
Finance income (452 ) (548 )
Finance costs 2,796 3,556
Foreign exchange loss 588 496
Transaction costs 1,578 -
Income before income taxes 28,707 36,855
Income tax expense
Current 3,341 734
Deferred 8,703 14,999
12,044 15,733
Net income for the period 16,663 21,122
Attributable to:
Shareholders of the Corporation 14,066 17,666
Non-controlling interests 2,597 3,456
16,663 21,122
Earnings per share
Basic 0.04 0.05
Diluted 0.04 0.05
Interim Consolidated Statements of Cash Flows
For the three-month period ended
(Expressed in thousands of US dollars - unaudited)
Three-month period
ended
2020 2019
$ $
Cash flows from (used in):
Operating activities
Net income for the period 16,663 21,122
Adjustments for:
Depreciation of property, plant and 31,532 39,628
equipment
Share-based compensation 1,574 2,832
Amortization of deferred financing 290 -
costs
Unrealized foreign exchange loss 839 116
Deferred income tax expense 8,703 14,999
Other 384 283
Cash flow from operating activities 59,985 78,980
before changes in non-cash working
capital
Changes in non-cash working capital 874 (15,736 )
items
Net cash provided by operating 60,859 63,244
activities
Financing activities
Repayment of debt (30,000 ) (15,000 )
Repayment of equipment financing - (77 )
Payments of lease liabilities (3,532 ) (2,125 )
Proceeds on issuance of share capital, - 430
net of expenses
Net cash used in financing activities (33,532 ) (16,772 )
Investing activities
Acquisition of property, plant and (26,810 ) (43,179 )
equipment
Net cash used in investing activities (26,810 ) (43,179 )
Effect of exchange rate changes on cash (2,133 ) (827 )
and cash equivalents
Change in cash and cash equivalents (1,616 ) 2,466
during the period
Cash and cash equivalents - Beginning 98,297 96,519
of period
Cash and cash equivalents - End of 96,681 98,985
period
Interest paid 1,500 2,775
Interest received 452 548
Income tax paid 275 851
Boungou, Burkina Faso
Mining Operations
Three-month period
ended
2020 2019 Variation
Operating Data
Mining
Waste mined (tonnes) - 2,106,000 (100 %)
Ore tonnes mined - 280,000 (100 %)
Operational stripping ratio - 7.5 (100 %)
Capitalized Stripping Activity
Waste material - Boungou - 5,044,600 (100 %)
(tonnes)
Total strip ratio - 25.5 (100 %)
Processing
Tonnes processed (tonnes) 199,800 308,700 (35 %)
Head grade (g/t) 5.29 6.50 (19 %)
Recovery (%) 94 96 (2 %)
Gold ounces produced 32,000 61,900 (48 %)
Gold ounces sold 25,000 64,700 (61 %)
Financial Data (in thousands of
dollars)
Revenues - Gold sales 40,793 84,492 (52 %)
Mining operation expenses 12,247 17,070 (28 %)
Government royalties and 2,385 4,724 (50 %)
development taxes
Depreciation of property, plant 10,624 24,948 (57 %)
and equipment
General and administrative 425 217 96 %
Corporate social responsibility 8 82 (90 %)
expenses
Segment operating income 15,104 37,451 (60 %)
Statistics (in dollars)
Average realized selling price 1,629 1,306 25 %
(per ounce)
Cash operating cost (per tonne 68 53 28 %
processed)¹
Cash operating cost including 68 88 (23 %)
stripping (per tonne
processed)¹
Total cash cost (per ounce 530 337 57 %
sold)¹
All-in sustaining cost (per 550 534 3 %
ounce sold)¹
Depreciation (per ounce sold)² 425 386 10 %
(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 2020 First Quarter MD&A, note 18.
(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
2020 2019 Variation
Operating Data
Mining - Open pit
Waste mined (tonnes) 1,771,500 2,766,300 (36 %)
Ore tonnes mined 211,200 408,100 (48 %)
Operational 8.4 6.8 24 %
stripping ratio
Capitalized
Stripping Activity
Waste material - 117,600 2,405,900 (95 %)
Siou (tonnes)
Waste material - 2,486,700 1,825,000 36 %
Wona (tonnes)
2,604,300 4,230,900 (38 %)
Total strip ratio 20.7 17.1 21 %
Mining - Underground
(UG)
Ore tonnes mined 163,560 - -
Processing
Ore processed 407,000 427,900 (5 %)
(tonnes)
Low grade material 257,700 212,300 21 %
(tonnes)
Tonnes processed 664,700 640,200 4 %
(tonnes)
Head grade (g/t) 2.49 2.27 10 %
Recovery (%) 94 87 8 %
Gold ounces produced 49,900 40,500 23 %
Gold ounces sold 51,800 41,400 25 %
Financial Data (in
thousands of
dollars)
Revenues - Gold 82,418 54,049 52 %
sales
Mining operations 33,414 27,182 23 %
expenses
Government royalties 4,119 2,429 70 %
Depreciation of 20,768 14,531 43 %
property, plant and
equipment
General and 588 543 8 %
administrative
Corporate social 254 275 (8 %)
responsibility
expenses
Segment operating 23,275 9,089 156 %
income
Statistics (in
dollars)
Average realized 1,592 1,306 22 %
selling price (per
ounce)
Cash operating cost 56 41 37 %
(per tonne
processed)¹
Cash operating cost 79 61 30 %
including stripping
and UG development
(per tonne
processed)¹
Total cash cost (per 725 715 1 %
ounce sold)¹
All-in sustaining 1,052 1,075 (2 %)
cost (per ounce
sold)¹
Depreciation (per 401 351 14 %
ounce sold)²
(1) Cash operating cost, cash operating cost including stripping and UG development, 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 2020 First Quarter MD&A, note 18.
(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.
News release dated May 12, 2020 (https://mb.cision.com/Public/17699/3110095/be89687efc830807.pdf)
Vice-President, Corporate Development & Investor Relations
Email: John.Jentz@semafo.com
Ruth Hanna
Analyst, Investor Relations
Email: Ruth.Hanna@semafo.com
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
Website: http://www.semafo.com
About
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