Semafo Reports Strong Q2 Results
Thursday, August 13th, 2009
Semafo Inc. (TSX: SMF) report its second quarter financial and operational results for the three-month period ended June 30, 2009. All amounts are in US dollars unless otherwise stated.
Highlights for the Three-Month and Six-Month Periods Ended June 30, 2009
– Record gold production, with a total of 64,100 ounces for the three-month period ended June 30, 2009, representing an 18% increase over the corresponding period in 2008 and 10% over the previous quarter.
– For the first half of 2009, production from all mines totalled 122,200 ounces, an increase of 47% over the first six months of 2008.
– Gold sales revenues totalled $58.6 million for the second quarter, representing a 31% increase over the corresponding period in 2008 and 18% over Q1 2009. For the first six months of 2009, gold sales revenues totalled $108.1 million, representing a 54% increase over the same period in 2008.
– Operating income increased by 23% to $17 million in the second quarter 2009 compared to the same period the year prior; and by 70%, to $28.2 million, for the first six-month period of 2009 compared to the same period in 2008. Operating income increased by 53% over Q1 2009.
– Net income reached $10.7 million, an increase of 20% over the previous quarter of 2009. Net income totalled $19.6 million for first six months of 2009.
– Cash flow from operating activities reached $25.4 million for the second quarter and $43.9 million since the beginning of 2009. This represents an increase of 32% over the same period last year and 37% when compared with the first quarter of 2009.
– The Company’s cash operating cost for the quarter decreased to $419 per ounce from $460 in the first quarter of 2009.
– Net income per share of $0.05 and $0.08 respectively.
– Close-out of hedge program; the Company is 100% unhedged.
– Commencement of extensive exploration program on the high potential Houndé belt in Burkina Faso.
– Positive at-depth drilling results at Mana.
– Improved balance sheet – with a 20% debt to equity ratio, compared to 38% as at December 31, 2008.
A Word from the CEO
Semafo continued to build on the positive momentum established in 2008. Our second quarter 2009 results created a new precedent for our Company, bringing the cash flow from operating activities to more than $25.4 million, representing a 37% increase over the previous quarter. In fact, our Q2 cash flow from operating activities was equivalent to the total cash flow from operating activities of the first six-month period of 2008.
We delivered on our objective to efficiently and effectively manage our existing assets; realizing the lowest production costs of the last three quarters, while achieving our best production results ever.
The second quarter of 2009 not only brought us to new heights with regard to our performance and the results achieved; but also saw us successfully close out the remaining ounces of the Company’s hedge program. Moving forward, the completion of this obligation will allow the Company to benefit from the spot gold price and improve cash generation.
At Mana we continue to build for the future with an extensive exploration program initiated during the second quarter on the Houndé belt, while ongoing drilling continues to confirm at depth high-grade mineralization.
Semafo’s balance sheet is stronger than ever as our debt-equity ratio now stands at 20% compared to 38% as at December 31, 2008. SEMAFO is well positioned for the future and remains committed to increase shareholder value via the effective management of existing assets and the active pursuit of accretive opportunities in West Africa.
For further information visit: www.semafo.com