• Production increased by 39% to 340,900 ounces at an all-in sustaining cost (AISC) of $724 per ounce [1], representing a 24% decrease 
• Cash flow from operating activities before changes in non-cash working capital increased to $247 million or $0.75 per share [1]
• First production from Siou underground
• Successful acquisition and integration of Savary Gold's Karankasso properties to the Bantou Project
• Inferred mineral resources at the Bantou Project increased to 2.2 million ounces
• Completion of a positive preliminary economic assessment ("PEA") for Nabanga with after-tax NPV of $100 million at a $1,300 gold price

• Restart of the Boungou plant and initial three-month production of 42,000 - 46,000 ounces expected from processing of stockpiles at an AISC of between $530 and $560 per ounce 
• Phase two of the Boungou plan includes a Q4 2020 mining restart for production of between 88,000 and 104,000 ounces at AISC of between $745 and $795 per ounce
• Mana is expected to produce between 185,000-205,000 ounces of gold from Siou underground and the Siou and Wona open pits

[1]     All-in sustaining cost, 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" defined at the end of this press release.

Benoit Desormeaux, President and Chief Executive Officer of SEMAFO, stated: " Despite a challenging year, we achieved a solid operational performance at Boungou in 2019 while concurrently producing at Mana and progressing development of Siou underground on time and on budget.   We have had a positive start to 2020 with the restart of the Boungou plant to process the stockpiles. Mana is expected to deliver another strong year and to increase cash flow with the successful ramp-up of Siou underground. The Bantou Project inferred resource positions us well for reaching this year's resource goal of 2.5M and 3.0M ounces and demonstrates the potential of the district scale land package. We remain deeply grateful to our employees, contractors and suppliers whose resilience and engagement have contributed to these achievements."

2019 - ANNUAL FINANCIAL & OPERATIONAL HIGHLIGHTS 

• Cash flow from operating activities before changes in non-cash working capital of $247.4 million or $0.75 per share [1] compared to $110.2 million or $0.34 per share [1] for the same period in 2018 
• Consolidated annual gold production of 340,900 ounces, compared to 244,600 ounces for the same period in 2018, a 39% increase
• Gold sales of $475.8 million compared to $296.7 million for the same period in 2018
• All-in sustaining cost [1] of $724 per ounce sold compared to $951 for the same period in 2018, a 24% decrease 
• Adjusted operating income [1] of $133.4 million compared to $8.5 million for the same period in 2018
• Adjusted net income attributable to shareholders of the Corporation [1] of 73.7 million or $0.22 per share [1] compared to adjusted net loss of $4.5 million or $0.01 loss per share [1] for the same period in 2018 

FOURTH QUARTER 2019 FINANCIAL & OPERATIONAL HIGHLIGHTS 

• Cash flow from operating activities before changes in non-cash working capital of $44.6 million or $0.13 per share [1] compared to $54.9 million or $0.17 per share [1] for the same period in 2018 
• Consolidated gold production of 69,900 ounces compared to 95,200 ounces for the same period in 2018 
• Gold sales of $101.9 million compared to $114.7 million for the same period in 2018 
• All-in sustaining cost [1] of $698 per ounce sold compared to $782 for the same period in 2018 
• Adjusted operating income [1] of $26.1 million compared to $21.0 million for the same period in 2018 
• Adjusted net income attributable to equity shareholders of $16.3 million or $0.05 per share compared to $7.8 million or $0.02 per share for the same period in 2018 

2020 Exploration 

An initial exploration budget of $7 million has been set for 2020 on our three priority properties - Bantou ($4 million), Mana ($2 million) and Boungou ($1 million).

Bantou

At Bantou, the initial $4-million exploration program will involve a 19,300-meter drill program that is a continuation of last year's program on the properties and designed to test prospective areas outside of the existing inferred resources. We remain committed to our resource goal of 2.5 - 3.0 million ounces by the end of 2020.

This initial budget is likely to increase as the exploration program moves outside the existing zones and follows up interesting intersections like 14.6 g/t Au over 21 meters at Tiébi. Highlights of best results obtained in the fourth quarter are shown in Table 1.

[1]     Cash flow from operating activities before changes in non-cash working capital and per share, all-in sustaining cost, adjusted operating income, adjusted net income (loss) attributable to shareholders of the Corporation and adjusted basic earnings (loss) per share are non-IFRS financial performance measures with no standard definition under IFRS. See the "Non-IFRS Financial Performance Measures" defined at the end of this press release. During the fourth quarter of 2019, adjusted operating income and adjusted net income attributable to equity shareholders exclude the non-cash impairment of property, plant and equipment of $9,259,000 mainly related to the exploration and evaluation assets of the Korhogo property, a gain of $3,782,000 in share-based compensation related to the change in fair value of the share price and $7,085,000 of fixed expenses incurred during shutdown and suspension period. The adjusted net income attributable to equity shareholders also excludes a foreign exchange gain of $16,000 and a recovery of deferred tax effect of currency translation on tax base of $4,171,000.

Table 1 - Highlights from Bantou Q4 2019 Exploration*

Hole No. From (m) To (m) Length (m) Au (g/t) Zone
63 84 21 14.63 Tiébi
KARC19-0136 29 37 8 1.31 Tiébi Ouest
KARC19-0136 84 86 2 5.42 Tiébi Ouest
KARC19-0162 25 29 4 1.14 Tiébi Ouest
KRC19-0531 87 91 4 2.52 Bantou Est
KRC19-0538 132 136 4 1.92 Bantou Est
KRC19-0538 158 161 3 3.04 Bantou Est
KRC19-0632 124 127 3 1.65 Bantou NW
KRC19-0634 56 60 4 2.00 Bantou NW

*All assays are uncut. Lengths are core lengths. True widths remain undetermined.

Boungou

The $1-million exploration program at Boungou for 2020 comprises 3,000 meters of RC drilling and has the objective of identifying new near-mine resources. Expansion of the program is contingent on an improvement in regional security. Starting in the second quarter, the RC program will follow up last year's suspended work.

Mana

At Mana, a $2-million budget has been established to follow up targets identified by the geologic review carried out by an external consulting firm last year. The bulk of the 3,800-meter RC drill campaign will be carried out on three different areas around Siou. We will also be conducting an underground drill program to test if the mineralization extends at depth below the existing underground reserves.

Boungou, Burkina Faso 

Mining Operations
Commercial production at Boungou was declared on September 1, 2018.

2019  2018  Variation 
    
Operating Data 
Mining
Waste mined (tonnes) 11,651,000  4,035,200  189 %
Ore tonnes mined 1,628,400  568,300  187 %
Operational stripping ratio 7.2  7.1  1 %
Capitalized Stripping Activity
Waste material - Boungou 9,568,900  4,143,200  131 %
(tonnes)
Total strip ratio 13.0  14.4  (10 %)

Processing
Tonnes processed (tonnes) 999,700  368,100  172 %
Head grade (g/t) 6.65  5.75  16 %
Recovery (%) 96  94  2 %
Gold ounces produced [1] 205,200  63,600  223 %
Gold ounces sold [2] 214,400  54,300  295 %

Financial Data (in thousands of
dollars) 
Revenues - Gold sales [2] 295,758  66,966  342 %
Mining operation expenses 69,489  18,564  274 %
Government royalties and 16,997  3,338  409 %
development taxes
Depreciation of PPE 85,385  21,742  293 %
General and administrative 1,217  186  554 %
Corporate social responsibility 183  331  (45 %)
expenses
Segment operating income 122,487  22,805  437 %

Statistics (in dollars) 
Average realized selling price 1,380  1,233  12 %
(per ounce)
Cash operating cost (per tonne 61  56  9 %
processed) [3]
Cash operating cost including 82  79  4 %
stripping (per tonne processed)
[3]
Total cash cost (per ounce sold) 380  403  (6 %)
[3]
All-in sustaining cost (per 497  596  (17 %)
ounce sold) [3]
Depreciation (per ounce sold) 398  400  (1 %)
[4]

[1]     Gold ounces produced exclude pre-commercial production of 12,000 ounces.
[2]     Gold sales exclude those resulting from pre-production activities that were offset against capitalized construction costs and amounted to $14,994,000.
[3]     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" defined at the end of this press release.
[4]     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.

Boungou, Burkina Faso 

Mining Operations

The following includes a 7-week suspension at Boungou in 2019. As commercial production commenced on September 1, 2018, the comparative figures for Boungou Mine only include four months of operations at the Boungou Mine in 2018.

Grade in 2019 increased, compared to 2018, to average 6.65 g/t Au, as the mine plan reached higher-grade zones. Due to the higher grade, the all-in sustaining cost [1] was $497 per ounce sold compared to $596 per ounce sold in 2018. Recoveries also improved during 2019 to reach 96%, a 2% improvement compared to 2018. As at December 31, 2019, the stockpile holds 1.1 million tonnes at an average grade of 3.4 g/t Au, representing approximately ten months of mill feed.

Mana, Burkina Faso 
Mining Operations

2019  2018  Variation 
   
Operating Data 
Mining - Open pit
Waste mined (tonnes) 9,253,800  17,802,100  (48 %)
Ore tonnes mined 1,337,800  2,109,700  (37 %)
Operational stripping ratio 6.9  8.4  (18 %)
Capitalized Stripping Activity
Waste material - Siou (tonnes) 6,676,800  4,200,500  59 %
Waste material - Wona (tonnes) 12,151,400  11,643,400  4 %
18,828,200  15,843,900  19 %
Total strip ratio 21.0  15.9  32 %
Mining - Underground 
Ore tonnes mined  99,600  -  - 

Processing
Ore processed (tonnes) 1,445,400  2,356,400  (39 %)
Low grade material (tonnes) 615,800  217,500  183 %
Tonnes processed (tonnes) 2,061,200  2,573,900  (20 %)
Head grade (g/t) 2.28  2.36  (3 %)
Recovery (%) 90  93  (3 %)
Gold ounces produced 135,700  181,000  (25 %)
Gold ounces sold 131,700  181,100  (27 %)

Financial Data (in thousands of
dollars) 
Revenues - Gold sales 179,992  229,713  (22 %)
Mining operations expenses 97,762  132,252  (26 %)
Government royalties 8,487  10,055  (16 %)
Depreciation of PPE 53,829  81,626  (34 %)
General and administrative 2,416  2,635  (8 %)
Corporate social responsibility 676  931  (27 %)
expenses
Segment operating income 16,822  2,214  660 %

Statistics (in dollars) 
Average realized selling price 1,367  1,268  8 %
(per ounce)
Cash operating cost (per tonne 44  51  (14 %)
processed) [1]
Cash operating cost including 63  68  (7 %)
stripping (per tonne processed)
[1]
Total cash cost (per ounce sold) 762  786  (3 %)
[1]
All-in sustaining cost (per 1,095  1,056  4 %
ounce sold) [1]
Depreciation (per ounce sold) 409  451  (9 %)
[2]

[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" defined at the end of this press release.
[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

Following a pit wall failure in the Wona pit in August 2019, processing of ore at Mana was suspended for a 10-week period. Subsequently, mining operations focused on stripping activities at the Siou and Wona open pits and on development of Siou underground.

In 2019, the ore mined from the open pit decreased and the strip ratio was higher compared to 2018, given our focus on development activities due to the pit wall failure at Mana. The ore processed and gold ounces produced and sold decreased compared to 2018, following the suspension of processing activities at the Mana Mine. Extraction of ore from Siou underground commenced in the fourth quarter 2019 providing 99,600 tonnes of ore at 4.6 g/t Au. In 2019, gold sales amounted to $179,992,000 compared to $229,713,000 in 2018. The variation between gold ounces sold and gold ounces produced is due to the timing of delivery. The lower mining operations expenses are mainly due to the focus on stripping activities. The decrease in depreciation of property, plant and equipment is due to the lower gold ounces sold compared to 2018.

Siou Underground Development 

In the fourth quarter of 2019, underground development prior to production continued on time and on budget. First production occurred in December in line with reaching full production of 2,000-tpd in the first quarter of 2020.

In 2019, we decided to take advantage of available equipment and our mining contractor's productivity to get ahead of 2020 grade control drilling and mine development plans. As a result, by the end of 2019, we had grade-control drilled 50% of the orebody and developed up to 1,200 meters over our 2019 plan.

2019 Reserves and Resources - as at December 31, 2019 

As at December 31, 2019, total proven and probable mineral reserves stood at 2,640,100 ounces of gold. Measured and indicated mineral resources increased by 9% to 3,302,500 ounces. Inferred mineral resources increased by 86% to 3,977,800 ounces compared to year-end 2018 mainly due to an increase at the Bantou Project.

Changes in reserves are net of 2019 depletion due to production. All mineral resources reported are exclusive of mineral reserves. Mineral reserves and resources reported at Mana and at Boungou were estimated using a gold price of $1,200 and $1,400 per ounce, respectively. Mineral resources at the Bantou and Nabanga Projects were estimated using a gold price of $1,500 per ounce.

Boungou Mine

Total proven and probable reserves at Boungou were 10.3 million tonnes averaging 3.72 g/t Au for 1.2 million ounces of gold in 2019, compared to 10.9 million tonnes at 3.94 g/t Au for 1.4 million ounces in 2018. The decrease is due to depletion as Boungou Mine produced a total of 205,200 ounces in 2019. Total measured and indicated ("M&I") resources increased by 60% to 5.8 million tonnes at 3.25 g/t Au for 0.6 million ounces. The updated 2019 M&I resource is in-pit constrained and now incorporates remaining ounces at a cut-off grade of 2.0 g/t Au.

Mana

At year-end 2019, Mana's mineral reserves totalled 15 million tonnes at an average grade of 2.91 g/t Au for 1.4 million ounces, compared to 16 million tonnes averaging 2.96 g/t Au for 1.5 million ounces in 2018. Mana's mineral resources remained constant at 43.6 million tonnes at an average grade of 1.92 g/t Au for 2.7 million ounces.

Bantou Project

At the end of 2019, the Bantou Project hosted an inferred mineral resource estimate of 51 million tonnes at 1.37 g/t Au for 2.2 million ounces of gold. The Bantou Project, which is located approximately 170 kilometers south of the Mana Mine in Burkina Faso, comprises three groups of deposits: Bantou, Bantou Nord and Karankasso.

The mineral resources at Bantou Project were estimated using a gold price of $1,500 per ounce. For further details, refer to the February 24, 2020 press release.

Yactibo (Nabanga Deposit)

Inferred resources at the Nabanga deposit remain unchanged at 3.4 million tonnes at 7.69 g/t Au for 841,000 ounces of contained gold.

SEMAFO's Management's Discussion and Analysis, Consolidated Financial Statements and related financial materials are available in the "Investor Relations" section of the Corporation's website at www.semafo.com. These and other corporate reports are also available on www.sedar.com.

Fourth Quarter Conference Call
A conference call will be held tomorrow, March 4, 2020 at 10:00 EST, to discuss the fourth quarter results. Interested parties are invited to call the following telephone numbers to participate in the call. A live audio webcast of the conference call will be accessible for a period of 90 days through SEMAFO's website at www.semafo.com.

Tel. local & overseas: +1 (514) 225 7341
Tel. North America: 1 (888) 390 0605
Webcast: www.semafo.com
Replay overseas: +1 (416) 764 8677
Replay N. America: 1 (888) 390 0541
Replay pass code: 086322#
Expiration: April 4, 2020

Annual General Meeting of Shareholders 
SEMAFO's Annual General Meeting of Shareholders will be held on Tuesday, May 14, 2020 at 15:00 EDT at SEMAFO's office, 100 boul. Alexis-Nihon, 7th floor, Saint-Laurent (Quebec). Attendees will have the opportunity to ask questions and meet the management team and members of the board of directors.

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 "guidance", "expected", "plan", "increase", "ramp-up", "positions us well", "potential", "initial", "priority", "likely", "objective", "estimated", "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 (i) produce 42,000 - 46,000 ounces during the initial three-month phase at Boungou at an AISC of between $530 and $560 per ounce,(ii) restart mining at Boungou in Q4 2020, (iii) produce between 88,000 and 104,000 ounces at Boungou at an AISC of between $745 and $795 per ounce during Phase two of our Boungou plan, (iv) produce between 185,000 - 205,000 ounces of gold from Siou underground and the Siou and Mana open pits, (v) increase cash flow from Mana with the successful ramp-up of Siou underground, (vi) reach the resource goal of 2.5 - 3.0M ounces at Bantou by the end of 2020 and demonstrate the potential of the district land package,, (vii) meet our initial exploration budget of $7 million, (viii) identify new near-mine resources at Boungou, (ix) reach full production of 2,000 tpd at Siou Underground in the first quarter of 2020, the ability to increase reserves and resources, 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), the security of our operations 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 2019 Annual MD&A and other filings made with Canadian securities regulatory authorities and available at www.sedar.com.

These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.

Consolidated Results and Mining Operations 

2019  2018   2017 
Gold ounces 340,900  244,600 206,400 
produced [1] 
Gold ounces sold 346,100  235,400 205,300 
[2]

(in thousands of
dollars, except
amounts
per ounce and per
share) 
Revenues - Gold 475,750  296,679 258,993 
sales [2]
Operating income 113,670  10,321 11,494 

Net income (loss) 50,187  (8,192 ) 20,036 
attributable to
shareholders of the
Corporation
Basic earnings 0.15  (0.03 ) 0.06 
(loss) per share
Diluted earnings 0.15  (0.03 ) 0.06 
(loss) per share

Adjusted operating 133,382  8,494 10,659 
income [3]

Adjusted net income 73,715  (4,462 ) 864 
(loss) attributable
to shareholders of
the Corporation [3]
    Per share [3] 0.22  (0.01 ) - 

Cash flow from 247,427  110,203 107,023 
operating
activities
before changes in
non-cash working
capital [3] 
    Per share [3] 0.75  0.34 0.33 

Average realized 1,375  1,260 1,261 
selling price (per
ounce)
Total cash cost 525  698 655 
(per ounce sold)
[3] 
All-in sustaining 724  951 942 
cost (per ounce
sold)
[3] 

[1]     Gold ounces produced exclude pre-commercial production of 12,000 ounces from Boungou in 2018.
[2]     Gold sales exclude those resulting from pre-production activities that were offset against capitalized construction costs and amounted to $14,994,000 from Boungou in 2018.
[3]     Adjusted operating income, adjusted net income (loss) attributable to shareholders of the Corporation, adjusted basic earnings (loss) 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" defined at the end of this press release.

Fourth Quarter Consolidated Results and Mining Operations 

Three-month
period    
ended
December 31, 
  
2019  2018  Variation 
  
Gold ounces 69,900  95,200  (27 %)
produced [1]
Gold ounces sold 68,900  92,900  (26 %)
[2]

(in thousands of
dollars, except
amounts
per ounce and per
share) 
Revenues - Gold 101,923  114,692  (11 %)
sales [2]
Operating income  13,539  21,431  (37 %)

Net income 7,913  6,486  22 %
attributable to
shareholders
of the Corporation
    Basic earnings 0.02  0.02  -     
per share 
    Diluted 0.02  0.02  -     
earnings per share 

Adjusted operating 26,101  20,957  25 %
income [3]

Adjusted net income 16,288  7,754  110 %
attributable to
shareholders of the
Corporation [3]
    Per share [3] 0.05  0.02  150  %

Cash flow from 44,589  54,932  (19 %)
operating
activities
before changes in
non-cash working
capital [3] 
    Per share [3] 0.13  0.17  (24 %)

Average realized 1,482  1,234  20 %
selling price (per
ounce) 
Total cash cost 569  559  2 %
(per ounce sold)
[3] 
All-in sustaining 698  782  (11 %)
cost (per ounce
sold)
[3] 

[1]     Gold ounces produced exclude pre-commercial production of 12,000 ounces from Boungou in 2018.
[2]     Gold sales exclude those resulting from pre-production activities that were offset against capitalized construction costs and amounted to $14,994,000 from Boungou in 2018.
[3]     Adjusted operating income, adjusted net income (loss) attributable to shareholders of the Corporation, adjusted basic earnings (loss) 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" defined at the end of this press release.

Non-IFRS Financial Performance Measures 

Cash Operating Cost and Cash Operating Cost including Stripping
The Corporation reports cash operating costs and cash operating cost including stripping per tonne processed. The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may find that the cash operating costs and cash operating cost including stripping per tonne processed provided useful information to assist investors with their evaluation of the Corporation's performance and ability to generate cash flow from its operations. A reconciliation of cash operating cost calculated in accordance with the Gold Institute Standard to operating costs is included in the following table, for the years ended December 31, 2019 and 2018:

2019   2018  
Boungou    Mana   Boungou   Mana  
Per tonne
processed 
Tonnes of ore 999,700 2,061,200 368,100 2,573,900
processed

(in thousands of
dollars except
per tonne) 
Mining operation 86,486 106,249 21,902 142,307
expenses
(relating to
ounces sold)
Fixed expenses (5,095 ) (5,933 ) -  - 
incurred during
shutdown and
suspension
period 
Government (17,763 ) (8,891 ) (3,537 ) (10,592 )
royalties,
development
taxes and
selling
expenses  
Effects of (2,286 ) (1,136 ) 2,323 36
inventory
adjustments
(doré bars and
gold in
circuit) 

Operating costs 61,342 90,289 20,688 131,751
(relating to
tonnes
processed)  

Cash operating 61 44 56 51
cost (per tonne
processed)  

2019  2018 
Boungou  Mana  Boungou  Mana 
Per tonne
processed 
Tonnes of ore 999,700  2,061,200  368,100  2,573,900 
processed  

(in thousands
of dollars
except
per tonne) 
Stripping cost 21,282  38,613  8,497  42,608 
[1]  
Stripping cost 21  19  23  17 
(per tonne
processed)  
Cash operating 61  44  56  51 
cost (per tonne
processed)  

Cash operating 82  63  79  68 
cost including
stripping (per
tonne
processed)  

[1]     Stripping cost excludes mining costs incurred during the shutdown period at the Mana Mine.

Total Cash Cost
The Corporation reports total cash costs based on ounces sold. The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may find that the total cash cost per ounce sold provided useful information to assist investors with their evaluation of the Corporation's performance and ability to generate cash flow from its operations. A reconciliation of total cash cost is included in the following table, for the years ended December 31, 2019 and 2018:

2019  2018 
Boungou  Mana  Total  Boungou  Mana  Total 
Per ounce
sold 
Gold 214,400 131,700 346,100 54,300 181,100  235,400 
ounces
sold  

(in
thousands
of dollars
except
per
ounce) 
Mining 86,486 106,249 192,735 21,902 142,307  164,209 
operation
expenses  
Fixed (5,095 ) (5,933 ) (11,028 ) -  -  - 
expenses
incurred
during
shutdown
and
suspension
period  
Cash cost 81,391 100,316 181,707 21,902 142,307  164,209 
(relating
to
ounce
sold)  

Total cash 380 762 525 403 786  698 
cost
(per ounce
sold)  

All-in Sustaining Cost
All-in sustaining cost represents the total cash cost plus sustainable capital expenditures and stripping costs presented per ounce sold. The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may find that the all-in sustaining cost per ounce sold better meets their needs by assessing the Corporation's operating performance and its ability to generate free cash flow. The Corporation classified sustaining capital expenditures which are required to maintain existing operations and capitalized stripping. A reconciliation of all-in sustaining cost is included in the following table, for the years ended December 31, 2019 and 2018:

2019  2018 
Boungou  Mana  Total  Boungou  Mana  Total 
Per ounce
sold 
Gold ounces 214,400  131,700  346,100  54,300  181,100  235,400 
sold 

(in
thousands
of
dollars
except per
ounce) 
Sustaining 25,168  43,869  69,037  10,465  48,974  59,439 
capital
expenditure
[1]  
Sustaining 117  333  199  193  270  253 
capital
expenditure
(per ounce
sold)
Total cash 380  762  525  403  786  698 
cost (per
ounce
sold)  
All-in 497  1,095  724  596  1,056  951 
sustaining
cost
(per ounce
sold)  

Cash Flow from Operating Activities before Changes in non-Cash Working Capital
The Corporation uses cash flow from operating activities before changes in non-cash working capital to supplement its consolidated financial statements, and calculates it by not including the period to period movement of non-cash working capital items, like trade and other receivables, income tax receivable, inventories, other current assets, trade payables and accrued liabilities, share unit plan liabilities and provisions. The Corporation believes this provides an alternative indication of its cash flow from operating activities and may be meaningful to investors in evaluating our past performance or future prospects. It is not meant to be a substitute for cash flow from operating activities, which is calculated according to IFRS.

[1]     Sustaining capital expenditure excludes sustaining capital expenditure incurred during the shutdown period at the Mana Mine and suspension period at the Boungou Mine.

Cash Flow from Operating Activities before Changes in non-Cash Working Capital per Share
The Corporation presents cash flow from operating activities before changes in non-cash working capital per share as it believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may find that the cash flow from operating activities before changes in non-cash working capital per share provided useful information to assist investors with their evaluation of the Corporation's performance and ability to generate cash flow from its operations. A reconciliation of cash flow from operating activities before changes in non-cash working capital per share is included in the following table, for the years ended December 31, 2019 and 2018:

2019  2018 
(in thousands of dollars except per share) 
Cash flow from operating activities before 247,427  110,203 
changes in non-cash working capital  
Weighted average number of outstanding common 331,392  325,478 
shares - Basic  
Cash flow from operating activities before 0.75  0.34 
changes in non-cash working capital per
share  

Adjusted Accounting Measures
Net income and operating income have been adjusted with items considered temporal and that do not reflect the Corporation core mining operations. The Corporation believes certain investors may find that the adjusted net income (loss) attributable to shareholders of the Corporation, adjusted basic earnings (loss) per share and adjusted operating income (loss) provided useful information to assist investors with their evaluation of the Corporation's performance and ability to generate cash flow from its operations. Reconciliations of adjusted accounting measures is included in the following tables, for the years ended December 31, 2019 and 2018:

2019   2018 
(in thousands of dollars except per share) 
Net income (loss) attributable to 50,187 (8,192 )
shareholders of the Corporation as per IFRS  
Foreign exchange loss   877 1,613
Tax effect of currency translation on tax 2,939 3,944
base  
Share-based compensation recovery related to (575 )  (1,827 )
change in the fair value of the share price  
Impairment of PPE   9,259 - 
Fixed expenses incurred during shutdown and 11,028 - 
suspension period  
Adjusted net income (loss) attributable to 73,715 (4,462 )
shareholders of the Corporation  
Weighted average number of outstanding 331,392 325,478
shares  
Adjusted basic earnings (loss) per share   0.22 (0.01 )

2019   2018  
(in thousands)  $   $  
Operating income as per IFRS   113,670 10,321
Share-based compensation recovery related to (575 ) (1,827 )
change in the fair value of the share price  
Impairment of PPE 9,259 - 
Fixed expenses incurred during shutdown and 11,028 - 
suspension period 
Adjusted operating income   133,382 8,494

Consolidated Statements of Financial Position 
(Expressed in thousands of US dollars - audited) 

As at    As at  
December 31,    December 31,   
2019    2018   
$    $   

Assets

Current assets 
Cash and cash 98,297 96,519
equivalents 
Trade and other 44,645 29,434
receivables 
Income tax receivable  4,434 6,390
Inventories 98,072 83,211
Other current assets  5,380 5,378
250,828 220,932
Non-current assets 
Advance receivable  1,421 2,117
Restricted cash 9,964 25,340
Property, plant and 843,123 782,060
equipment
Intangible asset 1,079 1,204
Other non-current 3,698 2,622
financial assets
859,285 813,343
Total assets 1,110,113 1,034,275

Liabilities

Current liabilities 
Trade payables and 67,819 63,905
accrued liabilities
Current portion of long 59,275 60,181
-term debt
Current portion of 13,073 7,820
lease liabilities
Current portion of 3,269 3,311
share unit plan
liabilities
Provisions 2,843 3,051
146,279 138,268
Non-current
liabilities 
Long-term debt -  57,388
Lease liabilities 15,244 20,144
Share unit plan 2,755 2,263
liabilities
Provisions 25,617 23,561
Deferred income tax 72,478 39,548
liabilities
116,094 142,904
Total liabilities 262,373 281,172

Equity

Shareholders of the
Corporation
Share capital 647,251 623,604
Contributed surplus 6,105 6,771
Accumulated other (17,351 ) (18,909 )
comprehensive loss
Retained earnings  162,127 109,216
798,132 720,682
Non-controlling 49,608 32,421
interests 

Total equity 847,740 753,103
Total liabilities and 1,110,113 1,034,275
equity

Consolidated Statements of Income (Loss) 
For the years ended December 31, 2019 and 2018
(Expressed in thousands of US dollars, except per share amounts - audited)

2019    2018   
$    $   

Revenue - Gold sales  475,750 296,679

Costs of operations 
Mining operation expenses  192,735 164,209
Depreciation of property, plant and equipment  139,824 103,758
General and administrative  16,811 15,826
Corporate social responsibility expenses  859 1,262
Share-based compensation  2,592 1,303
Impairment of property, plant and equipment 9,259 - 

Operating income  113,670 10,321

Other expenses (income) 
Finance income  (2,233 ) (2,283 )
Finance costs  10,774 5,722
Foreign exchange loss 877 1,613

Income before income taxes  104,252 5,269

Income tax expense 
Current  9,858 2,136
Deferred  33,639 9,986
43,497 12,122

Net income (loss) for the year  60,755 (6,853 )

Attributable to:
Shareholders of the Corporation 50,187 (8,192 )
Non-controlling interests  10,568 1,339
60,755 (6,853 )

Earnings (loss) per share 
Basic 0.15 (0.03 )
Diluted 0.15 (0.03 )

Consolidated Statements of Cash Flows 
For the years ended December 31, 2019 and 2018
(Expressed in thousands of US dollars - audited)

2019   2018  
$   $  
Cash flows from (used in): 

Operating activities 
Net income (loss) for the year  60,755 (6,853 )
Adjustments for:
     Depreciation of property, plant 139,824 103,758
and equipment 
     Share-based compensation  2,592 1,303
     Amortization of deferred 1,218 - 
transaction costs
     Unrealized foreign exchange loss  208 1,608
     Impairment of property, plant and 9,259 - 
equipment
     Deferred income tax expense 33,639 9,986
     Other (68 ) 401
Cash flow from operating activities 247,427 110,203
before changes in non-cash working
capital
Changes in non-cash working capital (30,189 ) (2,279 )
items 
Net cash provided by operating 217,238 107,924
activities 

Financing activities 
Repayment of long-term debt  (60,000 ) - 
Repayment of equipment financing  (181 ) (310 )
Payments of lease liabilities  (10,958 ) (5,485 )
Proceeds on issuance of share capital, 2,282 861
net of expenses 
Net cash used in financing activities  (68,857 ) (4,934 )

Investing activities 
Acquisition of property, plant and (160,042 ) (198,740 )
equipment
Net cash received on acquisition of 232 - 
Savary Gold Corporation 
Net acquisitions of equity investments  (1,449 ) (1,740 )
Decrease (increase) in restricted cash 15,212 (2,491 )
Net cash used in investing activities  (146,047 ) (202,971 )

Effect of exchange rate changes on cash (556 ) (2,450 )
and cash equivalents
Change in cash and cash equivalents 1,778 (102,431 )
during the year
Cash and cash equivalents - Beginning 96,519 198,950
of year
Cash and cash equivalents - End of year 98,297 96,519
Interest paid 9,689 9,850
Interest received 2,261 2,464
Income tax paid 1,385 5,127

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