Montreal, Quebec, March 5, 2019 /CNW/ - SEMAFO Inc. (TSX, OMX: SMF) today reported its financial and operational results for the fourth quarter and year ended December 31, 2018. All amounts are in US dollars unless otherwise stated.

• Boungou constructed on time, on budget
• Maiden inferred mineral resource for the Bantou Zone of 361,000 ounces at 5.35 g/t Au
• Nabanga mineral inferred resource increased by 42% to 840,000 oz at 7.7 g/t Au; PEA in Q3 2019
• 2018 exploration, development, construction and operational achievements at Boungou, Mana, Bantou and Nabanga laid the groundwork for 2019

• Combination of Bantou-Savary properties underway to produce a 1,250 km[2] district scale land package on the prolific Houndé Greenstone Belt
• Production of 390,000-430,000 ounces at an all-in sustaining cost (AISC) of $685-$735 per ounce expected to be the best in SEMAFO's history

Benoit Desormeaux, President and CEO of SEMAFO, stated, "Congratulations to the entire SEMAFO team for their hard work in 2018. All areas including exploration, development, construction and operations made 2018 a solid year and set the stage for a successful 2019. SEMAFO is set to achieve many milestones in 2019 including record production of 390,000-430,000 ounces of gold at an AISC of $685-$735 per ounce. The combination of Bantou-Savary is in progress and when complete, will result in a 1,250 km[2] district scale land package on the prolific Houndé Greenstone Belt in a country we know well. Strategic goals for 2019 include increasing and improving mine life at Boungou and Mana and advancing our two development projects, Bantou-Savary and Nabanga."

[1]   All-in sustaining cost, adjusted operating income, adjusted net income attributable to shareholders of the Corporation, adjusted basic earnings per share and operating cash flows 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.
[2]   Cash flows from operating activities exclude changes in non-cash working capital items and are a non-IFRS performance measure.

2018 ANNUAL FINANCIAL & OPERATIONAL HIGHLIGHTS 

• Cash flows from operating activities[2] of $110.2 million or $0.34 per share[1] compared to $107.0 million or $0.33 per share[1] for the same period in 2017
• Consolidated annual gold production of 244,600 ounces, compared to 206,400 ounces for the same period in 2017, in line with 2018 guidance of 235,000 to 265,000 ounces
• Gold sales of $296.7 million compared to $259.0 million for the same period in 2017
• All-in sustaining cost[1] of $951 per ounce sold compared to $942 for the same period in 2017.

• Cash flows from operating activities[2] of $54.9 million or $0.17 per share[1] compared to $25.4 million or $0.08 per share[1] for the same period in 2017
• Consolidated gold production of 95,200 ounces, compared to 49,500 ounces for the same period in 2017 due to the first full quarter of production at Boungou
• Gold sales of $114.7 million compared to $63.0 million for the same period in 2017
• Production at Boungou totalled 53,100 ounces of gold in the quarter, reflecting average head grade of 6.34 g/t Au
• All-in sustaining cost[1] of $782 per ounce sold compared to $982 for the same period in 2017

2019 Exploration 

Initial exploration expenditure for 2019 has been set at $19 million, $9 million of which will be spent at Boungou, $4 million at Mana, $3 million at Bantou, $2 million at Nabanga and the remaining $1 million at Korhogo.

Boungou
At Boungou, the main objective of the 2019 exploration program is to identify new resources within trucking distance of the mill. To this end, this year's program comprises 41,000 meters of reverse-circulation (RC), 1,000 meters of diamond and 100,000 meters of auger drilling. The bulk of the RC drill work will follow up on recent discoveries at Dangou and Tawori and test regional gold anomalies on the Pambourou and 045 Trend Sectors. The auger program will provide a complete coverage of the property and identify future exploration targets.

Mana
The 2019 exploration program at Mana includes 18,600 meters of RC and 58,000 meters of auger drilling. The RC program will be dedicated to identifying satellite deposits near existing operations with a particular emphasis on the Pompoi area, located ~3 kilometers east of the Yaramoko Mine. The Pompoi program will focus on previous results of up to 7.40 g/t Au over 2 meters coincident with auger anomalies identified in 2018, with the objective of finding intrusive-hosted, high-grade mineralization.

[1]   All-in sustaining cost, adjusted operating income, adjusted net income attributable to shareholders of the Corporation, adjusted basic earnings per share and operating cash flows 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.
[2]   Cash flows from operating activities exclude changes in non-cash working capital items and are a non-IFRS performance measure.

Bantou and Consolidation of South Houndé Belt
In February 2019, SEMAFO and Savary Gold Corp. entered into a non-binding letter of intent (LOI) contemplating the acquisition by SEMAFO of all of the outstanding common shares of Savary not already owned by SEMAFO. Savary's Karankasso project is contiguous to the Bantou Zone. Both projects are located approximately 170 kilometers south of Mana. Given the prospectivity of the combined Savary-Bantou properties, the Bantou exploration budget of $3 million will be enhanced when the Savary proposed acquisition closes in April 2019.

Nabanga
The 2019 program on Nabanga will test the northern extension, further explore the down-plunge extensions confirmed by recent drilling, and test drill auger geochemical anomalies proximal to the deposit for satellite mineralization. We continue to work on expanding the resource, and we will complete a PEA in the third quarter of 2019. 

Boungou, Burkina Faso 

Mining Operations

2018 
Operating Data 
Mining
Waste mined (tonnes) 4,035,200 
Ore mined (tonnes) 568,300 
Operational stripping ratio 7.1 
Capitalized Stripping Activity
Waste material - Boungou 4,143,200 
(tonnes)

Total strip ratio 14.4 

Processing
Tonnes processed (tonnes) 368,100 
Head grade (g/t) 5.75 
Recovery (%) 94 
Gold ounces produced[1] 63,600 
Gold ounces sold[2] 54,300 

Statistics (in dollars) 
Average realized selling price 1,233 
(per ounce)
Cash operating cost (per tonne 56 
processed)[2]
Cash operating cost, including 79 
stripping (per tonne
processed)[2]
Total cash cost (per ounce 403 
sold)[2]
All-in sustaining cost (per 596 
ounce sold)[2]
Depreciation (per ounce sold)[3] 400 

Boungou, Burkina Faso 

Mining Operations

Boungou construction was completed on-time and on-budget in 2018. During the pre-commercial period from June to the end of August, Boungou produced 12,000 ounces of gold. Commercial production in the last four months of 2018 delivered 63,600 ounces of gold. Grade in the four months averaged 5.75 g/t Au, increasing in the fourth quarter as the mine plan reached higher grade zones. During the last fourth months of 2018, ramp-up economics were still tracking ahead of schedule with some minor optimizations still to be realized in 2019. The variation between gold ounces sold and gold ounces produced during the year is due to the timing of delivery and the build-up of gold in circuit. As at December 31, 2018, the stockpile held slightly more than 500,000 tonnes of ore with an average grade of 2.0 g/t Au.

[1]     Gold ounces produced exclude pre-commercial production of 12,000 ounces.
[2]     Cash operating cost, 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.
[3]     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  

2018  2017  Variation
Operating Data 
Mining 
Waste mined (tonnes) 17,802,100  16,913,100  5%  
Ore mined (tonnes) 2,109,700  2,268,100  (7%) 
Operational stripping ratio 8.4  7.5  12%  
Capitalized Stripping Activity 
Waste material - Siou (tonnes)  4,200,500  12,607,300  (67%) 
Waste material - Wona (tonnes)  11,643,400  9,189,900  27%  
15,843,900  21,797,200  (27%) 
Total strip ratio  15.9  17.1  (7%) 

Processing 
Ore processed (tonnes)  2,356,400  2,136,100  10%  
Low grade material (tonnes) 217,500  603,800  (64%) 
Tonnes processed (tonnes) 2,573,900  2,739,900  (6%) 
Head grade (g/t) 2.36  2.46  (4%) 
Recovery (%) 93  95  (2%) 
Gold ounces produced 181,000  206,400  (12%) 
Gold ounces sold 181,100  205,300  (12%) 

Statistics (in dollars) 
Average realized selling price 1,268  1,261  1%  
(per ounce)
Cash operating cost (per tonne 51  46  11%  
processed)[1]
Cash operating cost, including 68  62  10%  
stripping (per tonne
processed)[1]
Total cash cost (per ounce 786  655  20%  
sold)[1]
All-in sustaining cost (per 1,056  942  12%  
ounce sold)[1]
Depreciation (per ounce sold)[2] 451  460  (2%) 

Mana, Burkina Faso 

Mining Operations

As expected, in 2018, the tonnes processed decreased by 6% due to the ore hardness. In 2018, gold sales amounted to $229,713,000 compared to $258,993,000 for 2017. The decrease is mainly due to the lower gold ounces produced and sold in line with the mine plan, partially offset by the higher average realized selling price. The variation between gold ounces sold and gold ounces produced in 2018 is due to the timing of delivery. The decrease in depreciation of property, plant and equipment mainly reflects the lower capitalized stripping ratio from Wona in 2018 compared to the higher capitalized stripping ratio from Siou at depth in 2017. As expected, in 2018, the all-in sustaining cost1reached $1,056 per ounce sold compared to $942 per ounce sold in 2017. The result is attributable to an increase in security expenses and a lower recovered head grade.

[1]     Cash operating cost, 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.

Siou Underground Development 

• Development on budget with $10.7 million of the $51.7 million budget incurred 
• 1,050 meters of development completed at year-end
• Construction of permanent contractor surface infrastructure
• Receipt of favorable opinion from Ministry of Environment regarding the Environmental and Social Impact Assessment (ESIA) study - final hearing with Mines Commission is expected shortly 

2018 Reserves and Resources - as at December 31, 2018 

As at December 31, 2018, total proven and probable mineral reserves stood at 2,909,000 ounces of gold. Measured and indicated mineral resources totalled 3,031,300 ounces. Inferred mineral resources increased by 48% to 2,141,100 ounces compared to year-end 2017.

Changes in reserves are net of 2018 depletion due to production. All mineral resources reported are exclusive of mineral reserves. Mineral reserves and resources reported at Mana and at Tapoa (Boungou Project) were estimated using a gold price of $1,200 and $1,400 per ounce, respectively.

Tapoa (Boungou Project)
Total proven and probable reserves at the Boungou Project were 10,939,000 tonnes averaging 3.94 g/t Au for 1,387,000 ounces of gold, compared to 11,195,000 tonnes at 4.11 g/t Au for 1,479,000 ounces. The slight decrease mainly represents depletion of the 75,600 ounces produced in 2018, which includes the pre-commercial production.

Mana
At year-end 2018, Mana's mineral reserves totalled 15,987,000 tonnes at an average grade of 2.96 g/t Au for 1,522,000 ounces, compared to 18,231,000 million tonnes averaging 2.92 g/t Au for 1,710,300 ounces.

Mana's mineral resources remained constant at 43,467,000 million tonnes at an average grade of 1.93 g/t Au for 2,695,300 ounces.

Kongolokoro (Bantou Zone)
At the end of 2018, the Bantou Zone hosted a maiden inferred mineral resource estimate of 2,100,000 tonnes at 5.35 g/t Au for 361,000 ounces of gold. The Bantou Zone, which is located approximately 170 kilometers south of the Mana Mine in Burkina Faso, remains open along strike and at depth.

The mineral resources at Kongolokoro Permit Group (Bantou) were estimated using a gold price of $1,500 per ounce.

Yactibo (Nabanga Deposit)
An infill drilling program and a revised interpretation of the mineralization added 250,000 ounces of inferred mineral resources to Nabanga in 2018.

The updated mineral inferred resource estimation for Nabanga was established at 3,402,000 tonnes grading 7.69 g/t Au for 841,000 ounces of contained gold. The resource estimation update is based on 395 drill holes (RC and DD combined) totalling 57,488 meters, including 67 core holes drilled since the latest estimation completed by Snowden in August 2012, and a revised interpretation of the mineralization that suggests a shallower plunge of the higher-grade zones of gold mineralization.

The mineral resource estimate is reported above a cut-off grade of 3,0 g/t Au based on the assumption most of the resource would likely be mined by selective underground mining techniques. For further details, refer to the February 20, 2019 press release.

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 and Year-End 2018 Conference Call 

A conference call will be held tomorrow, Wednesday, March 6, 2019 at 10:00 EST, to discuss this press release. Interested parties are invited to call the following telephone numbers to participate in the call:.

Tel. local & overseas: +1 (647) 788 4922
Tel. North America: 1 (877) 223 4471
Webcast: www.semafo.com/English/investor-relations/news-and-events/events/default.aspx
 (http://file///K:/filings/livework/wkip/58206/Q4%202018%20_FINAL_EN.DOCX#Press_Release)Replay number: 1 (800) 585 8367 or +1 (416) 621 4642
Replay pass code: 6388407
Replay expiration: April 6, 2019

Annual General Meeting of Shareholders 

SEMAFO's Annual General Meeting of Shareholders will be held on Thursday, May 9, 2019 at 10:00 EDT at Club Saint-James, Salon Midway, 1145 avenue Union, in Montreal. 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. 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 "forecasts", "development", "laid the groundwork", "outlook", "underway", "expected", "set the stage", "set to achieve", "milestones", "in progress", "goals", "increasing", "improving", "advancing", "initial", "will", "objective", "targets", "identifying", "focus", "contemplating", "committed", "building", "leveraging" 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 achieve record production, cash flow and development activity in 2019, the ability to produce 390,000-430,000 ounces at an AISC of $685-$735 per ounce, the ability to consummate the proposed transaction with Savary Gold Corp., the ability to increase and improve mine life at Boungou and Mana and advance our Bantou-Savary and Nabanga projects, the ability of our 2019 Exploration Program to meet its various objectives, the ability to achieve production from the Siou Underground in the first quarter of 2020, 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) 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 2018 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.

Financial and Operating Highlights  

2018    2017  2016 
Gold ounces 244,600 206,400  240,200 
produced[1]
Gold ounces 235,400 205,300  240,600 
sold[2]

(in thousands of
dollars, except
amounts per ounce
and per share) 
Revenues - Gold 296,679 258,993  300,483 
sales
Operating income 10,321 11,494  60,086 

Net (loss) income (8,192 ) 20,036  34,219 
attributable to
shareholders of
the Corporation
    Basic (loss) (0.03 )  0.06  0.11 
earnings per share
    Diluted (loss) (0.03 )  0.06  0.11 
earnings per share

Adjusted operating 8,494 10,659  70,989 
income[3]
Adjusted net (4,462 )  864  48,109 
(loss) income
attributable to
shareholders of
the
Corporation[3]
    Per share[3] (0.01 )  -  0.15 

Cash flows from 110,203 107,023  142,222 
operating
activities[4]
    Per share[3] 0.34 0.33  0.45 

Average realized 1,260 1,261  1,249 
selling price (per
ounce)
Total cash cost 698 655  548 
(per ounce
sold)[3]
All-in sustaining 951 942  720 
cost (per ounce
sold)[3]

Total assets 1,034,275 1,028,363  895,276 
Non-current 142,904 180,595  102,091 
liabilities

[1]     Gold ounces produced exclude pre-commercial production of 12,000 ounces from Boungou in 2018
[2]     Gold sales exclude sales resulting from pre-production activities that were offset against capitalized construction costs and amounted to $14,994,000.
[3]     Adjusted operating income, adjusted net (loss) income attributable to shareholders of the Corporation, adjusted basic earnings per share, operating cash flows 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 Measures" defined at the end of this press release.
[4]    Cash flows from operating activities exclude changes in non-cash working capital items and are a non-IFRS performance measure.

Fourth Quarter Financial and Operating Highlights 

Three-month periods 
ended December 31, 
2018  2017  Variation 
Gold ounces produced  95,200  49,500  92% 
Gold ounces sold  92,900  49,200  89% 

(in thousands of dollars, except
amounts per ounce and per share) 
Revenues - Gold sales  114,692  62,960  82% 
Operating income  21,431  2,215  868% 

Net income attributable to 6,486  1,649  293% 
shareholders of the Corporation
    Basic earnings per share  0.02  0.01  100% 
    Diluted earnings per share[3] 0.02  0.01  100% 

Adjusted operating income[1] 20,957  2,405  771% 
Adjusted net income (loss) 7,754  (315)  - 
attributable to shareholders of the
Corporation[1]
    Per share[1] 0.02  -  - 

Cash flow from operating 54,932  25,409  116% 
activities[2] 
    Per share[1] 0.17  0.08  113% 

Average realized selling price (per 1,234  1,278  (3%)
ounce) 
Total cash cost (per ounce sold)[1]  559  667  (16%)
All-in sustaining cost (per ounce 782  982  (20%)
sold)[1] 

[1]     Adjusted operating income, adjusted net income (loss) attributable to shareholders of the Corporation, adjusted basic earnings per share, operating cash flows 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 Measures" defined at the end of this press release.
[2]     Cash flows from operating activities exclude changes in non-cash working capital items and are a non-IFRS performance measure.

Non-IFRS Financial Performance Measures 

Some of the indicators used by us to analyze and evaluate our results represent non-IFRS financial measures. We provide non-IFRS financial performance measures as they may be used by some investors to evaluate our financial performance. Since the non-IFRS performance measures do not have any standardized definition prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For the non-IFRS financial performance measures not already reconciled within the document, we have defined the IFRS financial performance measures below and reconciled them to reported IFRS measures.  

Cash Operating Cost
A reconciliation of cash operating cost calculated in accordance with the Gold Institute Standard to the operating costs is included in the following table:

2018     2017    
Per tonne Boungou  Mana     Mana    
processed    
Tonnes of ore 368,100 2,573,900 2,739,900
processed 

(in thousands of
dollars except
per tonne) 
Mining operation 21,902 142,307 134,385
expenses
(relating to
ounces sold) 
Government (3,537 )  (10,592 )  (11,364 ) 
royalties,
development
taxes and
selling
expenses
Effects of 2,323 36 3,184
inventory
adjustments
(doré bars and
gold in
circuit) 

Operating costs 20,688 131,751 126,205
(relating to
tonnes
processed) 

Cash operating 56 51 46
cost (per tonne
processed) 

Cash Operating Cost, including stripping

2018  2017 
Boungou  Mana  Mana 
Per tonne processed 
Tonnes of ore processed 368,100  2,573,900  2,739,900 

(in thousands of dollars except
per tonne) 
Stripping cost 8,497  42,608  44,615 
Stripping cost (per tonne 23  17  16 
processed)
Cash operating cost (per tonne 56  51  46 
processed)

Cash operating cost, including 79  68  62 
stripping (per tonne processed)

Total Cash Cost

2018  2017 
Per ounce sold  Boungou  Mana  Total  Mana
Gold ounce sold  54,300  181,100  235,400  205,300

(in thousands of
dollars except per
ounce) 
Mining operation 21,902  142,307  164,209  134,385
expenses 

Total cash cost (per 403  786  698  655
ounce sold) 

All-in Sustaining Cost
All-in sustaining cost represents the total cash cost plus sustainable capital expenditures and stripping costs per ounce.

2018  2017 
Per ounce sold  Boungou  Mana  Total  Mana
Gold ounce sold  54,300  181,100  235,400  205,300 

(in thousands of dollars
except per ounce) 
Sustaining capital 10,465  48,974  59,439  58,907 
expenditure 

Sustaining capital 193  270  253  287 
expenditure (per ounce
sold) 

Total cash cost (per 403  786  698  655 
ounce sold) 

All-in sustaining cost 596  1,056  951  942 
(per ounce sold) 

Operating Cash Flows per Share

2018  2017 
(in thousands except per
share) 
Cash flows from operating 110,203  107,023 
activities[1]
Weighted average number of 325,478  324,894 
outstanding common shares -
basic 

Operating cash flows per 0.34  0.33 
share 

Adjusted Accounting Measures

2018   2017  
(in thousands of dollars except per share)
Net (loss) income attributable to (8,192 ) 20,036
shareholders of the Corporation as per IFRS

Foreign exchange loss (gain) 1,613 (9,528 )
Tax effect of currency translation on tax 3,94  (8,809 )
base
Share-based compensation recovery related to (1,827 ) (835 )
change in the fair value of the share price

Adjusted net (loss) income attributable to (4,462 ) 864
shareholders of the Corporation

Weighted average number of outstanding 325,478 324,894
shares

Adjusted basic (loss) earnings per share (0.01 ) - 

2018   2017  
(in thousands)  $   $  
Operating income as per IFRS  10,321 11,494
Share-based compensation recovery related to (1,827 ) (835  )
change in the fair value of the share price

Adjusted operating income  8,494 10,659

[1]     Cash flows from operating activities exclude changes in non-cash working capital items and are a non-IFRS performance measure.

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

As at      As at  
December 31,     December 31, 
2018      2017  
$      $  

Assets

Current assets 
Cash and cash 96,519 198,950 
equivalents 
Trade and other 29,434 22,649 
receivables 
Income tax receivable  6,390 3,186 
Inventories 83,211 66,409 
Other current assets  5,378 4,094 
220,932 295,288 
Non-current assets 
Advance receivable  2,117 2,867 
Restricted cash 25,340 23,237 
Property, plant and 782,060 703,341 
equipment
Intangible asset 1,204 1,374 
Other non-current 2,622 2,256 
financial assets
813,343 733,075 
Total assets 1,034,275 1,028,363 

Liabilities

Current liabilities 
Trade payables and 63,905 72,720 
accrued liabilities
Current portion of long 60,181 310 
-term debt
Current portion of 7,820 4,703 
finance leases
Current portion of 3,311 6,404 
share unit plan
liabilities
Provisions 3,051 3,069 
138,268 87,206 
Non-current
liabilities 
Long-term debt 57,388 115,247 
Finance Leases 20,144 19,008 
Share unit plan 2,263 3,138 
liabilities
Provisions 23,561 12,258 
Deferred income tax 39,548 30,944 
liabilities
142,904 180,595 
Total liabilities 281,172 267,801 

Equity

Shareholders of the
Corporation
Share capital 623,604 622,294 
Contributed surplus 6,771 7,220 
Accumulated other (18,909 ) 2,256 
comprehensive (loss)
income
Retained earnings  109,216 97,710 
720,682 729,480 
Non-controlling 32,421 31,082 
interests 

Total equity 753,103 760,562 
Total liabilities and 1,034,275 1,028,363 
equity

Consolidated Statements of (loss) Income 
For the years ended December 31, 2018 and 2017
(Expressed in thousands of US dollars, except per share amounts)

2018      2017     
$      $     

Revenue - Gold sales  296,679 258,993

Costs of operations 
Mining operation expenses  164,209 134,385
Depreciation of property, plant and equipment  103,758 94,722
General and administrative  15,826 14,069
Corporate social responsibility expenses  1,262 1,097
Share-based compensation  1,303 3,226

Operating income  10,321 11,494

Other expenses (income) 
Finance income  (2,283 ) (3,294 )
Finance costs  5,722 1,309
Foreign exchange loss (gain) 1,613 (9,528 )

Income before income taxes  5,269 23,007

Income tax expense (recovery) 
Current  2,136 4,181
Deferred  9,986 (4,737 )
12,122 (556 )

Net (loss) income for the year  (6,853 ) 23,563

Attributable to:
Shareholders of the Corporation (8,192 ) 20,036
Non-controlling interests  1,339 3,527
(6,853 ) 23,563

Earnings (loss) per share 
Basic (0.03 ) 0.06
Diluted (0.03 ) 0.06

Consolidated Statements of Cash Flows 
For the years ended December 31, 2018 and 2017
(Expressed in thousands of US dollars)

2018     2017    
$     $    

Cash flows from (used in): 

Operating activities 
Net (loss) income for the (6,853 ) 23,563
year 
Adjustments for:
    Depreciation of property, 103,758 94,722
plant and equipment 
    Share-based compensation  1,303 3,226
    Unrealized foreign 1,608 (9,480 )
exchange loss (gain)
    Deferred income tax 9,986 (4,737 )
expense (recovery)
    Other 401 (271 )
110,203 107,023
Changes in non-cash working (2,279 ) (30,115 )
capital items 
Net cash provided by operating 107,924 76,908
activities 

Financing activities 
Drawdown of long-term debt  -  60,000
Repayment of equipment (310 ) (310 )
financing 
Payments of finance lease  (5,485 ) (5,128 )
Proceeds on issuance of share 861 255
capital, net of expenses 

Net cash (used in) provided by (4,934 ) 54,817
financing activities 

Investing activities 
Net acquisitions of equity (1,740 ) - 
investments 
Acquisition of property, plant (198,740 ) (201,346 )
and equipment
Increase in restricted cash (2,491 ) (16,808 )

Net cash used in investing (202,971 ) (218,154 )
activities 

Effect of exchange rate (2,450 ) 11,607
changes on cash and cash
equivalents
Change in cash and cash (102,431 ) (74,822 )
equivalents during the year
Cash and cash equivalents - 198,950 273,772
Beginning of year
Cash and cash equivalents - 96,519 198,950
End of year
Interest paid 9,850 6,576
Interest received 2,464 3,360
Income tax paid 5,127 12,109

SEMAFO 0305 (https://mb.cision.com/Public/17699/2757138/bd9594ef07bc599a.pdf)