Archived Post
SEMAFO Inc. (TSX, OMX: SMF) today announced its operational and financial results for the fourth quarter and year ended December 31, 2018, and provided its 2019 outlook for production, costs, and development priorities. The company closed the year on a strong footing, achieving solid production and cash flow performance while advancing its flagship Boungou Mine in Burkina Faso to full commercial production ahead of schedule.
Operational Highlights
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2018 Gold Production: 244,600 ounces of gold, exceeding initial guidance.
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Boungou Mine: Declared commercial production on September 1, 2018, after completing a successful ramp-up period.
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Mana Mine: Continued to perform consistently, delivering stable production levels throughout the year.
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Cash Flow: Operating cash flow reached $172 million for the year, reflecting higher output and improved grades.
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All-In Sustaining Cost (AISC): Averaged $951 per ounce, in line with expectations and positioning SEMAFO competitively among mid-tier gold producers.
President and CEO Benoit Desormeaux stated, “2018 marked a transformative year for SEMAFO. The successful commissioning of Boungou ahead of schedule and below budget represents a major milestone that has reshaped our production profile. We now have two strong operating assets in Burkina Faso and a foundation for sustainable growth in the years ahead.”
Financial Summary
For the fourth quarter of 2018, SEMAFO reported revenue of $96.4 million, compared to $68.3 million in the same period of 2017. Net income for the quarter totaled $10.5 million, or $0.03 per share, while adjusted net income reached $17.9 million, reflecting improved grades and lower unit costs at both operations.
For the full year, revenue rose to $311.9 million, an increase of 24% year-over-year. The company ended 2018 with cash and cash equivalents of $103 million and long-term debt of $139 million, maintaining a strong balance sheet and ample liquidity for future expansion.
2019 Outlook
For 2019, SEMAFO expects consolidated production between 390,000 and 430,000 ounces of gold at an all-in sustaining cost between $685 and $735 per ounce.
Key assumptions and priorities for 2019 include:
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Boungou Mine: Targeting production between 220,000 and 240,000 ounces at AISC of $520–$560 per ounce.
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Mana Mine: Anticipated production between 170,000 and 190,000 ounces at AISC of $975–$1,025 per ounce.
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Exploration Program: Approximately $19 million allocated to exploration across the Boungou, Mana, and Nabanga properties to support future resource expansion.
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Sustainability and Safety: Continued investment in community development programs, employee training, and on-site safety enhancements.
“Our 2019 guidance underscores our evolution into a multi-asset gold producer with a stronger cost structure and growth potential,” said Mr. Desormeaux. “Boungou is now delivering significant cash flow, and with Mana’s continued stability, we are well-positioned to invest in exploration and value creation for shareholders.”
Corporate Developments and Strategic Focus
During 2018, SEMAFO strengthened its operational capacity and corporate structure, with key initiatives including:
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Completion of Boungou’s construction $15 million under budget.
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Establishment of new community infrastructure and partnerships in the Est Region of Burkina Faso.
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Reduction of company-wide AISC through improved grade control and efficiency programs.
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Ongoing focus on exploration, targeting near-mine growth and regional discoveries.
Looking ahead, SEMAFO plans to maintain its disciplined approach to capital allocation while advancing new opportunities in West Africa. Management continues to monitor security developments in Burkina Faso and remains committed to protecting its workforce and assets through enhanced logistical and safety measures.
Media and Investor Contact
SEMAFO Gold
Investor & Media Relations Department
Phone: +1 (554) 744-4408
Email: info@goldinvestingfirms.com
Website: https://goldinvestingfirms.com/