This is information that
Highlights
The following 2020 highlights include a 4-week suspension of operations at the
- Signing of definitive agreement with
Endeavour - Consolidated gold production of 81,900 ounces
- Gold sales of
$123.2 million - All-in sustaining cost1 of
$888 per ounce sold - Operating income of
$33.2 million - Net income attributable to shareholders of the Corporation of
$14.1 million or$0.04 per share - Adjusted net income attributable to shareholders of the Corporation1 of
$20.8 million or$0.06 per share1 - Cash flow from operating activities before changes in non-cash working capital1 of
$60.0 million or$0.18 per share1 - Full production rate of 2,000 tpd reached at Siou underground (UG)
SEMAFO providesEndeavour transaction update, including update on timing, mailing of meeting materials forMay 28 Special Meeting and Board resolutions passed to apply for delisting from the TSX and Nasdaq Stockholm pending closing of transaction
_____________________________ | |
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 produced | 81,900 | 102,400 | (20%) | ||||
Gold ounces sold | 76,800 | 106,100 | (28%) | ||||
(in thousands of dollars, except amounts per ounce and per share) | |||||||
Revenues – Gold sales | 123,211 | 138,541 | (11%) | ||||
Operating income | 33,217 | 40,359 | (18%) | ||||
Net income attributable to shareholders of the Corporation | 14,066 | 17,666 | (20%) | ||||
Basic earnings per share | 0.04 | 0.05 | (20%) | ||||
Diluted earnings per share | 0.04 | 0.05 | (20%) | ||||
Adjusted net income attributable to shareholders of the Corporation1 | 20,793 | 22,632 | (8%) | ||||
Per share1 | 0.06 | 0.07 | (14%) | ||||
Cash flow from operating activities before changes in non-cash working capital1 | 59,985 | 78,980 | (24%) | ||||
Per share1 | 0.18 | 0.24 | (25%) | ||||
Average realized selling price (per ounce) | 1,604 | 1,306 | 23% | ||||
Total cash cost (per ounce sold)1 | 661 | 484 | 37% | ||||
All-in sustaining cost (per ounce sold)1 | 888 | 745 | 19% |
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 capital1 in 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
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
About
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 Endeavour Mining Corporation on the terms and timing proposed; the impact on the closing and timing of the proposed transaction with Endeavour Mining Corporation as a result of any review ordered by the Minister of Innovation, Science and Development pursuant to the ICA; the ability to prevent and manage the COVID-19 virus, 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
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 equivalents | 96,681 | 98,297 | ||||
Trade and other receivables | 39,684 | 44,645 | ||||
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 equipment | 828,114 | 843,123 | ||||
Intangible asset | 1,034 | 1,079 | ||||
Other non-current financial assets | 1,532 | 3,698 | ||||
841,643 | 859,285 | |||||
Total assets | 1,084,526 | 1,110,113 | ||||
Liabilities | ||||||
Current liabilities | ||||||
Trade payables and accrued liabilities | 51,720 | 67,819 | ||||
Debt | 29,565 | 59,275 | ||||
Current portion of lease liabilities | 12,125 | 13,073 | ||||
Current portion of share unit plan liabilities | 4,036 | 3,269 | ||||
Provisions | 2,788 | 2,843 | ||||
100,234 | 146,279 | |||||
Non-current liabilities | ||||||
Lease liabilities | 14,276 | 15,244 | ||||
Share unit plan liabilities | 1,882 | 2,755 | ||||
Provisions | 26,111 | 25,617 | ||||
Deferred income tax liabilities | 79,786 | 72,478 | ||||
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 comprehensive loss | (19,517) | (17,351) | ||||
Retained earnings | 176,193 | 162,127 | ||||
810,032 | 798,132 | |||||
Non-controlling interests | 52,205 | 49,608 | ||||
Total equity | 862,237 | 847,740 | ||||
Total liabilities and equity | 1,084,526 | 1,110,113 |
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 equipment | 31,532 | 39,628 | |||||
Share-based compensation | 1,574 | 2,832 | |||||
Amortization of deferred financing costs | 290 | — | |||||
Unrealized foreign exchange loss | 839 | 116 | |||||
Deferred income tax expense | 8,703 | 14,999 | |||||
Other | 384 | 283 | |||||
Cash flow from operating activities before changes in non-cash working capital | 59,985 | 78,980 | |||||
Changes in non-cash working capital items | 874 | (15,736) | |||||
Net cash provided by operating activities | 60,859 | 63,244 | |||||
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, net of expenses | — | 430 | |||||
Net cash used in financing activities | (33,532) | (16,772) | |||||
Investing activities | |||||||
Acquisition of property, plant and equipment | (26,810) | (43,179) | |||||
Net cash used in investing activities | (26,810) | (43,179) | |||||
Effect of exchange rate changes on cash and cash equivalents | (2,133) | (827) | |||||
Change in cash and cash equivalents during the period | (1,616) | 2,466 | |||||
Cash and cash equivalents – Beginning of period | 98,297 | 96,519 | |||||
Cash and cash equivalents – End of period | 96,681 | 98,985 | |||||
Interest paid | 1,500 | 2,775 | |||||
Interest received | 452 | 548 | |||||
Income tax paid | 275 | 851 |
Boungou, | |||||||||
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 (tonnes) | — | 5,044,600 | (100%) | ||||||
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 development taxes | 2,385 | 4,724 | (50%) | ||||||
Depreciation of property, plant and equipment | 10,624 | 24,948 | (57%) | ||||||
General and administrative | 425 | 217 | 96% | ||||||
Corporate social responsibility expenses | 8 | 82 | (90%) | ||||||
Segment operating income | 15,104 | 37,451 | (60%) | ||||||
Statistics (in dollars) | |||||||||
Average realized selling price (per ounce) | 1,629 | 1,306 | 25% | ||||||
Cash operating cost (per tonne processed)1 | 68 | 53 | 28% | ||||||
Cash operating cost including stripping (per tonne processed)1 | 68 | 88 | (23%) | ||||||
Total cash cost (per ounce sold)1 | 530 | 337 | 57% | ||||||
All-in sustaining cost (per ounce sold)1 | 550 | 534 | 3% | ||||||
Depreciation (per ounce sold)2 | 425 | 386 | 10% |
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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, | |||||||||
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 stripping ratio | 8.4 | 6.8 | 24% | ||||||
Capitalized Stripping Activity | |||||||||
Waste material – Siou (tonnes) | 117,600 | 2,405,900 | (95%) | ||||||
Waste material – Wona (tonnes) | 2,486,700 | 1,825,000 | 36% | ||||||
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 (tonnes) | 407,000 | 427,900 | (5%) | ||||||
Low grade material (tonnes) | 257,700 | 212,300 | 21% | ||||||
Tonnes processed (tonnes) | 664,700 | 640,200 | 4% | ||||||
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 sales | 82,418 | 54,049 | 52% | ||||||
Mining operations expenses | 33,414 | 27,182 | 23% | ||||||
Government royalties | 4,119 | 2,429 | 70% | ||||||
Depreciation of property, plant and equipment | 20,768 | 14,531 | 43% | ||||||
General and administrative | 588 | 543 | 8% | ||||||
Corporate social responsibility expenses | 254 | 275 | (8%) | ||||||
Segment operating income | 23,275 | 9,089 | 156% | ||||||
Statistics (in dollars) | |||||||||
Average realized selling price (per ounce) | 1,592 | 1,306 | 22% | ||||||
Cash operating cost (per tonne processed)¹ | 56 | 41 | 37% | ||||||
Cash operating cost including stripping and UG development (per tonne processed)1 | 79 | 61 | 30% | ||||||
Total cash cost (per ounce sold)¹ | 725 | 715 | 1% | ||||||
All-in sustaining cost (per ounce sold)¹ | 1,052 | 1,075 | (2%) | ||||||
Depreciation (per ounce sold)² | 401 | 351 | 14% |
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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. |
SOURCE
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