MAKING
Denver Gold Forum
September 18 - 21, 2016
Colorado Springs, CO
THE GRADE
FORWARD-LOOKING STATEMENTS
This presentation 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 “target”, “guidance”, “feasibility”, “initial”, “timetable”, “will”, “objective”, “promising”, “potential”, “priorities” 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 a first gold pour at Natougou in H2 2018, the ability to meet our 2016 production
guidance of between 225,000 and 245,000 ounces, the ability to achieve our 2016 total cash cost guidance of between $535 and $565 per
ounce and our all-in sustaining cost guidance of between $720 and $760 per ounce, the ability to meet the annual average production
targets at Natougou within the anticipated total cash costs and all-in sustaining costs, the ability to achieve the projected LOM, the ability to
meet the targeted permitting process, initial capital expenditures, construction start-up, the ability to expand Natougou reserves and
resources, the ability to meet the various objectives in terms of tonnes of ore to the milling facility, head-grade and gold recovery at the
Natougou plant, the ability to generate an after-tax internal rate of return (IRR) of 48% with a payback period of 1.5 years and to generate an
after-tax NPV of $262 million, the ability to produce between 225,000 and 245,000 ounces of gold at Mana in 2017, the ability to produce
100,000 ounces of gold at Natougou in 2018 and 226,000 in 2019 respectively, the ability to produce 200,000 ounces at Mana in 2018 and
2019, the accuracy of our assumptions, 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 2015 Annual MD&A, as
updated in SEMAFO’s 2016 First Quarter and Second Quarter 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.
We also advise you that the terms “Inferred Resources” and “Indicated Resources”, although recognized and required by the Canadian
Securities Administrators, are not recognized by the US Securities and Exchange Commission. There is no certainty that Inferred Resources or
Indicated Resources will be economically mineable.
All mineral resources are exclusive of mineral reserves.
In this presentation, all amounts are in US dollars unless otherwise indicated.
2
SEMAFO HAS….
STRONG IN-HOUSE
TECHNICAL TEAM
DISCIPLINED GROWTH
STRATEGY
TRACK RECORD OF
OPERATING SUCCESS
IN WEST AFRICA
RESPECTED CSR
PROGRAMS
HIGH-GRADE OPEN-PIT
DEPOSITS
FINANCIAL STRENGTH
LARGE EXPLORATION
PACKAGE
3
LONG-STANDING PRESENCE IN WEST AFRICA
Commissioned
3 mines in West Africa
over
20
years
7,000km
NATOUGOU
Feasibility Study Completed
Targeted Production H2 2018
2
in Burkina Faso
over three prospective belts
Essakane
Inata
Taparko
MANA Mine
Bissa
Burkina Faso
Ouagadougou
in Burkina Faso
(Capital)
Mana
Natougou
Nabanga
Youga
BANFORA GOLD BELT
PERMITS
Korhogo
Bantou
SEMAFO property
Other mines
Electric line
4
OPERATING SUCCESS
Met its production guidance for the eighth consecutive year
300
1400
1,221
1,242
255.9
250
1200
245
234.3
225
1000
200
150
750
158.6
801
740
777
800
645
600
649
$ / oz
‘000 oz
172.7
550
100
493
400
50
200
0
0
2012
2013
Production '000 ounces
2014
Total Cash Cost ($/oz)
2015
Guidance 2016
All-in Sustaining Cost ($/oz)
5
5
EXPLORATION AND ACQUISITION SUCCESS
FOFINA
FOBIRI
YAHO
SIOU
ACQUISITION
ORBIS GOLD
2011
2012
2015
Discoveries
2010
Inferred Resources
Measured and Indicated Resources
Proven and Probable Reserves
Reserves
2.1
2.1
1.9
1.2
1.4
2.8
0.9
3%
Fofina
1.2 Mt @ 2.72 g/t Au
104,000 oz
27%
Siou
6.5 Mt @ 4.16 g/t Au
874,000 oz
30%
Wona
12.6 Mt @ 2.30 g/t Au
935,000 oz
40%
Natougou
9.6 Mt @ 4.15 g/t Au
1,276,000 oz
2.9
2.7
2.8
2.4
3.0
50 % YoY
1.1
0.5
3.3
1.6
1.0
2.2
0.9
2.0
2.3
1.9
2.2
0.8
2008
2009
2010
2011
2012
2013
2014
2015
- Reserves estimate using a gold price of $1,100/oz
- Resources estimate using a gold price of $1,400/oz
* All mineral resources are exclusive of mineral reserves.
6
MANA STRONG PRODUCTION AND LOW COST PROFILE
H1 2016
GUIDANCE 2016
2015
Ore processed (t)
1,287,400
2,500,000
2,399,600
Head grade (g/t)
3.18
3.25
3.63
Recovery (%)
93
91
91
Total gold ounces produced (K)
123
225-245
256
Total cash cost/ounce sold1($)
526
535-565
493
All-in sustaining cost/ounce2 ($)
719
720-760
645
1 Total
cash cost is a non-IFRS financial performance measure with no standard definition under IFRS and represents the mining operation expenses and
government royalties per ounce sold.
2 All-in sustaining cost is a non-IFRS financial performance measure with no standard definition under IFRS and represents the total cash cost, plus sustainable
capital expenditures and stripping costs per ounce.
6
7
7
$795
$827
Sustaining
$840
$889
$897
$898
$920
$922
$950
$953
$955
$1 000
$959
$1 029
$1 067
$1 079
$1 088
$1 200
$1 105
$1 400
$1 195
LOW ALL-IN SUSTAINING COST RELATIVE TO INDUSTRY PEERS: 2016
$800
Other
G&A
Exploration
$600
Operating
$400
$200
Source: TD Securities as at September 2, 2016
GUY
BTO
SMF
ABX
CG
NEM
TMM
NGD
AEM
ELD
DGC
AUY
GG
KGC
AGI
IMG
RIC
P
$0
SMF
AISC - All-in Sustaining-Cost: Total cash cost plus SG&A/oz plus exploration/oz plus sustaining capital/oz
8
NATOUGOU: OUR NEW QUALITY ASSET
POSITIVE FEASIBILITY STUDY HIGHLIGHTS
Project economics at $1,100/oz:
• After-tax NPV 5%: $262 million
• After-tax IRR: 48%
• Payback period: 1.5 years
During the first three years,
• Average annual production of more than 226,000 ounces
• Average total cash cost of $283/oz and AISC of $374/oz
• Average head grade 5.72 g/t at a gold recovery rate of 93.8%
First gold pour
H2 2018
Projected LOM total cash cost of $408/oz and all-in sustaining
cost of $518/oz
Maiden open pit mineral reserves of 9.6 million tonnes at a
grade of 4.15 g/t Au for 1,276,000 ounces of gold
Initial CAPEX: $219 million, project fully financed
10
NATOUGOU– INITIAL PRODUCTION
YEAR 1
YEAR 2
YEAR 3
Feed ore (t)
1,256,000
1,343,200
1,343,200
Grade (g/t)
5.93
5.59
5.65
Gold recovery (%)
93.9
93.7
93.7
Ounces (oz)
224,918
226,100
228,502
TCC ($/oz)
319
304
227
AISC ($/oz)
380
406
337
STRONG FREE CASH FLOW
11
NATOUGOU TIMETABLE
2016
2017
2018
2026
Permitting process
& Detailed engineering
Lycopodium selected for the
EPCM contract
Filing of the Environmental
Social Impact Assessment (ESIA)
Detailed design and engineering 20%
complete
Procurement of long-lead items
secured for site delivery in H2 2017
Issue of requests for power plant and
fuel depot
Selection of mining contractors in
progress
Construction & Pre-stripping
Commissioning, ramp-up,
first gold pour and production
17
12
12
GROWTH PROFILE
450
Mana
400
Natougou 2
350
300
‘000 ounces
250
245
225
200
150
100
50
0
2013
2014
2015
2016 Guidance 1, 3
2017
2018
2019
Target3
1 See
press release of January 20, 2016.
2 Contingent
on receipt of permits and construction start-up by year-end 2016; for more details, refer to press release of February 25, 2016 or the NI 43-101
technical report for Natougou, which is filed on www.sedar.com and available on www.semafo.com.
Mineral reserves were estimated using a gold price of $1,100 per ounce
3 Assumption:
13
VALUE CREATION THROUGH
EXPLORATION
Budget expanded to $18 million
14
TARGETED EXPLORATION WITHIN TRUCKING DISTANCE FROM THE PLANT
$6.5 MILLION EXPLORATION BUDGET IN 2016
BN2
H1 2016
25 km
from the mill
Mana Mine
H2 2016
16,000 meters of RC drilling
for Yama reserves and
exploration in the area
17,000 meters
of RC drilling
8,000 meters of RC drilling
and 32,000 meters of auger
drilling on various targets
28,000 meters
of auger drilling
Wona
MONTAGNE
BLANCHE
Siou
Fofina
Yaho
Fobiri
YAMA
KOKOÏ
MAOULA
15
NATOUGOU: AN UNDEREXPLORED PROPERTY
Prior to the acquisition, Natougou had seen little
near-pit or regional exploration
In 2015, focus on in-fill drilling for the feasibility study
Regional and proximal exploration only commenced
late 2015
773 km2 of exploration ground
Objective is to expand
reserves and resources
to continue creating value
16
PROXIMAL AND REGIONAL EXPLORATION PROGRAM : $9M IN 2016
Natougou
28,000 meters of RC drilling - Ongoing
6,000 meters of DDH drilling - Ongoing
62,000 meters of auger drilling - Completed
Airborne geophysical survey - Completed
17
PROXIMAL DRILL RESULTS Q2 2016
18
NATOUGOU –AUGER DRILLING ON SOUTH ZONE
19
NABANGA: A HIGH-GRADE ASSET
Nabanga –Inferred Mineral Resources
(1)
Cut-off Grade
Tonnes
Grade
Ounces
5.0 g/t Au
1.84 Mt
10.0 g/t Au
590,000 oz
(1) Inferred Mineral Resources figures at a 5.0 g/t Au cut-off grade. NI 43-101 report, June 2015
.
20
20
EXPLORATION UPSIDE: ACQUIRED PERMITS IN CÔTE D’IVOIRE
Randgold sector Fanlokolo
Recent soil sampling results
Randgold: Environment Tongon
Randgold sector Sireme
Randgold sector Ouobolo
SEMAFO’s Korhogo West and East permits
21
FINANCIAL FLEXIBILITY
Cash at June 30, 2016 - $254M
Long-term debt (LIBOR +4.75%) of $60M
Additional $60M can be drawn down by June 30, 2017
for Natougou construction
Generated $73M of cash flow from operating activities
in H1 2016
22
2016 PRIORITIES
NATOUGOU
Completing detailed engineering in Q4
Completing the permitting process and starting construction by year-end
Continuing exploration with the aim of increasing reserves, resources and value
MANA
Delivering our production guidance for a ninth consecutive year
Exploring within trucking distance of the mine
Resuming stripping at Wona North
OTHERS
Exploring Nabanga
Remaining on the lookout for opportunities
Maintaining our cost reduction efforts
23
23
Strong Safety Record Accident frequency rate of 2.32 per 200,000
hours worked as of June 30, 2016
National Workforce Development Program Training of promising national employees for
management or trainer posts
Training – 6,200 hours of training
were dispensed in 2015, of which 64%
benefited our Burkinabe employees
SEMAFO Foundation Six years of activities generated revenues of C$4.5M
to the benefit of communities
24
IN SUMMARY
Track Record of Operating Success in West Africa
•
•
•
•
•
Achieved production guidance for eight consecutive years
Production of 122,600 ounces in H1 2016
Total cash cost of $526 per ounce in H1 2016
All-in sustaining cost of $719 per ounce in H1 2016
Successfully commissioned three mines in West Africa
Disciplined Growth Strategy
•
•
•
•
Targeted exploration in vicinity of Mana Mine and Natougou deposit
Natougou deposit in line for construction start in Q4 2016
Initiated exploration in Côte d’Ivoire on a strong geological trend
High-grade open-pit assets
Financial Strength
•
•
•
•
$254M in cash (as at June 30, 2016)
Long-term debt of $60M
Additional $60M can be drawn down by June 30, 2017 for Natougou construction
Generating free cash flow
Strong CSR Program
• 2009 pledge to commit up to 2% of net profit to support SEMAFO
Foundation community activities
• Accident frequency rate of 2.32 per 200,000 hours worked (June 30, 2016)
206 days without lost time injury since March 11, 2016
• Well-established National Workforce Development Program
•
25
25
SMF: INVESTOR INFORMATION
TSX, OMX: SMF
Average Daily
Trading Volume(1)
2.8M
Coverage
15 analysts
Close
C$6.50
Market Cap
C$2.06B
DIRECTORS
Jean Lamarre
Chair of the Board
John LeBoutillier
Lead Director
Terence F. Bowles
Benoit Desormeaux
President and Chief Executive Officer
*As at September 6, 2016
O/S 324.8M SHARES
Institutional
89%
Retail
11%
(1)
(2)
Flore Konan
Gilles Masson
Lawrence McBrearty
Tertius Zongo
Geographic Distribution
of Shares (2)
Canada
42%
Europe
18%
Others
1%
USA
39%
Three-month moving average as at September 6, 2016 – TSX
Estimated - CDS (Canadian Clearing and Depository Services), Computershare, Euroclear
26
APPENDICES
27
NATOUGOU PROVISIONAL SITE LAYOUT
NATOUGOU SITE
Reference: NI 43-101 report, March 2015
28
MINERAL RESERVES AND RESOURCES
PROPERTY
Mana1,2,4,5,6
Tapoa1,2,4,5,6
(Natougou Project)
Yactibo1,3,4,5,7
(Nabanga Project)
Total
MINERAL RESERVES
Proven
Tonnes
12,655,000
1,583,000
14,238,000
3.15
6.46
3.52
Ounces
1,281,400
329,000
1,610,400
Probable
Tonnes
8,325,000
7,984,000
16,309,000
2.64
3.69
3.16
707,600
947,000
1,654,600
20,980,000
9,567,000
30,547,000
2.95
4.15
3.32
1,989,000
1,276,000
3,265,000
8,751,000
77,000
8,828,000
1.67
1.84
1.67
470,800
5,000
475,800
33,526,000
2,564,000
36,090,000
Grade (g/t Au)
Grade (g/t Au)
Ounces
TOTAL MINERAL RESERVES
Tonnes
Grade (g/t Au)
Ounces
MINERAL RESOURCES (exclusive of reserves)
Measured
Tonnes
Grade (g/t Au)
Ounces
Indicated
Tonnes
Grade (g/t Au)
1
2.13
2.44
2.15
2,293,100
201,000
2,494,100
42,277,000
2,641,000
44,918,000
2.03
2.42
2.06
Ounces
2,763,900
206,000
2,969,900
Inferred
Tonnes
13,041,000
2,683,000
Ounces
2
TOTAL M&I
Tonnes
Grade (g/t Au)
Grade (g/t Au)
Ounces
1,840,000
17,564,000
2.82
3.99
10.00
3.75
1,184,200
345,000
590,000
2,119,200
3
4
5
6
7
The Corporation indirectly owns a 100% interest in all of its
permits, except for the permits held by SEMAFO
Burkina Faso S.A. in which the Government of Burkina Faso
holds a 10% interest.
Mineral reserves and resources at Mana and at Tapoa
(Natougou project) were estimated using a gold price of
$1,100 and $1,400 per ounce, respectively.
Mineral resources at Yactibo Permit Group (Nabanga project)
were reported above a 5.0 g/t Au cut-off grade.
Rounding of numbers of tonnes and ounces may present
slight differences in the figures.
All mineral resources reported are exclusive of mineral
reserves.
As of December 31, 2015.
As of June 30, 2015.
29
MINERAL RESERVE AND RESOURCES (cont’d)
DECEMBER 31, 2015
DEPOSITS
PROVEN RESERVES
Grade
Tonnage (g/t Au) Ounces4
PROBABLE RESERVES
Grade
Tonnage (g/t Au) Ounces4
TOTAL RESERVES
Grade
Tonnage (g/t Au) Ounces4
WONA-KONA
NYAFÉ
6,107,000
263,000
2.35
5.85
460,700
49,400
6,558,000
4,000
2.25
5.02
474,400
700
12,665,000
267,000
2.30
5.84
935,100
50,100
FOFINA
1,146,000
2.74
100,800
39,000
2.30
2,900
1,185,000
2.72
103,700
SIOU
4,800,000
4.17
644,000
1,724,000
4.14
229,600
6,524,000
4.16
873,600
339,000
2.43
26,500
—
—
—
339,000
2.43
26,500
12,655,000
3.15
1,281,400
8,325,000
2.64
707,600
20,980,000
2.95
1,989,000
ROMPAD
TOTAL MANA
DECEMBER 31, 2015
DEPOSITS
MEASURED
Grade
Tonnage (g/t Au) Ounces4
INDICATED
Grade
Tonnage (g/t Au) Ounces4
2.51 1,804,800
5.70
97,200
1,427,000
300,000
1.95
5.60
FOFINA
1,061,000
2.99
102,000
425,000
3.87
52,800
1,486,000
3.24
154,800
YAHO
4,654,000
1.05
157,200
9,895,000
0.99
316,200
14,549,000
1.01
473,400
26,000
2.72
2,300
9,000
3.59
1,000
35,000
2.93
3,300
FOBIRI
469,000
1.80
27,100
114,000
1.52
5,600
583,000
1.74
32,700
SIOU
814,000
1.47
38,600
1,891,000
2.62
159,100
2,705,000
2.27
197,700
8,751,000
1.67
2.13 2,293,100
42,277,000
TOTAL MANA
2.55 1,715,300
5.84
43,100
22,389,000
530,000
WONA-KONA
NYAFÉ
FILON 67
89,500 20,962,000
54,100
230,000
TOTAL RESOURCES
Grade
Tonnage (g/t Au) Ounces4
470,800 33,526,000
2.03 2,763,900
DECEMBER 31, 2015
INFERRED
DEPOSITS
Tonnage
WONA-KONA
NYAFÉ
Grade (g/t Au)
Ounces4
3,010,000
151,000
2.91
5.86
281,600
28,400
FOFINA
162,000
4.33
22,600
YAHO
471,000
1.45
22,000
6,000
6.32
1,100
578,000
1.39
25,800
MAOULA
2,628,000
1.62
137,100
SIOU
6,035,000
3.43
665,600
FILON 67
FOBIRI
1
The Corporation indirectly owns a 100% interest in all of its permits, except for the permits
held by SEMAFO Burkina Faso S.A. in which the Government of Burkina Faso holds a
10% interest.
2
Mineral reserves and resources were estimated using a gold price of $1,100 and
$1,400 per ounce, respectively.
All mineral resources reported are exclusive of mineral reserves.
Rounding of numbers of tonnes and ounces may present slight differences in the figures.
3
4
TOTAL MANA
30
13,041,000
2.82
1,184,200
30
MANA’S RESERVES (AS AT DECEMBER 31, 2015)
Wona:
12,665,000 t @ 2.30 g/t Au
935,100 oz
Mana
Processing Plant
Siou:
6,524,000 t @ 4.16 g/t Au
873,600 oz
Fofina:
1,185,000 t @ 2.72 g/t Au
103,700 oz
31