Gold Producer – West Africa

January 2010

Forward-Looking Statement
This presentation may contain forward-looking statements. These forward-looking
statements include statements regarding expectations of the Company as to gold
production targets, timetables, mining operating expenses, capital expenditures and
mineral
i
l reserve and
d resource estimates.
ti t
F
Forward-looking
d l ki
statements
t t
t involve
i
l
k
known
and unknown risks and uncertainties and accordingly, actual results and future events
could differ materially from those anticipated in such statements. Factors that could
cause future results or events to differ materially from current expectations expressed
or implied by the forward-looking statements include fluctuations in the market price of
precious metals, mining industry risks, uncertainty as to calculation of mineral reserves
and resources, delays, requirements of additional financing and other risks described in
the Company
Company’s
s documents filed from time to time with Canadian securities regulatory
authorities. Although the Company is of the opinion that these forward-looking
statements are based on reasonable assumptions, such assumptions may prove to be
incorrect. Accordingly, undue reliance should not be placed on forward-looking
statements Further information with respect to these risks can be found in the
statements.
Company’s Annual Information Form and other filings of the Company with Canadian
securities regulatory authorities available at www.sedar.com. These forward-looking
statements are dated as of September 30, 2009 and the Company disclaims any
obligation
bli ti to
t update
d t or revise
i these
th
f
forward-looking
d l ki statements,
t t
t exceptt as required
i d by
b
applicable law.
2

Company Snapshot
Ticker

TSX: SMF

Shares Outstanding

250.7 M 

Options

10 M

Warrants

18M
1.8 M

Market Cap

C$1.2 B*

Cash

US$60 M
US$60 M

Working Capital

US$76 M

Debt

US$43 M   

AMC/Gold Eq. Oz. Resources

US$190

Leverage to Gold Price

100% Unhedged

*As at  January 13, 2010

3

Project Locations
• Significant land holdings in French speaking West Africa
• Three gold mines in operation
• Active exploration on
5,000 km2 of ground around
mine sites
• Mining friendly countries
• Approximately 1,800
employees
• Social and community
involvement with water,
health, agriculture and
education
• Excellent government
relations

Niger

Burkina
Faso

Guinea

Samira Hill
Mana
Kiniero

4

In-House Team
SEMAFO’s management and operations team is comprised of high-caliber
individuals with a wide range of experience and expertise, and a proven
ttrack
ac record
eco d
Geology / Exploration / Surface Mining / Underground Mining / Mine
Planning / Drilling & Blasting / Mine Maintenance
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ

Geologists, MA,
Geologists
MA M.Sc
M Sc
Mining Engineers
Mechanical Engineers
Civil Engineers
Metallurgists
Robotics Specialist, MA, MSc

ƒ
ƒ
ƒ
ƒ
ƒ
ƒ

Environmental Specialists
Mining Process Specialists
Electrical Mine Specialists
Chemists
Geomatic Specialists
Operations Management Specialists

Management / Finance / Legal / Human Resources / Logistics /
Procurement / Communications
ƒ
ƒ
ƒ
ƒ

Accountants, CA, CMA, CGA
Lawyers, LLL
Human Resources Specialists,
Specialists CHRP
Industrial Psychologists, M.Ps

ƒ
ƒ
ƒ
ƒ

Business Specialists, MBA
Information Technology Specialists, M.Sc
Communications Specialists,
Specialists B.Comm.
B Comm
Foundation Director, MBA
5
5

Highlights
2009 (Twelve-Month Period Ended December 31, 2009*)

Gold Production of 242,000 ounces – a 24% increase
over 2008

Gold Sales totalling $240,000,000 – a 41% increase
over 2008

Nine-Month Period Ended September 30, 2009

Gold Production of 184,500
,
ounces – a 33% increase y
y/yy

Gold Sales totalling $167,502,000 – a 38% increase y/y

Operating Income of $43,411,000 – a 52% increase y/y

Cash Operating Cost of $450 per ounce

Cash Flow from Operating Activities of $68,245,000 – a
50% iincrease y/y
/

* Production numbers are preliminary and may be subject to final adjustment.
6

2010 Goals & Timelines
• 2010 production forecast 235,000 - 260,000 oz at US$485 - US$520/oz
operating cash costs
• Pre-feasibility study on Mana underground by Q2/10
• Feasibility study on Mana underground by Q3/10
• Mana plant expansion
ƒ

Phase I: 5,000 tpd in oxide Q3/09

ƒ

Phase II: 6,000 tpd in oxide Q4/09

ƒ

Phase III: 6,000 tpd in bedrock Q2/10

• Mana drill program completed
Q3/10
• Continue regional exploration
programs

7

Expanding Reserves/Resources Base
7 000

6,001

6 000

5,491
5 491
5,110

Gold (000 oz)

5 000

7,001*

6,818

4,751
731

1 108

4,947

2 566

1 241*

7,501*
1 241*

1 241

1 071

940

3 734*
3 484*

4 000

2 377
3 000

2 035

2 282

2 984

2 606
3 166
2 000

1 000

1 973

2 043

1 970

1 776

2005

2006

2007

2008

1 395

2 276*

2 526*

855
0
2003

2004

2009

+1.0 M oz
Proven & Probable Reserves
Measured & Indicated Resources
Inferred Resources

* Pro forma

2010

+1.5 M oz

Mana s exploration program
Mana’s
objective is to add 1.0M - 1.5M oz
(~50/50 to reserves/resources)
8

Production Profile
Gold Production (oz)
300,000

250,000

200,000

150,000

100,000

50,000

2006

2007

2008

2009

Gold Ounces Produced

9

Reserves & Resources by Mine (Dec. 31/08)
Reserves & Resources (000’s oz)

Country

Mine

2P

M&I

Inferred

Total

2010E
Production
(000’s oz)

First
Year of
Production

Estimated
Mine Life
(Years)

Burkina Faso

Mana

909

1,021

508

2,438

170

2008

8

Niger

Samira Hill

631

1,294

608

2,533

55

2004

9

Guinea

Kiniero

236

669

125

1 030
1,030

20

2002

7

Total

1,776

2,984

1,241

6,001

245*

* Annual guidance of 235,000-260,000 oz
10

Mana Mine – Summary

Multi open pit operation
(Wona, Nyafé)

Plant expansion to 6,000 tpd in
bedrock by Q2/10

2010E production 170,000
170 000 175,000 oz at US$380 US$425/oz operating cash
costs

Description

Amount
US$M

Drill Campaign (110,000 meters)
60,000 meters underground

Mining Permit
Area: 93.5 km2

Reserves
Nyafé Zone
1,305,000 tm @ 5.10 g/t Au
214 000 oz
214,000

$11.0

50,000 meters at-surface

$5.0

Scoping Study and BFS

$2 5
$2.5

Total

Reserves
Wona Zone
8,314,000 tm @ 2.60g/t Au
694 600 oz
694,600

US$18.5M
11

Mana – Production Profile

Increasing production from 4,500 tpd to 6,000 tpd in bedrock

12
12

Mana – Core Drilling Exploration Programs

Wona Pit

Target Definition/
RAB Drilling/
Surface Mapping

Nyafé Pit

Preliminary
P
li i
Testing

13

Mana – Underground Potential at Wona Pit

Mana – Wona Pit Underground Drill Results
DDH INTERSECTIONS AT DEPTH - WONA NE EXT.
DDH No.
WDC117
WDC118
WDC119
WDC120
WDC121
WDC122
WDC122
WDC123
WDC124
WDC125
WDC126
Included
WDC127
WDC128
WDC129
Included
WDC130
WDC130
WDC131
WDC131
WDC132
WDC133
Included
WDC134
WDC135
Included
WDC136
WDC137
WDC138
WDC139

Section
15500
17600
16850
16300
17300
16950
16950
17200
17150
16400
16750
16750
17250
16750
17150
17150
18100
18100
16750
16750
17900
17050
17050
17100
17100
16500
17000
16650
16825

From
To
288.0
292.6
201.5
202.7
600.1
603.1
273.7
285.2
210 3
210.3
212 3
212.3
146.8
151.5
165.8
169.0
441.5
446.5
207.0
225.6
390.2
398.7
190 7
190.7
212 0
212.0
190.7
197.4
433.0
444.0
288.0
310.9
439.0
477.0
439.0
446.0
250 6
250.6
253 6
253.6
353.0
359.0
307.9
317.9
373.9
380.4
Outside corridor
336.0
393.8
349.4
366.0
145.2
156.0
218.3
236.0
219.3
230.0
273.7
279.7
136.2
142.2
183.0
210.4
304.0
347.8

Au (g/t) / Length*
Tr. / 5.0 m
3.80 g/t / 1.0 m
2.20 g/t / 3.0 m
2.20 g/t / 12.0 m
1 60 g/t / 2.0
1.60
20m
3.20 g/t / 5.0 m
3.90 g/t / 3.0 m
2.20 g/t / 5.0 m
3.90 g/t / 19.0 m
5.90 g/t / 9.0 m
4 10 g/t / 21.0
4.10
21 0 m
7.20 g/t / 7.0 m
1.40 g/t / 11.0 m
3.20 g/t / 23.0 m
2.40 g/t / 38.0 m
4.30 g/t / 7.0 m
6 10 g/t
6.10
/t / 3.0
30m
2.20 g/t / 6.0 m
3.40 g/t / 10.0 m
4.50 g/t / 7.0 m
5.24 g/t / 57.8 m
10.21 g/t / 16.6 m
2.30 g/t / 11.0 m
4.40 g/t / 18.0 m
6.40 g/t / 11.0 m
4.00 g/t / 6.0 m
g/t / 6.0 m
3.00 g
7.05 g/t / 27.4 m
2.44 g/t / 43.8 m

* All lengths are down-the-hole lengths; additional information is required to determine true widths.

DDH No.
WDC140
WDC141
WDC142
WDC142
WDC143
Included
WDC145
Included
WDC146
Included
WDC147
WDC148
WDC149
WDC150
WDC151
WDC152
WDC153
WDC153
WDC154
WDC155
WDC155
WDC156
WDC157
WDC158
WDC159
WDC160
WDC161
WDC162
WDC163
WDC164

Section
16900
16650
16650
16650
17400
16650
16875
16875
16975
16975
16550
16875
16975
16550
16925
16975
17025
17025
16825
16925
16925
16600
16825
16925
18100
16825
16850
16875
16900
16925

From
To
Au (g/t) / Length*
138.7
160.2
3.90 g/t / 21.5 m
258.0
271.0
3.32 g/t / 13.0 m
482.0
500.4
1.67 g/t / 18.4 m
511.5
535.0
2.57 g/t / 23.5 m
332.8
370.3
2.54 g/t / 37.5 m
257.2
263.4
3.77 g/t / 6.2 m
261.0
308.2
3.29 g/t / 47.2 m
292.1
298.3
9.75 g/t / 6.2 m
332.7
378.2
2.33 g/t / 45.5 m
344.8
359.8
4.09 g
g/t / 15.0 m
162.0
186.0
3.90 g/t / 24.0 m
196.0
236.7
3.78 g/t / 40.7 m
266.0
326.5
3.61 g/t / 60.5 m
264.6
271.4
3.59 g/t / 6.8 m
308.0
358.6
3.02 g/t / 50.6 m
207 0
207.0
211 0
211.0
2 16 g/t / 4 m
2.16
300.4
314,6
2.81 g/t / 14.2 m
335.2
349.5
3.07 g/t / 14.3 m
232.0
282.6
3.08 g/t / 50.6 m
264.0
284.0
3.23 g/t / 20.0 m
292.0
303.0
2.68 g/t / 11.0 m
A
Assays
pending
di
172.0
194.6
4.19 g/t / 22.6 m
201.0
216.0
3.41 g/t / 15.0 m
10.0
34.0
1.15 g/t / 24.0 m
Assays pending
543.3
546.3
2.71 g/t / 3.0 m
156 0
156.0
181 0
181.0
3 20 g/t
3.20
/t / 25.0
25 0 m
315.0
344.0
2.45 g/t / 29.0 m
137.6
169.4
2.80 g/t / 31.8 m
15

Samira Hill & Kiniero

2010E production of 75,000 85 000 oz at an operating cash
85,000
costs of approximately
US$650/oz at Samira Hill
(Samira Hill 55,000
55 000 oz and
Kiniero 20,000 oz at mid-point)

Since Samira Hill’s start in
2004, it has maintained a
continuous 9 year mine life

Since Kiniero
Kiniero’s
s start in 2002,
2002 it
has maintained a continuous
5-7 year mine life

16

Samira Hill – 2010 Exploration Budget ($3M)

Permits Cover
Permits Cover
2 580
580 km
km22
22,580 km
2,580 km

17

Kiniero – 2010 Exploration Budget ($.6M)

Permits 
Cover 450 
k 2
km

18

Comparable Valuations
Company

Ticker

Price (1)

Adj.
Market
Cap (2)

(C$)

(C$M)

Production Estimates
Reserves

Resources

2P

2P, M&I
(M Oz)

2009E

2010E
(Oz)

AMC/Oz
Production
2009E
2010E

AMC/Gold Eq. Oz
2P
2P, M&I

(C$/Oz)

(C$/Oz)

Price/Cash Flow
2009E 2010E

Junior Producers
Alamos Gold Inc.

AGI-TSX

$13.49

$1,283

2.1

4.8

165,000

175,000

$7,774

$7,329

$626

$270

17.8x

16.4x

Aurizon Mines Ltd.

ARZ-TSX

$4.87

$680

1.0

5.7

153,000

155,000

$4,442

$4,384

$711

$120

11.4x

11.9x

Gammon Gold Inc.

GAM-TSX

$11.92
$

$1,611
$
,

1.6

5.7

224,000
,

360,000
,

$7,190
$
,

$4,474
$
,

$993
$

$281
$

23.1x

8.0x

Jaguar Mining Inc.

JAG-TSX

$13.29

$1,019

2.0

6.6

168,000

215,000

$6,064

$4,738

$509

$154

19.3x

11.4x

AVERAGE

1.7

5.7

178,000

226,250

$6,367

$5,231

$710

$206

17.9x

11.9x

African Producers
Golden Star Resources Ltd.

GSC-TSX

$3.50

$903

3.3

7.1

405,000

$276

$126

7.4x

5.1x

Iamgold Corp.

IMG-TSX

$17.00

$5,922

11.8

45.9

937,000

953,000

$6,320

$6,214

$502

$129

19.4x

14.0x

Randgold Resources Ltd.

GOLDNASDAQ

$81.77

$6,725

8.9

25.0

479,000

546,000

$14,039

$12,316

$758

$269

51.3x

24.9x

Red Back Mining Inc.

RBI-TSX

$17.50

$3,838

4.6

14.0

366,000

515,000

$10,488

$7,453

$832

$275

20.0x

13.7x

AVERAGE

7.1

23.0

547,000

671,000

$8,269

$8,661

$592

$200

24.5x

14.4x

1.7

5.9

247,000

259,000

$4,558

$4,347

$668

$190

11.3x

9.3x

SEMAFO Inc.

SMF-TSX

$4.70

$1,126

--

$2,229

--

Updated as at January 12, 2010
TWP Estimates for GAM, IMG, GOLD, RBI and SMF
Adjusted Market Cap = Market Cap + Debt – Cash
All amounts in Canadian dollars
Can$/US$ = $1
Gammon – Au resources only; Golden Star Resources has not provided 2010 guidance
Source: Companies’ websites, Factset and Thomas Weisel Partners LLC
1)
2)

19

Summary
• $60M in cash
• 100% unhedged
• Increasing cash flow profile
ƒ First 9 months of 2009: $68
$68.2M
2M
• Mana plant and reserves/resources expansion
fully funded
• Successful record of discovery, development and
operations - experienced operating team with
proven track record
• Continued exploration success
• Strong positioning in French West Africa

20

CSR
SEMAFO remains committed to make significant contributions and
improving the quality of life in the communities in which we operate.
Recent CSR initiatives include:
• Shipment of 5 containers including:
ƒ 7,204 pieces of clothing
ƒ 33,835
33 835 b
books
k
ƒ School supplies (338 desks, 15,885 pens/pencils, 47,754
pads/paper)
• Construction of classrooms in Burkina Faso
Faso, Niger and Guinea
• Launched school lunch program for children at Mana
• Construction of health centre in Bossey Bangou, Niger
• Solar Energy – Burkina Faso
• Uranium, Coal - Niger
• Hydro Electricity - Guinea

Sustainable
development programs
in collaboration with local
governments
21

SEMAFO Inc.
Ticker

TSX: SMF

Address

750, boul. Marcel-Laurin, Suite 375
Saint-Laurent, Quebec
H4M 2M4

Website

www.semafo.com

Email

info@semafo.com

Telephone

1-888-744-4408 / 514-744-4408

Facsimile

514-744-2291

22