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Semafo Inc.

Q4 2012 Earnings Conference Call

March 21, 2013; 10:00 a.m. ET

Executives

Benoit Desormeaux - President & Chief Executive Officer

Patrick Moryoussef - Vice President, Mining Operations

Michel Crevier - Vice President, Exploration and Mine Geology

Sylvain Duchesne - Mineral Process Engineer

Natacha Garoute - Corporate Controller

Robert LaValliere - Vice President, Investor Relations

Analysts

Cosmos Chiu - CIBC Capital Markets

Leily Omoumi - Scotiabank

Don Blyth - Paradigm Capital

Stuart McDougall - Casimir Capital

Kerry Smith - Haywood Securities Inc.

Michael Scoon - Stifel Nicolaus

Fletcher Tully - Goldman Sachs

Operator

Good morning ladies and gentlemen and thank you for standing by. Welcome to Semafo’s 2012 fourth quarter and year-end financial results and operations review conference call.

At this time all participants are in a listen-only mode. Following the presentation we will conduct a question-and-answer session. Instructions will be provided at that time to queue up for questions. (Operator Instructions).

I will now turn the conference over to Mr. Robert LaValliere, Semafo’s Vice President, Investor Relations. Please go ahead sir.

Robert LaValliere

Thank you France. Good morning everyone. Thank you for joining us today for Semafo’s 2012 fourth quarter and year end financial result and operation review conference call.

Members of the senior management team joining me for the call today are Benoit Desormeaux, President and CEO; Patrick Moryoussef, Vice President, Mining Operations; Michel Crevier, Vice President, Exploration and Mine Geology; Sylvain Duchesne, Mythological Process Engineer; and Natacha Garoute, Corporate Controller.

I would like to remind listeners that today’s call is being webcast live on our website at Semafo.com and will be available for rebroadcast for a period of 20 days following the completion of this call. The full year 2012 and the fourth quarter MD&A and other said financial statements are available on our website or on SEDAR’s website at sedar.com.

I would like to remind listeners that some of the matters to be discussed during today’s call may constitute forward-looking statements. Forward-looking statements include but are not limited to items such as our expectations regarding the market price of gold, timetables, mining operation expenses, capital expenditures, guidance and resources and reserves estimates.

Such statements are given as of the date of this conference call and involve risks and uncertainties. A number of factors and assumptions were made in preparing such statements and actual results will differ materially. Accordingly you should not place undue reliance on forward-looking statements.

For additional information with respect to forward-looking statements, risk and assumptions, please consult our 2012 annual MD&A as updated in our year end 2012 and our fourth quarter and other financial documents filed with Canadian Securities Regulatory Authorities and available on Semafo website.

Except as you may require by applicable law, we do not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. I make this cautionary statement on behalf of all Semafo spoke person who may address you during this call.

With that said, I would like to turn the call over to Benoit Desormeaux. Benoit.

Benoit Desormeaux

Thank you Robert. For Semafo, 2012 was a year of transition on many levels. Although disappointing in terms of shareholder value, nevertheless gave rise to numerous positive aspects with regard to our core business from both strategic and operational perspectives.

We achieved production and cost guidance for the fifth consecutive year. Our production totaled 236,000 ounces of gold, just slightly below our 2011 results. Semafo’s 2012 cash operating costs were $704 an ounce, at the lower end of our cash operating cost guidance of between $700 and $750 per ounce. Annual revenues from gold sales decreased only 2% from 2011 to stand at $388.5 million.

Cash flow from operating activities amounted to $155.4 million in 2012 compared to $171.9 million in 2011. Adjusted net income totaled $77.8 million in 2012 compared to $111.8 million in 2011.

The highlight of the year from our standpoint was this discovery of the new high-grade Siou Sector at Mana. This vastly prospective area located approximately 15 kilometers east of our processing plant holds 1 million ounces of initial in-pit inferred resources, at an average grade of 4.62 g/t and a gold recovery rate of over 95%. Based on results to-date, the Siou Sector where ongoing exploration work is being carried out, has already become Semafo’s most important find ever.

Another important event was the conversion of the Mana underground project to a super-pit. This decision, although it led to a $17 million write-off, was purely an economic decision based on the best return on investment as capital expenditures are spread out over the life of mine.

Semafo’s reserves and resources decreased slightly to 6.6 million ounces in 2012. This is due to the removal of almost all of the refractory sulphide from the south sector at Mana for economic reasons and the revision of Samira Hill’s reserves and resources that became uneconomic following the review of technical and economic parameters.

The revision at Samira Hill resulted in a non-cash impairment of $60 million in the fourth quarter of 2012. At Mana, the inferred category grade almost doubled to 3.18 g/t as we included the high-grade Siou Sector in this category.

I will now provide listeners with a brief operation overview. At Mana we were allied in the fourth quarter to produce 45,600 ounces of gold for a full total withdrawal annual production of 172,700 ounces of gold at a total cash cost of $750. This compares to 187,800 ounces at a total cash cost of $592 per ounce in 2011.

Mana’s production went down despite the 12% increase in all process during the year and was as we successfully commissioned IV Phase of the plant’s events. The Mana processing plant achieved an all time record by averaging 408,500 ton per day in the fourth quarter of 2012.

Throughput increased by 12% in 2012 to 2.7 million tons compared to 2.4 million tons in 2011. While our recovery rates remain stable at 87%, Mana’s average head weight for the year decreased to 2.25 g/t versus 2.676 g/t in 2011.

In the third quarter of 2012 we completed the construction of the 60-kilometer water pipeline expense, $5.8 million less than budgeted $30.2 million. The pipeline ensures a sufficient water supply for the current processing plant, thereby elevating our dependency on rainfall and on underground water sources and can support plant capacity of up to 14,000 tons a day.

In an effort to reduce turnaround time for active results, we inaugurated Mana’s new onsite exploration laboratory. This new facility is completely separate from the production test area and has a processing capacity of up to 900 samples per day. An independently owned onsite preparation facility was also established at Mana during the year. This prep lab has a capacity of up to 500 bulk samples per day and also plays an important role in significantly accelerating overall access in all wells.

We invested approximately $40 million in exploration at Mana in 2012. Of course the outlier of the year as mentioned was the discovery of the new Siou Sectors, Semaco’s most important finding to-date. The Siou Sector was discovered last August with follow-up RC drilling on another geochemical anomaly and is located 15.8 of the Mana processing plant.

Today the Siou Sector posts 1 million ounces at an average rate of 4.62 g/t and has already been included in the insured category of our 2012 year-end reserve and resources estimate. Metallurgical test work performing samples for Siou Sector revealed gold recovery rates of over 95%. This represents the higher recovery rate than any other deposit found at Mana to-date.

In keeping with our objective to focus exploration on organic growth in the vicinity of the mill, we intend to add the Siou to our reserve base in 2015. Our objective is to begin mining the zone in late 2014 or early 2015.

Meanwhile the deposit located along the 30 km Kokoi Trend continues to develop and provide excellent target for additional resources. If all goes according to plan, Siou would represent an opportunity to increase production and to reduce total cash cap at Mana.

The close proximity of the Siou Sector to the Mana processing plant offers considerable transportation operation and infrastructure synergies. As of December 31, 2012, 1 million ounces of the new Siou Sector were added to Semaco’s inferred mineral reserves for a total of 1.9 million ounces at an average grade of 3.18 g/t. Proven and probable mineral reserves totaled 1.9 million ounces at an average grade of 2.31 g/t. Mana’s total measured and indicated mineral resource increased to 3 million ounces at an average grade of 1.93 g/t.

Our 2013 reserve and resources estimate is net of mining this well for economic reasons. The maturity of the refractory sulphides from the south sector has been removed from our mineral resources.

Mid 2012 metallurgical results show that the sulphide portion for the Fofina, Fobiri and Yaho deposits had lower recovery with CIL treatment. Consequently, Semafo decided to investigate other process routes such as sulphide flotation, sulphide concentrate regrinding and ultimately oxidation to seek better gold recoveries.

Although a combination of ultrafine grinding followed by oxidation at Fofina significantly improved recoveries up to 88%, the tests also indicate that the capital expenditures and consumable costs required to achieve optimal results are not justified at current gold prices.

We however are currently conducting heap-leaching tests on the oxide portion of the Yaho deposit to seek better economics for the south sector. The results should be available during the third quarter of 2013.

At Samira Hill in Niger, production increased to 49,800 ounces in 2012 from 46,700 ounces in 2011. Total cash cost per ounce increased by 4% to $958 compared to $918 in 2011, reflecting a lower recovery rate.

At Kiniero in Guinea we produced 13,600 ounces of gold at a total cash cost of $753 per ounce during approximately nine months of operation in 2012, compared to 15,600 ounces at a total cash cost of $1,000 per ounce in 2011, representing a 13% and 25% decrease respectively year-over-year.

Total cash cost decreased due to the processing of low-grade sectors previously accounted for as waste material. The valuation in production is due to an increase of gold in circuit inventory at the end of 2012. Moving forward we will continue to focus on quality ounces and review strategic occurrences for the Samira’s renewal assets. This concludes the operations portion of the call.

In closing I would like to touch upon a few additional matters. During the latter part of the year we conducted a conference of strategic review of the corporation, which facilitated the establishment of realistic plans to move forward. We validated our top ensuring longstanding priorities to create value by generating future cash flow, while maintaining our solid operational performance. As the world economy continues to change shape, we will continue to focus on quality ounces as part of our strategy, an ongoing effort to reduce cost and optimize cash flow.

Our short-term priorities are to bring the Siou Sector to reserve by the third quarter of 2013, initiate the permitting process and begin mining by the end of 2014 or early 2015. We also intend to focus exploration activities within 20-kilometer radius of the Mana processing plant and to carry out exploration on the 30-kilometer Kokoi Trend, host of the high-grade Siou Sector.

Today, with ore sourced almost exclusively from the super pit, we can sustain operations at the plant at full capacity for the next ten years. Owing to the Siou’s high-grade mineralization, however development of the sector could represent an opportunity to reduce our operating cost, boost production and ultimately increase cash flow within the next 18 to 24 months. Moreover, the south sector has yet to be added to the scenario. We believe that the corporation’s fundamental and potential for creating shareholder value are as strong as ever.

We believe that Semafo represents an undeniable investment opportunity. Today, our corporation share price is significantly undervalued and far from indicative of the numerous opportunities on the horizon. We know that our Mana property will serve as the cornerstone of our corporation’s evolution and approach to intelligently grow our business.

Semafo is financially sound, has a solid cash position, is debt-free and completely un-hedged. Since November 2011, our corporation has paid out three dividends. We continue to strive for excellence in health and safety and lead the way in corporate social responsibility.

Our dedicated team continues to pull together in the pursuit of excellence and an overall commitment to simply doing more. We are determined to optimize operation at all levels, improve efficiencies and contain costs.

We are optimistic for 2013. We have established a clear strategy to identify new quality ounces, expand reserve and resources, and build future cash flow. The task at hand is to create value and moving forward, we are confident that we have the asset, the talent and the ability to do just that.

This concludes our presentation portion of this conference call. I would now like to open up the line for the question-and-answer session.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And our first question is from the line of Cosmos Chiu from CIBC Capital Markets. You may begin.

Cosmos Chiu - CIBC Capital Markets

Good morning guys.

Benoit Desormeaux

Good morning Cosmos.

Cosmos Chiu - CIBC Capital Markets

I’ve got a few questions on the reserve resource update that you put out today. I guess first off, I noticed that Fofina reserves increased. Could you remind me once again your plans in terms of and also timeline in terms of bringing those ounces into production.

Benoit Desormeaux

In terms of timing Cosmos, it’s a question of getting the permit. So we are aiming to be able to mine this area in 2014. It was not included in our 2013 budget, but definitely we are looking to mine this in ’14. And of course, it will all depend also what happened with Siou. Of course we will put a priority in Siou, but this could be also melted in 2014.

Cosmos Chiu - CIBC Capital Markets

In terms of roads and infrastructure, I don’t think we’ve gotten any details in the past. Could you maybe talk a little bit about that as well?

Benoit Desormeaux

You are talking about Siou or Fofina.

Cosmos Chiu - CIBC Capital Markets

Fofina.

Benoit Desormeaux

Fofina is a bit further than Nyafe, so we would have to build a smaller road to reach that area and then join the actual road from Nyafe to the plant, so that is not much investment. There is probably a bit of pre-stripping to do, which is not that important and apart from that if we use already the mining equipment we have, if we just split what we have at the super pit and put some equipment at Fofina, there’s not much investment.

Cosmos Chiu - CIBC Capital Markets

Okay. And to confirm those reserve ounces, they are all off-site.

Michel Crevier

Off-site and transitional.

Benoit Desormeaux

Off-site transitional, but mostly of course there is refractory in that kind of, in the reserves, mostly off-site.

Cosmos Chiu - CIBC Capital Markets

Okay and then maybe quickly on the super pit. I noticed that the reserve ounces decreased a little bit. I would imagine that’s due to production in 2012. Just wondering, on an ongoing basis, would you be able to replace reserve ounces on an ongoing basis. What kind of exploration potential do you have at the super pit itself?

Benoit Desormeaux

Yes, you’re right. The amount of ounces decreased a bit because of production. Part of it has been replaced, because if you remember, we had a goal to maximize the super pit, so we were mining in two different areas. One first area was to see whether we can reach the parallel zone in south part and as well we were drilling at the deeper part of Kona.

Part of the increase this year is coming from those two zones, but in terms of replacing ounces in the coming years, we don’t think it is that possible. We are doing some drilling in the continuity, but its not where we will put our focus in the next coming years.

Cosmos Chiu - CIBC Capital Markets

And then maybe changing gears a little bit, going to Kiniero, a positive surprise I guess. Ounces and reserves actually went up and I was actually quite surprised given that not a lot of CapEx and not a lot of focus has been put on the asset of last. Maybe if you can elaborate on that as well.

Benoit Desormeaux

Yes, you remember that when we announced the drilling program at Kiniero, its because we didn’t want to look, whether we could have a bit more tons at even lower grades, because it would provide us with better productivity prior to that. We had some reserves at 4 grams (ph) and it was small veins, very difficult to mine, no productivity. So we’ve been able to maximize that.

Yes, its not coming with much CapEx, but its still going to be a marginal operation; its not going to produce much and there’s a bit of cash flow, of course we are not loosing money. But in terms of value creation and cash flow, it’s not a big asset.

Cosmos Chiu - CIBC Capital Markets

Great. That’s all I have. Thank you.

Benoit Desormeaux

Thanks.

Operator

Our next question is from the line of Leily Omoumi from Scotia Bank. You may begin.

Leily Omoumi - Scotiabank

Thank you and congrats guys on a good quarter. Just wanted to ask you a couple of questions. Firstly, the test that you are planning on doing for heap leaching, I know its early on, but I mean how big does Yaho have to be and what kind of grades do you think you need, what kind of size you need in order to justify heap leach operation, a standalone heap leach operation there.

Benoit Desormeaux

Like I said, it’s very early. We don’t have all that kind of information. It’s early and it all depends on what kind of recovery we are able to achieve.

So in terms of size, Yaho has proven that it could be big a low grade. Today we are having M&I at (inaudible) and depending on the over writing cost and the CapEx we will make the best calculate for the best consumer rate of return, but today is too early to say what size it could be.

But based on the tonnage we have, if you just look at the figures of 80%, 85% recovery, yes, you can imagine it could be pretty big, but we don’t want to announce things or put forward information that we don’t really have.

Leily Omoumi - Scotiabank

Okay, great. And then just another question, shifting gears a little bit. Just in terms of processing rates, I know you have guided to about 8,500 in 2013 and given that the rate was kind of 7,400 in Q4; how are things going right now? For example in Q1, if you can provide any information, how are things coming along so far?

Benoit Desormeaux

Yes, its getting well. We always said that the plant can accommodate – if we are 100% bedrock, its 7,200 tone per day and it makes 8,000. We are achieving a bit more and that’s what we have achieved last year.

Our budget for 2013 is pretty similar in terms of tons and what we have achieved in 2012, so everything is according to plan. So we have a mix of 60% bedrock this year to a 40% outside and we can probably with Fofina coming in, as well as Siou that will come in the next coming years, that’s something that could probably be maintained. But yes, it’s going well so far.

Leily Omoumi - Scotiabank

Okay, just another quick question. Samira Hills, obviously reserves decreased, grades decreased. Now with this new reserve grade, what should we expect as an average grade for 2013 and I don’t know if you can comment on what we should see going beyond that.

Benoit Desormeaux

When we got the new reserves, of course we looked at different mining plans. We think we can achieve the same guidance in terms of ounces, as well as in terms of operating cost. We have been successful in reaching our capital price, $10 million.

Since Samira, it’s not a strategic asset. We are looking other alternatives, but for now we are just focusing on really getting the best cash flow as we can from that operation and we are focusing on it.

So there is no change in the plan for this year as opposed to the guidance and this is really what we are focusing on, but pretty much the same grade. Its still similar to what we have achieved last year, 146 gram and 60% recovery.

Leily Omoumi - Scotiabank

Okay, great. Thanks very much.

Benoit Desormeaux

Yes.

Operator

Our next question from the line of Don Blyth from Paradigm Capital. You may proceed.

Don Blyth - Paradigm Capital

Yes, thanks. Just following up a bit more of the Samira Hill reserves and resources, the mentioned and indicated resources are actually slightly up in grade, 1%-plus, whereas the proven probable reserves are down both 39% in contained gold and 14% on the grade. That sharp drop on the grade is a bit of a surprise when you are coming back on marginal mineralization. So is there a substantial drop in the stripping ratio on those year-end reserves and if so, can you give us a sense of the overall strip that we might see one the Samira Hill reserves.

Benoit Desormeaux

Yes, on the reserves what you could expect in terms of stripping is something close to 4.5, that’s our reserve strip ratio. Yes, the grade went down and like you said, usually when you focus on high quality ounces, you would expect that the grade goes up, but I would say the difference is the recovery rate.

We had some higher grade, but such a low recovery rate that it was not longer economy. But we had also other zones outside that 90% recovery, that even that lower grades were more economic. So it’s a reason why you’ve seen the grade getting lower even when we are focusing on quality ounces. It’s just a question of recovery.

Don Blyth - Paradigm Capital

Okay, that makes senses. And just moving to one of the more exiting Siou zone. Results are out yesterday for that deeper intersection, which are certainly encouraging. It is getting a bit deep. Do you see this depth potential to the south as your top priority and as your goal to bring in more material around that, that would draw down the pit shale to incorporate that material, rather than looking at sort of that underground type potential.

Benoit Desormeaux

Yes, the goal of that program was not to define underground operations. That’s definitely not the priority. It was more to seek extension of the actual ore body, and it gave us good indications to seek other extensions. So I will let Michel speak a bit about that. He will give you a better understanding of what the goal was and what it gives us in terms of information.

Michel Crevier

Okay. This is Michel. Yes, we were seeking for more knowledge on the geometry of the body, because it is junctioned between tough rock and the intrusive there. So we are looking what is happening to understand and better focus after on seeking new mineralization and you may see with the long session that were put in the press release that the two sides at still open.

So that gives some information that we will carry that for the step-out drilling that does include risk, but in parallel we are doing some in-field presently to make sure we’ll deliver the reserve as we were saying for Q3 this year.

So the program is on both sides, working tightly for open pit reserves. We won’t put more drilling at dept; that is done. We have an ID and the upcoming drilling is from the open pit delineation and seeking for other structures likely.

Don Blyth - Paradigm Capital

Excellent. Just remind me again how many drills do you have on the Siou drilling right now?

Michel Crevier

Because we won the first reserve as soon as possible and having four rigs, two core and two RC on the in-field, that is suppose to personally dig 200 meters deep and two rigs are on the north and south seeking for other structures that are RC and we have other drilling as well.

Benoit Desormeaux

And we are working to extend the Siou Sector as well, to find something else in the Kokoi Trend.

Don Blyth - Paradigm Capital

Excellent. Well, best of luck.

Benoit Desormeaux

Thank you.

Operator

Our next question from the line of Stuart McDougall from Casimir Capital. You may begin.

Stuart McDougall - Casimir Capital

Hi guys. Just a quick question; more of a follow up from some earlier questions with respect to the fresh material and throughput rate at Mana. With just the super pit alone, can you give me a reminder of when you expect to be in just fresh material alone?

Benoit Desormeaux

You mean not even accounting for anything from Fofina?

Stuart McDougall - Casimir Capital

Correct.

Benoit Desormeaux

Okay, lets say we would probably have – we still have four years in front of us that will have outside material. The proportion of course will decrease. At some stage will it be 20%, 25%, but we’ll have material for the next four years.

Stuart McDougall - Casimir Capital

Okay, and then the others will bring up that ratio of oxide.

Benoit Desormeaux

Exactly.

Stuart McDougall - Casimir Capital

Okay and secondly, did I hear correctly on Samira Hill with respect to recoveries and strip going forward? I got 60% recovery kind of ballpark for 2013, but also heard strip of 4 to 4.5 is like mine right now. Did I hear correctly?

Benoit Desormeaux

Yes, but the average recovery of the reserves are now at 77%.

Stuart McDougall - Casimir Capital

Okay, thank you.

Benoit Desormeaux

Yes. Life of mine forecast 77%.

Stuart McDougall - Casimir Capital

Okay. And the strip over life of mine is going to be in the ballpark of 4 to 4.5.

Benoit Desormeaux

Yes, its 4.2.

Stuart McDougall - Casimir Capital

Okay. Thank you very much.

Operator

Our next question from the line of Kerry Smith from Haywood Securities. You may begin.

Kerry Smith - Haywood Securities Inc.

Thanks operator. Michel, have done any other drilling on that 4-kilometer distance that sites between Kokoi and Siou or is that work that is still do be done?

Michel Crevier

No, we had a rig presented there to the south and we’ve done some to the north and now we are doing some follow-up with RC. But yes, we have some other drilling done. At some place we have a lot of iron cap that make it blind for the others. So we’ll have to do some more trilogy and find some specific target and go with RC directly.

Kerry Smith - Haywood Securities Inc.

Okay, and so when do you think you would be do some RC drilling on that 4-kilometer gap that’s in between the two targets. Is that in the middle of this year?

Michel Crevier

It’s actually presented to the south. So it would be a bit more than 4 kilometers south of the Siou zone, but in between the Kokoi village and the Siou Sector. So we have...

Kerry Smith - Haywood Securities Inc.

Okay, so you have started.

Michel Crevier

We are well going towards the north, some 7, 8 kilometer north of Kokoi.

Kerry Smith - Haywood Securities Inc.

Okay, and then you had some issues with rain at Mana in 2012, which sort of hampered your productions. Are you are trying to do anything different this year to sort of deal with the rainy season that might help you avoid some of the problems you had in 2012 or just what is your plan to deal with the rainy season?

Patrick Moryoussef

Hi Kerry, this is Patrick speaking. As a matter of fact the rain season has been budgeted inside our guidance. And what we are going to be doing differently this year is with the super pit and the different sets we have in the pushback, we are going to try and work with different elevations in direct areas of the Wona-Kona pit. So in the rainy season we are going to focus on top elevation and during the dry season we are going to go back there.

Michel Crevier

And also Kerry, you remember that we bought a new fleet at the end of last year that arrived in the first couple of months of this year and it was of course to add on the stripping and the ore mining of the super pit, so of course its helping us as well. We have more mining capacity this year than what we had last year.

Kerry Smith - Haywood Securities Inc.

Right, okay, perfect. And then just on the deprecation on the go forward basis at Samira, do we use like you show in the financials, $76 million of total assets at Samira. So is that the depreciable number that we should be using provided by the reserves that are left or do we only use the PP&E for the depreciation.

Natasha Odendaal

Only the PP&E. This is Natasha speaking. For depreciation purposes we only look at PP&E.

Kerry Smith - Haywood Securities Inc.

Okay, so it’s at $31 million or something.

Natasha Odendaal

Exactly.

Kerry Smith - Haywood Securities Inc.

Okay, that’s helpful. And then just last question if I could. Michel you are in-filling now Siou with the rigs you got, the four rigs. Have you been able to get any results back that would either show you that there are no continuity issues, because the inferred obviously is fairly wide spaced.

Is the in-fill drilling so far, kind of confirming what the inferred model is showing or have you seen anything there that would suggest to you that it might not be as continues as what you would kind of hope based on the inferred resource.

Michel Crevier

We are still doing it, that’s about just inflated, so I don’t have any indication of something different for now.

Kerry Smith - Haywood Securities Inc.

Okay, so you haven’t got any results back, okay. Okay, that’s great. Thanks very much.

Michel Crevier

I’m having certain restrictions showing that the vein expected was there, but I don’t have the actually results on that, so it looks good.

Kerry Smith - Haywood Securities Inc.

Okay, good. Thank you.

Operator

(Operator Instructions). Our next question is from the line of (Inaudible) from RBC Capital Markets.

Unidentified Participant

Thank you very much for hosting this Q&A session. I just had a few questions. First is, can you provide some color on your quarterly production in 2013, quarter-over-quarter?

Benoit Desormeaux

Yes, we have announced the guidance to be between 215,000, 240,000 ounces for the year. So its going to be pretty stable at the 55,000, 58,000 a quarter.

Unidentified Participant

Okay.

Benoit Desormeaux

There is, but 54, 55 is the lower level.

Unidentified Participant

Okay, and in terms of Kiniero and Samira Hill, you said that you viewed them as a non-core operations. How do you plan to maximize value from those? Is a sale sort of on the cards.

Benoit Desormeaux

Yes, that’s something that is envisionable. We’ve been looking to sell Kiniero. We have some interested parties so far, so that’s something that is possible. We are looking at what we are going to do with Samira, but its something that we could have in terms of objective. But for now we are going (Cross Talk) as long as the decision is not taken and as long as we don’t have a closing process.

Unidentified Participant

What’s the gold price, the breakeven gold price for these operations?

Benoit Desormeaux

At Samira its of course, all the calculation for the impairment, we use 1,600. So I would assume that if the gold price go down by (inaudible) our alternative, its pretty the limit.

And another operation, if you look at the all in cash cost of the deals, super pit its probably between 1,100 and 1,200. Our reserves are probably to that 1,300. That gives you an idea. Of course you can imagine the high grade Siou Sector is much lower, but we don’t have the figures by zones, but it gives you an idea.

Unidentified Participant

Okay thanks. And lastly, I know you talked about it, but what mining volumes are you looking at to maintain the consistent new fleet from the super pit in 2013 and 2014?

Benoit Desormeaux

In 2013 we are looking at processing close to 2.8 million during the year.

Unidentified Participant

What are mining volumes?

Benoit Desormeaux

Mining volumes, we are having a fleet that can move 40 million tons in a year, which is almost 120,000 ton per day; that’s the mining capacity we have.

Unidentified Participant

Will you need to invest in a new fleet for the Siou zone potentially?

Benoit Desormeaux

What we are thinking for now is that we want to mix the Siou and the super pit at the mill. The information we don’t have yet is how much tons we can bring from Siou to the mill. Of course we will maximize Siou as much as we can.

So what we think is that we can use some equipment in the super pit and move it to the Siou zone. The only thing that we could ask to buy is a couple of trucks, because of transporting; it’s over 15 kilometers.

But if you look at what we have in terms of tons at the super pit and Siou, both together you could see that Siou is probably one-third of the reserves, not the reserves, but in terms of tons, its 22 million ton in the super pit and 7 million to 8 million tons in Siou. It’s probably going to be 25%. So its based on that, what would be something you could imagine is 20% of the fee, just based on the tons.

Unidentified Participant

Okay, thanks very much.

Benoit Desormeaux

Thank you.

Operator

Our next question is from the line of Michael Scoon from Stifel. You may begin.

Michael Scoon - Stifel Nicolaus

Well, great. Thanks operator. Just a quick one on Samira. Can you give us an idea of what we should be thinking about in the way of sustaining CapEx going forward?

Benoit Desormeaux

Yes, sustaining CapEx for Samira is close to $4 million or $5 million a year.

Michael Scoon - Stifel Nicolaus

Great, thanks. And then just generally, then well can you maybe comment on how you are evaluating potential acquisitions to this point or whether you are evaluating any acquisition to this point?

Benoit Desormeaux

Like we said, its part of our strategy, but its not the first priority. Our first priority is still to grow Mana. But since there is a portion that may arise from today’s environment, we are keeping an eye open on any opportunity. We’ve been looking in the past, but now we are more looking at something like more brown-field with lots of potential, which is why we think we can create more value by discovering ounces as we are already doing at Mana, but its not our first priority.

Michael Scoon - Stifel Nicolaus

Great. Thanks very much guys.

Benoit Desormeaux

Thank you.

Operator

Our next question is from the like of Fletcher Tully from Goldman Sachs.

Fletcher Tully - Goldman Sachs

Good morning all. Thanks very much for the presentation. Just quickly, does management have a view on what amount of reserves from Siou could potentially say you want to increase the plant capacity at Mana, from 8,000 tons a day to 14,000 tons. I recall the last time I met you guys that was a potential option that you were trying around.

Benoit Desormeaux

Yes, for now it’s too early to say whether we would need a plant expansion. With the tonnage we have out of Siou at the moment and with the super pit, we think we can mix it and increase production and lower the cash cost.

But of course with the old potential of the old area, that’s something that may change the picture. When we talked about the 14,000-ton per day, we said that we are working on the waterside, so we have enough water to accommodate for that. But to really say today whether we will have to increase it, its too early and of course then as well with the kind of success we have in the coming year and the year after.

But for now we are at 8,000 tons per day. We could have probably both, but again if you add the Fofina zone, that’s a couple of years in addition, so we will have – we don’t have all the information, but it is what we have in the present.

Fletcher Tully - Goldman Sachs

Okay. Thanks very much.

Operator

Okay speakers, we have no further questions at this time. I’ll turn the call back to you for closing remarks.

Robert LaValliere

Okay, thank you France and once again I would like to take this opportunity to remind listeners that our 2012 fourth quarter and year end financial statement, together with the MD&A are available on our website at www.Semafo.com. The audio webcast of this conference call will be available for replay on our website until April 20.

Semafo’s Annual General Shareholder Meeting will be held on Monday, May 13 at 4:00 p.m. at the Sheraton Hotel in Montréal. Our first quarter 2013 financial and operating results are currently scheduled for publication in mid-May. And as always, we invite you to visit our website regularly at www.Semafo.com for up to date information on our operations.

Thank you and have a nice day.

Operator

Ladies and gentlemen, this does conclude the conference call for today. Have a great day everyone.

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