SEMAFO's (SEMFF) CEO Benoit Desormeaux on Q2 2014 Results - Earnings Call Transcript

Aug. 8.14 | About: SEMAFO Inc. (SEMFF)

SEMAFO (OTCPK:SEMFF) Q2 2014 Results Earnings Conference Call August 7, 2014 10:00 AM ET

Executives

Robert LaVallière - VP of Investor Relations

Benoit Desormeaux - President and CEO

Martin Milette - Chief Financial Officer

Patrick Moryoussef - VP Mining Operations

Michel Crevier - VP of Exploration and Mine Geology

Sylvain Duchesne - GM Construction and Engineering

Analysts

Andrew Quail - Goldman Sachs

Felipe Martins - GMP Securities

Kevin Chiew - CIBC

Kerry Smith - Haywood Securities

Chris Thomson - Raymond James

Don Blyth - Paradigm Capital

Andrew Breichmanas - BMO Capital Markets

Operator

Good morning, ladies and gentlemen and welcome to the SEMAFO Inc. Q2 2014 Results. After the presentation, we will conduct a question-and-answer session. Instructions will be given at that time. Please note that this call is being recorded today Thursday, August 7, 2014 at 10 am Eastern Time.

I would now like to turn the meeting over to Mr. Robert LaVallière, VP of Investor Relations. Please go ahead Mr. LaVallière.

Robert LaVallière

Thank Jonathan. Good morning. Members of SEMAFO’s senior management team joining me for the call today are Benoit Desormeaux, President and Chief Executive Officer; Martin Milette, CFO; Patrick Moryoussef, Vice President, Mining Operations; Michel Crevier, Vice President of Exploration and Mine Geology; and Sylvain Duchesne, General Manager Construction and Engineering.

I would like to remind listeners that some of the matters to be discussed during today’s call may contain 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, CapEx, guidance and resources and reserves estimates. Such statements are given as of 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 could differ materially. Accordingly, you should not place undue reliance on forward-looking statements.

For additional information with respect to forward-looking statements, risks and assumptions, please consult our 2013 annual MD&A as updated in SEMAFO’s first quarter and second quarter 2014 MD&A and other fillings made with the Canadian Securities Regulatory Authorities and available on SEMAFO's website at www.semafo.com.

SEMAFO disclaims any obligation to update or revise any forward-looking statement except as required by law. I make these cautionary statements on behalf of all SEMAFO's spokesperson who may address you during this conference call today.

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

Benoit Desormeaux

Thank you LaVallière, good morning everyone. Let me start by saying I'm delighted we are with the quarter, we delivered an outstanding performance with production throughput average upgrade and financial metrics all exceeding expectations. As you know we incurred a weaker first quarter, because we elected to reward the mining sequence in order to allocate the majority of the Wona-Kona mining fleet to Siou and Fofina to accelerate that development.

We feel the strength of our second quarter performance clearly validates this strategic decision. Operationally, this was a record quarter for us with production of more than 72,000 ounces of gold at Mana as compared to 41,000 ounces for the same quarter in 2013. This notable quarter is a direct result of reaching the full mining rate of both Siou and Fofina and the impact of their quality ounces.

We produced 75% more gold ounces in Q2 2014, resulting from a higher throughput of 723,000 ton at an average grade, which increased 69% to 3.36 gram per ton and a higher gold recovery up 9% to 93% from Siou and Fofina. Together Siou and Fofina accounted for two-third of the Mana daily billing capacity in the quarter. The two deposits contributed to reducing our cash over incurs by 21% to $475 an ounce compared to $604 an ounce in the second quarter of 2013. Our total cash cost lowered to $602, an ounce in the second quarter of 2014. The 69% increase in net grade in Q2 solely reflects the higher grade extracted by Siou and Fofina. The head grade of Fofina was higher than anticipated due to an enriched supergene zone occurring on surface. We expect that this layer will have a lesser impact at that.

Considering the notable quarter and despite the rainy season in the third quarter, we expect to attain the upper end of our 2014 production guidance of between 200,000 and 225,000 ounces of gold and the lower end of our 2014 total cash cost guidance of between $695 and $745 an ounce.

To-date, construction of the power line by Sonabel is progressing well, and we expect to be connected to the national power grid in the fourth quarter of 2014. Looking further ahead on the operation side, as a precautionary measure we have initiated a process to replace the used shell of the SAG mill, at Mana. The SAG mill will be shut down up to five weeks at the beginning of the first quarter of 2015.

During the shutdown, we will continue to operate, processing approximately 3,600 ton per day of high-grade ore from Siou and Fofina pits. As a consequence of the shutdown, we will produce approximately 6,500 ounces less from the lower-grade Wona-Kona pit than we would have otherwise produced in 2015. The total cost of the shell replacement will not impact the 2014 capital expenditures guidance.

Planning is complete with all lead items already on site, our experienced team will execute the replacement supported by well known international expert firms in the field.

Moving on to our financial results, in second quarter, we generated revenues from gold sales of $87.8 million, a 63% increase relative to the same quarter in 2013. Our realized selling price for the second quarter was a $1,287, similar to the average run in gold fixed price.

The higher revenue in the quarter led to a 124% improvement in our operating income to almost $21 million. Net income from continuing operations totaling $13 million compared to a net loss of $12.8 million for the same period of last year.

As a result of the sale of the Kiniero Mine, we reversed the non-controlling interest of $9.7 million, which is a non-cash item with no impact on the cash flow of the company.

Our second quarter cash flow from continuing operations increased to $37.2 million or $0.14 per share compared to $21.2 million or $0.08 per share for the same period in 2013. Driven by our commendable Q2 operational performance, we generated significant free cash flow during the second quarter, closing the quarter with $93.2 million in cash.

On the exploration side, the bulk of our exploration activity is focused on the vicinity of the Mana processing plant, more specifically on the Siou , Pompoi Nord and Pompoi sector. North of Mana, we are also active on Bilakongo and Kana permits. An exploration budget of $18.5 million budget has been allocated for the Mana area where currently nine auger drill, two RC drill and four diamond drills are deployed.

Initial auger drilling results identify targets for RC drilling, which commenced in May on 15-kilometer geochemical anomaly trend to the east of Mana. The ongoing RC program which is still a very early exploration program has returned some good results, more specifically on two drill holes located at 1.2 kilometers apart in the Pompoi village sector. One of which 6.45 gram per ton over five meters and another with 3.12 gram per ton over 8 meters. Two RC rigs are active in the area, and more results should be forthcoming in the second half of the year.

The $18.5 million exploration budget for the Mana area includes the $4.5 million provision for an infill core drilling at Siou. The diamond drill program when kicked off in the beginning of June is being conducted between 180 and 225 meters vertically with the objective of replacing and increasing the reserve base at Siou by year-end. Initial results today that yielded very strong result that confirmed the continuity of the zone with and grade.

Census’ commencements the infill program has extended for two to four core rigs. The deep drilling program was also initiated in the quarter in order to test the south extension of the zone 9 mineralization and results are expected in the second half of 2014.

Turning to our exploration activities outside of Mana in the second quarter we entered into agreements for the working rights and rights to acquire 10 exploration permits covering more than 1,400 square kilometers in the Banfora Belt 200 kilometers southwest of Mana. We have allocated $1.5 million budget to this exploration program which currently employees further 12 on the north and south ends of the Banfora Belt. Priority target areas are along the main share zones where there is evidence of geochemical anomalies and artisanal mining. Drill results are anticipated in the second half of 2014.

Looking ahead and as mentioned we should be in the upper end of our 2014 gold production guidance and in the lower end of our cost guidance. I would like to congratulate all of our employees for their part in delivering the successful quarterly performance. Our commitment to executing our strategy and delivering on promises remain intact.

Operator, this concludes the presentation portion of this call. I would now like to open up the lines for the question and answer session.

Question-and-Answer Session

Operator

(Operator Instructions).Your first question comes from Andrew Quail with Goldman Sachs. Please go ahead.

Andrew Quail - Goldman Sachs

Guys good morning and thanks for taking my question. Congratulations on a very strong quarter. Just a little bit cost per ton and trends it looks like it’s going up a little bit. Can you comment on what you're seeing in sort of would be input inflation would be through money consumables?

Benoit Desormeaux

Yes. If you look at on the cost per tonne basis you’ve seen that we're at $40 a tonne in total assuming a 7.3 ratio. If you were looking further for the year we're still on the same operational strip of 7.5, therefore we should be close to the same cost per tonne.

We’ve seen some reduction in the consumables since if you compare this year to last year of course there is some reduction mostly in cyanide and equipment. But what you're seeing there is a cost per tonne in the second quarter it is what you expect back for the remaining of the year assuming because we have the same preparations.

Andrew Quail - Goldman Sachs

Thanks very much guys.

Operator

Your next question comes from Felipe Martins with GMP Securities. Please go ahead.

Felipe Martins - GMP Securities

Yes. Hi there gents. Nice one on the quarter. Just three questions, the first one is basically my math the current throughout on an ounce basis with grade one great stays flat. So just I should easily beat the upper end of guidance. Would you say you are being somewhat conservative or should we expect low-grade of throughput in the second half? My second one is just on the cash build, what sort of cash number do you want to get to before you redeemed dividend and should shareholders expect a material cash distribution in 2015. And the last question is just on the Siou infill results released last month and the potential for reduced strip ratio there, if you could just add some color there that would be great? Thank you.

Benoit Desormeaux

Okay. So to your first question, what were, I'm not, I would not say we are conservative I would more say we are prudent. We have at higher grade at Fofina then what we're expecting in the second quarter because of the supergene zone. We don't know how long we will have that impact, but we know it's not going to last for the remaining life of the Fofina.

So we're not expecting the same kind of grade from Fofina in the next quarters as well we are the prudent, because the third quarter is the rainy season, we know that as we have announced we would be in the upper bracket, because we're confident on it. But we just want to be a bit prudent, so we're not seeing exactly the same grade for the next two quarter, we're seeing grade higher than 3 grams, but we're not looking at 3.37. Therefore that's the reason why we have announced in the upper end of the bracket, if we surpass that that's going to be nice and if we have to change the guidance further down the road after the rain season we well do it, but we just prefer to be prudent.

On your other question about the dividend, there is not an amount of cash that will trigger the dividend. We said to all shareholders that they should not be expecting a dividend for 2014 that’s a question that might be raised later in 2015. So it’s not -- there is not the amount cash it’s going to be a Board decision based on what we are seeing in front of us.

On the other side the infield results at Siou what we should expect as it shapes, of course if we are going a bit deeper, the average shape of the pit will increase a bit. Today it’s difficult to say exactly what’s going to be, it’s all depending on the kind of result we have. We haven’t run any pit shell so far, we are waiting to have more results. But yes it’s going to increase for sure, but we are confident it’s still going to be a good example.

Felipe Martins - GMP Securities

If you got good conversion see down depth would year contemplate an expansion. And just quickly on the first one with regards to the grade of Fofina is it currently above reserve grade, I would image, if so how much?

Benoit Desormeaux

Yes it’s definitely higher than reserve grade. The reserve grade that we have in our 43-101 report at Fofina is almost 2.8, but even this year we’re expecting to have a bit higher grade so we were above 3 gram at Fofina. But including the supergene in the second quarter Fofina was closer to 5 grams. So it had a huge impact, we had some pocket of 8 grams, 7 grams so the average at Fofina was 5 which is not what was expected, we are expecting more like 3, 3.2, 3.3. And…

Felipe Martins - GMP Securities

And then it was just on whether you would contemplate an expansion if all of Siou inferred converts to the mine plan?

Benoit Desormeaux

Next expansion at the plant would really be triggered by the number of tons of ore we would have. And since we can have, today we can process 8,500 tons a day, would have to drive a fair amount of times before doing a plant expansion.

So, it's difficult to say and it will depend on other discoveries as well, we're doing on property. So, but I don't think that just converting the resources would trigger an expansion. It would probably mean more than that.

Felipe Martins - GMP Securities

Thank you very much.

Operator

Your next question comes from Kevin Chiew with CIBC. Please go ahead.

Kevin Chiew - CIBC

Hi, good morning guys and congratulations on the quarter.

Benoit Desormeaux

Thank you.

Kevin Chiew - CIBC

I was just wondering, if you could provide the breakdown for tonnage in grade for Siou and Fofina for the quarter. I think you mentioned the grade there for Fofina already.

Benoit Desormeaux

Yes, if you look at both pits together, they were accounting for approximately two-thirds of the throughput. And the average rate of both was 5 gram.

Kevin Chiew - CIBC

Okay. And I was wondering if you could maybe provide a little bit more color on the supergene material that you are seeing at Fofina. Just wondering if you kind of encountered the sort of material on other places?

Patrick Moryoussef

Okay. Yes, we have some of those affect locally like at Kana, but not of that intensity. Usually, it's something that's uneven, that's why we never put that in the reserve even if we do have some intersection because the content there cannot be proved. But it turned out that Fofina had the continuity and that's the system that is known in West Africa and many zone miners like to follow those things and they are really rich, tabular and often the case that produce the [collateral] have the (inaudible) miners, but since we’re opening open pit, it’s not the problem, but that’s local and we have the benefit there. So we’re more than happy.

Kevin Chiew - CIBC

Yes, right. And just wanted to double check on the Sonabel, so you guys made I think $4 million advance to them this quarter. Just wondering are you guys pretty much and I think the last time the number was 9.5 I think?

Martin Milette

Yes, it’s still close to 9.5. We are paying on cash cost from Sonabel, they did ask for another payment in July so that’s been done. So, it’s still going to be close to $9.5 million. It’s an amount that is in the local currency, but yes, expect us to pay another at least another 4.

Kevin Chiew - CIBC

Okay. That’s good to hear you guys are getting out there.

Martin Milette

Pardon me.

Kevin Chiew - CIBC

It’s good to hear you guys get back -- finally getting hooked up with this stuff.

Martin Milette

Yes, we should be able to start testing the line somewhere in the fourth quarter, so hopefully everything when will be expected.

Kevin Chiew - CIBC

All right. Okay, thanks guys.

Martin Milette

Thank you.

Operator

You next question comes from [Sierra] (inaudible) with Scotiabank. Please go ahead.

Unidentified Analyst

Okay, good morning. And thank you for taking my question.

Benoit Desormeaux

Thank you.

Unidentified Analyst

Just if I could start by asking on the rainy season three things. So I’ve noticed just looking back historically that you guys typically do see a dip in your Q3 production. Could you elaborate on why it is the rainy season, does this -- is a matter of getting trucks around in the pit or something else? And I know this will be the first quarter for you guys for Siou and Fofina, so do you have any preparations done to try and mitigate the effect of it?

Benoit Desormeaux

Okay. So, yes the rainy season really just giving us a bit of challenge , yes, adding traction a bit as we are satellite -- getting rains on satellite is getting very slippery and for security reasons we're sometime slowing down the pace or even stopping mining depending on the rain.

The effect, of course we are trying to mitigate all this effect. We have -- we are really well equipped to pump everything outside of the pit to prevent that kind of things to happen but it really depends on kind of rain season we have. And what I would tell this year so far we're not affected by rain. The biggest months usually are August and September but July has been a very nice month in terms of rain. And what is helping us as well is we are in the upper level in the pit. And as we started Siou and Fofina, we’re still early. So we’re really deep in the pit. It's not going to cause a same kind of challenge that we have seen in the past. But we just want to be prudent.

Unidentified Analyst

Got it. That's very helpful. Thanks. If I could ask just one more. In terms of the mill head grade over the next say four quarters, like what are you guys expecting on a quarterly basis?

Benoit Desormeaux

We're going to be above [3 gms]. For the remaining of this year we will be above three.

Unidentified Analyst

Okay.

Benoit Desormeaux

Yes. And this is something you should be expect above [3 gms] for next year.

Unidentified Analyst

Should we expect a higher grades in Q1 to offset the SAG mill shutdown?

Benoit Desormeaux

Definitely, because what we're going to do is only process Siou and Fofina. And like we're saying in the many -- the MD&A. For us, it's really a non-event, because at the end in the year, the only thing that we won't process is a bit of time from Wona-Kona which are lower grade, lower (inaudible).

So I think the small ball mill to work, while we are shutting down the SAG is allowing us to process almost 4,000 ton per day. If we'll just focus on the aggregate of Siou and Fofina, we should have a very good production in the first quarter. But we just want to present the investors that we won’t process the same amount of ton and it's not going to come from Wona-Kona, so it will have a small effect.

Unidentified Analyst

Okay, perfect. That's it for me. I'll pass it on.

Benoit Desormeaux

Thank you.

Operator

Your next question comes from Kerry Smith with Haywood Securities. Please go ahead.

Kerry Smith - Haywood Securities

Hi Benoit. Martin what, I know in the past you talked about $40 an ounce saving, once you’ve connected to the grid. Could you maybe just sort of quantify that today, are you still kind of looking for that number and maybe to give $2 million per year might actually been more helpful rather than a dollar per ounce number?

Benoit Desormeaux

Yes, Kerry its Benoit. So when we announced the grid couple of years ago, we have announced I think it was $45 an ounce.

Kerry Smith - Haywood Securities

Right.

Benoit Desormeaux

It's stays, because on the grade we're paying 19 cents as opposed to probably 35, 38 cents. So if you look at the savings and that’s assuming it’s going to work 100% of the time, but if you state let’s say 80% of the time, you would have that kind of saving.

We did not recalculate it based on CU and grade but those are the figures we have announced 3 years ago when we announced that first time that the grid.

Kerry Smith - Haywood Securities

Okay. And do you still think that 45 an ounce is kind of a reasonable expectation there.

Benoit Desormeaux

Yes. We should be very close to that.

Kerry Smith - Haywood Securities

Okay. And we assume that in 200,000 ounces in that would be kind of an magnitude number.

Benoit Desormeaux

Exactly.

Kerry Smith - Haywood Securities

And then, the second thing, was there any consideration to shutting the mill down next two, three during the reason in 2015 rather than doing it in Q1 when obviously the weather is a lot better, just pushing the emotions into the rainy season?

Benoit Desormeaux

That is not something that we really looked because you need to plan this very much in advance to get all these sites, you need to have all the parts the long lead item are all on site already but there is some smaller pieces that are needed that will come later in the year and the effect is when you are talking about the effects of rain it really just at the mining. So changing the mills during the rainy season or in the dry season it doesn’t change much because the mill is going to run at the same pace.

So it’s really just the mining that will, and we have time to build stockpile a good grade to face this shutdown.

Kerry Smith - Haywood Securities

Okay, and just my last Benoit, the 3,600 tons a day that you are budgeting out of just - and SAG is down is that a number that you sort of stress test the mill it seems a bit higher than maybe I might have thought you could have done but I just kind of wondering how confident you are in that throughput rate?

Sylvain Duchesne

Kerry this is Sylvain speaking, essentially we will be using the circuit that we have when we started the mine, so used a small mill and the second architect barn mill as well. So we already we’ve done those tonnages so we’re confident that we can.

Kerry Smith - Haywood Securities

Okay.

Benoit Desormeaux

Kerry keep in mind as well that we will have Fofina which is really away easy to process ore, combined with CU. So it’s not going to be very hard material like you have seen in let’s say in ‘12 and ‘13.

Kerry Smith - Haywood Securities

Yes, okay, perfect that’s great thanks very much.

Benoit Desormeaux

Thank you.

Operator

Your next question comes from Chris Thomson with Raymond James. Please go ahead.

Chris Thomson - Raymond James

Good morning guys. Congratulations on a good quarter. Couple of questions here, more details looking for more than anything else. Just looking at some, I guess the split Fofina, Siou and Wona-Kona, you said two-thirds obviously of the tons were for Fofina and Siou, one-third obviously Wona-Kona. What are the grade on Wona-Kona were you processing?

Martin Milette

What we are, we are mining mostly coal and the, during the second quarter and approximately 2 grams. But just if you look at on page 8 of our MD&A you will see that we’ve mined 617,000 ton, but we have processed 723,000 tons. Therefore we had to process that stockpiles, which is even with lower grade.

Chris Thomson - Raymond James

Great. What's the size of the remaining stockpile there?

Martin Milette

Approximately to like 180,000 tons.

Chris Thomson - Raymond James

Okay. Thank you. Just moving on to recoveries, I noticed grade recoveries 93% are these sustainable, this is what you budgeting for, for the remainder of this year or is this just a factor of the increase grade?

Benoit Desormeaux

This is pretty much, it's very close to what we are forecasting. It's really based on Siou and Fofina mostly. So, Siou has a 96% recovery rate and Fofina has 92% recovery rate, 90% to 98%. So, as long as those zones will be the main feed, this is 92, 91 this is what we should expect.

Chris Thomson - Raymond James

Great. Thank you. And just a very quickly unit costs. So wondered if you could help me out. So what are your unit cost per ton moved at the moment from a mining perspective?

Benoit Desormeaux

It’s if you’re looking on the raw basis both ore and waste it is $2.38.

Chris Thomson - Raymond James

Okay. And processing and G&A?

Benoit Desormeaux

It’s $22, that’s processing; and $4 G&A.

Chris Thomson - Raymond James

Thank you very much. Okay. And obviously you mentioned earlier no capacity, I guess it’s 8,500 ton a day, you produced a little lower 800,000 ton a day here. So, any is that -- what sort of rate do you want to maintain the mill throughput at, you see increasing to that (inaudible) capacity?

Benoit Desormeaux

What you should expect that, you should expect pretty much the same throughput in the next two quarter, we’re looking at close to 700,000 ton for each quarter. The throughput is really depending on what we’re processing, if we would process only Fofina, we’ll probably reach 10,000 tons a day. But depending on the mix, depending if we process stockpiles either/or from Wona-Kona it is going to change, but it’s going to be similar to what you’ve seen in the first two quarters.

Chris Thomson - Raymond James

Great. And just quickly going back to those costs again I think there was a question earlier I suppose inflation equation. So do you see those costs budgeted for near-term on the unit cost basis?

Benoit Desormeaux

Yes.

Chris Thomson - Raymond James

Okay. Great guys. Congratulations again thanks.

Benoit Desormeaux

Thank you.

Operator

Your next question comes from Don Blyth with Paradigm Capital. Please go ahead.

Don Blyth - Paradigm Capital

Hi. I guess most of my questions have already been asked here, but just on the exploration front. How much more drilling will you be conducting in the Pompoi district in the second half of the year? And is the shift over to the Banfora Belt, is that at all indicative of any shift in your focus away from Pompoi?

Benoit Desormeaux

Before I ask Michel to answer, I can tell you that I would not even call it a shift. It's just that we're putting the things in the pipeline. And our focus is still really first thing is see and choose it, and all around them in a processing plant. But as we’re putting other things in the pipeline, we're allocating 1.5 million budget on Banfora to see what we can have in terms of results. So, it's not a shift at all from man eye and it's not because we're seeing more or better things at Banfora than what we're seeing closer to Mana. But I’ll ask Michel to answer on the quantity of work.

Michel Crevier

Okay. Like the other thing, it's like adding a new product, it's not refocusing. So Mana, there is lot of meters coming, most specifically on the RC and the core drilling because we did start with the auger to generate new target and we just started follow up with RC in May. So it's really, really young. So, RC we've done let’s say at the end of June 38,000 meter compared to what is left 75,000 meters. So, you see, it's early stage. And for the core, it’s just the early beginning as well. So, there is a lot of kind drilling that may generate good intersection be use for interpretation after that will come at the second half. So the big portion for potentially creating new resource will be in the second half?

Don Blyth - Paradigm Capital

Okay. So that's helpful it's you're only kind of a quarter third of the way into it?

Benoit Desormeaux

You see, we come from 2013, we did post a lot to generate CU and we have to bring back the early stage, important stage in the first half of 2014 to generate new target would be other that's what we've done and we have a lot of targets and we're still clearly early in follow-up on that. But the infill is ongoing now for this u as well for putting deep early potential leaders.

Don Blyth - Paradigm Capital

Thanks very much.

Operator

(Operator Instructions). Your next question comes from Andrew Breichmanas with BMO Capital Markets. Please go ahead.

Andrew Breichmanas - BMO Capital Markets

Thanks and congratulations on the results. Maybe another question from me, and just going back to the last set of drill results. The commentary there was mostly on zone 9, but I believe the initial deeper holes serve to the South, I didn't expected mineralization in this season as well. So I just wondering if maybe to comment on the interpretation of the season that?

Benoit Desormeaux

No, it's not a surprise for us, because we were seeing that the grade we were fitting a bit out on the CU to the South a debt and taking with the nine. So that's what we see as it was starting to show at the end of last year. So there is no surprise from our side about good results and look like confirming there is no new solutions that we’re seeing now.

Andrew Breichmanas - BMO Capital Markets

Okay, great. Thanks.

Operator

(Operator Instructions) There are no further questions at this time. Mr. LaVallière, I’ll turn the call back over to you.

Robert LaVallière

Thank you, Jonathan. I would like to take this opportunity to remind listeners that SEMAFO Q2 MD&A and financial statements are available on our website and also on SEDAR website at sedar.com. The audio webcast of this conference call will also be available for replay on our website for a period of 30 days. And if you have any question relating to our Q2 result, do not hesitate to contact us. I would like to mention to listeners also that we will be presenting at the Denver Gold Forum on September 15 and our presentation will be posted on our website.

Our third quarter financial and operating results are currently scheduled for publication on or around November 13, 2014. Thank you very much. And have a good day.

Operator

Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.

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