We believe that bringing Siou to reserves in the third quarter of this year will provide more clarity to the market. It will also serve to highlight the role that Siou will play in our short-term value creation strategy.
As part of our disciplined capital allocation strategy and resolution to maintain our exploration program, SEMAFO's entire 2013 exploration budget of $22 million will be invested at Mana, within the 20-kilometer radius of the processing plant. The main focus is on delineation drilling at Siou and step-out drilling on the Kokoi Trend, which offers the best potential for quality ounces and rapid cash flow generation.
To date, results from the 2013 ongoing infill drilling program confirmed good continuity and predictability as well as the extended mineralization when compared to the 2012 year-end results. We are on track to bring Siou to reserves in the third quarter of 2013. We are currently completing the delineation drilling and have commenced the environmental impact assessment in order to accelerate the permitting process. Our Mana property is very promising in terms of its exploration potential, which will enable us to continue to build on our already solid foundation in the years to come.
As communicated in our 2012 annual report, we are determined to optimize our operations at all levels and to reduce costs in order to maximize cash flow. This is even more important in today's extremely volatile economic environment. We will be disciplined and prudent in our capital allocation and cash flow management in order to effectively cope with any realistic gold price scenario.
In March 2013, we announced a review of the strategic alternatives for the Kiniero and Samira Hill mines, two non-core assets. In light of the recent drop in the price of gold, these two projects became even more sensitive to further downturns in the gold price or in any technical parameters. Accordingly, investments are hereafter limited to those having a short-term payback period. A decision has been made to wind down operations to an eventual care and maintenance status at Samira Hill in 2013.This resulted in an additional $6 million decrease in capital expenditures at Samira Hill, following the initial $10 million reduction announced earlier in the year. Samira Hill's capital expenditures are now forecasted at $11 million, down from the original 2013 budget of $27 million. This led to a $35.1 million impairment charge in the first quarter of 2013.
SEMAFO's Board of Directors approved a cash dividend of C$0.02 per common share, payable on July 15, 2013 to shareholders of record at the close of business on June 30, 2013.
In this period of economic turbulence, with a volatile gold price, and lacking full clarity about the timing and the potential of Siou's cash flow, we wish to reassure shareholders that we will be disciplined and prudent while continuing to build for the future.
Our focus is creating value through the generation of future cash flow. We have identified how to best move forward and are determined to avoid distractions while concentrating on our priorities.
SEMAFO is maintaining its annual production and total cash cost guidance of between 153,000 -168,000 ounces at $805 - $855 per ounce at Mana and between 16,000 - 20,000 at $975 - $1,055 per ounce at Kiniero. For Samira Hill, given the mine's sensitive state, the Corporation has decided to maintain guidance for the first six months of 2013, with production forecasted at between 23,000 - 26,000 ounces at a total cash cost of $985 - $1,035 per ounce.
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