• July 31, 2019

Golden Star Resources Reports Second Quarter 2019 Results

Published on July 31st, 2019

TORONTOJuly 31, 2019 -Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR)(“Golden Star” or the “Company”) reports its financial and operational results for the second quarter ended June 30, 2019.

HIGHLIGHTS:

  • Gold Production for the second quarter: 48,422 ounces, 21% lower than the same period in 2018
    • 37,356 ounces of gold production at Wassa, 3% down from the second quarter of 2018
    • 11,066 ounces of gold production at Prestea, 51% down from the second quarter of 2018
  • Gold revenue for Q2 2019 totaled $61.9 million compared to $77.1 million in the same period in 2018
    • Gold sales totaled 48,742 ounces in the second quarter of 2019
  • Mine operating margin of $8.7 million compared to $10.2 million in the second quarter of 2018
  • Cash operating cost per ounce1 of $886 and All-In Sustaining Cost (“AISC”) per ounce1 of $1,212 in the second quarter of 2019, compared to $809 and $1,104, respectively in the prior year period
  • Cash position of $66.2 million at June 30, 2019
  • Production guidance revised to 190,000 – 205,000 ounces from 220,000 – 240,000 ounces, cash operating costs revised to $800 – $850 per ounce from $620 – $680 per ounce and AISC revised to $1,100 – $1,200 per ounce from $875 – $955 per ounce
  • Commitment letter signed on July 18, 2019 with Macquarie Bank for $60 million senior secured credit facility to refinance specific debt facilities
  • Initial independent review of Prestea completed and short-term changes being implemented while next steps being planned
  • High grade extension drilling results from Prestea released on June 3, 2019
  • Key management team changes announced with Andrew Wray appointed President & Chief Executive Office and Graham Crew appointed Chief Operating Officer

As a result of the operational challenges at Prestea Underground, CSA Global was contracted to review the mine’s operations with the mandate to take a holistic approach to understanding the challenges facing the operation. All aspects of technical, operational and management areas were examined in order for recommendations to be set forth to the Company for improvements at Prestea.

CSA Global has identified a range of issues affecting performance at the operation driving both lower mining rates as well as excessive dilution. These include insufficient geological and geotechnical data, poor definition of the reef position, inadequate alignment of Alimak raises, inaccurate long hole drilling and blasting, low equipment mechanical availability and lack of access to the top level.

In order to address these issues, two main initiatives are being undertaken. Firstly, the prioritization and implementation of a number of low-cost, quick win initiatives are being undertaken with immediate effect, including increased definition drilling, development of a geotechnical block model, improved supervision, additional critical small equipment, capacity building and better-defined key performance indicators. Secondly, the long-term mine plan will be redesigned and will assess whether the current mining method or a revised Alimak design with shorter raises is appropriate and whether a complementary mining method to bring additional flexibility is needed.

Read full announcement

SOURCE: GOLDEN STAR RESOURCES
DATE: JULY 31, 2019

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