TORONTO, May 2, 2018 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) ("Golden
Star" or the "Company") reports its financial and operational
results for the first quarter ended March
31, 2018.
HIGHLIGHTS:
- Gold production of 57,616 ounces in the first quarter of 2018,
in line with the first quarter of 2017 (57,795 ounces)
-
- Stronger than expected gold production from the Wassa complex
(35,506 ounces) due to the continued ramp up of the Wassa
Underground Gold Mine ("Wassa Underground")
- Cash operating cost per ounce1 of $909 and All-In Sustaining Cost ("AISC") per
ounce1 of $1,171 in the
first quarter of 2018
-
- Higher than expected costs due to the challenges experienced at
the Prestea Underground Gold Mine ("Prestea Underground") in the
first quarter of 2018
- Prestea Underground's performance has improved significantly
since the start of the second quarter of 2018
-
- Average production rate at Prestea Underground since the
commencement of ore draw down from the second stope2 of
613 tonnes per day ("tpd") and achieving a maximum rate of 851
tpd
- Grades being delivered to the processing plant in line with the
grades forecasted in the block model
- Production from the Prestea Open Pits is expected to continue
into the third quarter of 2018, having previously been anticipated
to complete at the end of the first half of 2018
- 31% decrease in capital expenditures to $11.6 million in the first quarter of 2018
compared to the first quarter of 2017
- Cash provided by operations before changes in working
capital1 of $0.8 million
($0.00 per share) in the first
quarter of 2018 and mine operating margin1 of
$3.0 million
- Consolidated cash balance of $26.2
million at March 31, 2018,
with $12.6 million of the total
$18.6 million (68%) severance
expenses now complete
- Golden Star is on track to
achieve its consolidated full year ("FY") 2018 guidance on all
stated metrics of gold production, cash operating cost per
ounce1, AISC per ounce1 and capital
expenditures
Notes:
|
1. See
"Non-GAAP Financial Measures".
|
2. Between
April 17 and April 29, 2018.
|
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"With both underground mines now in commercial production,
Golden Star has differentiated
itself from its peers. We are one of the few primarily
underground producers in the West African gold sector and as a
result, we benefit from a significantly lower risk
profile. Wassa Underground is continuing to ramp up
robustly, delivering stronger grades and productivity than
expected. Prestea Underground is now finding its stride and we look
forward to improved results in the second quarter of 2018.
Our focus for 2018 continues to be operational delivery coupled
with demonstrating our organic growth potential through
exploration, particularly in light of our recent success at Wassa
Underground. With the majority of the severance payments
behind us and with our operations on track to achieve on
consolidated full year 2018 guidance, we are well-positioned to
strengthen our balance sheet and deliver value for
shareholders."
First Quarter 2018 Conference Call Details
The Company will conduct a conference call and webcast to
discuss its results for the first quarter of 2018 on Thursday, May 3, 2018 at 9:30 am ET.
The quarterly results call can be accessed by telephone or by
webcast as follows:
Toll Free (North America): +1 866 393 4206
International: +1 734 385 2616
Conference ID: 9894939
Webcast: www.gsr.com
A recording and webcast replay of the call will be available
from www.gsr.com following the call.
SUMMARY OF CONSOLIDATED OPERATIONAL AND FINANCIAL
RESULTS
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
OPERATING
SUMMARY
|
|
|
|
2018
|
|
2017
|
Wassa gold
sold
|
|
oz
|
|
35,853
|
|
31,531
|
Prestea gold
sold
|
|
oz
|
|
22,507
|
|
26,613
|
Total gold
sold
|
|
oz
|
|
58,360
|
|
58,144
|
Wassa gold
produced
|
|
oz
|
|
35,506
|
|
31,349
|
Prestea gold
produced
|
|
oz
|
|
22,110
|
|
26,446
|
Total gold
produced
|
|
oz
|
|
57,616
|
|
57,795
|
Average realized gold
price1
|
|
$/oz
|
|
1,258
|
|
1,179
|
|
|
|
|
|
|
|
Cost of sales per
ounce – Consolidated2
|
|
$/oz
|
|
1,204
|
|
1,029
|
Cost of sales per
ounce – Wassa2
|
|
$/oz
|
|
1,000
|
|
1,217
|
Cost of sales per
ounce – Prestea2
|
|
$/oz
|
|
1,562
|
|
806
|
Cash operating cost
per ounce – Consolidated2
|
|
$/oz
|
|
909
|
|
798
|
Cash operating cost
per ounce – Wassa2
|
|
$/oz
|
|
683
|
|
942
|
Cash operating cost
per ounce – Prestea2
|
|
$/oz
|
|
1,306
|
|
628
|
All-In Sustaining
cost per ounce – Consolidated2
|
|
$/oz
|
|
1,171
|
|
977
|
Notes:
|
1. Average
realized gold price per ounce for the three months ended March 31,
2018 excludes 2,049 pre commercial production ounces sold at
Prestea Underground in January 2018.
|
2. See
"Non-GAAP Financial Measures".
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
FINANCIAL
SUMMARY
|
|
|
|
2018
|
|
2017
|
Gold
revenues
|
|
$'000
|
|
70,819
|
|
68,545
|
Cost of sales
excluding depreciation and amortization
|
|
$'000
|
|
59,574
|
|
51,406
|
Depreciation and
amortization
|
|
$'000
|
|
8,221
|
|
8,439
|
Mine operating
margin
|
|
$'000
|
|
3,024
|
|
8,700
|
General and
administrative expense
|
|
$'000
|
|
1,109
|
|
7,992
|
Gain on fair value of
financial instruments, net
|
|
$'000
|
|
(5,442)
|
|
(2,498)
|
Net income
attributable to Golden Star shareholders
|
|
$'000
|
|
1,015
|
|
170
|
Adjusted net
(loss)/income attributable to Golden Star
shareholders1
|
|
$'000
|
|
(1,409)
|
|
3,411
|
Income per share
attributable to Golden Star shareholders - basic
|
|
$/share
|
|
0.00
|
|
0.00
|
(Loss)/income per
share attributable to Golden Star shareholders - diluted
|
|
$/share
|
|
(0.01)
|
|
0.00
|
Adjusted
(loss)/income per share attributable to Golden Star shareholders –
basic1
|
|
$/share
|
|
0.00
|
|
0.01
|
Cash (used
in)/provided by operations
|
|
$'000
|
|
(3,971)
|
|
9,438
|
Cash provided by
operations before working capital changes1
|
|
$'000
|
|
810
|
|
17,725
|
Cash (used
in)/provided by operations per share - basic
|
|
$/share
|
|
(0.01)
|
|
0.03
|
Cash provided by
operations before working capital changes per share –
basic1
|
|
$/share
|
|
0.00
|
|
0.05
|
Capital
expenditures
|
|
$'000
|
|
11,582
|
|
16,703
|
Notes:
|
1. See
"Non-GAAP Financial Measures".
|
OPERATIONAL PERFORMANCE
In the first quarter of 2018 Golden Star produced 57,616 ounces
of gold. The Company became a primarily underground-focused
gold producer in January 2018
following the cessation of production from the Wassa Main
Pit. The Prestea Open Pits are also expected to complete
production during the third quarter of 2018. Subsequently,
Golden Star intends to focus on high
margin, underground ore with the objective of strengthening its
financial position and creating a robust platform to deliver
shareholder value.
Gold production from the Wassa complex increased by 13% in the
first quarter of 2018 to 35,506 ounces compared to the first
quarter of 2017. 83% of Wassa's production was attributable
to Wassa Underground, which delivered stronger than anticipated
production as a result of higher grades and higher tonnages.
Consequently, the Wassa complex delivered its lowest cash operating
cost per ounce1 in over two years of $683.
Gold production from the Prestea complex was 22,110 ounces in
the first quarter of 2018, which represents a 16% decrease compared
to the same period in 2017. This is as a result of the
anticipated lower production from the Prestea Open Pits, as the
operation approaches the end of its mine life, and the challenges
experienced at Prestea Underground during the first quarter of
2018. Since mid-April 2018,
when Golden Star began drawing down
ore from the second stope at Prestea Underground, the mine's
production rate has increased significantly (averaging 613 tpd
between April 17 and April 29, 2018)
and management expects the results of the second quarter of 2018 to
reflect these improvements.
Golden Star's consolidated cash
operating cost per ounce1 was $909 in the first quarter of 2018, a 14% increase
compared to the first quarter of 2017. This was due primarily
to the increase in mine operating expenses associated with Prestea
Underground declaring commercial production on February 1, 2018 and the decrease in ounces sold
in the first quarter of 2018 at the Prestea complex compared to the
first quarter of 2017. This was partially offset by the 27%
decrease in cash operating cost per ounce1 at the Wassa
complex.
The AISC per ounce1 in the first quarter of 2018 was
$1,171, an increase of 20% compared
to the first quarter of 2017, as a result of an increase in
capitalized development costs at Wassa Underground.
Sustaining capital incurred at Wassa Underground in the first
quarter of 2017 was very low as mining operations had not yet
accessed the B Shoot zone. In the first quarter of 2017 underground
development costs were attributed to development capital
expenditures (and therefore not included in the AISC per
ounce1) until mining began in the B Shoot. The
cost of sales per ounce1 was $1,204. Golden
Star expects its operating costs to decrease in the second
half of 2018 as production at both underground operations continues
to ramp up.
At the end of the first quarter, $12.6
million (68%) of severance expenses had been paid. The
majority of the severance payments relating to the Wassa Main Pit
workforce are now complete and Golden
Star expects to pay the severance expenses relating to the
Prestea Open Pits workforce during the remainder of 2018. The
total severance expenses across both operations are expected to be
$18.6 million.
At the end of the first quarter of 2018, Golden Star is on track to achieve its
consolidated FY 2018 guidance on all stated metrics. As
stated in the press release dated January
11, 2018, Golden Star expects
production to be weighted to the second half of 2018 and
consequently, cash operating cost per ounce1 and AISC
per ounce1 are anticipated to decrease in the second
half of 2018.
Notes
|
1. See
"Non-GAAP Financial Measures".
|
Wassa Complex ("Wassa")
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2018
|
|
2017
|
WASSA FINANCIAL
RESULTS
|
|
|
|
|
|
|
|
Revenue
|
|
$'000
|
|
45,352
|
|
37,250
|
|
|
|
|
|
|
|
|
Mine operating
expenses
|
|
$'000
|
|
21,226
|
|
28,225
|
|
Royalties
|
|
$'000
|
|
3,394
|
|
954
|
|
Operating Costs from
(to) metals inventory
|
|
$'000
|
|
2,366
|
|
1,913
|
|
Operating costs from
metals inventory
|
|
$'000
|
|
3,251
|
|
1,482
|
|
Inventory net
realizable value adjustment
|
|
$'000
|
|
-
|
|
505
|
|
Cost of sales
excluding depreciation and amortization
|
|
$'000
|
|
30,237
|
|
33,079
|
|
Depreciation and
amortization
|
|
$'000
|
|
5,608
|
|
5,304
|
|
Mine operating
margin/(loss)
|
|
$'000
|
|
9,507
|
|
(1,133)
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$'000
|
|
6,606
|
|
3,033
|
|
|
|
|
|
|
|
WASSA OPERATING
RESULTS
|
|
|
|
|
|
|
|
Ore mined - Main
Pit
|
|
t
|
|
54,281
|
|
362,224
|
|
Ore mined -
Underground
|
|
t
|
|
213,392
|
|
153,862
|
|
Ore mined -
Total
|
|
t
|
|
267,673
|
|
516,086
|
|
Waste mined - Main
Pit
|
|
t
|
|
72,538
|
|
1,908,825
|
|
Waste mined -
Underground
|
|
t
|
|
73,528
|
|
54,117
|
|
Waste mined
-Total
|
|
t
|
|
146,066
|
|
1,962,942
|
|
Ore processed - Main
Pit
|
|
t
|
|
215,552
|
|
501,368
|
|
Ore processed -
Underground
|
|
t
|
|
213,392
|
|
155,383
|
|
Ore processed -
Total
|
|
t
|
|
428,944
|
|
656,751
|
|
Grade processed -
Main Pit
|
|
g/t
|
|
0.90
|
|
1.27
|
|
Grade processed -
Underground
|
|
g/t
|
|
4.54
|
|
2.47
|
|
Recovery
|
|
%
|
|
95.2
|
|
93.1
|
|
Gold produced - Main
Pit
|
|
oz
|
|
5,992
|
|
19,867
|
|
Gold produced -
Underground
|
|
oz
|
|
29,514
|
|
11,482
|
|
Gold produced -
Total
|
|
oz
|
|
35,506
|
|
31,349
|
|
Gold sold - Main
Pit
|
|
oz
|
|
6,339
|
|
20,049
|
|
Gold sold -
Underground
|
|
oz
|
|
29,514
|
|
11,482
|
|
Gold sold -
Total
|
|
oz
|
|
35,853
|
|
31,531
|
|
|
|
|
|
|
|
|
Cost of sales per
ounce1
|
|
$/oz
|
|
1,000
|
|
1,217
|
|
Cash operating cost
per ounce1
|
|
$/oz
|
|
683
|
|
942
|
Notes
|
1. See
"Non-GAAP Financial Measures".
|
Wassa Operational Overview
Gold production from the Wassa complex increased by 13% in the
first quarter of 2018 to 35,506 ounces compared to the first
quarter of 2017. The first quarter of 2018 represented the
first quarter of primarily underground production, with 83% of
Wassa's production attributable to Wassa Underground (29,514
ounces).
The grade of the underground ore in the first quarter of 2018
increased by 84% to 4.54 grams per tonne ("g/t") of gold ("Au")
compared to the first quarter of 2017 and by 12% compared to the
fourth quarter of 2017. Mining rates at Wassa Underground
also continued to exceed expectations, at approximately 2,400 tpd
on average in the first quarter of 2018. This represents a
40% increase compared to the first quarter of 2017 and a 26%
increase compared to the fourth quarter of 2017.
During March 2018, the mining rate exceeded 2,600 tpd.
The targeted average mining rate for Wassa Underground in FY
2018 is 2,700-3,000 tpd, but the Company expected to achieve an
average of 2,300 tpd during the first quarter of 2018.
The mining team is well-positioned to continue to increase
the tonnage profile in 2018 and beyond, with the mining sequence
working well and an increasing number of stopes prepared and
developed.
Gold production ceased from the Wassa Main Pit in January
2018, as planned, however, stockpiled ore will continue to be fed
to the processing plant until the third quarter of 2018.
The Wassa complex reported a 27% decrease in cash operating cost
per ounce1 for the first quarter of 2018 to $683 compared to the first quarter of 2017.
This represents Wassa's lowest cash operating cost per
ounce1 since the fourth quarter of 2015. This
strong performance was due primarily to the increase in higher
grade ore from Wassa Underground being fed to the processing plant
and the subsequent increase in gold sold. The cost of sales
per ounce1 for Wassa in the first quarter of 2018 was
$1,000.
$3.4 million of severance expenses
were paid during the first quarter of 2018 as a result of the
cessation of production from Wassa Main Pit in January 2018.
The severance payments relating to the Wassa Main Pit workforce are
now largely complete.
Notes
|
1. See
"Non-GAAP Financial Measures".
|
Prestea Complex ("Prestea")
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2018
|
|
2017
|
PRESTEA FINANCIAL
RESULTS
|
|
|
|
|
|
|
|
Revenue
|
|
$'000
|
|
25,467
|
|
31,295
|
|
|
|
|
|
|
|
|
Mine operating
expenses
|
|
$'000
|
|
22,920
|
|
16,828
|
|
Royalties
|
|
$'000
|
|
1,464
|
|
1,610
|
|
Operating costs from
(to) metals inventory
|
|
$'000
|
|
3,790
|
|
(111)
|
|
Inventory net
realizable value adjustment
|
|
$'000
|
|
1,163
|
|
-
|
|
Cost of sales
excluding depreciation and amortization
|
|
$'000
|
|
29,337
|
|
18,327
|
|
Depreciation and
amortization
|
|
$'000
|
|
2,613
|
|
3,135
|
|
Mine operating
(loss)/margin
|
|
$'000
|
|
(6,483)
|
|
$9,833
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$'000
|
|
4,976
|
|
13,670
|
|
|
|
|
|
|
|
PRESTEA OPERATING
RESULTS
|
|
|
|
|
|
|
|
Ore mined - Open
pits
|
|
t
|
|
228,707
|
|
340,539
|
|
Ore mined -
Underground
|
|
t
|
|
32,446
|
|
1,055
|
|
Ore mined -
Total
|
|
t
|
|
261,153
|
|
341,594
|
|
Waste mined - Open
pits
|
|
t
|
|
505,997
|
|
583,062
|
|
Waste mined -
Underground
|
|
t
|
|
2,211
|
|
8,038
|
|
Waste mined
-Total
|
|
t
|
|
508,208
|
|
591,100
|
|
Ore
processed
|
|
t
|
|
377,138
|
|
388,530
|
|
Grade processed -
Open pits
|
|
g/t
|
|
1.50
|
|
2.31
|
|
Grade processed -
Underground
|
|
g/t
|
|
8.22
|
|
-
|
|
Recovery
|
|
%
|
|
88.6
|
|
88.9
|
|
Gold produced - Open
pits
|
|
oz
|
|
14,629
|
|
26,446
|
|
Gold produced -
Underground
|
|
oz
|
|
7,481
|
|
-
|
|
Gold produced -
Total
|
|
oz
|
|
22,110
|
|
26,446
|
|
Gold sold - Open
pits
|
|
oz
|
|
15,026
|
|
26,613
|
|
Gold sold -
Underground
|
|
oz
|
|
7,481
|
|
-
|
|
Gold sold -
Total
|
|
oz
|
|
22,507
|
|
26,613
|
|
|
|
|
|
|
|
|
Cost of sales per
ounce1
|
|
$/oz
|
|
1,562
|
|
806
|
|
Cash operating cost
per ounce1
|
|
$/oz
|
|
1,306
|
|
628
|
Notes
|
1. See
"Non-GAAP Financial Measures".
|
Prestea Operational Overview
Gold production from Prestea was 22,110 ounces in the first
quarter of 2018. 66% of production was attributable to the
Prestea Open Pits and 34% to Prestea Underground.
The Prestea Open Pits produced 14,629 ounces of gold in the
first quarter of 2018, compared to 26,446 ounces in the same period
in 2017. This decrease in production was anticipated, as the
Prestea Open Pits had been expected to complete gold production at
the end of 2017. However additional ore was sourced during
the first quarter of 2018 so mining is now expected to continue
throughout the first half of 2017, with ore supply from the Prestea
Open Pits being processed until the middle of the third quarter of
2018. The grade of the ore from the Prestea Open Pits
decreased by 35% in the first quarter of 2018, as expected, to 1.50
g/t Au as a result of the higher grade pits being mined earlier in
the operation's mine life.
Commercial production was achieved at Prestea Underground on
February 1, 2018 and the mine
produced 7,481 ounces of gold in the first quarter of 2018 compared
to nil in the first quarter of 2017. The challenges
experienced with the blasting of the first stope at Prestea
Underground, which were described in the press release
dated January 11, 20181, continued during the
period. As a result, the blasted ore from the first stope
contained higher than anticipated levels of dilution and the grade
processed from Prestea Underground was 8.22 g/t Au, compared to the
average Mineral Reserve grade of 12.35 g/t Au. However the mining
team learnt important lessons from the first stope and further
changes have been made to drill design patterns, blasting practice,
raise layouts and stope ventilation, in order to address these
dilution issues.
Consequently, the initial results from the second stope have
been much stronger. The ore draw down of the second stope
commenced in mid-April 2018 and
during the 12 days from April 17 to April
29, 2018 the average production rate from Prestea
Underground was 613 tpd, achieving a maximum of 851 tpd. This
compares to the average production rate during the first quarter of
2018 of 361 tpd and demonstrates that the Company is making
significant progress in moving towards the targeted production rate
for Prestea Underground of 650 tpd. The initial grades from
the second stope being fed to the processing plant are also in line
with the block model.
The operational management team at Prestea Underground was
strengthened during the first quarter of 2018, with the objective
of delivering continuous improvement to the mine's
performance. Golden Star's management team expects the
mine's performance to improve significantly during the second
quarter of 2018.
Prestea reported a cash operating cost per ounce2 of
$1,306 in the first quarter of 2018,
which represents a 108% increase compared to the same period in
2017. This was due primarily to the increase in mine
operating expenses associated with Prestea Underground declaring
commercial production and the decrease in ounces sold in the first
quarter of 2018 compared to the same period in 2017. In
addition, there was a $3.8 million
drawdown of ore stockpiles at Prestea during the first quarter of
2018 compared to a $0.1 million build
up in the same period in 2017. The cost of sales per
ounce2 at Prestea in the first quarter of 2018 was
$1,562.
Golden Star expects to pay
$4.4 million in severance expenses
relating to the Prestea Open Pits workforce during the remainder of
2018 as the Company streamlines the operation to focus on high
margin, underground production.
Notes
|
1. See press
release entitled, 'Golden Star Achieves 2017 Production Guidance
and Provides Guidance for 2018', dated January 11, 2018
|
2. See
"Non-GAAP Financial Measures".
|
Exploration
Updated Wassa Underground Inferred Mineral Resource
Estimate
On April 12, 2018, the Company
released an updated Inferred Mineral Resource estimate for Wassa
Underground. The updated estimate delivered a 147% increase
in Wassa Underground's Inferred Mineral Resources to 5.2 million
ounces of gold, in the B Shoot South and F Shoot South areas. The
grade of the Inferred Mineral Resources also increased by 9% to 3.6
g/t Au compared to 3.3 g/t Au in the December 31, 2017 estimate.
Golden Star is conducting further
drilling of the Wassa South extensions currently and the Company
expects that Wassa Underground's Inferred Mineral Resources will
continue to grow with further step out drilling.
Golden Star is planning to
undertake a Preliminary Economic Assessment ("PEA") on the Inferred
Mineral Resources of the Wassa Underground deposit. The objective
of the PEA is to demonstrate the viability of the Inferred Mineral
Resources, potentially including a new access shaft and new
ventilation infrastructure. As Golden
Star has significant under-utilized capacity in the Wassa
processing plant, this additional material could be processed
without the need for Golden Star to
build any additional processing capacity. Golden Star expects to commence work on the PEA
late in the second quarter of 2018 and the Company anticipates it
will be completed in the third quarter of 2018.
Drilling at Prestea
Golden Star drilled on surface
and from underground on the Prestea licence area during the first
quarter of 2018.
Drilling at Prestea Underground continued to test the Inferred
Mineral Resources along the edges of the West Reef ore body with
the objective of Mineral Resource expansion. The Company is
planning to begin step out drilling to the north of the West Reef
in the third quarter of 2018 to test the potential down plunge
extension of the deposit, once drilling chambers have been
established. Golden Star
believes the West Reef is larger than the current estimate
suggests.
Elsewhere on the Prestea licence area, one surface rig continued
to test the South Gap target between the two historic underground
shafts, Bondaye and Tuapim. The South Gap is one of the five
new potential underground targets that Golden Star outlined in its 2018 exploration
strategy. The drilling is expected to be completed in the
second quarter of 2018 and once all results have been received, the
Company will provide an update to the market. Pending the
completion of the South Gap drilling, the drill rig will be
mobilized to test several other targets along the Company's 85
kilometre strike length of the Ashanti Gold Trend.
FINANCIAL PERFORMANCE
Capital Expenditures
Having largely completed the development of both Wassa
Underground and Prestea Underground, capital expenditures for the
first quarter of 2018 totaled $11.6
million compared to $16.7
million in the first quarter of 2017, representing a 31%
decrease. Development capital accounted for 50% of capital
expenditures ($5.8 million), related
primarily to Prestea Underground ($3.6
million) and exploration drilling ($1.9 million).
First Quarter 2018 Capital Expenditures Breakdown (in
millions)
|
|
|
|
|
|
|
|
|
Item
|
|
|
|
Sustaining
|
|
Development
|
|
Total
|
Wassa
Underground
|
|
|
|
$3.5
|
|
$0.1
|
|
$3.6
|
Wassa Equipment
Purchases
|
|
|
|
$1.4
|
|
-
|
|
$1.4
|
Wassa
Exploration
|
|
|
|
-
|
|
$1.3
|
|
$1.3
|
Other
Development
|
|
|
|
$0.2
|
|
$0.1
|
|
$0.3
|
Wassa
Subtotal
|
|
|
|
$5.1
|
|
$1.5
|
|
$6.6
|
Prestea Open Pit
Mines
|
|
|
|
$0.5
|
|
-
|
|
$0.5
|
Prestea
Underground
|
|
|
|
-
|
|
$3.6
|
|
$3.6
|
Prestea
Exploration
|
|
|
|
-
|
|
$0.6
|
|
$0.6
|
Other
Development
|
|
|
|
$0.2
|
|
$0.1
|
|
$0.3
|
Prestea
Subtotal
|
|
|
|
$0.7
|
|
$4.3
|
|
$5.0
|
Consolidated
|
|
|
|
$5.8
|
|
$5.8
|
|
$11.6
|
Other Financial Highlights
Gold revenues for the first quarter of 2018 totaled $70.8 million from gold sales of 58,360 ounces,
at an average realized gold price of $1,258 per ounce. This represents a 3%
increase in revenues compared to the first quarter of 2017, which
was due primarily to a 22% increase in gold revenue at the Wassa
complex. This increase was offset partially by a 19% decrease in
gold revenue from the Prestea complex, resulting from the expected
decrease in production from the Prestea Open Pits and higher levels
of dilution impacting production at Prestea Underground.
Cost of sales excluding depreciation and amortization for the
first quarter of 2018 totaled $59.6
million, an increase of 16% from the same period in 2017.
This increase can be attributed primarily to a $5.7 million increase in operating costs from
metals inventory related to a planned drawdown of ore stockpiles at
Wassa and Prestea, offset partially by a 2% decrease in
consolidated mine operating expenses. In addition, there was a
$2.4 million increase in severance
expenses related to the suspension of production at the Wassa Main
Pit.
Depreciation and amortization expenses for the first quarter of
2018 totaled $8.2 million, a 3%
decrease compared to the first quarter of 2017 due mainly to lower
gold production at Prestea.
As a result, Golden Star reported a mine operating
margin of $3.0 million in the first quarter of 2018,
compared to $8.7 million in the first
quarter of 2017. This decrease was due primarily to the higher cost
of sales in the first quarter of 2018.
General and administrative ("G&A") expenses for the first
quarter of 2018 totaled $1.1 million,
compared to $8.0 million in the same
period in 2017, an 86% decrease. The decrease in G&A costs for
the first quarter of 2018 was due primarily to a $7.4 million decrease in share-based compensation
expense compared to the same period in 2017, resulting from a
decrease in the Company's share price during the quarter.
Golden Star recorded a fair value
gain of $5.4 million on financial
instruments in the first quarter of 2018, compared to a
$2.5 million gain in the same period
in 2017. The $5.4 million fair
value gain relates to a non-cash revaluation gain on the embedded
derivative liability of the 7% Convertible Debentures.
The net income attributable to Golden
Star shareholders in the first quarter of 2018 was
$1.0 million or $0.00 income per share, compared to a net income
of $0.2 million or $0.00 income per share in the first quarter of
2017. The higher net income attributable to Golden Star shareholders in the first quarter of
2018 compared to the same period in 2017 was due primarily to a
higher mine operating margin at Wassa, a higher gain on fair value
of financial instruments and lower G&A costs, offset partially
by the mine operating loss at Prestea for the first quarter of 2018
compared to a higher mine operating margin in the same period in
2017.
Cash provided by operations before working capital changes in
the first quarter of 2018 was $0.8
million compared to $17.7
million in the same period in 2017. This decrease was due
primarily to the $5.7 million decline
in the consolidated mine operating margin and the $10.0 million advance payment received during the
first quarter of 2017 from RGLD Gold AG ("RGLD") pursuant to the
gold purchase and sale agreement (the "Streaming Agreement").
The $10.0 million payment received in
January 2017 was the final advance
payment under the Streaming Agreement.
The Company's consolidated cash balance was $26.2 million at March 31,
2018. Working capital used $4.8
million during the first quarter of 2018, compared to
$8.3 million in the same period in
2017. The working capital changes in the first quarter of 2018
included an $11.4 million decrease in
accounts payable and accrued liabilities, offset by a $5.0 million decrease in inventory, a
$1.0 million decrease in accounts
receivable and a $0.7 million
decrease in prepaids and other.
For further information about Golden
Star's operational and financial performance, please visit
the Financial and Operational database at
http://apps.indigotools.com/IR/IAC/?Ticker=GSC&Exchange=TSX.
The data relating to the first quarter of 2018 will be available 24
hours after release at the latest.
Notes
|
1. See
"Non-GAAP Financial Measures".
|
Other Corporate Developments
Commercial production achieved at Prestea Underground
On February 1, 2018, commercial
production was achieved at Prestea Underground. Gold
production is anticipated to ramp up during 2018 and exploration
drilling is underway at the mine, with the objective of increasing
the annual production rate and extending the mine life.
Outlook
Golden Star remains on track to
achieve its guidance on all stated metrics for FY 2018. This
includes consolidated full year production of 230,000 - 255,000
ounces of gold at a cash operating cost per ounce1 of
between $650 and $730, an AISC per ounce1 of between
$850 and $950 and capital expenditures of $36.5 million, which include $6.6 million for exploration.
Golden Star expects gold
production to be weighted towards the second half of the year, due
to the continued ramp up of production at both Wassa Underground
and Prestea Underground. Consequently, Golden Star anticipates that its cash operating
cost per ounce1 and AISC per ounce1 will be
higher during the first half of 2018.
Notes
|
1. See
"Non-GAAP Financial Measures".
|
All monetary amounts refer to United States dollars unless otherwise
indicated.
Company Profile
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines in Ghana, West Africa. Listed on the NYSE American,
the Toronto Stock Exchange and the Ghanaian Stock
Exchange, Golden Star is focused on
delivering strong margins and free cash flow from its two high
grade, low cost underground mines. Gold production guidance for
2018 is 230,000-255,000 ounces at a cash operating cost per ounce
of $650-730. As the winner of the PDAC 2018
Environmental and Social Responsibility Award, Golden Star is committed to leaving a positive
and sustainable legacy in its areas of operation.
GOLDEN STAR
RESOURCES LTD.
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS AND
|
COMPREHENSIVE
LOSS
|
(Stated in
thousands of U.S. dollars except shares and per share
data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
Revenue
|
|
$
|
70,819
|
|
$
|
68,545
|
|
Cost of sales
excluding depreciation and amortization
|
|
59,574
|
|
51,406
|
|
Depreciation and
amortization
|
|
8,221
|
|
8,439
|
Mine operating
margin
|
|
3,024
|
|
8,700
|
|
|
|
|
|
Other
expenses/(income)
|
|
|
|
|
|
Exploration
expense
|
|
706
|
|
672
|
|
General and
administrative
|
|
1,109
|
|
7,992
|
|
Finance expense,
net
|
|
4,783
|
|
2,793
|
|
Other
income
|
|
(628)
|
|
(174)
|
|
Gain on fair value of
financial instruments, net
|
|
(5,442)
|
|
(2,498)
|
|
Loss on conversion of
7% Convertible Debentures, net
|
|
-
|
|
165
|
Income/(loss)
before tax
|
|
2,496
|
|
(250)
|
Deferred income tax
expense
|
|
2,891
|
|
-
|
Net loss and
comprehensive loss
|
|
$
|
(395)
|
|
$
|
(250)
|
Net loss attributable
to non-controlling interest
|
|
(1,410)
|
|
(420)
|
Net income
attributable to Golden Star shareholders
|
|
1,015
|
|
170
|
|
|
|
|
|
Net income/(loss)
per share attributable to Golden Star shareholders
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
$
|
0.00
|
Diluted
|
|
$
|
(0.01)
|
|
$
|
0.00
|
Weighted average
shares outstanding-basic (millions)
|
|
380.9
|
|
359.0
|
Weighted average
shares outstanding-diluted (millions)
|
|
438.1
|
|
371.2
|
GOLDEN STAR
RESOURCES LTD.
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
(Stated in
thousands of U.S. dollars)
|
(unaudited)
|
|
|
|
|
|
|
|
|
As
of
|
|
|
March
31,
|
|
December
31
|
|
|
2018
|
|
2017
|
|
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
26,224
|
|
$
|
27,787
|
|
Accounts
receivable
|
|
2,420
|
|
3,428
|
|
Inventories
|
|
44,196
|
|
50,653
|
|
Prepaids and
other
|
|
4,217
|
|
5,014
|
|
|
Total Current
Assets
|
|
77,057
|
|
86,882
|
RESTRICTED
CASH
|
|
6,505
|
|
6,505
|
MINING
INTERESTS
|
|
256,935
|
|
254,058
|
DEFERRED TAX
ASSETS
|
|
10,054
|
|
12,944
|
|
|
Total
Assets
|
|
$
|
350,551
|
|
$
|
360,389
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
84,562
|
|
$
|
94,623
|
|
Current portion of
rehabilitation provisions
|
|
5,825
|
|
6,566
|
|
Current portion of
deferred revenue
|
|
15,911
|
|
17,894
|
|
Current portion of
long term debt
|
|
21,863
|
|
15,864
|
|
Current portion of
other liability
|
|
15,464
|
|
13,498
|
|
|
Total Current
Liabilities
|
|
143,625
|
|
148,445
|
REHABILITATION
PROVISIONS
|
|
62,215
|
|
64,146
|
DEFERRED
REVENUE
|
|
110,973
|
|
92,062
|
LONG TERM
DEBT
|
|
88,580
|
|
79,741
|
LONG TERM DERIVATIVE
LIABILITY
|
|
5,521
|
|
10,963
|
LONG TERM OTHER
LIABILITY
|
|
-
|
|
6,786
|
|
|
Total
Liabilities
|
|
410,914
|
|
402,143
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
SHARE
CAPITAL
|
|
|
|
|
|
First preferred
shares, without par value, unlimited shares authorized.
|
|
|
|
|
|
No shares issued and
outstanding
|
|
-
|
|
-
|
|
Common shares,
without par value, unlimited shares authorized
|
|
783,325
|
|
783,167
|
CONTRIBUTED
SURPLUS
|
|
35,692
|
|
35,284
|
DEFICIT
|
|
(812,145)
|
|
(794,180)
|
|
Equity attributable to Golden Star
shareholders
|
|
7,072
|
|
24,271
|
NON-CONTROLLING
INTEREST
|
|
(67,435)
|
|
(66,025)
|
|
Total
Deficit
|
|
(60,363)
|
|
(41,754)
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
350,551
|
|
$
|
360,389
|
GOLDEN STAR
RESOURCES LTD.
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Stated in
thousands of U.S. dollars)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2018
|
|
2017
|
OPERATING
ACTIVITIES:
|
|
|
|
|
Net loss
|
|
$
|
(395)
|
|
$
|
(250)
|
Reconciliation of
net income/(loss) to net cash provided by
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
8,228
|
|
8,444
|
|
Share-based
compensation
|
|
(2,638)
|
|
4,715
|
|
Deferred income tax
expense
|
|
2,891
|
|
-
|
|
Gain on fair value of
7% Convertible Debentures
|
|
(5,442)
|
|
(3,131)
|
|
Recognition of
deferred revenue
|
|
(3,239)
|
|
(3,289)
|
|
Proceeds from Royal
Gold stream
|
|
-
|
|
10,000
|
|
Reclamation
expenditures
|
|
(1,343)
|
|
(1,491)
|
|
Other
|
|
2,748
|
|
2,727
|
|
Changes in working
capital
|
|
(4,781)
|
|
(8,287)
|
|
|
Net cash (used
in)/provided by operating activities
|
|
(3,971)
|
|
9,438
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
Additions to mining
properties
|
|
(309)
|
|
(155)
|
|
Additions to plant
and equipment
|
|
(245)
|
|
-
|
|
Additions to
construction in progress
|
|
(11,028)
|
|
(16,548)
|
|
Change in accounts
payable and deposits on mine equipment
|
|
|
|
|
|
and
material
|
|
(71)
|
|
(1,693)
|
|
Increase in
restricted cash
|
|
-
|
|
(29)
|
|
|
Net cash used in
investing activities
|
|
(11,653)
|
|
(18,425)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
Principal payments on
debt
|
|
(939)
|
|
(846)
|
|
Proceeds from debt
agreements
|
|
15,000
|
|
-
|
|
Shares issued,
net
|
|
-
|
|
24,524
|
|
|
Net cash provided by
financing activities
|
|
14,061
|
|
23,678
|
(Decrease)/increase
in cash and cash equivalents
|
|
(1,563)
|
|
14,691
|
Cash and cash
equivalents, beginning of period
|
|
27,787
|
|
21,764
|
Cash and cash
equivalents, end of period
|
|
$
|
26,224
|
|
$
|
36,445
|
Non-GAAP Financial Measures
In this press release, we use the terms "cash operating cost",
"cash operating cost per ounce", "all-in sustaining costs", "all-in
sustaining costs per ounce", "adjusted net income attributable to
Golden Star shareholders", "adjusted
income per share attributable to Golden
Star shareholders", "cash provided by operations before
working capital changes", and "cash provided by operations before
working capital changes per share - basic". These should be
considered as non-GAAP financial measures as defined in applicable
Canadian and United States
securities laws and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP.
"Cost of sales excluding depreciation and amortization" as found
in the statements of operations includes all mine-site operating
costs, including the costs of mining, ore processing, maintenance,
work-in-process inventory changes, mine-site overhead as well as
production taxes, royalties, severance charges and by-product
credits, but excludes exploration costs, property holding costs,
corporate office general and administrative expenses, foreign
currency gains and losses, gains and losses on asset sales,
interest expense, gains and losses on derivatives, gains and losses
on investments and income tax expense/benefit.
"Cash operating cost" for a period is equal to "cost of sales
excluding depreciation and amortization" for the period less
royalties, the cash component of metals inventory net realizable
value adjustments and severance charges, and "cash operating cost
per ounce" is that amount divided by the number of ounces of gold
sold (excluding pre-commercial production ounces sold) during the
period. We use cash operating cost per ounce as a key operating
metric. We monitor this measure monthly, comparing each month's
values to prior periods' values to detect trends that may indicate
increases or decreases in operating efficiencies. We provide this
measure to investors to allow them to also monitor operational
efficiencies of the Company's mines. We calculate this measure for
both individual operating units and on a consolidated basis. Since
cash operating costs do not incorporate revenues, changes in
working capital and non-operating cash costs, they are not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Changes in numerous factors
including, but not limited to, mining rates, milling rates, ore
grade, gold recovery, costs of labor, consumables and mine site
general and administrative activities can cause these measures to
increase or decrease. We believe that these measures are similar to
the measures of other gold mining companies, but may not be
comparable to similarly titled measures in every instance.
"All-in sustaining costs" commences with cash operating costs
and then adds the cash component of metals net realizable value
adjustment, royalties, sustaining capital expenditures, corporate
general and administrative costs (excluding share-based
compensation expenses), and accretion of rehabilitation provision.
"All-in sustaining costs per ounce" is that amount divided by the
number of ounces of gold sold (excluding pre-commercial production
ounces sold) during the period. This measure seeks to represent the
total costs of producing gold from current operations, and
therefore it does not include capital expenditures attributable to
projects or mine expansions, exploration and evaluation costs
attributable to growth projects, income tax payments, interest
costs or dividend payments. Consequently, this measure is not
representative of all of the Company's cash expenditures. In
addition, the calculation of all-in sustaining costs does not
include depreciation expense as it does not reflect the impact of
expenditures incurred in prior periods. Therefore, it is not
indicative of the Company's overall profitability. Share-based
compensation expenses are now also excluded from the calculation of
all-in sustaining costs as the Company believes that such expenses
may not be representative of the actual payout on equity and
liability based awards. Share-based compensation expenses were
previously included in the calculation of all-in sustaining costs.
The Company has presented comparative figures to conform with the
computation of all-in sustaining costs as currently calculated by
the Company.
The Company believes that "all-in sustaining costs" will better
meet the needs of analysts, investors and other stakeholders of the
Company in understanding the costs associated with producing gold,
understanding the economics of gold mining, assessing the operating
performance and also the Company's ability to generate free cash
flow from current operations and to generate free cash flow on an
overall Company basis. Due to the capital intensive nature of the
industry and the long useful lives over which these items are
depreciated, there can be a disconnect between net earnings
calculated in accordance with IFRS and the amount of free cash flow
that is being generated by a mine.
"Cash provided by operations before working capital changes" is
calculated by subtracting the "changes in working capital" from
"net cash provided by operating activities" as found in the
statements of cash flows. "Cash provided by operations before
working capital changes per share - basic" is "Cash provided by
operations before working capital changes" divided by the basic
weighted average number of shares outstanding for the
period.
"Adjusted net income attributable to Golden Star shareholders" is calculated by
adjusting Net income/(loss) attributable to Golden Star shareholders for (gain)/loss on fair
value of financial instruments, share-based compensation expenses,
loss on conversion of 7% Convertible Debentures, severance charges
and income tax recovery on previously unrecognized deferred tax
assets. "Adjusted income per share attributable to Golden Star shareholders" for the period is
"Adjusted net income attributable to Golden
Star shareholders" divided by the weighted average number of
shares outstanding using the basic method of earnings per
share.
Changes in numerous factors including, but not limited to, our
share price, risk free interest rates, gold prices, mining rates,
milling rates, ore grade, gold recovery, costs of labor,
consumables and mine site general and administrative activities can
cause these measures to increase or decrease. The Company
believes that these measures are similar to the measures of other
gold mining companies, but may not be comparable to similarly
titled measures in every instance.
In the current market environment for gold mining equities, many
investors and analysts are more focused on the ability of gold
mining companies to generate free cash flow from current
operations, and consequently the Company believes these measures
are useful non-IFRS operating metrics ("non-GAAP measures") and
supplement the IFRS disclosures made by the Company. These measures
are not representative of all of Golden
Star's cash expenditures as they do not include income tax
payments or interest costs. Non-GAAP measures are intended to
provide additional information only and do not have standardized
definitions under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. These measures are not necessarily indicative of
operating profit or cash flow from operations as determined under
IFRS.
For additional information regarding the Non-GAAP financial
measures used by the Company, please refer to the information under
the heading "Non-GAAP Financial Measures" in the Company's
Management's Discussion and Analysis of Financial Condition and
Results of Operations for the full year ended December 31, 2017, which is available at
www.sedar.com.
Cautionary note regarding forward-looking information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995, concerning
the business, operations and financial performance and condition of
Golden Star. Generally,
forward-looking information and statements can be identified by the
use of forward-looking terminology such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", "believes" or variations of such words
and phrases (including negative or grammatical variations) or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" or
the negative connotation or grammatical variation thereof.
Forward-looking information and statements in this MD&A
include, but are not limited to, information or statements with
respect to: production, cash operating costs and all-in sustaining
costs estimates for 2018, on a consolidated basis and for each of
Wassa and Prestea; the sources of gold production at Wassa during
2018 and the timing thereof; the sources of gold production at
Prestea during 2018 and the timing thereof; the commencement and
completion in 2018 of the Preliminary Economic Assessment on the
Inferred Mineral Resources of Wassa Underground; the cessation of
production from the Prestea Open Pits; the weighting of gold
production towards the second half of 2018; planned exploration and
drilling at Wassa and Prestea; the mining rate and grade from Wassa
and the timing for further delineating the B Shoot and F Shoot down
plunge extensions at Wassa Underground; capital expenditures,
including sustaining capital and development capital, for 2018, on
a consolidated basis and for each of Wassa and Prestea; the nature
of development capital expenditures at both Wassa and Prestea
during 2018; the feed of stockpiled lower grade ore from Wassa Main
Pit to the processing plant during 2018; the timing for completion
of mining from the Prestea Open Pits during 2018 and the processing
of stockpiled ore therefrom; severance charges in 2018; the
Company's debt repayment obligations for 2018; the potential
requirement for the Company to make excess cash flow payments under
the Royal Gold loan; rehabilitation obligations of the Company and
provisions therefor, as well as the expected undiscounted cash
flows for rehabilitation provisions; the sufficiency of cash
available to support the Company's operations and mandatory
expenditures for the next twelve months; the sufficiency of the
Company's existing cash balance; and working capital, debt
repayments and requirements for additional capital.
Forward-looking information and statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Golden Star to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which
Golden Star will operate in the
future, including the price of gold, anticipated costs and ability
to achieve goals. Forward-looking information and statements are
subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, performance or
achievements of Golden Star to be
materially different from those expressed or implied by such
forward-looking information and statements, including but not
limited to: risks related to international operations, including
economic and political instability in foreign jurisdictions in
which Golden Star operates; risks
related to current global financial conditions; risks related to
joint venture operations; actual results of current exploration
activities; environmental risks; future prices of gold; possible
variations in Mineral Reserves, grade or recovery rates; mine
development and operating risks; accidents, labor disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities and risks related to
indebtedness and the service of such indebtedness. Although
Golden Star has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information and statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are made as of the date hereof and accordingly are
subject to change after such date. Forward-looking information and
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of the Company's
operating environment. Golden Star
does not undertake to update any forward-looking information and
statements that are included in this news release except in
accordance with applicable securities laws.
Technical Information and Quality Control
The technical contents of this press release have been reviewed
and approved by S. Mitchel Wasel, BSc Geology, a "Qualified Person"
pursuant to National Instrument 43-101 ("NI 43-101"). Mr. Wasel is
Vice President Exploration for Golden
Star and an active member of the Australasian Institute of
Mining and Metallurgy.
The technical contents of this press release have been reviewed
and approved by Dr. Martin Raffield,
P. Eng., a Qualified Person pursuant to NI 43-101. Dr.
Raffield is Senior Vice President of Project Development and
Technical Services for Golden
Star.
Additional scientific and technical information relating to the
mineral properties referenced in this news release are contained in
the following current technical reports for those properties
available at www.sedar.com: (i) Wassa - "NI 43-101 Technical Report
on feasibility study of the Wassa open pit mine and underground
project in Ghana", effective date
December 31, 2014; (ii)
Bogoso/Prestea – "NI 43-101 Technical Report on Resources and
Reserves, Golden Star Resources, Bogoso/Prestea Gold Mine,
Ghana", effective date
December 31, 2017.
Cautionary Note to U.S. Investors
This news release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ materially from the
requirements of United States
securities laws applicable to U.S. companies. The terms "mineral
reserve", "proven mineral reserve" and "probable mineral reserve"
are Canadian mining terms as defined in accordance with NI 43-101.
These definitions differ from the definitions of the Securities and
Exchange Commission (the "SEC") set forth in Industry Guide 7 under
the United States Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Under SEC Industry Guide 7 standards,
mineralization may not be classified as a "reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve determination is made.
In addition, the terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and "inferred mineral
resource" are defined in and required to be disclosed by NI 43-101,
however, these terms are not defined terms under SEC Industry Guide
7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. Investors are cautioned
not to assume that any part or all of mineral deposits in these
categories will ever be converted into reserves. "Inferred mineral
resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Investors are cautioned not to assume that all or any
part of an inferred mineral resource exists or is economically or
legally mineable. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations, however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC Industry Guide 7 standards as in
place tonnage and grade without reference to unit measures.
For the above reasons, information contained in this news
release or in the documents referenced herein containing
descriptions of our mineral deposits may not be comparable to
similar information made public by U.S. companies subject to the
reporting and disclosure requirements under the United States federal securities laws and
the rules and regulations thereunder.
View original
content:http://www.prnewswire.com/news-releases/golden-star-reports-first-quarter-2018-results-300641476.html
SOURCE Golden Star Resources Ltd.