TORONTO, March 16, 2020 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE:
GSR) ("Golden Star" or the "Company") reports on the
procedures and controls that are being implemented to protect its
employees and ensure business continuity with respect to the
potential risks posed by the COVID-19 (Coronavirus) outbreak.
The outbreak of the Coronavirus has now resulted in cases being
reported in the Company's three operating countries. There have
been a number of reported cases of infection in the United Kingdom and Canada where the Company operates corporate
offices, and the first cases have now been reported in Ghana where Golden
Star operates two gold mines, Wassa and Prestea.
None of our employees have been diagnosed with Coronavirus.
Further to the statement in our 2019 results press release (dated
February 22, 2020), the business has
not suffered a material impact on the mining operations, logistics,
supply chain, sales or its financial position.
In order to mitigate the potential risks to our operations and
people, the Company activated our response protocols earlier this
year, as a result the business has been proactively implementing
procedures that include:
- Development of a specific disease management plan;
- Situation monitoring with our health consultants and other
recognised resources;
- Circulation of education and awareness materials;
- Screening of all individuals that have travelled to countries
that have experienced the Coronavirus outbreak;
- Business continuity planning; and
- Establishment of Emergency and Crisis Management teams to
coordinate the implementation of management plans.
In recognition of the risks to our people and operations, the
Company has commenced the implementation of the following
controls:
- Restriction on international travel to limit risk of
exposure;
- Implementation of hygiene and sanitation controls;
- Implementation of virtual office protocols in the corporate
offices;
- Implementation of site access temperature screening at the
mining operations;
- Self-isolation for individuals that display symptoms; and
- Controls to require citizens that have returned to Ghana following international travel to
undergo a 14-day home isolation prior to being approved for site
access.
Golden Star's priority is to
minimise the potential risks to its employees and mitigate the
possibility of disruption at the mining operations. In this
respect, the stability of the supply chain poses a risk to business
continuity and we have been managing our exposure closely. Supplies
critical to the operations have been identified and suppliers have
been asked to provide an update on their ability to continue to
supply Golden Star's requirements.
Critical supplies were risk assessed based on responses received
and the origin of the products. Mitigating controls for items with
a higher risk profile include temporarily increasing safety stock
levels and identifying alternative sources of supply. We continue
to monitor the situation as the pandemic evolves and remain in
regular contact with our key suppliers.
Company Profile:
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
underground 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
underground mines. Gold production guidance for 2020 is
195,000-210,000 ounces at a cash operating cost per
ounce1 of $790-$850. Since
winning the PDAC 2018 Environmental and Social Responsibility
Award, Golden Star has remained
committed to leaving a positive and sustainable legacy in its areas
of operation.
Statements Regarding Forward-Looking Information
Some statements contained in this news release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and "forward looking
information" within the meaning of Canadian securities laws include
but are not limited to, statements and information regarding: gold
production of 195-210koz and a cash operating cost of $790-$850 per ounce
in 2020. 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 thereof.
Investors are cautioned that forward-looking statements and
information are inherently uncertain and involve risks, assumptions
and uncertainties that could cause actual facts to differ
materially. 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 future developments affecting the Company will
be those anticipated by management. Please refer to the discussion
of these and other factors in Management's Discussion and Analysis
of financial conditions and results of operations for the year
ended December 31, 2019 and in our
annual information form for the year ended December 31, 2018 as filed on SEDAR
at www.sedar.com. The forecasts contained in this press
release constitute management's current estimates, as of the date
of this press release, with respect to the matters covered thereby.
We expect that these estimates will change as new information is
received. While we may elect to update these estimates at any time,
we do not undertake any estimate at any particular time or in
response to any particular event.
Non-GAAP Financial Measures
In this news release, we use the terms "cash operating
cost", "cash operating cost per ounce".
"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, materials and supplies write-off 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.
"Cost of sales excluding depreciation and amortization"
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.
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 or 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.
For additional information regarding the Non-GAAP financial
measures used by the Company, please refer to the heading "Non-GAAP
Financial Measures" in the Company's Management Discussion and
Analysis of Financial Condition and Results of Operations for the
year ended December 31, 2019, which
are available at www.sedar.com
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SOURCE Golden Star Resources Ltd.