TORONTO, May 14, 2020 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE:
GSR) ("Golden Star" or the "Company") advises that
following recent suspected COVID-19 cases in the local communities
around the Prestea mine site, one of its team members at the mine
has tested positive for COVID-19 following referral to the Ghana
Health Service ("GHS") after experiencing mild symptoms. The
affected team member was tested and samples were processed at the
Government accredited testing facility in Takoradi and now remains
in isolation with very mild symptoms.
Following an extensive contact tracing exercise, all potentially
affected Prestea personnel have followed the Government and Company
protocols, including reporting for screening and testing as
required, as well as subsequent isolation.
The safety and wellbeing of our employees and contractors is
paramount. We continue to proactively implement COVID-19
prevention and management controls across the business whilst
providing available leadership, education and support to our host
communities.
To date, we have not witnessed any material impact on production
relating to the COVID-19 pandemic. As reported in our Q1 2020
financial results, the supply chains at the Wassa and Prestea mines
have not been detrimentally impacted and both operations continue,
as does the export and sale of gold doré.
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 ounce (please
refer to the Non-GAAP Financial Measures disclaimer) of
US$790-US$850. As the winner of the Prospectors
& Developers Association of Canada 2018 Environmental and Social
Responsibility Award, Golden Star
remains 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 and
include but are not limited to, statements and information
regarding gold production guidance for 2020 of 195,000 to 210,000
ounces; cash operating cost guidance for 2020 of US$790-US$850; and
the potential impact of the COVID-19 pandemic on the Company's
operations and the ability to mitigate such impact . 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: gold price volatility; discrepancies between actual and
estimated production; mineral reserves and resources and
metallurgical recoveries; mining operational and development risks;
liquidity risks; suppliers suspending or denying delivery of
products or services; regulatory restrictions (including
environmental regulatory restrictions and liability); actions
by governmental authorities; the speculative nature of gold
exploration; ore type; the global economic climate; share price
volatility; foreign exchange rate fluctuations; risks related to
streaming agreements and joint venture operations; the availability
of capital on reasonable terms or at all; 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 including financial and other
risks resulting from the impact of the COVID-19 global pandemic;
actual results of current exploration activities; environmental
risks; future prices of gold; possible variations in mineral
reserves and mineral resources, grade or recovery rates; mine
development and operating risks; an inability to obtain power for
operations on favourable terms or at all; mining plant or equipment
breakdowns or failures; an inability to obtain products or services
for operations or mine development from vendors and suppliers on
reasonable terms, including pricing, or at all; public health
pandemics such as COVID-19, including risks associated with
reliance on suppliers, the cost, scheduling and timing of gold
shipments, uncertainties relating to its ultimate spread, severity
and duration, and related adverse effects on the global economy and
financial markets; 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; litigation risks; 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, 2019 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.