TORONTO, May 21, 2020 /CNW/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR)
("Golden Star" or the "Company") advises that
further to the news release dated May 14,
2020 announcing a COVID-19 case within our Prestea team, a
second team member has tested positive for COVID-19. Both
employees have had mild symptoms and are being closely
monitored.
Consistent with the Company's COVID-19 management protocols and
those of the Ghana Health Service, contact tracing has been carried
out and as a result close to 60 members of our Prestea team are
currently in quarantine and awaiting test results. Of these,
the majority are involved in mining activities (including rock
breaking, scoop operations and blasting) and engineering activities
(including winder operations and pumping). As a result, site
management is revising planned operations in the short-term in
order to ensure the safety of all team members and to allow for
possible critical skill shortages. This is likely to have
some impact on production from 24 Level over the coming weeks until
employees who are currently in quarantine are able to safely return
to work. At this stage, it is anticipated that the impact on
development activities on 17 Level, which are crucial to the longer
term viability of the operation, will be minimal.
At present, no confirmed or suspected cases of COVID-19 have
been identified at Wassa and operations remain unaffected. To
the extent the situation remains unchanged, given the current
strong operational performance at Wassa, the Company continues to
be on track to achieve its consolidated annual guidance for
2020.
As previously reported, the supply chains at the Wassa and
Prestea mines have not been impacted nor has the export and sale of
gold doré.
The safety and wellbeing of our employees and contractors is
paramount and we will continue to proactively implement COVID-19
prevention and management controls across the business whilst
providing available leadership, education and support to our host
communities.
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 actual and 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.