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Golden Star: News Release Dated October 28, 2015

The following excerpt is from the company's SEC filing.

Exhibit 99.1

Golden Star Reports Third Quarter 2015 Results

TORONTO, Oct. 28, 2015 /CNW/ - Golden Star today reports its financial and operational results for the quarter ended September 30, 2015 ("the third quarter" or "the period"). All references to currency are in US dollars.

Golden Star continued to execute its plan to transition to a higher margin, lower cost producer. During the quarter, four key elements of this plan were advanced including unit cost reductions through increased productivity, continued development of the high grade underground deposits at Wassa and Prestea, commenceme nt of mining of free milling ore at Prestea surface operations, and suspension of the refractory plant.

Consolidated Operational Results:

Gold produced and sold during the third quarter was 51,898 ounces compared to 55,132 ounces in the prior quarter

Revenue for the third quarter was $56.5 million compared to $65.8 million for the prior quarter

Cost of sales before depreciation and amortization reduced to $55.2 million from $78.7 million in the prior quarter

Consolidated cash operating cost per ounce

was $988 for the third quarter compared to $1,113 in the prior quarter

Net loss for the third quarter was $6.8 million, or $0.03 per share, compared to a net loss of $61.5 million, or $0.24 per share, in the prior quarter

Unit Operational Results:

Wassa Open Pit produced 28,848 ounces compared with 24,829 ounces in the prior quarter

Wassa cash operating costs

decreased to $770 per ounce from $918 per ounce in the prior quarter

Refractory operations were suspended at Bogoso during the third quarter, resulting in production of 15,648 ounces compared with 25,702 ounces in the prior quarter

Bogoso/Prestea produced 23,050 ounces at $1,261 per ounce cash operating cost compared with 30,303 ounces at $1,273 per ounce in the prior quarter

Project Development:

Wassa Underground decline was advanced by 205 meters at the end of the third quarter, and it has reached 382 meters to date

Prestea Open Pits mining commenced in August 2015 and the non-refractory business line at Bogoso/Prestea produced 7,402 ounces in the third quarter compared to 4,601 ounces in the prior quarter

Prestea Underground Mine rehabilitation commenced in September and production is anticipated to resume in 2017

The loan and stream financing from Royal Gold, Inc. and its wholly-owned subsidiary respectively was completed with $20 million received under the term loan and $55 million of the $130 million stream advance received

Cash provided by operations for the third quarter was $45.3 million which includes the incremental stream proceeds received from Royal Gold. Consolidated cash balance was $27.7 million at quarter end.

See "Non-GAAP Financial Measures".

Sam Coetzer, President and CEO of Golden Star, commented:

"I am confident that Golden Star has reached the stage where we are managing a less complex and more streamlined business. This was achieved with the suspension of the refractory plant, the reduction in workforce, the startup of mining from the Prestea Open Pits, and the progress made at Wassa Underground development. Having arranged financing with Royal Gold for $150 million, we are now in a position to bring our two new low cost projects into production. These achievements are a reflection of the focus and dedication of the Golden Star team, the quality of our assets, and the clarity of our vision."

Golden Star management will conduct a conference call and webcast on October 29, 2015, at 10:00am EDT to discuss these results.

The quarterly results call can be accessed by telephone or by webcast as follows:

Participants - toll free: +1 888 390 0605

Participants - toll: +1 416 764 8609

Conference ID: 63863007


A recording of the call will be available until November 5, 2015 by dialing:

Toll free: +1 888 390 0541

Toll: +1 416 764 8677

Replay passcode: 863007 #

The webcast will also be available after the call at

Company Profile:

Golden Star Resources (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the "Company") is an established gold mining company with two producing mines, Wassa and Bogoso/Prestea, on the prolific Ashanti Gold Belt in Ghana. In 2014, Golden Star produced 261,000 ounces of gold. The Company is financed to develop underground mines below existing open pit operations which are expected to reduce unit costs further when in production from 2016 onwards. As such, the Company offers investors leveraged, un-hedged exposure to the gold price with low operational risk in a stable African mining jurisdiction in addition to significant exploration and development upside potential.

Summary of Consolidated Operational and Financial Results:



Sept. 30,

Jun. 30,


Wassa gold sold

Bogoso gold sold

Total gold sold

Average realized price

Cash operating cost per ounce - combined

All-in sustaining cost per ounce

Gold revenues



Cost of sales excluding depreciation and amortization



Depreciation and amortization


Mine operating loss



General and administrative expense

(Gain)/loss on fair value of 5% Convertible Debentures


Impairment charges


Adjusted net loss attributable to shareholders



Net loss attributable to shareholders



Adjusted loss per share – basic and diluted



Cash provided by/(used in) by operations



Cash provided by/(used in) operations before working capital changes



Cash provided by/(used in) by operations per share – basic and diluted


Capital expenditures



See "Non-GAAP Financial Measures".

Review of Financial Performance

Gold produced and sold in the period was 51,898 ounces compared to 55,132 ounces in the prior quarter. Gold produced and sold at Wassa increased, due to higher throughput and higher grade, which partially offset the reduction in ounces produced and sold at Bogoso/Prestea due to the suspension of refractory operation in the quarter. The continued decline in gold price and fewer ounces sold reduced revenue for the third quarter to $56.5 million.

Consolidated cash operating costs per ounce for the quarter decreased to $988 from $1,113 in the prior quarter. This reduction was largely achieved through an 11% reduction in cash operating costs per ounce at Wassa as a result of cost cutting measures implemented by the Company. All-in sustaining costs per ounce decreased from $1,302 in the prior quarter to $1,151 for the third quarter.

Cost of sales before depreciation and amortization decreased from $78.7 million in the prior quarter to $55.2 million in the third quarter. This was mainly a result of lower mining operating expenses at Wassa and Bogoso/Prestea and a $12.3 million reduction in severance expense. Mine operating expenses of $54.4 million for the third quarter reduced from $60.2 million in the prior quarter due to the suspension of the high costs refractory operation and the start of the lower cost non-refractory operation at Bogoso/Prestea. The mine operating loss was reduced to $4.3 million from $26.1 million in the prior quarter.

The adjusted net loss attributable to Golden Star shareholders for the third quarter was $10.8 million, and the adjusted loss per share was $0.04.

Cash provided by operations before changes in working capital for the third quarter was $38.5 million and capital expenditures for the third quarter totaled $17.8 million. Further capital expenditure of $21 million is expected for the remainder of the year on the Wassa and Prestea mines.

The consolidated cash balance was $27.7 million at September 30, 2015. During the quarter the Company received $75 million from Royal Gold, consisting of a $20 million term loan payment and $55 million in advanced payments in relation to the stream financing. Approximately $39 million of these funds were used to retire the Ecobank I loan early in the third quarter.

Review of Operational Performance

Wassa Operations

Three months


Sept. 30,

Three months

Jun. 30,






Severance charges


Operating costs to metals inventory



Inventory net realizable value adjustment



Mine operating margin


Ore mined



Waste mined



Ore processed



Grade processed


Gold sales

Ore tonnes mined in the third quarter remained in line with the prior quarter. Throughput and grade continued to increase from the prior quarter resulting in increased gold produced and sold at Wassa, and an increase in revenue. Stripping remained in line with the forecast stripping ratio of approximately 4:1 for 2015.

Cash operating costs per ounce continued to decline, down 16% from the prior quarter to $770 per ounce as a result of cost cutting measures implemented by the Company. Mine operating expenses in the third quarter were 4% lower than the prior quarter.

Capital expenditures for the quarter were $8.5 million, of which $5.8 million was incurred on the development of the Wassa Underground Mine.

Bogoso/Prestea Operations

The Prestea Mines consist of an underground mine that has been in existence for over 100 years along with adjacent surface deposits. The surface deposits are host to approximately 122,000 ounces of non-refractory Mineral Reserves at an average grade of 2.24 g/t Au. The environmental permit required to mine the surface deposits was issued by the Environmental Protection Agency in June 2015 after Golden Star undertook extensive environmental and community impact assessments and local community consultations. Mining of these surface operations began early in the third quarter and 20,000 - 25,000 ounces of gold are expected to be produced in 2015 from the Prestea Open Pits.

The Bogoso refractory operation was suspended during the third quarter 2015. The processing of non-refractory tailings was suspended in order to make way for the processing of higher grade ore from the Prestea Open Pits at the Bogoso non-refractory plant.

ended Sept. 30,

ended Jun. 30,







Operating costs (to)/from metals inventory








Ore mined...