Q3 2017: Golden Star’s gold production up 64%

The financial and operational results of Golden Star Resources for the third-quarter ended September 30, 2017 with a 64% increase in gold production to 73,827 ounces compared to the third-quarter of 2016 ("Q3 2016")...


The financial and operational results of Golden Star Resources for the third-quarter ended September 30, 2017 with a 64% increase in gold production to 73,827 ounces compared to the third-quarter of 2016 ("Q3 2016").

HIGHLIGHTS:

• 64% increase in gold production to 73,827 ounces in the third quarter of 2017 compared to the third quarter of 2016 ("Q3 2016")

o Record quarterly production from the Prestea Open Pits for the fifth consecutive quarter at 38,899 ounces of gold

o First stope blasted at the high grade Prestea Underground Gold Mine ("Prestea Underground") in September 2017 and commercial production expected during the fourth quarter of 2017

o 19% increase in production from the Wassa Underground Gold Mine ("Wassa Underground") to 15,877 ounces compared to second quarter of 2017, as the mine continues to ramp up

o Golden Star plans to transition Wassa to an underground-only operation in early 2018 to focus on higher grade, higher margin ore

• 30% decrease in cash operating cost per ounce1 to $671 compared to Q3 2016 – lowest cash operating cost per ounce1 reported since second quarter of 2010

• 26% decrease in All-In Sustaining Cost ("AISC") per ounce1 to $848 in the third quarter of 2017 compared to Q3 2016 – lowest AISC since Golden Star began reporting of AISC four years ago in the first quarter of 2013

• Capital expenditures of $17.9 million in the third quarter of 2017

o $9.7 million (54%) attributable to development capital for Prestea Underground

• 2017 exploration program progressing well, with results from both Wassa Underground and Prestea Underground confirming the potential for Mineral Resource growth

• 365% increase in mine operating margin in the third quarter of 2017 to $26.9 million compared to Q3 2016

• Net income attributable to Golden Star shareholders in the third quarter of 2017 of $12.1 million or $0.03 per share, compared to a net loss of $23.1 million or $0.07 loss per share in the same period of 2016

• Consolidated cash balance of $30.0 million at September 30, 2017, with the Company remaining fully funded to deliver its capital program

• Consolidated full year 2017 gold production guidance maintained at 255,000-280,000 ounces

Sam Coetzer, President and Chief Executive Officer of Golden Star, commented: "The third quarter of 2017 delivers our sixth consecutive quarter of production growth and our lowest consolidated cash operating cost per ounce1 in seven years.

“We expect our margins to increase further still as we continue to ramp up production from both high grade, underground mines and as we transition to being an underground-only producer at both operations during 2018.

“The third quarter has been an exciting period for Golden Star on the exploration front too, as we demonstrated that Wassa Underground is a larger ore body than we previously estimated and that it remains open at depth. The current exploration program is at an early stage at Prestea Underground, but the initial results have been encouraging and we should begin drilling down plunge later this quarter to access the longer term targets. At the end of the third quarter, we are on track to achieve our consolidated 2017 full year production guidance on all stated metrics and I look forward to updating the market on further exploration results over the coming months."


Source: Ghana/ClassFMonline.com/91.3FM



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