Monday, 16 September

1Q 2019: Golden Star’s gold production dip 8%

Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) has reported its financial and operational results for the first quarter ended 31 March 2019 with an eight per cent fall in gold production.


• Focus on safety reflected in continued improvement with a lost time injury frequency rate ("LTIFR") of 0.07 and a total recordable injury frequency rate ("TRIFR") of 0.85.

• Total gold production of 53,284 ounces in the first quarter of 2019, in line with budget and an 8% decrease compared to the first quarter of 2018 (57,616 ounces).

• Cash operating cost per ounce1 of $731 and All-In Sustaining Cost ("AISC") per ounce1 of $976 in the first quarter of 2019, 20% and 17% lower than the same period last year, respectively.

• Mining rates at Wassa Underground of approximately 3,600 tonnes per day ("tpd") on average in the first quarter of 2019 represents a 53% increase compared to the first quarter of 2018 and surpasses the 2019 targeted average mining rate of 3,500 tpd.

• Gold production from Wassa was 42,910 ounces for the first quarter of 2019, a 21% increase from the 35,506 ounces produced during the same period in 2018.

• Prestea produced 10,374 ounces of gold during the quarter, 53% lower than the first quarter of 2018 as a result of the focus on underground production and the lower than planned tonnes and grade.

• Mineral Reserve and Mineral Resource update released March 28, 2019; Wassa Underground Reserves increased by 47% and inferred mineral resources increased by 12%.

• Father Brown Resource Statement released February 19, 2019; 93% increase in Inferred Mineral Resources.

• Cash provided by operations before changes in working capital of $14.9 million ($0.14 per share) in the first quarter of 2019 and mine operating margin of $16.6 million.

• Consolidated cash balance of $81.9 million at March 31, 2019.

• Golden Star remains on track to achieve its consolidated full year ("FY") 2019 guidance.

Andrew Wray, President and Chief Executive Officer of Golden Star, commented: "I am delighted to take over as President and CEO at what is a pivotal time for the company as demonstrated by this set of results. Our operation at Wassa continues to deliver on its promise, not only with the low cost, record underground production seen during the first quarter but also the recently released reserve and resource update which demonstrated continued growth in the ore body and a significant step up in its reserve base.

“At the same time, Prestea is not delivering to the targets set for it or to its potential both in terms of tonnes moved as well as the grade delivered and as a result is not generating the returns we expect from it. Our priority is to assess and address the root causes of this so that we can achieve consistent operational performance and returns commensurate with the resources being applied, and improve the overall optionality of the business.

“I would also like to thank the entire team at Golden Star for a sincere welcome to the Company and am looking forward to the opportunities that exist to increase shareholder value by growing the Company in a disciplined fashion, increasing cash flow, and continuing on operational improvements.

“Underpinning these priorities for the Company will be a continued absolute requirement to carry out our business in a safe and responsible manner that benefits all stakeholders."

Source: Ghana/

Source: Patrick Ayumu