Golden Star Resources Ltd
Golden Star Resources Ltd
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The COVID-19 pandemic’s negative effects on Golden Star Resources’ 2 Ghana operations, mostly on the for-sale Prestea operation, has seen June 2020 qtr (Q2 20) gold production sneak up to 50,600oz from Q1 20’s 50,000oz and sales well up to 52,700oz from 45,600oz.
The result has lifted net income to $US7.8M from $800,000 on gold revenues jumping to $85.6M from $67.4M and cash from operations before working capital changes up to $27.1M from $13.4M.
Preliminary Dec 2019 year (FY/CY19) gold production from Golden Star Resources’ 2 Ghana mines has fallen 9% on the previous year to 204,000oz, albeit at the upper end of downwardly revised guidance of 190,000oz-205,000oz.
Prestea output plunged 36% to 48,000oz, but Wassa was up 4% to156,000oz on a strong end to the year with grades improving.
A poor performance from Golden Star Resources’ Prestea operation has pushed Dec 2018 year (FY/CY18) gold production from the company’s 2 Ghana mines down to 224,861oz from 2017’s 267,565 ounces, 139oz under the low end of guidance.
Golden Star Resources has managed to cut its Sept 2018 qtr (Q3 18) net loss to $C3.2M from Q2 18’s $6.64M loss, despite gold production from its 2 Ghana operations falling to 57,113oz from Q2 18’s 61,209oz, with 83% of it from underground.
Output from the Wassa Complex eased to 38,097oz from 38,532 and Prestea to 19,016oz from 22,667oz, with total sales down to 57,659oz from 60,559oz. On the plus side, cash operating costs fell to $US780oz from $809oz and AISC to $994oz from $1,104oz.
Golden Star Resources has completed the $US125.7M strategic placement by Luxembourg-incorporated private gold investment company La Mancha Holdings giving it a 30% stake and underpinning the expansion of its 2 underground gold mines in Ghana.
2 new directors from La Mancha have been appointed to GSR’s board, with the right to appoint another.
Slower than expected ramp-up at Golden Star Resources’ Prestea underground operation in Ghana has cut Dec 2018 year (FY/CY18) gold expectations 5% to 225,000oz-235,000oz, with cash operating costs up 17% to $US790oz-$830oz and AISC up 19% to $1,050oz-$1,100oz.
A stronger than expected performance at Wassa underground, also in Ghana, so far this year only partially offset the weaker than expected result from Prestea, being groomed for a strong FY/CY19 start as an underground-only operation.
Despite lifting gold production from its 2 underground/open pit operations in Ghana to 61,209oz in the June 2018 qtr (Q2 18) from Q1 18’s 57,616oz, Golden Star Resources has posted a net loss of $6.64M from a $1.01M profit on revenues up to $77.12M from $70.8M.
Cash from operations before changes in working capital jumped to $10.3M from $810,000, with the company’s Wassa Complex lifting output 9% to 38,532oz and Prestea to 22,677oz from 22,110oz, with Prestea underground expected to hit targeted production of 650tpd during Q4 18.
Golden Star Resources has more than doubled inferred resources for its Wassa underground gold mine in Ghana to 5.2Moz Au within 44.9Mt at 3.6g/t, up 147% on the Dec 2017 estimate.
The grade was also up 9%. PEA on Wassa underground resource expected to commence late in Q2 18. Golden Star owns/operates the Wassa and Prestea mines in Ghana.
A big open pit closure and blasting problems at Golden Star Resources’ 2 gold mines in Ghana has seen Mar 2018 qtr (Q1 18) production plunge to 57,616oz from Q4 17’s 71,769oz.
Wassa’s output fell to 35,506oz from 42,001oz on the cessation of production from the main pit in Jan 18, but with underground production stronger than expected with grade up 12% to 4.54g/t on an average mining rate of 2,400tpd, exceeding an average targeted 2,300 tpd.
A new report combining Golden Star Resources’ Bogoso and Prestea gold mines in Ghana envisages a $US29.1M operation producing about 90,000oz pa over an initial 5-years LoM at a production rate of 650tpd.
The updated NI43-101 technical report, replacing previous individual reports for the producing Prestea mine and Bogoso that ceased production in 2015, gives the project a $144M NPV5% and total free cash flow of $164M at LoM average cash operating costs of $624oz and AISC $754oz.