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Golden Star announces preliminary production results

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Global Mining Review,

Golden Star Resources Ltd has announced its preliminary production performance for 4Q20 and full year 2020 (FY20), and its guidance for 2021 (FY21). The company anticipates releasing its audited 2020 financial results on 24 February 2021, after market close.


  • 4Q20 production from continuing operations totalled 41 000 oz. FY20 production from continuing operations totalled 168 000 oz, representing a 7% increase on 2019 performance.
  • Delivered on the 165 000 – 170 000 oz revised guidance range for Wassa, and successfully exceeded the original FY20 guidance for Wassa of 155 000 – 165 000 oz.
  • Underground mined grades improved to 3.4 g/t) during 4Q20, up 20% on the 2.8 g/t realised in 3Q20.
  • The mining rate decreased slightly to 4175 tpd during 4Q20 (4960 tpd in 3Q20), which was offset by the higher realised mined grades. The focus of the mining activities shifted to an acceleration of underground development following the return of the expatriate jumbo operators to site.
  • During FY20, mining rates averaged 4469 tpd and processing rates exceeded 5500 tpd with the additional processing of incremental low-grade stockpile material.
  • Golden Star ended FY20 with US$61 million of cash. Net debt decreased by US$5 million during the quarter to total US$45million.
  • FY21 production guidance of 165 000 – 175 000 oz builds on the progress achieved in 2020 and reflects the focus on investment in future production growth.
  • The all-in sustaining costs (AISC) guidance of US$1000– US$1075/oz) reflects an increase in sustaining capital associated with the planned step up in drilling and development. Overall capital expenditure is expected to total US$45 – US$50 million.
  • The FY21 exploration budget is being increased to US$15 million with a view to accelerating the systematic testing of the numerous in-mine, near mine and regional exploration targets.
  • Work on the preliminary economic assessment (PEA) on the expansion of the Wassa mine into the southern extensions is nearing completion; the study is expected to be released in conjunction with the updated mineral reserve and resource estimate for Wassa around the time of the FY20 financial results.

Andrew Wray, President and CEO of Golden Star, commented: "In what was a transformational year for Golden Star, the operational performance of Wassa stood out with the delivery of our improved production guidance range despite the numerous challenges that have arisen as a result of the pandemic. The strong cash flow generation from the asset, combined with the sale of Bogoso-Prestea and the refinancing of the Macquarie loan facility, marked a significant improvement in our financial position. In turn, this enabled us to invest in key infrastructure necessary for the long-term growth of Wassa, including electrical upgrades, an upgraded pump station and the paste fill plant. The latter was delivered below budget and is expected to be operational during 1Q21, following a slight delay due to the re-engineering of a component during the commissioning phase.

“During FY21, we expect to see similar grades at Wassa as in 2020 with a small increase in mining rates and plan to continue to process low grade stockpiles throughout the year. On that basis, production guidance is set at 165 000 – 175 000 oz with costs expected to remain in line with recent performance, meaning that the consolidated costs have decreased following the sale of Bogoso-Prestea.

“With the ongoing production delivery at Wassa we intend to maintain our level of capital spend in 2021, with the focus turning to increasing development and drilling activities in order to support further volume increases which are anticipated in turn to provide production growth and enhanced cash flow generation. We will share more detail on this growth opportunity in the PEA which we expect to complete in parallel with our reserve and resource update during 1Q21.

“With our improved financial position, I am also pleased that we are able to increase our exploration budget to US$15 million; the plan is to test both the underground and surface targets that could add supplemental ore feed and the potential for stand-alone targets along the 90 km mineralised trend to the south of Wassa."

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