First Quarter Financial Results News Release Scheduled for After Market Close on May 9, 2012; Conference Call and Webcast on May 10, 2012, at 11:00 a.m. Eastern Time
DENVER, CO, Apr 19, 2012 (MARKETWIRE via COMTEX) --Golden Star Resources Ltd. (NYSE Amex: GSS) (TSX: GSC) (GSE: GSR)
("Golden Star" or the "Company") today announced preliminary first
quarter 2012 production results for its Bogoso/Prestea and Wassa/HBB
operations.
The Company produced a total of 77,725 ounces of gold in the first
quarter ended March 31, 2012, compared with guidance of 79,000
ounces. Preliminary cash operating cost for the quarter is
approximately $1,120 per ounce.
Wassa/HBB operations performed in line with expectations in the first
quarter of 2012, with 36,483 ounces sold at an estimated cash
operating cost of approximately $1,000 per ounce.
Bogoso/Prestea mine produced 41,242 ounces in the quarter with cash
operating costs of approximately $1,220 per ounce.
Tom Mair, President and CEO, commented, "First quarter production was
within 1.6% of guidance, slightly impacted at the Bogoso sulfide
plant with unscheduled maintenance of the regrind mill. Highlights of
the quarter included starting up the Bogoso oxide plant on schedule,
taking operational control over the Bogoso back-up power supply from
the previous contractor, and progress at Wassa with the modifications
to the processing plant. We ended the quarter with a cash balance of
$104 million."
Annual General Meeting
The Company's Annual General Meeting of
shareholders is on May 10, 2012, at 2:00 p.m. Eastern Time, in the
Algonquin/Escarpment Boardroom, 333 Bay Street, Suite 2400, Bay
Adelaide Centre, Toronto, Ontario, Canada M5H 2T6.
First Quarter News Release and Conference Call
The Company will
release its first quarter financial results after the market closes
on May 9, 2012. On the following day, May 10, 2012, the Company will
conduct a conference call and webcast at 11:00 a.m. Eastern Time.
Please call in at least five minutes prior to the conference call
start time to ensure prompt access to the conference. The call can be
accessed by telephone or by webcast as follows:
North American participants: (877) 407-8289
Participants outside
U.S. and Canada: (201) 689-8341
Webcast: www.gsr.com
A recording of the conference call will be available until May 31,
2012, through the Company's website at www.gsr.com or by dialing:
North America: (877) 660-6853, Replay Account number: 329, Conference
ID number: 392836
International outside U.S. and Canada: (201)
612-7415, Replay Account number: 329, Conference ID number: 392836
COMPANY PROFILE
Golden Star Resources holds the largest land package in one of the
world's largest and most prolific gold producing regions. The Company
holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited
and Golden Star (Wassa) Limited, which respectively own the
Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West
Africa. In addition, Golden Star has an 81% interest in the currently
inactive Prestea Underground mine in Ghana, as well as gold
exploration interests elsewhere in Ghana, in other parts of West
Africa and in Brazil in South America. Golden Star has approximately
259 million shares outstanding. Additional information is available
at www.gsr.com.
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other applicable securities laws. Investors are cautioned that
forward-looking statements are inherently uncertain and involve risks
and uncertainties that could cause actual results to differ
materially. Specifically, statements in this news release regarding
gold production and estimated cash operating costs from
Bogoso/Prestea and Wassa/HBB operations in the first quarter;
expected gold production in the second quarter; performance of the
back-up power supply; and the progress of modifications at the Wassa
plant are forward looking statements. Factors that could cause actual
results to differ materially include timing of and unexpected events
at the Wassa plant and Bogoso/Prestea oxide and sulfide processing
plant; variations in ore grade, tonnes mined, crushed or milled;
variations in relative amounts of refractory, non-refractory and
transition ores; delay or failure to receive board or government
approvals and permits; the availability and cost of electrical power;
timing and availability of external financing on acceptable terms;
technical, permitting, mining or processing issues; changes in U.S.
and Canadian securities markets; and fluctuations in gold price and
costs and general economic conditions. There can be no assurance that
future developments affecting the Company will be those anticipated
by management. Please refer to the discussion of these and other
factors in our Form 10-K for 2011 and other filings of the Company
with the United States Securities and Exchange Commission and the
applicable Canadian securities regulatory authorities. Any forecasts
contained in this press release constitute management's current
estimates, as of the date of this press release, with respect to the
matters covered thereby. We expect that these estimates will change
as new information is received and that actual results will vary from
these estimates, possibly by material amounts. While we may elect to
update these estimates at any time, we do not undertake to update any
estimate at any particular time or in response to any particular
event. Investors and others should not assume that any forecasts in
this press release represent management's estimate as of any date
other than the date of this press release.
Non-GAAP Financial Measures: in this news release, we use the terms
"cash operating cost per ounce." Cash operating cost per ounce is
equal to total cash costs less production royalties and production
taxes, divided by the number of ounces of gold sold during the
period. We use cash operating cost per ounce as a key operating
indicator. We monitor this measure monthly, comparing each month's
values to prior period's values to detect trends that may indicate
increases or decreases in operating efficiencies. This measure is
also compared against budget to alert management to trends that may
cause actual results to deviate from planned operational results. We
provide this measure to our investors to allow them to also monitor
operational efficiencies of our mines. We calculate this measure for
both individual operating units and on a consolidated basis. Cash
operating cost per ounce should be considered as Non-GAAP Financial
Measures as defined in SEC Regulation S-K Item 10 and other
applicable securities laws and should not be considered in isolation
or as a substitute for measures of performance prepared in accordance
with GAAP. There are material limitations associated with the use of
such non-GAAP measures. Since this measure does not incorporate
revenues, changes in working capital and non-operating cash costs, it
is not necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Changes in numerous factors
including, but not limited to, mining rates, milling rates, gold
grade, gold recovery, and the costs of labor, consumables and mine
site general and administrative activities can cause these measures
to increase or decrease. We believe that these measures are the same
or similar to the measures of other gold mining companies, but may
not be comparable to similarly titled measures in every instance.
For further information, please contact:
GOLDEN STAR RESOURCES LTD.
Bruce Higson-Smith
Senior Vice President Finance and Corporate Development
1-800-553-8436
INVESTOR RELATIONS
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
SOURCE: Golden Star Resources