Golden Star Resources Reports Preliminary Fourth Quarter Operational Results and 2013 Guidance


Jan 08, 2013 (Marketwire via COMTEX) --Golden Star Resources Ltd. (NYSE MKT: GSS) (TSX: GSC) (GHANA: GSR) ("Golden Star" or the "Company") today announced preliminary 2012 fourth quarter and full year production results for its Bogoso/Prestea and Wassa/HBB operations.

The Company produced and poured 92,614 ounces of gold in the fourth quarter of 2012, of which 87,544 ounces were sold, representing a 31% increase over 70,811 ounces of gold produced in the fourth quarter last year and a 15% increase over third quarter 2012 gold production of 80,826 ounces.

For 2012, Golden Star produced and poured 336,348 ounces of gold, of which 331,278 ounces were sold, representing a 12% increase over 301,120 ounces produced in 2011. The full year poured gold production total of 336,348 ounces was in line with 2012 guidance, and cash operating costs are estimated to be within the guidance range of $1,040 to $1,100 per ounce. The Company closed 2012 with an estimated cash and cash equivalents balance of approximately $73 million, not including the estimated proceeds of approximately $8.4 million expected in early 2013 for the 5,070 ounces poured but not sold by December 31, 2012.

"We are pleased to announce a strong fourth quarter of gold production, which enabled Golden Star to achieve production guidance for the full year. Additionally, we estimate that 2012 cash operating costs will also be within our guidance range," said Sam Coetzer, President and CEO. "Achieving both production and cost guidance is a testament to the operational improvements accomplished through the hard work and dedication of our entire team and sets the tone for the future."

2012 Highlights:

  • Significantly improved operating cash flows year over year;
  • A 12% increase in gold production year over year;
  • A major drilling program at Wassa, where the Company is evaluating several newly discovered zones of gold mineralization below the current Wassa pits;
  • Planning of the restart of mining at the Prestea Underground mine following completion of the favorable Preliminary Economic Assessment;
  • Enhanced plant availability and ore supply at both Wassa and Bogoso;
  • Successful re-start of the non-refractory plant at Bogoso and development of the Pampe pit as its primary feed source;
  • An improved balance sheet, including a significant reduction in debt;
  • Significant improvements in community relationships within the Bogoso and Wassa catchment areas; and
  • Advancement of development plans for the Dumasi and Mampon pits.

Golden Star recently announced key changes to its Board of Directors and executive management team as well as plans to move its corporate headquarters to Toronto. In addition to Sam Coetzer assuming the position of President and Chief Executive Officer, veteran mining industry executive Jeff Swinoga has been named Executive Vice President and Chief Financial Officer and former Kinross COO Tim Baker has joined the Board as Executive Chairman.

"We have strengthened our Board and believe we have the right executive team in place to advance our exciting pipeline of projects and help Golden Star realize the significant potential represented by our strong asset base," Coetzer said. "In addition, our move to Toronto gives us better access to the capital markets, shareholders and other resources critical to our growth plans."

2012 quarterly and full year production results* are as follows:

    Bogoso/Prestea   Wassa/HBB   Combined
First quarter Oz produced   41,242   36,483   77,725
Second quarter Oz produced   44,115   41,068   85,183
Third quarter Oz produced   39,844   40,982   80,826
Fourth quarter Oz produced   50,230   42,384   92,614
2012 full year Oz produced   175,431   160,917   336,348**
*Preliminary, subject to change until 2012 annual audited financial statements are filed with regulatory authorities.      
**Total ounces produced includes 5,070 ounces poured that were not sold in 2012.      
2013 GUIDANCE    
    Bogoso/Prestea   Wassa/HBB   Combined
Oz produced   170,000 to 190,000   150,000 to 160,000   320,000 to 350,000
Cash operating cost ($/oz)   1,150 to 1,250   900 to 1,000   1,050 to 1,150
1.   Power and fuel prices used in the guidance are $0.16 per kilowatt-hour and $1.33 per liter, respectively.
2.   Starting in late 2012, and continuing through 2014, water treatment costs are estimated to add approximately $60 per ounce at Bogoso, but should drop significantly thereafter when the current backlog of process water is treated.


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 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

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 the increase in 2012 gold production and expectations for cash operating costs being within the guidance range; estimated proceeds for gold poured but not sold by December 31, 2012; plans to restart the Prestea Underground Mine and advance the Dumasi, Mampon and Prestea South development projects; expectations regarding water treatment at Bogoso; plans to move the corporate headquarters to Toronto; expectations for better access to capital, shareholders and other resources in Toronto; the potential of the Company's asset base; plans to advance the Company's pipeline of projects; and 2013 production and cash operating cost guidance, including estimated power and fuel prices and water treatment costs, 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 subsequent Forms 10-Q for 2012 and other filings of the Company with the United States Securities and Exchange Commission and the applicable Canadian securities regulatory authorities. The 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.

For further information, please contact:

Bruce Higson-Smith
Senior Vice President Finance & Corporate Development

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc. 

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Please note the information presented is given as at the date and the time of its original release. Changes in such historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

Golden Star also uses certain non-International Financial Reporting Standards (“IFRS”) financial measures as defined in applicable Canadian and United States securities laws ("non-GAAP measures"), including the terms “cash operating cost per ounce”, “all-in sustaining costs”, “cash generated from operations before working capital changes”, “adjusted net (loss)/income attributable to Golden Star shareholders and “adjusted net (loss)/income per share attributable to Golden Star shareholders”. Golden Star believes that these measures are similar to the measures of other gold mining companies, but may not be comparable to similarly titled measures in every instance. In addition, changes in numerous factors including, but not limited to, Golden Star’s share price, risk free interest rates, gold prices, mining rates, milling rates, ore grade, gold recovery, costs of labor, consumables and mine site general and administrative activities can cause these measures to increase or decrease.

Golden Star believes these measures are useful non-GAAP operating measures and supplement the IFRS disclosures made by the Company. These non-GAAP measures are not representative of all of Golden Star's cash expenditures and there are material limitations associated with the use of such non-GAAP measures. Since these non-GAAP measures do not incorporate all non-cash expense and income items, changes in working capital and non-operating cash costs, they are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.

The non-GAAP information is not prepared in accordance with IFRS and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed in isolation or as a substitute for, or superior to, other data prepared in accordance with IFRS. For an explanation of the Non-GAAP financial measures used by the Company, please refer to the heading “Non-GAAP Financial Measures” in the Company’s Management Discussion and Analysis of Financial Condition and Results of Operations for the Three Months ended March 31, 2014 and the Company’s Management Discussion and Analysis of Financial Condition and Results of Operations for the Year Ended December 31, 2013, available at

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