DENVER, CO--(Marketwire -04/19/12)- Golden Star Resources Ltd. (AMEX: GSS - News) (TSX: GSC.TO - News) (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
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
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.