Gold production increased by 9% to 57,795 ounces
Golden Star Resources Ltd. has recorded the strongest quarterly production since cessation of refractory operation, the miner has announced in its financial and operational results for the first quarter ended March 31, 2017.
HIGHLIGHTS:
• The first quarter of 2017 represents Golden Star's strongest quarterly production since the cessation of the refractory operation in the third quarter of 2015
• 9% increase in gold production to 57,795 ounces in the first quarter of 2017 compared to the first quarter of 2016 ("Q1 2016")
o Record quarterly production from the Prestea Open Pits for the third consecutive quarter at 26,446 ounces
o 46% increase in production from the Wassa Underground Gold Mine ("Wassa Underground") to 11,482 ounces compared to the fourth quarter of 2016, as the mine continues to ramp up
o 365 days without a lost-time injury ("LTI") achieved at Wassa Underground in March 2017
• Cash operating cost per ounce1 of $798 and All-In Sustaining Cost ("AISC") per ounce1 of $977 in the first quarter of 2017 – costs expected to decrease further as Wassa Underground continues to ramp up and the high grade Prestea Underground Gold Mine ("Prestea Underground") commences production
• Capital expenditures of $16.7 million in the first quarter of 2017, with $10.3 million attributable to development capital for Prestea Underground
• Cash provided by operations before changes in working capital1 of $17.7 million ($0.05 per share) in the first quarter of 2017 and mine operating margin1 of $8.7 million
• Consolidated cash balance of $36.5 million at March 31, 2017, with the Company remaining fully funded to deliver its capital program and meet its 2017 debt repayments
• Golden Star is on track to achieve its full year 2017 guidance in terms of gold production, cash operating cost per ounce1, AISC per ounce1 and capital expenditures
Sam Coetzer, President and Chief Executive Officer of Golden Star, commented: "I am proud of how the Golden Star team continues to deliver on our milestones as we progress along the path to becoming a high grade, low cost, mid-tier producer.
'Doing what we said we were going to do' is becoming a hallmark of our team and this is underlined by the achievement of our strongest quarter of wholly non-refractory production. Although our costs are lower than those we achieved in the full year 2016, we are committed to driving them down further still through the delivery of high margin ounces from our two underground mines.
Our focus is now on bringing Prestea Underground into production, optimizing the relationship between the open pit and underground operations at Wassa and on gaining a better understanding of the upside potential of our assets through our exploration program. We are on track to achieve our 2017 guidance on all announced metrics and I look forward to updating the market on exploration results as we begin to look towards future growth."
