Golden Star Resources Ltd. (NYSE American: GSS) (TSX: GSC) (GSE: GSR) (“Golden Star” or the “Company”) reports its financial and operational results for the third quarter ended September 30, 2020.
Q3 2020 AND YEAR TO DATE HIGHLIGHTS:
- On September 30, 2020 the Company completed the previously announced sale of the Bogoso-Prestea gold mine to Future Global Resources (“FGR”). As a result Prestea performance is now reported as a discontinued operation.
- The Bogoso-Prestea disposal removed $24m of negative working capital and the $53m rehabilitation provision from the Company’s balance sheet, transitioning the group to a positive net asset position.
- Q3 2020 production totaled 41.6 thousand ounces (“koz”) from continuing operations (Wassa). The underground mining rate was successfully increased to a record quarterly average of 4,960 tonnes per day (“tpd”). The Wassa plant processed in excess of 6,000tpd, demonstrating the significant available capacity and flexibility.
- The all-in sustaining cost per ounce sold (“AISC”) from continuing operations averaged $1,023 per ounce (“/oz”) during Q3 2020 and $979/oz for the year to date.
- Q3 2020 free cash flow from continuing operations totaled $14.4m.
- Cash totaled $48.3m at September 30, 2020, with a reduction in net debt of $7.4m during the quarter.
- On October 9, 2020, the Company announced the extension and restructuring of the Macquarie credit facility to $70m, further strengthening its balance sheet by creating $35m of incremental liquidity including the deferral of the principal repayments to September 2021.
- On October 28, 2020, the Company entered into a sales agreement relating to an “at the market” equity program of up to $50 million.