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This news and Gold rising has been pushing this nicely. And that the Company seems very solid.
Gold Stock Strategist Newsletter Launched by Self Directed Investor, Inc.
LOCUST VALLEY, N.Y., Sept. 2 /PRNewswire/ -- Self Directed Investor, Inc., a financial media company, today announced the launch of a new investment publication focusing on gold mining stocks, The Gold Stock Strategistedited by Scott Nystrom, Ph.D. The Gold Stock Strategist newsletter will be a monthly newsletter that provides subscribers with detailed comparative resource information and production forecasts. Recommendations based on best available information are also provided for subscribers.
Dr. Nystrom stated, "Gold is in the middle stages of a long-run bull market. The U.S. and other industrialized nations are in the throes of an unsustainable debt bubble. Historically, gold is the major beneficiary as government planners look to artificially boost demand with inflationary fiscal and monetary policies. The outcome of this script is predictable. The price of gold will trend higher and gold producing stocks will enjoy outsized returns."
Visitors can receive a FREE primer on gold stock investing, "Gold Stocks 101: Understanding the World of Gold Mining Stocks and Why Now is the Time to Own Them. . .," which explains the economics of gold mining stock investing and analyzes drivers in gold prices. This FREE report can be accessed at http://www.selfdirectedinvestor.com/newsletters/.
About Self Directed Investor, Inc.
Self Directed Investor is a financial media company, using audio, video and featured articles to empower investors through ideas and education at: http://www.selfdirectedinvestor.com . The mission of the Self Directed Investor is to provide original analysis, commentary, and educational material to help inform personal investment strategies. Topics covered at SelfDirectedInvestor.com include: options trading, trading equities, FOREX trading, gold mining stocks, energy markets, ETFs, the economy, income and dividend investing. Dr. Nystrom, President and Editor of the Self Directed Investor, is also a Seeking Alpha certified columnist, a frequent contributor to Forbes, member of exclusive stock picking community, Value Forum , and a writer for Market News Video .
SOURCE Self Directed Investor, Inc.
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Rebounding nice today on possible good Qtr report pending?
Company News GSS GSS Golden Star Resources, Ltd Amex
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Golden Star Schedules Third Quarter 2009 Results Conference Call
DENVER, COLORADO -- (MARKET WIRE) -- 11/02/09 -- Golden Star Resources Ltd. (TSX: GSC)(NYSE Amex: GSS)(GSE: GSR) will release its third quarter 2009 results after the market close on Monday, November 9, 2009 and has scheduled a conference call and webcast on Tuesday, November 10 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time). The conference call will allow analysts the opportunity to speak with the Company's management. Please call in at least five minutes prior to the conference call start time to ensure prompt access to the conference. You can access the call by telephone or by webcast:
North American participants - (877) 407-8289 International participants outside U.S. and Canada - (201) 689-8341 Webcast: www.gsr.comA recording of the teleconference will be available for up to two weeks through the Company's website at www.gsr.com and it also will be available for two weeks by dialing:
North America - (877) 660-6853, Replay Account number: 329, Replay ID number: 334944 International outside U.S. and Canada - (201) 612-7415, Replay Account number: 329, Replay ID number: 334944
Company Profile
Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. 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 the Guiana Shield of South America. Golden Star has approximately 236 million shares outstanding.
For further information on the results release and conference call details, please contact:
GOLDEN STAR RESOURCES LTD. +1-800-553-8436
Bruce Higson-Smith, Vice President Corporate Development
Anne Hite, Investor Relations Manager
Contacts: Golden Star Resources Ltd.Bruce Higson-Smith Vice President Corporate Development +1-800-553-8436
Golden Star Resources Ltd.Anne Hite Investor Relations Manager +1-800-553-8436
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Golden Star Reports Another Quarterly Record for Gold Sales of Over 107,000 Ounces
DENVER, COLORADO -- (MARKET WIRE) -- 11/09/09 -- Golden Star Resources Ltd. (TSX: GSC)(NYSE Amex: GSS)(GSE: GSR) today announced its unaudited third quarter results. All currency in this news release is expressed in U.S. dollars, unless otherwise noted. The Company will host a live webcast and conference call to discuss its quarterly results on Tuesday, November 10, 2009 at 11:00 a.m. ET. To access the webcast and conference call, go to the home page of the Company's website, www.gsr.com.
Tom Mair, President and CEO, commented, "We are pleased to report another record quarter in terms of gold sales, revenues and operating cash flow. Golden Star is on track to sell over 400,000 ounces of gold in 2009. Our properties in Ghana are situated on one of the historically most prolific gold districts in the world. Consequently, our brownfields drilling programs continue to show exciting results and resource additions."
RESULTS AND HIGHLIGHTS
- Record quarterly gold sales of 107,433 ounces, a 45% increase over third quarter 2008 and a 9% increase over the second quarter of 2009;
- Gold revenues for the quarter of $103.8 million representing an increase of 62% over third quarter 2008 and an 18% increase over the second quarter 2009 revenues;
- Operating cash flow, before working capital adjustments, of $30.5 million for the third quarter of 2009 or $0.129 per share;
- Operating cash flow of $26.3 million for the third quarter of 2009 or $0.111 per share;
- Quarterly cash operating cost of $586 per ounce, a 33% improvement over third quarter 2008;
- Cash balance of $57.6 million up from $28.1 million at the end of the first quarter of 2009 and up from $43.2 million at the end of the second quarter of this year;
- Average realized gold price of $967 for the third quarter of 2009, up 12% over the realized price for the third quarter of 2008.
FINANCIAL SUMMARY
SUMMARY OF CONSOLIDATED For three months ended For nine months ended FINANCIAL RESULTS September 30, September 30, ----------------------- ---------------------- 2009 2008 2009 2008 --------- --------- -------- -------- --------- --------- -------- -------- Bogoso/Prestea gold sold (oz) 53,069 51,959 139,375 130,307 Wassa gold sold (oz) 54,364 22,083 164,041 79,475 --------- --------- -------- -------- Total gold sold (oz) 107,433 74,042 303,416 209,782
Average realized price ($/oz) 967 866 934 895 Cash operating cost --combined ($/oz) 586 871 572 750 Gold revenues ($000's) 103,804 64,099 283,317 187,713 Cash flow provided/(used) by operations ($000's) 26,299 (2,064) 66,673 2,589 Net loss ($000's) (2,342) (22,236) (3,108) (32,583) Net loss per share - basic ($) (0.010) (0.094) (0.013) (0.138)
BOGOSO/PRESTEA
At Bogoso/Prestea, third quarter gold sales were a record 53,069 ounces, an increase of 16% from the second quarter of 2009 and up 31% over the first quarter of this year. Ore processed was 11% higher than in the second quarter and the gold grade increased to 2.98 g/t, up from 2.66 g/t during the preceding quarter.
Gold sold from Wassa's production during the third quarter 2009 was 54,364 ounces, up 2% over the previous quarter and up 146% over the third quarter of 2008. A primary driver for this increase was greater amounts of higher grade ore from the HBB properties that is being delivered and blended with the Wassa ore.
For the three For the nine months ended months ended OPERATING RESULTS September 30, September 30, ------------------- ------------------- 2009 2008 2009 2008 --------- --------- -------- -------- --------- --------- -------- -------- Ore mined (000's t) 560 521 1,746 2,228 Waste mined (000's t) 4,249 1,274 12,215 3,840 Ore processed (000's t) 612 722 1,996 2,505 Grade processed (g/t) 3.12 1.26 2.75 1.18 Recovery (%) 95.5 92.0 95.4 92.8 Cash operating cost ($/oz) 470 793 455 588 Gold sold (oz) 54,364 22,083 164,041 79,475
EXPLORATION
In 2009, we increased our exploration budget to approximately $10 million. The majority of drilling in the third quarter of this year has been focused on resource definition drilling surrounding our operating areas. At Wassa, drills are turning on the Benso, Hwini-Butre and Chichiwelli deposits, situated along our haul road. We expect significant reserve and resource additions.
In addition to drilling at Wassa, we plan to drill deep targets at Bogoso that were identified from the VTEM geophysical survey completed in 2008. These drill holes will determine deeper ore potential at Bogoso.
Other exploration plans going forward include a soil geochemistry study at the Amelekia and Abengourou concessions in the Ivory Coast, ground geophysics at the Sonfon property, a joint venture with African Aura Mining Inc., in Sierra Leone, preliminary geological assessments for two new concessions in Burkina Faso, continuation of exploration activities at Saramacca, our joint venture with Newmont in Suriname, and continuing property evaluations and project generation in Brazil.
CASH AND CASH FLOW
At September 30, 2009, our cash and cash equivalents totaled $57.6 million compared to $43.2 million at the end of the second quarter and $28.1 million at the end of the first quarter.
Liquidity Outlook
The capital forecast for 2009 is estimated to be approximately $45 million. This includes development work at Hwini-Butre, pit development at Bogoso, deferred exploration and mine site drilling and sustaining capital for both mine sites.
LOOKING AHEAD
Our objectives for the remainder of 2009 include the following:
- Further optimization of the Bogoso sulfide processing plant to improve throughput and recovery rates and reduce costs;
- Permitting and development of the Prestea South deposits to provide oxide ore in 2010 for the Bogoso oxide processing plant; and
- Continued exploration at Bogoso/Prestea, Wassa and the HBB properties to delineate reserves and resources.
Our guidance for 2009 is as follows:
---------------------------------------------------------------------------- 2009 ----------------------------------------------------- Guidance Gold Production Cash Operating Cost Per Ounce --------------- --------------- ------------------------------ Bogoso/Prestea 190,000 $685 Wassa 215,000 $460 --------------- --------------- ------------------------------ Total 405,000 $565 ----------------------------------------------------------------------------
FINANCIAL STATEMENTS The following information is derived from the Company's unaudited consolidated financial statements contained in our Form 10-Q, which we filed with the SEC today and is available on our website.
CONSOLIDATED BALANCE SHEETS (Stated in thousands of US dollars except shares issued and outstanding) (unaudited)
As of As of September 30, December 31, ASSETS 2009 2008 CURRENT ASSETS Cash and cash equivalents $ 57,634 $ 33,558 Accounts receivable 5,626 4,306 Inventories 51,490 49,134 Deposits 4,724 3,875 Prepaids and other 677 1,100 ----------- ----------- Total Current Assets 120,151 91,973 RESTRICTED CASH 3,804 4,249 DEFERRED EXPLORATION AND DEVELOPMENT COSTS 11,245 13,713 PROPERTY, PLANT AND EQUIPMENT 239,052 271,528 INTANGIBLE ASSETS 10,007 - MINING PROPERTIES 286,804 312,029 OTHER ASSETS 183 807 ----------- ----------- Total Assets $ 671,246 $ 694,299 ----------- ----------- ----------- -----------
LIABILITIES CURRENT LIABILITIES Accounts payable $ 30,465 $ 43,355 Accrued liabilities 31,641 30,879 Fair value of derivatives 251 1,690 Asset retirement obligations 1,858 1,620 Current tax liability 616 - Current debt 10,256 12,778 ----------- ----------- Total Current Liabilities 75,087 90,322 LONG TERM DEBT 113,359 112,649 ASSET RETIREMENT OBLIGATIONS 30,651 30,036 FUTURE TAX LIABILITY 24,506 33,125 ----------- ----------- Total Liabilities 243,603 266,132 MINORITY INTEREST - - COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY SHARE CAPITAL First preferred shares, without par value, unlimited shares authorized. No shares issued and outstanding. - - Common shares, without par value, unlimited shares authorized. Shares issued and outstanding: 236,744,561 at September 30, 2009, and 235,945,311 at December 31, 2008 616,444 615,463 CONTRIBUTED SURPLUS 16,685 15,197 EQUITY COMPONENT OF CONVERTIBLE DEBENTURES 34,542 34,542 ACCUMULATED OTHER COMPREHENSIVE INCOME 27 (88) DEFICIT (240,055) (236,947) ----------- ----------- Total Shareholders' Equity 427,643 428,167 ----------- ----------- Total Liabilities and Shareholders' Equity $ 671,246 $ 694,299 ----------- ----------- ----------- -----------
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Stated in thousands of US dollars except share and per share data) (unaudited)
Three months ended Six months ended September 30, June 30, ---------------------- --------------------- REVENUE 2009 2008 2009 2008 ----------- ---------- ---------- ---------- Gold revenues $ 103,804 $ 64,099 $ 283,317 $ 187,713 Cost of sales 96,241 81,017 268,518 201,342 ----------- ---------- ---------- ---------- Mine operating margin 7,563 (16,918) 14,799 (13,629) OTHER EXPENSES, (GAINS) AND LOSSES Exploration expense 223 552 570 1,499 General and administrative expense 3,290 3,740 10,449 11,949 Abandonment and impairment 2,787 1,539 3,077 1,539 Derivative mark-to-market losses 1,003 1,395 1,087 1,638 Property holding costs 768 - 2,770 - Foreign exchange (gain)/loss 540 (1,111) (3,673) (1,132) Interest expense 3,942 3,616 11,476 11,028 Interest and other income (69) (142) (152) (777) Loss on sale of assets 1 588 305 588 Gain on sale of investments - (3,570) - (5,075) ----------- ---------- ---------- ---------- Loss before minority interest (4,922) (23,525) (11,110) (34,886) Minority interest - 1,289 - 2,303 ----------- ---------- ---------- ---------- Net loss before income tax (4,922) (22,236) (11,110) (32,583) Income tax benefit 2,580 - 8,002 - ----------- ---------- ---------- ---------- Net income/(loss) $ (2,342) $ (22,236) $ (3,108) $ (32,583) ----------- ---------- ---------- ---------- ----------- ---------- ---------- ----------
Deficit, beginning of period (237,713) (127,991) (236,947) (117,644) ----------- ---------- ---------- ---------- Deficit, end of period (240,055) (150,227) (240,055) (150,227) ----------- ---------- ---------- ----------
Net income/(loss) per common share - basic $ (0.010) $ (0.094) $ (0.013) $ (0.138) Weighted average shares outstanding (millions) 236.5 235.9 236.2 235.6 ----------- ---------- ---------- ----------
CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in thousands of US dollars) (unaudited)
Three months ended Six months ended September 30, June 30, ---------------------- --------------------- OPERATING ACTIVITIES: 2009 2008 2009 2008 ----------- ---------- ---------- ---------- Net income/(loss) $ (2,342) $ (22,236) $ (3,108) $ (32,583) Reconciliation of net income/ (loss) to net cash used in operating activities: Depreciation, depletion and amortization 29,344 14,697 82,036 37,319 Amortization of loan acquisition cost 478 291 805 566 Abandonment and impairment 2,787 1,539 3,077 1,539 Gain on sale of equity investments - (3,570) - (5,075) Loss on sale of assets (1) 588 305 588 Stock compensation 424 436 1,489 1,575 Income tax benefit (2,580) - (8,002) - Reclamation expenditures (481) (437) (1,212) (759) Fair value of derivatives 647 1,067 (1,542) 1,102 Accretion of convertible debt 1,669 1,562 4,926 4,609 Accretion of asset retirement obligations 539 222 1,616 585 Minority interests - (1,288) - (2,303) ----------- ---------- ---------- ---------- 30,484 (7,129) 80,390 7,163
Changes in assets and liabilities: Accounts receivable (877) (757) (1,236) (569) Inventories (3,409) 2,281 (2,568) (10,063) Prepaids and other 819 (327) 501 (1,331) Deposits (222) (2,576) (1,323) (2,261) Accounts payable and accrued liabilities (496) 6,444 (9,053) 9,650 Other - - (38) - ----------- ---------- ---------- ---------- Net cash provided by/(used in) operating 26,299 (2,064) 66,673 2,589 INVESTING ACTIVITIES: Expenditures on deferred exploration and development (928) (3,467) (1,598) (7,389) Expenditures on mining properties (3,637) (18,056) (23,532) (39,002) Expenditures on property, plant and equipment (4,614) (3,442) (9,466) (8,859) Cash (used to)/refunded from secure letters of credit - 497 445 (3,145) Proceeds from sale of equity investment - 5,730 - 6,532 Proceeds from the sale assets - 1,341 - 1,341 Change in payable on capital expenditures 827 6,126 (3,135) (2,220) Change in deposits on mine equipment and material - - 474 - ----------- ---------- ---------- ---------- Net cash used in investing activities (8,352) (11,271) (36,812) (52,742) FINANCING ACTIVITIES: Issuance of share capital, net of issue costs 395 - 981 6,255 Principal payments on debt (2,870) (4,436) (10,062) (13,321) Proceeds from debt agreements and equipment financing - 6,104 5,478 7,218 Other (1,011) (193) (2,182) (466) ----------- ---------- ---------- ---------- Net cash (used in)/provided by financing (3,486) 1,475 (5,785) (314) Increase/(decrease) in cash and cash equivalents 14,461 (11,860) 24,076 (50,467) ----------- ---------- ---------- ---------- Cash and cash equivalents, beginning of period 43,173 37,147 33,558 75,754 ----------- ---------- ---------- ---------- Cash and cash equivalents end of period $ 57,634 $ 25,287 $ 57,634 $ 25,287 ----------- ---------- ---------- ---------- ----------- ---------- ---------- ----------
COMPANY PROFILE
Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa open-pit gold mines through subsidiaries in Ghana. 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 the Guiana Shield of South America. Golden Star has approximately 237 million shares outstanding.
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. Such statements include comments regarding planned exploration activities and drilling, including exploration at Bogoso/Prestea, Wassa, and the HBB properties; our expectations regarding increases in reserve and resource estimates; the ability to fund sustaining capital requirements; optimization of throughput and recovery rates at the Bogoso sulfide processing plant; our 2009 production and cash operating cost estimates, capital expenditure estimates, sources of and adequacy of cash to meet capital and other needs in 2009;2009 planned capital budget spending; and our 2009 objectives. Factors that could cause actual results to differ materially include timing of and unexpected events at the 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 2008 and the quarterly reports on Form 10-Q filed in 2009. 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.
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 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.
Contacts: Golden Star Resources Ltd.Bruce Higson-Smith Vice President Corporate Development +1-800-553-8436
Golden Star Resources Ltd.Anne Hite Investor Relations Manager +1-800-553-8436 www.gsr.com
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Historically, tumultuous times offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. It's tough to find a silver lining for many companies struggling today, but many investors think gold miner Golden Star Resources (NYSE: GSS) has a shine all its own.
In our Motley Fool CAPS community, about 93% of the 760 investors rating the company are bullish, so there's no shortage of reasons why Golden Star Resources will thrive. I've highlighted three below.
But here at the Motley Fool, we look at both the good and bad sides of an investment. Once you're done with this article, you can read the case against the stock, weigh in with your own comments below, or rate Golden Star Resources yourself in CAPS.
1. Breaking records Gold producers have been on a roll recently, cashing in on gold prices that soared in the fourth quarter. Barrick Gold (NYSE: ABX) produced record quarterly earnings and others like New Gold (NYSE: NGD) and Agnico-Eagle Mines (NYSE: AEM) are jumping on the pricing advantage and reported record annual production as well. Junior miner Golden Star Resources broke a record of its own, reaching gold sales of 409,902 ounces in 2009.
2. Organic growth With continuing exploration at Golden Star's properties, the company has not only replaced its production, but also beefed up its reserves by net 14% in 2009. While other miners have boosted production through acquisition, like Hecla Mining's (NYSE: HL) purchase of the Greens Creek mine from Rio Tinto (NYSE: RTP), Golden Star has increased its 2010 exploration budget, and it expects its growth trend to continue.
3. Long-term gold outlook As government spending continues to increase, coupled with other fundamentals that are driving huge deficits, conditions in which gold prices are likely to rise are almost certain in the mind of many investors, including billionaire George Soros. As more investors get on board with gold, CAPS members believe miners and explorers like Golden Star and Yamana Gold (NYSE: AUY) occupy prime position to benefit.
To more of what CAPS members are saying now about Golden Star Resources, just click on over to Motley Fool CAPS -- or add your own thoughts directly to this story in the comment box below.
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Company News GSS GSS Golden Star Resources, Ltd Amex
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Golden Star Reports Net Income of $3.9 Million and Other First Quarter 2010 Results
DENVER, COLORADO -- (MARKET WIRE) -- 05/05/10 -- Golden Star Resources Ltd. (TSX: GSC)(NYSE Amex: GSS)(GSE: GSR) today announced its unaudited first quarter 2010 results with net income of $3.9 million. All currency in this news release is expressed in U.S. dollars, unless otherwise noted. The Company will host a live webcast and conference call to discuss its quarterly results on Thursday, May 6, 2010 at 11:00 a.m. ET. To access the webcast and conference call, go to the home page of the Company's website, www.gsr.com.
Tom Mair, President and CEO, said, "We achieved yet another good quarter at Golden Star. We had net income of $3.9 million, we remain free cash flow positive and we had operating cash flow of $0.13 per share before working capital changes."
"Gold production of approximately 93,000 ounces puts us solidly on track to meet our production guidance of 400,000 ounces for 2010. Our active exploration program continued with six drill rigs in operation around our mines in Ghana and we drilled over 28,000 meters in the first quarter."
FIRST QUARTER 2010 HIGHLIGHTS
-- Net income of $3.9 million or $0.015 per share compared to a net loss of $1.1 million for the first quarter of 2009;
-- Gold revenues for the quarter of $103.3 million representing an increase of 18% over first quarter of 2009;
-- Quarterly gold sales of 92,938 ounces for the first quarter of 2010, a 4% decrease from the first quarter of 2009;
-- Operating cash flow of $25.5 million for the first quarter of 2010, or $0.099 per share;
-- Operating cash flow before working capital charges of $33.2 million for the first quarter of 2010, or $0.129 per share;
-- Quarter-end cash balance of $164.9 million; and
-- Realized gold price for the first quarter averaged $1,111 per ounce compared to $904 in the first quarter of 2009, an increase of 23%.
FINANCIAL SUMMARY
For the three months SUMMARY OF CONSOLIDATED FINANCIAL RESULTS ended March 31, -------------------------- 2010 2009 ------------ ------------- Bogoso/Prestea gold sold (oz) 45,909 40,546 Wassa gold sold (oz) 47,029 56,425 Total gold sold (oz) 92,938 96,971 Average realized price ($/oz) 1,111 904 Cash operating cost--combined ($/oz) 612 571 Gold revenues ($000's) 103,264 87,645 Cash flow provided by operations ($000's) 25,461 11,093 Net gain/(loss) ($000's) 3,915 (1,146) Net gain/(loss) per share - basic ($) 0.015 (0.005)
BOGOSO/PRESTEA
Bogoso sold 45,909 ounces of gold in the first quarter of 2010, a 13% increase over first quarter of 2009 gold sales. All gold sales were the product of the sulfide plant for both the first quarter of 2010 and the first quarter of 2009. Gold recovery rates at the sulfide plant increased to 72.1% over the quarter, up from 71.5% during the first quarter of 2009. The increased gold sales were reflective of higher through-put rates at the sulfide plant that averaged 7,566 tpd (tonnes per day) in the first quarter of this year compared to 6,966 tpd in the first quarter of 2009. In addition, the gold grade processed in the first quarter of 2010 was 2.98 g/t (grams per tonne) compared to 2.68 g/t for the same period of 2009. Additionally, cash operating costs were reduced 14% to $700 per ounce compared with $813 per ounce in the first quarter of 2009.
Wassa sold 47,029 ounces of gold during the first quarter of 2010 compared to 56,425 ounces in the first quarter of last year, a result of scheduled maintenance projects during the quarter. We performed scheduled maintenance at a ball mill at Wassa and this contributed to a 16% decrease in ore processed. This effect was partially offset by a higher processed grade of 2.41 g/t compared to 2.28 g/t in the first quarter of 2009.
WASSA/HBB OPERATING RESULTS For the three months ended March 31, 2010 2009 --------------- --------------- Ore mined (t) 576 660 Waste mined (t) 5,201 3,566 Ore processed (t) 631 747 Grade processed (g/t) 2.41 2.28 Recovery (%) 95.1 95.6 Cash operating cost ($/oz) 526 397 Gold sold (oz) 47,029 56,425
EXPLORATION
The exploration budget for 2010 has been increased to $18 million compared to $9 million that was spent in 2009. Approximately $14 million of this is planned to be spent in proximity to our operations with the intent to expand our mineral reserve and resource base. During the first quarter of the year, exploration activities were concentrated notably at the Buesichem and Benso pit areas. Furthermore, an airborne geophysical survey was conducted over the HBB concession areas. When the results of this data are received, it will be analyzed to prioritize future exploration targets.
During the quarter, an infill soil geochemical program was completed at Amelekia in Cote d'Ivoire. This program provided evidence that the gold mineralization zones that originally were believed to be distinct, are now thought to be continuous and merit further exploration. Drilling is planned for the second half of this year at Amelekia. Also, several gold anomalies were identified at the Agboville concessions as a result of geochemical sampling.
At the Sonfon project in Sierra Leone, an IP (Induced Polarity) geophysical survey was conducted during the quarter over and around previously drilled targets. Results from this survey will be used to determine future drill targets for later in the year.
In Burkina Faso, initial reconnaissance exploration activities at two new concession areas during the first quarter of 2010 determined that further exploration is warranted. Soil geochemistry and laterite sampling programs are planned for later this year.
Property evaluation and acquisition in Brazil continued during the quarter. Pending receipt of results from the initial exploration, more exploration will be scheduled.
CASH, CASH FLOW AND LIQUIDITY
Our cash and cash equivalents totaled $164.9 million at the end of March 2010. Cash flow from operations totaled $25.5 million for the first quarter of 2010 compared to $11.1 million during the first quarter of 2009. Our mining operations generated $33.2 million in cash before adjustments to working capital in the quarter. All capital requirements for 2010 are expected to be funded from operating cash flows.
Capital projects for the year are anticipated to total $70 million. Bogoso area mine development projects are estimated at $21 million, mine site drilling is budgeted to $9 million with an additional $4 million for drilling at other areas proximal to the operating mines. The remainder, $36 million, is scheduled for plant and equipment upgrades.
LOOKING AHEAD
Our objectives for the remainder of 2010 include the following:
-- Finalization of the permit for the Prestea South ore bodies to provide oxide ore to the oxide plant at Bogoso; -- Continue exploration activities to increase and enhance reserves and resources at Bogoso/Prestea and Wassa/HBB; and -- Evaluate options and determine strategies for development of the Prestea Underground project.
FINANCIAL STATEMENTS The following information is derived from the Company's consolidated financial statements contained in our Form 10-Q, which we filed with the SEC today and is available on our website.
GOLDEN STAR RESOURCES LTD. CONSOLIDATED BALANCE SHEETS (Stated in thousands of US dollars except shares issued and outstanding)
As of As of March 31, March 31, ASSETS 2010 2009 CURRENT ASSETS Cash and cash equivalents $ 164,852 $ 154,088 Accounts receivable 8,628 7,021 Inventories 55,504 52,198 Deposits 4,043 4,774 Prepaids and other 3,461 1,415 --------- --------- Total Current Assets 236,488 219,496 RESTRICTED CASH 3,804 3,804 DEFERRED EXPLORATION AND DEVELOPMENT COSTS 12,025 12,949 PROPERTY, PLANT AND EQUIPMENT 237,373 231,855 INTANGIBLE ASSETS 8,953 9,480 MINING PROPERTIES 265,563 276,114 OTHER ASSETS 1,242 181 --------- --------- Total Assets $ 765,448 $ 753,879 --------- --------- --------- --------- LIABILITIES CURRENT LIABILITIES Accounts payable $ 22,363 $ 28,234 Accrued liabilities 34,972 34,178 Asset retirement obligations 7,927 1,938 Current Tax Liability 589 616 Current debt 11,935 9,970 --------- --------- Total Current Liabilities 77,786 74,936 LONG TERM DEBT 121,836 114,595 ASSET RETIREMENT OBLIGATIONS 23,091 30,031 FUTURE TAX LIABILITY 16,256 13,997 --------- --------- Total Liabilities 238,969 233,559 MINORITY INTEREST - - COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY SHARE CAPITAL First preferred shares, without par value, unlimited shares authorized. No shares issued and outstanding. - - Common shares, without par value, unlimited shares authorized. Shares issued and outstanding: 257,587,061 at March 31, 2010, 257,362,561 at December 31, 2009 690,661 690,423 CONTRIBUTED SURPLUS 17,137 15,759 EQUITY COMPONENT OF CONVERTIBLE DEBENTURES 34,542 34,542 ACCUMULATED OTHER COMPREHENSIVE INCOME 957 24 DEFICIT (216,818) (220,428) --------- --------- Total Shareholders' Equity 526,479 520,320 --------- --------- Total Liabilities and Shareholders' Equity $ 765,448 $ 753,879 --------- --------- --------- ---------
GOLDEN STAR RESOURCES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) For the three months ended March 31 ------------------------------- REVENUE 2010 2009 --------------- --------------- Gold revenues $ 103,264 $ 87,645 Cost of sales 87,136 84,517 --------------- --------------- Mine operating margin 16,128 3,128 OTHER EXPENSES, (GAINS) AND LOSSES Exploration expense 227 110 General and administrative expense 4,969 3,414 Abandonment and impairment - 290 Derivative mark-to-market gains (1,131) (312) Property holding costs 1,101 1,342 Foreign exchange (gain)/loss 367 (1,671) Interest expense 4,129 3,710 Interest and other income (197) (40) Loss on sale of assets 276 179 --------------- --------------- Income/(loss) before minority interest 6,387 (3,894) Minority interest - - --------------- --------------- Net income/(loss) before income tax 6,387 (3,894) Income tax (expense)/benefit (2,472) 2,748 --------------- --------------- Net income/(loss) $ 3,915 $ (1,146) --------------- --------------- --------------- ---------------
OTHER COMPREHENSIVE LOSS Unrealized gains/(losses) on investments 932 27 --------------- --------------- Comprehensive income/(loss) $ 4,847 $ (1,119) --------------- --------------- --------------- ---------------
Deficit, beginning of period (220,428) (236,947) --------------- --------------- Deficit, end of period (216,513) (238,093) --------------- ---------------
Net income/(loss) per common share - basic $ 0.015 $ (0.005) Net income/(loss) per common share - diluted $ 0.015 $ (0.005) Weighted average shares outstanding (millions) 257.4 236.0 --------------- ---------------
GOLDEN STAR RESOURCES LTD. CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) For the three months ended March 31 ----------------------------- OPERATING ACTIVITIES: 2010 2009 ----------------------------- Net loss $ 3,915 $ (1,146) Reconciliation of net loss to net cash provided by operating activities: Depreciation, depletion and amortization 25,885 24,321 Amortization of loan acquisition cost 132 166 Abandonment and impairment - 290 Gain on sale of equity investments - - Loss on sale of assets 276 179 Non cash employee compensation 1,417 610 Future income tax expense/(benefit) 1,954 (2,748) Reclamation expenditures (1,551) (241) Fair value of derivatives (1,131) (3,800) Accretion of convertible debt 1,726 1,615 Accretion of asset retirement obligations 600 538 Minority interests - - -------------- -------------- 33,223 19,784 Changes in non-cash working capital: Accounts receivable (724) (5,248) Inventories (3,920) 1,510 Deposits 84 (951) Accounts payable and accrued liabilities (2,119) (3,031) Other (1,083) (971) -------------- -------------- Net cash provided by operating activities 25,461 11,093 INVESTING ACTIVITIES: Expenditures on deferred exploration and development (1,076) (402) Expenditures on mining properties (4,873) (10,040) Expenditures on property, plant and equipment (11,829) (868) Proceeds from the sale of assets - 1 Change in deposits on mine equipment and material (578) 474 Other 1,467 (1,416) -------------- -------------- Net cash used in investing activities (16,889) (12,251) FINANCING ACTIVITIES: Principal payments on debt (8,213) (4,409) Proceeds from debt agreements and equipment financing 10,000 35 Other 405 82 -------------- -------------- Net cash provided by/(used in) financing activities 2,192 (4,292)
-------------- -------------- Increase/(decrease) in cash and cash equivalents 10,764 (5,450) Cash and cash equivalents, beginning of period 154,088 33,558 -------------- -------------- Cash and cash equivalents end of period $ 164,852 $ 28,108 -------------- -------------- -------------- --------------
COMPANY PROFILE
Golden Star 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 through subsidiaries in Ghana. 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 the Guiana Shield of South America. Golden Star has approximately 257 million shares outstanding.
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. Such statements include comments regarding the permitting and the mining at Prestea South and the impact on Bogoso gold sales; planned exploration and drilling activities and drilling, including exploration at the Bogoso/Prestea and Wassa/HBB properties, and in countries outside of Ghana; capital projects for 2010; the ability to fund capital requirements and the sources of such funds; our 2010 production and cash operating cost estimates, capital expenditure estimates, sources of and adequacy of cash to meet capital and other needs in 2010; and the ability to convert mineral resources into mineral reserves. Factors that could cause actual results to differ materially include timing of and unexpected events at the 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 regulatory requirements, 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 2008. 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.
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.
Contacts: GOLDEN STAR RESOURCES LTD.Bruce Higson-Smith Vice President Corporate Development +1-800-553-8436
GOLDEN STAR RESOURCES LTD.Anne Hite Investor Relations Manager +1-800-553-8436 www.gsr.com
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