Golden Star Resources Ltd. (GSS) Reports In-Line Q2 EPS

Golden Star Resources Ltd. (NYSE: GSS) reported Q2 EPS of $0.09, in-line with the analyst estimate of $0.09.

• Q2 2020 production totaled 50.6 thousand ounces ("koz"), versus 48.4koz in Q2 2019.
• Q2 2020 production at the Wassa Gold Mine ("Wassa") totaled 44.8koz. The underground grade increased to 3.5 grams per tonne ("g/t") (18% higher than Q1 2020) and the underground mining rate averaged 4,420 tonnes per day ("tpd").
• Production of 5.9koz at the Bogoso-Prestea Gold Mine ("Prestea") was impacted by personnel shortages resulting from the COVID-19 pandemic as well as dilution issues and ore loss. The development of the new mining areas on 17 Level was prioritized.
• Gold sales totaled 52.7koz in Q2 2020 and 98.3koz in H1 2020 (2.3koz lower than production in H1 2020).
• All-in sustaining cost ("AISC") averaged $1,186 per ounce ("/oz") during Q2 2020 and $1,193/oz for H1 2020.
• Q2 2020 cash flow from operations (before working capital changes) totaled $27.1m, more than double the $13.4m achieved in Q1 2020.
• Cash totaled $45.1m as at June 30, 2020, a $3.1m increase during the quarter. Debt reduced by $4.7m during the quarter to $102.6m. Net debt reduced by $7.8m to $57.5m as at June 30, 2020.
• As we go into the second half of 2020 the top end of the production guidance range has been tightened to 195-205koz, together with the bottom end of the AISC guidance range being tightened to $1,100-1,180/oz.
• On July 27, 2020 the Company announced the signing of a binding agreement for the sale of the Bogoso-Prestea Mine to Future Global Resources ("FGR") for an aggregate purchase price of $55m (on a cash free, debt free and working capital free basis) with an additional contingent consideration of up to a further $40m conditional upon the occurrence of certain milestones (as described in the binding sale agreement).

For earnings history and earnings-related data on Golden Star Resources Ltd. (GSS) click here.

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