While the full restart of the filling operations is subject to strength results after 56 days' curing, we continue to expect to be in a position to deliver production from secondary stopes as planned in 2022. Test results after 28 days curing show improved strength compared to the first test stope and meet the design criteria. Recent paste strength test work has yielded improved results and the second test stope was completed during October. Our key operational focus remains the completion of the commissioning of the paste fill plant by the end of the year.
While the latter acts to increase the AISC, it utilizes latent processing plant capacity to generate cash. We now have a clean balance sheet with the $90m Macquarie Revolving Credit Facility as our only debt product and a cash position of $50.5m for a conservative overall level of net debt.įollowing revision of our 2021 guidance in June, the Wassa operating team responded well to the planned reduction in the availability of underground ore both through accessing new stoping areas, thanks to further improvement in development rates, as well as through the increased processing of low-grade stockpiles. "The cash settlement of the $51.5m convertible debentures in August 2021 was a key milestone for the Company as it represented the final step in a two-year process to restructure the balance sheet which was aimed at removing short dated facilities and reducing the cost of capital. Net cash provided by financing activitiesĪndrew Wray, Chief Executive Officer of Golden Star, commented: income/share attributable to shareholders - basic 1Ĭash provided by operations before working capitalĬhanges in working capital and taxes paid Deferred Revenue)Ĭash operating cost per ounce - Prestea 1Ĭash operating cost per ounce - Consolidated 1Īll-in sustaining cost per ounce - Wassa 1Īll-in sustaining cost per ounce - Prestea 1Īll-in sustaining cost per ounce - Consolidated 1Īdj. Gold sold - Prestea (discontinued operation)Īverage realized gold price (incl. Production – Prestea (discontinued operation) Table 1 – Q3 2021 Performance Summary (Continuing Operations unless otherwise stated) In-mine exploration drilling during the quarter delivered positive results, indicating further extension of B-Shoot mineralization up-dip of the current and planned reserve mining areas. Concurrent with the repayment and settlement of the convertible debenture, the company drew down the remaining $29.2m of available liquidity on the Macquarie Revolving Credit Facility ("RCF").Īs a result of the repayment of the convertible debentures, the cash position reduced by $22.3m in Q3 2021 to $50.5m at September 30, 2021, with net debt of $32.0m in line with the prior quarter. This deleveraging event further strengthened the balance sheet and delivers a lower cost of capital. The repayment of the $51.5m convertible debenture was completed in August 2021. During the quarter, capital expenditure at Wassa totaled $13.3m. Q3 2021 saw continued investment in infill drilling and development at Wassa and expansion of the tailings storage facility. Full restart of the filling operations is subject to strength results after the 56 days curing period, which is due in Q4 2021. Test results for the 28 day curing period show improved strength compared to the first test stope and these meet the design criteria. Paste fill test work continued during the quarter with the completion of the filling of a second test stope.
The Wassa underground grade averaged 3.2 grams per tonne ("g/t") in Q3 2021, 5% higher than the reserve grade and Q2 2021 performance. The Company is on track to deliver on the upper end of the revised production guidance of 145-155koz for 2021. For the nine months to September 30, 2021, production totaled 116.8koz at an AISC of $1,193/oz. Q3 2021 production totaled 38.7 thousand ounces ("koz") from Wassa, at an All-In Sustaining Cost ("AISC") of $1,299 per ounce ("/oz"). Logo (CNW Group/Golden Star Resources Ltd.)