PRODUCTION from the underground section at Wassa contributed strongly to the third quarter numbers of Golden Star which its CEO, Sam Coetzer, said was a “a very different company” to the one at the start of the 2018 financial year.
Production for the quarter totalled 57,113 ounces of which 38,097 oz was from Wassa, itself – an improvement of 20% as output from its recently developed underground section took hold. There is now an improvement plan underway for Golden Star’s other mine, Prestea, with the aim of lowering annual operating costs by 31%.
As with Wassa, which has been transformed from an open pit mine to underground, Prestea was also seeing an temporary increase in costs as it moved underground, the company said. Prestea and Wassa are located in Ghana.
Cash provided by operations totalled $10.8m in the quarter, equal to $0.03 per share, whilst a mine operating margin of $10.2m was recorded. Golden Star had a cash balance of $18.4m as of September 30 which excludes the $125.7m received following the October 1 strategic investment by Naguib Sawiris’ La Mancha which took a 30% stake in the firm.
“The strategic investment from La Mancha has strengthened our balance sheet and we are excited to use these funds to gain a more thorough understanding of the potential of our assets,” said Coetzer in a statement.
“Golden Star is a very different company from the one we were at the start of the year and we now have the right people, the right assets and the right balance sheet to deliver significant value for our shareholders,” he said.
