GOLDEN Star Resources said it had moved to secure supplies that will be crucial in keeping the firm’s gold mining operations running smoothly amid the COVID-19 outbreak, the UK-headquartered said in an update today.
This follows the first cases of COVID-19 in Ghana where the company operates two mines, the Prestea and Wassa, operations which have targeted gold production of between 190,000 to 210,000 ounces of gold for the firm’s 2020 financial year.
It said none of its employees had been so far infected by COVID-19, but that it was working to “… mitigate the possibility of disruption at the mining operations”. It had also rolled out an action plan aimed at limited the spread of the virus including travel bans, implementing self-isolation for employees who have travelled internationally, and improving hygiene levels in the company’s operations and offices.
“Supplies critical to the operations have been identified and suppliers have been asked to provide an update on their ability to continue to supply Golden Star’s requirements,” the company said in a statement.
“Mitigating controls for items with a higher risk profile include temporarily increasing safety stock levels and identifying alternative sources of supply. We continue to monitor the situation as the pandemic evolves and remain in regular contact with our key suppliers.”
The company said in February it had extended its hedging programme adding 12,600 oz to its existing forward sales plan in order to protect revenue for Prestea. The company now has gold price protection in place for 45,933 oz at an average floor price of $1,427/oz and an average ceiling price of $1,816/oz. The initial period of the hedge was from August 2019 for a year, but it has now been extended to the end of 2020.
