GOLDEN Star said it would meet production guidance for its 2021 financial year of between 165,000 and 175,000 ounces of gold by achieving higher grades at its Wassa mine.
This was after reporting first quarter production from the Ghana mine of just over 40,000 oz, leaving it slightly behind the run rate required to meet production guidance.
Keeping to the firm’s production guidance “… also assumes that the paste plant is fully commissioned over the next three months as we address some inconsistencies in paste strength results from the test stope,” said Andrew Wray, CEO of Golden Star in the firm’s first quarter results announcement.
Wray acknowledged 2020 was a transitional year for the company in which it signed a sale agreement for its under-performing Prestea mine, and identified resource potential that would take Wassa production to 300,000 oz/year over time.
“We continue to see this year as one focused on increasing investment in development and drilling activities in order to support further volume increases which are anticipated in turn to provide production growth and enhanced cash flow generation,” he said.
The company reported first quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $27.2m, a year-on-year improvement of 28%.
Cash increased to $66.1m at the end of the quarter despite paying a $13m tax bill. This was owing to positive operating cash flow and $8.6m in share sales in terms of the firm’s ‘at the market’ strategy in which it opportunistically taps the market for funds.