GOLDEN Star has guided to gold production of between 195,000 to 210,000 ounces for the 2020 financial year which is largely in line with the 204,000 oz in gold it produced for 2019, the company said today.
The company, which has Naguib Sawiris’ LaMancha Investments as a controlling shareholder, operates Prestea and Wassa, the latter providing the majority of total production. Prestea is currently subject to an operational review and turnaround strategy whilst at Wassa the focus is on optimising its underground mining activities. Production guidance for the 2019 financial year was for between 190,000 and 205,000 oz.
Wassa is expected to produce between 155,000 to 165,000 oz in 2020 at a cash operating cost of $620-660/oz and an all in sustaining cost (AISC) of between $930 and 990/oz in the current financial year. At Prestea, the target was for production of 40,000 to 45,000 oz at cash operating costs of $1,400 to $1,550/oz and AISC of between $1,650 and 1,850/oz.
“The 2019 production performance was in line with the upper end of our revised guidance, thanks to improved performance at Wassa, as expected,” said Andrew Wray, CEO of Golden Star in a statement. “While 2019 marked the start of a transformation of the business, 2020 will see Golden Star look to further demonstrate the long term potential of Wassa, and deliver on a new mine plan at Prestea,” he said.
“At Wassa, we continue to invest in the infrastructure necessary to support the ongoing increase in throughput, which is driving growth in production,” said Wray. The company is due to report its 2019 financial year-end statements on February 18.
As the main shareholder, there is an expectation that LaMancha will look to transform the fortunes of Golden Star which Sawiris said could become a vehicle for consolidation in Africa’s gold sector.
