Golden Star Resources (GSS) 10 May 212021 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Golden Star Resources First Quarter 2021 Results Conference Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, May 6, 2021. I'd now like to turn the conference over to Michael Stoner. ahead. go Please

please And to Colin. are everyone taking joined report senior team today slide over for with available on Thank us I'll for thank through XXXX. run who recently our to our for time X, and hand on results And And join our slides QX the today's also the by disclaimer on Andrew. published forward I'm you, website. will you note call. already us looking-statements. the corporate responsibility that, The

Thanks very hi business. to there start We'll with everyone. the X the much, Michael of and on slide overview

of six year the a quick XX set in the now so up Ashanti on $X.X showed those results the doing, our the of further we've report to of to As the in business been year last then we most gold after translated released grow. technical pricing we consensus where last value. show reminder, which the we in previously recently of excess or billion plans that Ghana and and we about that into and what operate PA years top really of belt reserve where spoken did That we the set of two life life delivering my the over

slightly about slight of of of volumes over on reserve washes grade the production. there as be versus quarter, We we'd sales lag were over the to year. above we Moving year terms of result ATM ended grade of And slightly $XX of issue ongoing on through what the indicated the can the solid of also, over time the And out see timing with target at COVID and and a a X achieved and who's QX you end of a statistics talk where grade payments as X.X. sustainability see, XXXX million on in the to we're through you million. of payment the We've and expect this quarter area. at Philipa to more to to produced elements we $X.X metrics and day, same also about tax lot of grams with remaining to the X,XXX a gold them tax QX, just made at in focus cash tons slide health approach facility. continued improvements X, XX,XXX we And question and in the the really cost line to in versus quarters in those quarter sold Philipa? a can a turning just up below over turn reserve and in as I'll over $XX going as ounces our around to mined safety raise pandemic million that over actually the remains point bit manage little there arena.

work under as these value. few a move streams, very management everybody. Golden we presentation today. please. Thanks key by we Andrew to the to go and touch Stars sustainability can our slide I'll underpinned the these Key if creation and of and much noted on topics lasting slide the Mike of are risk hi through approach two is in X streams effective of

we've vulnerable the persons any over COVID strategy of Ghana screening has news, The employees and people workplace, in as focused break. please. of announce recent management had received have Health move been Let's also a safety our year-on-year on programs we that few lost this rates. pleased In returning plans only very our In injury Andrew ongoing our in industry of mentioned, not we're health as and and have operational parallel with leading our impact. specific practice X COVID not elements excellent of successful routine vaccination but has as limited seen to of employing implementation first and Services approach recognized slide such improvement from have part frequency COVID XXX Programming. cases to our serious to highly been prevention our This team their for

progress Let's The move sustainability United described responsibility to highlights provides please. long Global report Compact, showing Nations slide communication on global our our X is corporate term scorecard our commitment to The our XXXX published initiative. this report. of in as the recently XX ESG performance on to important the

local inclusion as and impact the speaks on programs health diversity, our performance our ongoing content Our positive and focus well of as through safety, governance. on for excellent systems and

you to value Star has that XX. Graham. to Ghana. that deforestation Royal genuine recently free, extend to Graham agri-business. on sustainable who pleased Many to through over contributions GSOPP benefit of hand Golden to I'll over the Gold has high We're our value is Plantation commencing families host the now move our partnership our host making of slides water Over to with brings sustainability developed Oil us will are This initiative. announce for of committed financial or GSOPP to XXXX slide the communities. XX, will from Wassa's you, communities palm GSOPP, slide take GSOPP in the XXX please. landmark familiar supports hectares successfully over in which that Palm Let's oil

Thanks Philipa. slide Straight across XX. to Michael. Thanks,

or solid per start site Wassa with was XXXX the to mentioned, tons for tracking well dilution team on catch day. and together pretty Plant some the continues the a level coming on Andrew pretty on meant through solid that that. quarter of pull tough It quarter year XX% through playing February the a maintaining XXX to were perform recovery As rate better. well to of through up we March managed that bit but a

the with sales. just So mentioned a bit ounces as XX,XXX And quarter. production then of there lag good during performance over a Andrew in

system slide itself volumes in bit processing, mainly is through of improvement do QX. really line to report of of one the operating now to ongoing in Moving the are design. pretty the design. the performance had quarter-on-quarter, that to commissioning bit over little for the slide operating pleasing there to updates of Onto slide [indiscernible] in quarter. of certainly related Michael. process commissioning We had Costs speaks And a plant the during terms re-engineering to Probably in delays couple main that's that but is through. quarter. We It's a backfill the XX, in XX. now well coming of work to

first strengths have bench the the Some in work bit test to of different work. some tests the half our little back a of come

as impacts move working We've planned just year. need that. HX, just we're through expect we to half. later second has that got everything the and and as this as that secondary but sites the no through So into That sure in especially be we that in just obviously some we quarter work we is move make quarter to through

I that in Paul think to across that how with I hand reflects results. see can to the financial

Thank slightly to go the end To is below to you XXXX price With XXXX. Graham. XX, QX, actually you the of depth a at the To the was respect gold quarter. slide could Michael quarter up the steady operationally gold environment year-on-year. please. price macroeconomic

However, the price increased. subsequently has

sold reliable and of to Gold was gold In the Royal XXXX post terms XXXX gold price XX,XXX stream. sold an of have ounces average

following quarter EBITDA the quarter produce to just and $XX.X strong you're adjusted was to EBITDA hedges million out the of in comprises able for for these and revenue $X.X was the which million. the that million derivative and restructuring million So continues value robust for loss, we pointing primarily here of convertible worthwhile instruments to EBITDA. adjustment comprise business respect costs. is the both adjusted an With debenture $XX.X see expected to [indiscernible] embedded fair EBITDA that X.X those The credit X.X of million adjustments of our These calculate X.X on obviously million. non-cash. X.X There other of million which and adjustments obviously million X.X are non-cash X.X million expenses financial also had is

construction consensus In per $X.X of slightly the terms the analysts’ to of capital even This completion primarily of completed which number depreciation a were to earnings actually due during in relates XXXX. million their quarter. items, actually forecasts, QX, the of of below share

depreciation to So relates slide, to resulted to you to XX. [indiscernible] this balance sheet Can plan. perspective and reduction. that go in XXXX please the QX, With plan charges in page the specifically starting for debt through the then come net

be Wassa's provide stronger, to So base repositioned business. more This a sheet made the to the continues to key absolutely investment is the as feature development. to robust balance is being underpin

August be on redeemed this the of XXth the convertibles With XXXX. due is to adventure,

, this So XX.X healthy cash a the debt of position at of XX.X. the of boxes was key business. meaning end There of that the net QX balance was million the is one

Macquarie high receipt and a additional additional from in to downside from facility. are cost way point Wassa in ATM. those collars, of respect performance underlying were able strong particularly the in the XX the with got protection we By cost consideration principal price of cash generate liquidity we of ability in in ‘XX. We've flow, the put of million businesse'sthe the over FGR have terms and got to zero of environment we've deferred factors of protection XXXX, place XXXX to also So gold

giving upside of how got add in of ceiling million. preserves management ended moved XXXX. protection at business slide cost floor a rigid are key to gold with quarter note we've $XXXX range key a XX. consideration ounces the to the level We please, follows. the to Can a are XXXX next move obviously. in and the to quarter impacts price of is XX,XXX development. the flow, flow each So on the is ceiling XX points on in you in bridge Wassa's as cash those is which with the respect the whilst year be net COVID this so is XXXX cash quarterly. continuing cash The ongoing we'll and There is significant potential and the terms in sensible This delivered to pricing,

cash So million. the Wassa is X.X generation

capital the in paid be of to very quarterly the early quarter. continues The which the Wassa. tax on underpin note relates that's QX, The to XX.X investment million of point there so XXXX. following the part So paid future one to actually to development taxes

XXXX So this being the QX, paid in XXXX. week in tax resulted actually first of January the

XXXX. elevated XX.X amount compared quarters. So actually other is taxes payment This of it's million final an year typical to a for the this

who program you. that that budgeted. point ATM than here be reliable would note generation So during higher of million XXXX. please. a QX, And a over Thank now is was was quarter. And actual so million in run in from to being a this the price is through Mitch the the to probably Wasel $X.X the April. was quarter. hand raised in payment normalized million about will further will more cash piece $X I exploration the due to X.X range the [indiscernible]

as XX move slide Michael . can Paul. on you me, Thanks, to please for

we I'm few of and all is redo inline along where there for potential the identified first we on to is Wassa you overview focus to The are here close far we open Sabrisa Sabrisa exploration test reserve. And rig an the a where well. Benso on we've that. exploration the down Sterling cleansing I'll sort these slides as West for down our of HPV Wassa the and drill trend, exploration look down as [indiscernible] focusing Ashanti actually some at got the pits the the call you But to time underneath from slide will and up which targets end rig showing called and efforts and main a some The to pit drilling be southern is XXXX. Eastern continuing extensions mobilizing model mineralization dip underground of extensions one belt [indiscernible] the the as show hope East and the to concerned. the of go the We've be target we aircore we of we on which is the

doing we'll be the in some that So next of exploration quarter.

far of what shell Michael, on And you those is And that the XXXX. ISO isometric what see There's at meters. Wassa from spacing conducted look in Moving X.X the slide the can to XX, drilling ore an done in gram fourth is around you XXX on so please. holes in that we've there generally the LeapFrog. showing of XXXX. was view body drill if quarter

intersected to extension dip and feely the very the and depth in successful some what now of up that we was another We've holes brushstroke, earlier there, the the at We've the reserve down and XXX follow broad which what X.X year is some XX X,XXX and into down and around of reserve. see So from particular last for the meters X,XXX hole severely we there touchy southern dip which spending from towards that to out got depth got expected. intending up from had meters of we've three particular, doing on reserve target. meters are funds of of redirecting stuff in had on than mineralization, Aircore drilling of

mentioned, I the to last close are very I areas As think quarter underground these development.

find be into profile if for reserves those able So particular resources in certainly out to additional areas we operational were these there would the going now, we add or forward. to out

show So a you I'll sections. few

a we relatively XXXX to XXX you Now there and can in intersected tuned towards something to the bit. we're previously, some XXXX. depth both dip Down section meters from XX. the depth. We the going this there existing that have now on or been hanging drilling hanging of XXXXX. on is XX move quite The we've in the plunge. is same move down there kicks and quarter. section is is see there out received mineralization which a on stay was hole we've number wall because zone focus south hitting as up of north, quite slide zone, over extending to uptick looking that at for section the roughly and of the lot slide to a up results actually [indiscernible] a what Roughly, untested is interesting to drill really but I'll of there this shows We down and and intersected mineralization done you're out mining wall which depth the on up that on towards intersected some series number and mineralization the We've this open XX,

continuing X.X be X.X. to so mineralization some we've see going at test hole importance X, that them we're you'll mineralization. also, So in to Of intersected meters as

[indiscernible] recognize at Wassa. to got You

from known depth So reserve. this down is XXX the meters

existing a now for about be so mineralization to does this continue So XXX start going to up the opens looking demonstrates target exploration exploration targets that or target future at. for meters below to is new whole us, which up reserve another this us

Deep you towards the As have south know, Wassa. at the Silver we

get often where below workings the or actual Now three that we've we have for underground been we're starting last to four the tags mineralization years. exploring

So up exciting the in world part it's that of too.

below and really issued intersection drilled, the X.X that up we the as hole [indiscernible] zone wall mineralization XXXXX, XX was we actually will the move additional We intersected again at a trend. And on we shows new be roughly the meters as on grams to at daughter hole. was meters shown mineralization per drilled that well which XXX drilled extends with X.X in intersecting main mother original XXX hole intersection the number both slide which to which did hanging in hole that we tonne, the now again did then is that meters an the meters. XX the And showing results have here

below meters existing point. XXX over the this well So reserve at

area close wraps time. have up. I at to that again, certainly depth our where I'll we of hand back we it the proximity exploration the that And to previously exploration this you future So give And it opened overview. development have up to within over now up Andrew wrap point to this mentioned in as for all

Excellent. Mitch. Many thanks,

near to interesting to as talking the with see development access about is more Mitch results. regional a mine to go a focus been reserve last we've slide of through real of year. the XX, bit as go give concluding as as on some couple as just also on for infield sites exploration unchanged the which quite both us are as at little as some XXXX presentation, through that has the forward. today of just which targets is the been then the deliver well going itself QX for with guidance XX reserve to and what And you slide year, some And reminder early can results slides. ourselves conversion we there, On drilling resources we Wassa So talking for

further activity Finally, see about, I across addressing step of investments business. you coming a good is on year the summarize, progress spoke can as got infrastructure And in value first to a is during there quarter. quite of the I there balance the some issues confidence base. degree with in asset respect what catalysts in number We've of in there can the made, and slide up the We've to the particularly this the we've XX, year. August the good as we a just to made up drilling sheet, ongoing through the repayment and convertibles that see then of go as we results continue significant the amongst unlock we the team think exploration

So back Collins anybody take hand there, with that so that, we I'll questions to stop has. any can

now and will from begin Thank go CIBC. session. [Operator the Your answer comes gentlemen Instructions] you. from question Ladies and ahead. Adams question first Bryce please Bryce

thanks question. afternoon, taking Good all for my

Firstly, COVID, expatriates cases all well? of the impacted employees or you Ghanaian some the reported, on been they workforce are that XX as

want through Do team. can to to run you sort the questions of then your move I

If that? you happy do to

that's I've four in fine. total. got Yes,

So the first one.

processing one balance? the for in like more a is on Number it the on cash What's second process around price? per the decision the you day? new The three, grade looks Is the stockpile is bit it making QX. on more focused your what's Or XXXX low on did dependent share ATM? thinking tons issuance? of It

than one underground stock trying then clarification what a call? gold the on guidance. And last reconcile they And to recoveries Are So exploration the drove less just grade the just is all? that the for decision? higher

around less for quarter. exploration been the they've a results the expected QX That's about $XX or So Thanks. guidance questions. expense? What's XXXX bucks rate has four per million but expense, run and in million

little to a much, starting you if of very bit cases, color want the first with Bryce. question. on Philipa COVID Maybe give Thanks

Sure. interesting we contacted the and note work. incubation cases workforce locally. indicating workforce And for Thanks that But within the were had that suspect a COVID everybody's Bryce. recovered Ghanian country period the much, very who've for to and longer than cases had of people were expatriate in that they to fully handful of The our positive COVID expatriates. combination the been back

Okay, they and end at do or were they've extended positive, able those return expatriates the to home that of roster their an been do swing? tested

in Ghana. Everybody was able whilst to recovered Everybody No. return home.

asymptomatic. of confirmed In have fact, were actually work all departure many one very any XX that of We recovery. actually to the very having people. did did has was all We And cases were few people delayed slightly the had out it cases who most movements of few of whose And through not contracted. affected had expatriate by managed symptoms. closely those

the color. thanks Okay, for

you. Thank

as the with terms that overall function facility. cash balances, And On ATM, you it's which I'll ATM a use in by of view know of we the one is more on really, deal driven of where a liquidity, price the in moving, over got repayment and well we've from the obligations August. see as what convertible production got one just where gold then the $XX a we've the million being as capital is main perspective, opportunities

of So also a advantage to pick what stock certain a any of it's And level inquiries really, level. get people a got inbound up taking degree, as of see flexibility ensuring sufficient that we've just looking at to we we there.

got we and a being overall sensible see ensuring that level the it's we've in a business. of accessing that as what in of So facility, bit opportunistic liquidity little just

convertibles, wouldn't to September? September you expect -- use ATM the subsequent then to the And thanks. Okay, beyond from

us in we no, facility think the to multiple example, in But have in through additional wouldn't that exploration course additional that require to it's significant as we as then on if, up. key bit an or ramp ordinary benefit period see the potential a got those spend But I of hit we example, is and then for get for for it. that there always a there time, need to realistically targets, success if At a time for we a this early say. point it's we've

Understood. Okay.

a talk and about on little material Graham, maybe recovery Then stockpile material. bit the that

blend. recovery, yes, we So on Bryce first generally so

doing a blend. generally we're about X.X So

which is don't how XXXX per those So that's grade you And tonnes say of curve sort how of X.X/X.X flat Wassa. you sort very get for we get we day. blend, recovery

quarters low bit much. We sure make not sense. a of done batch get get some just the And do to too on on that grade stockpile, milling recovery work previous but have makes all you even drop, a, a in that you

with So blend strategy pretty comfortable there. the

like for through the As bit of tough the month a was quarter, I team. mentioned, January a underground

grade production low more to what bit through ounces. a see the we the do on pushed to could mill. boost we And with just there So the

can that strategy. keep more But there. recovery in look is general, the steady we So through it's nice general bit the a blend push and just after

little And then QX the seen bit we've a Graham being in than volumes higher previously.

I to to the and push we as do. see mentioned, can little a just mill try Yes bit is what trying just

haven't per up but a little XXX% it yet, goes to We with and day times. very And tonnes that certainly performs along taken XXXX at higher consistently. bit

then last last one, And what's the Graham. the question, Thanks, Bryce?

It the exploration cost? was terms an in of

the Yes. classification getting at or quantum Was you're spend? it the the of absolute

Yes, just of says expense, a I less. little I've since help if million a but or misclassify bucks million guidance but a runway a got about XX we're bit quarter the think exploration maybe

model little Just refine a our trying more to accurate. be to

Should that get problem. no Andrew. I Yes,

a of had cost Bryce we $X.X million. QX In

was capitalized. $X.X which and So expense million between which that was $X.X was million,

$X.XX we're $X the quarter million forward, million remainder at will to about be just over for be looking million expensed. million to million of of something $X CapEx year and going a $XX million the likely So $XX around $X which

it change on drilling how So -- of expense the interpretation and ratio so on. CapEx terms feedback program depending of that in goes that and may the how

in it that's broad So, where terms, is that. roughly

expense X. in X exploration we up a so QX, expect Okay, step should in and

Yes. that's correct. Yes,

everyone. well, keep and time thank the Okay. you. Thanks, Appreciate

you. Thank Thanks.

Thanks Bryce.

Okay. Instructions] [Operator

go Raj Raj Markets. Your comes Capital from next BMO ahead. question please Ray from

get issues with I you've if team. operator I Good the that had and QX, year strength the test, just what late What talked of wanted on the around? apologize half place. sense about the a skill] was mention that having the to of quick did you joining. just then a just Andrew to and But this some looking I have previously. [pay details faced to already about contingencies in want fix a challenges you on it I question in were Thank some you currently? And doing some afternoon and thought you're in bit second the get in you're

So in if contingencies can on you you also color have throw some place. what

Thanks Raj. that's you. Graham, for one

Raj. I think question. that's Yes. me. Good Hi Yes.

So sites, doing just as we the were of obviously we were lot testing. strength doing a test

Some of those quality assurance the feasibility. bench into results have come back have a bit that lower from expected went than work what we the would test

So of we to want good get understanding a that.

feeling a in And in supplier, point just delaying that. cement work some nothing, just also Services, of delaying what composition regime. on and as But partnering called make the we've more tailings and we've obviously they some with that's sure bit with by got we're the expert time, a So who said, much they're Field little this of HX at in Ghana, University out pretty robust certainly that. a pretty to doing who And in Technology collaborating field. samples them we're the we're that. production, group impacted Mining Gasim, the to an are with work I test Mine of given are are experts we've no more is. cement chemical Australia We're pretty And got their

kind the that's three strains. of So

a impact. of of some which cost In terms of contents obviously plant we cement have would a from a things. the contingencies, increase there's bit might is, few One

well. that understand need to So pretty we

The is second around opportunity just re-sequencing.

involve the with plan So have that secondary placing of re-sequencing, we would of are we in some also the that primaries. And stokes the developments. some

primary secondary. cuts opposed the So as areas you'd be cross mining slope to into

where a coming mix the change bit just would that from. terms is So of little production the in

there So working that things are we're at moment. the that through

for in Thanks fixed. And this there of getting then a bit assuming that. Okay. a is delay

You cost about still the production over the guidance guidance and confident year?

Yes.

any being that. it time quarter that. is, of this don't and plans the we then re-sequencing beyond at Graham this We of resolved through and the some as to quarter, the there as stage, guidance work during whether if extends it's said, to whilst impact. work need what we're potential see this look the is For length through maintaining see But see delay, one, like we the

obviously will changes at if update point. any We that

Andrew. it for Okay. Thanks That's me.

Raj. very Thanks much,

no for I'll further time. closing now it to are this at remarks. turn There questions back Andrew

the seeing Excellent. to everybody. you forward even touch staying and some who through we in at very year Well, of stage. maybe you thank much, go knows as some look We

again. you thank So

this Ladies conference participating disconnect your ask for that you today. please and gentlemen, call concludes your you for and We thank lines.