Golden Star Resources Ltd.
) has unveiled its production numbers for fourth-quarter and
full-year 2013 and guidance for 2014. The company also named
Daniel Owiredu as its Chief Operating Officer.
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The Toronto-based company produced and sold 330,805 ounces of
gold in 2013, at par with its revised guidance for the year as
well as ounces sold in 2012. It expects to produce 295,000 to
320,000 ounces of gold in 2014, lower than what achieved last
year. Golden Star's shares fell nearly 10% in the trading session
following the news release.
Golden Star produced and sold 75,429 ounces of gold in
fourth-quarter 2013 with Wassa and Bogoso mines contributing
44,337 ounces and 31,093 ounces, respectively.
For 2013, gold sales at Wassa were 185,807 ounces and at Bogoso
were 144,999 ounces. Cash operating costs per ounce are expected
to be at the bottom end of the company's guidance range of $1,050
For 2014, cash operating costs per ounce are expected to be $950
to $1,000. Moreover, Golden Star anticipates sustaining capital
expenditure of $21 million and development capital expenditure of
$29 million for 2014.
Golden Star expects production from Wassa and Bogoso to be
130,000 to 140,000 ounces and 165,000 to 180,000 ounces,
respectively, in 2014. It sees production to fluctuate between
quarters this year as pushbacks are completed in Bogoso (expected
to be mostly complete in the first quarter) and increasingly
higher grade ore is accessed with depth at the Wassa Main pit.
The pushbacks at Bogoso will enable improved access to ore and
higher levels of production from the mine, resulting in an
anticipated reduction in cash costs. Golden Star expects output
from Wassa to be higher in the second and fourth quarter than for
the first and third.
Golden Star has healthy liquidity and financial flexibility. At
the end of 2013, the company had cash and cash equivalents of
about $66 million, after the drawdown of $20 million of cash from
the Ecobank loan and income tax payment of $10.4 million to the
Government of Ghana in the fourth quarter.
Golden Star, which currently holds a Zacks Rank #3 (Hold),
expects to report its full-year 2013 results on Feb 20.
Other companies in the mining industry worth considering include
Tahoe Resources Inc.
Timmins Gold Corp.
Denison Mines Corp.
). While Tahoe Resources holds a Zacks Rank #1 (Strong Buy), both
Timmins Gold and Denison Mines retain a Zacks Rank #2 (Buy).