Golden Star’s 2020 Target not Affected, 60 of its Employees are in Isolation

Golden Star’s 2020 Target not Affected, 60 of its Employees are in Isolation

Though 60 employees of Golden Star Resources Ltd. at its Prestea mine in the Western region have been quarantined as a result of some employees reported to have tested positive for coronavirus, the company is expected to meet its 2020 gold production guidance.

According to the company, the Prestea mine has reported two confirmed cases of the virus. The employees have “mild symptoms” and are being closely monitored, the company said in a statement.

Golden Star said majority of the 60 employees quarantined were involved in mining activities at the Prestea mine such as rock breaking, scoop operations and blasting, as well as engineering activities, however, the company is revising its planned operations in the short term to allow for possible critical skill shortages and to ensure employee safety which would most likely harm production from 24 level over the coming weeks until quarantined employees returned to work.

“At this stage, it is anticipated that the impact on development activities on 17 Level, which are crucial to the longer term viability of the operation, will be minimal,” the company said

Since there had been no confirmed or suspected cases of COVID-19 at Golden Star’s Wassa gold mine, also in the Western region, the company said it is confident it could make gold production guided for this year at between 195,000 to 210,000 oz. The company produced 204,000 oz in its 2019 financial year.

“To the extent, the situation remains unchanged, given the current strong operational performance at Wassa, the company continues to be on track to achieve its consolidated annual guidance for 2020,” Golden Star said in the statement.

Golden Star’s 2020 target and COVID-19’s impact on the company

The company projected the Wassa mine 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 of between $930 and 990/oz. At Prestea, it targeted for production of 40,000 to 45,000 oz at cash operating costs of $1,400 to $1,550/oz and an all in sustaining cost of between $1,650 and 1,850/oz.

Golden Star is, therefore, confident that the supply chains at the Wassa and Prestea mines had neither been impacted nor has the export and sale of gold doré (a semi-pure alloy of gold and silver, usually created at the site of a mine and then transported to a refinery for further purification).

gold dore

Gold doré

In March 2020, Golden Star said that it had made arrangements to continue refining its gold at South Africa’s Rand Refinery whilst securing alternative arrangements for the freight of doré to the country amid a partial port lockdown.

Rand Refinery was partially affected by a 3-week lockdown announced by the South African government in March. The refinery said on May 6 that it had resumed refining operations as the South African government has relaxed the regulations it initially imposed.

About Golden Star

Golden Star is an established gold mining company that owns and operates the Wassa and Prestea underground mines in Ghana. The company is listed on the New York Stock Exchange, the Toronto Stock Exchange and the Ghanaian Stock Exchange. According to the company, it is focused on delivering strong margins and free cash flow from its two underground mines. As a recognised and reputable firm in the gold industry, Golden Star says it remains committed to leaving a positive and sustainable legacy in its areas of operation.