I N V E S T O R P R E S E N T A T I O N

Transcription

1 I N V E S T O R P R E S E N T A T I O N

2 DISCLAIMER AND OTHER MATTERS SAFE HARBOR: Some statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding: our production expectations for 2014 including our production guidance; predictions regarding cash operating costs per ounce for 2014, 2015 and over the life of mine target; estimated capital expenditures for 2014 [and 2015]; anticipated all-in sustaining costs for 2014, 2015 and over the life of mine target; expected cash flow over the remainder of 2014; timing of drilling, drilling results and concentration on infill drilling; the impact of cost cutting initiatives; improved access to ore in 2014; planned head grades; ability to generate cash; timing for completion of a feasibility study at Wassa underground; timing of Wassa Preliminary Economic Assessment, resource models and engineering and mine scheduling; timing of Wassa Underground construction; timing of Wassa underground to commercial production; timing of revised preliminary economic assessment at Prestea Underground; timing of Prestea Underground to commercial production; timing of updated mineral reserve and mineral resource estimates at Wassa; and our 2014 and 2015 outlook and objectives for the remainder of 2014 and Factors that could cause actual results to differ materially include timing of and unexpected events at the Bogoso oxide and sulfide processing plants and/or at the Wassa processing plant; variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive board or government approvals and permits; the availability and cost of electrical power; timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues; changes in U.S. and Canadian securities markets; and fluctuations in gold price and input costs and general economic conditions. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Annual Information Form for the year ended December 31, The forecasts contained in this presentation constitute management's current estimates, as of the date of this presentation, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this presentation represent management's estimate as of any date other than the date of this presentation. NON-GAAP FINANCIAL MEASURES: In this presentation, we use the terms "cash operating cost per ounce and all-in sustaining cost per ounce, cost per tonne mined and cost per tonne milled. These measures should be considered as Non-GAAP Financial Measures as defined in applicable securities laws and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We use cash operating cost per ounce as a key operating indicator. We monitor these measures monthly, comparing each month's values to prior period's values to detect trends that may indicate increases or decreases in operating efficiencies. This measure is also compared against budget to alert management to trends that may cause actual results to deviate from planned operational results. We provide this measure to our investors to allow them to also monitor operational efficiencies of our mines. We calculate these measures for both individual operating units and on a consolidated basis. There are material limitations associated with the use of such non-gaap Financial Measures. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Changes in numerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site general and administrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar to the measures of other gold mining companies, but may not be comparable to similarly titled measures in every instance. INFORMATION: The information contained in this presentation has been obtained by Golden Star from its own records and from other sources deemed reliable, however no representation or warranty is made as to its accuracy or completeness. The technical information relating to Golden Star s material properties disclosed herein is based upon technical reports prepared and filed pursuant to National Instrument Standards for Disclosure of Mineral Properties ( NI ) and other publicly available information regarding the Company, including the following: (i) NI Technical Report on Mineral Resources and Mineral Reserves Golden Star Resources Ltd, Wassa Gold Mine, Ghana Effective Date December 31, 2012, prepared by SRK Consulting (UK) Limited and prepared under the supervision of Martin P. Raffield and S. Mitchel Wasel; and (iii) Golden Star s Annual Report for Additional information is included in Golden Star s Annual Information Form for the year ended December 31, 2013 which is filed on SEDAR. Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the Company. Dr. Raffield is a "Qualified Person" as defined by Canada's National Instrument The Qualified Person reviewing and validating the estimation of the Mineral Resources is S. Mitchel Wasel, Golden Star Resources Vice President of Exploration. CURRENCY: All monetary amounts refer to United States dollars unless otherwise indicated. 2

3 GOLDEN STAR UNLOCKING VALUE IN GHANA 15 year history in Ghana producing circa 300,000 oz. from Wassa and Bogoso mine Strategy to pursue growth from non-refractory ounces Wassa Underground Prestea Underground Bogoso tailings Drive costs down through active management and mine planning Leverage off existing infrastructure NYSE MKT and TSX listed, good liquidity (1) Based on December 31, 2013 Mineral Reserve and Resource estimate. Please refer to Company's press release dated 10 February

4 Q OPERATIONAL REVIEW MINING DEVELOPMENT OPTIMISATION 61,721 ounces produced and sold Q2 14 RAINFALL heavy over period, hampered access and mining Wassa development DRILLING delivers strong results g/t Au g/t Au PEA on WASSA UNDERGROUND nearing completion Internal study on LOW CAPEX option for Prestea Underground Study yields + ve OUTCOME Bogoso push backs COMPLETE Full year OUTLOOK adjusted Announcement due end Q3 14 Progressing to PEA in Q4 14 4

5 Q FINANCIAL OVERVIEW LOWER REVENUE Revenue decreased quarter over quarter to $80 M with fewer ounces of gold sold EVEN LOWER COSTS Cost of sales reduced 7% to $78 M Mine operating expenses reduced 11% to $74 M COC per ounce marginally reduced to $1,201 REDUCED LOSS Adjusted net loss reduced 38% quarter over quarter to $8 M 5

6 COSTS AND EXPENSES REDUCING Mine Operating Expenses ($ M) Cost of Sales Excluding Depreciation and Amortization ($ M) 6

7 COSTS AND EXPENSES REDUCING Cash Operating Costs Per Ounce 1 AISC: $1,523 AISC: $1,349 AISC: $1,050-1,150 Costs reducing despite lower production Development of new projects expected to reduce cash costs going forward (1) See note on slide 2 regarding Non-GAAP Financial Measures 7

8 WASSA MINE Ownership 90% 2013 gold production 185,807 oz. Mineral Reserves (1) P&P Reserve grade (1) 1.97 M oz. Au 1.75 g/t Au 2013 cash operating costs/ oz. $805 One large operational pit - Wassa Main Non-refractory plant with current capacity of 2.7 mtpa Large and growing mineral resource, evaluating underground potential 2014 production of ,000 oz. Full year cash operating costs expected to be $925-1,000/oz. (1) Based on December 31, 2013 Mineral Reserve and Resource estimate. Please refer to Company's press release dated 10 February

9 WASSA Q PERFORMANCE More ore mined at lower strip ratio Reduced head grade with focus on Wassa Main pit, satellite pit Father Brown suspended Increased costs per ounce anticipated with head grade reducing Reduction in costs per ounce from 2015 as grade increases with depth Mine operating expenses reduced to $29 M (Q1 2014: $34 M) Operational efficiencies, reduced strip 9

10 WASSA GROWTH OPPORTUNITY Wassa Mineral Reserves increased 148% since 2011 despite reducing gold price Current mine plan is to mine entire ore body with open pit mining over 12 years Cash flows weighted to later years due to increasing grade at depth Opportunity to accelerate cash flows by underground mining the higher grade, deeper zones Internal study indicates capex of $40 50 million to develop Tonnes milled remains constant, head grade increases increasing production and reducing operating cost per ounce 10

11 WASSA DEVELOPMENT December 2011 July 2014 Wassa Main Grade Thickness Contour (g\t)*m Wassa Main Grade Thickness Contour (g\t)*m Two year LOM in 2011, two year drilling campaign increased this by 10 years Subsequent drilling campaign commenced November infill and step out Significant grades and widths intercepted on step out holes, confirming ore body is open down plunge 450 m south: 70 m grading 5.8 g/t Au 50 m south: 45.4 m with grading 8.3 g/t Au Infill drilling shows wide zones of significant grades between existing high grade drill intercepts 11

12 Gold Production oz. WASSA DEVELOPMENT Oz Costs $/Oz 350, ,000 AIC Further ore sources FB, Benso 1,400 1, ,000 COC 1, , , , , Start construction of decline ramp in 14, potential first underground production 2016 Underground ore blended with open pit ore to achieve anticipated head grade of >2 g/t LOM potentially extends to

13 WASSA GROWTH Recent drill results support block modelling and stope design for PEA Infill drilling continues in Q Wassa underground PEA progressing well Resource models nearing completion Detailed engineering and mine scheduling thereafter PEA complete Q Step out drilling to continue, pending positive PEA 13

14 BOGOSO MINE Ownership 90% 2013 gold production 144,999 oz. Mineral Reserves (1) P&P Reserve grade (1) 1.98 M oz Au 3.17 g/t Au 2013 cash operating costs/ oz. $1,361 Mining in Bogoso North and Chujah pits Completed major pushback at both pits 2014 strip ratio after pushback of 3: production of ,000 oz. Mining complete at end 2015 (1) Based on December 31, 2013 Mineral Reserve and Resource estimate. Please refer to Company's press release dated 10 February

15 BOGOSO Q PERFORMANCE Waste mining decreased dramatically as push backs complete Heavy rainfall hampered access to ore in Q2, low grade stockpiles processed Head grade increased to 2.1 g/t Au with some access to high grade material Mine operating expenses reduced to $45 M (Q1 2014: $49 M) Achievement of cost saving targets set in 2013 Full year cash operating costs per ounce of $1,100 1,200 expected Cash operating costs per ounce expected to decrease over remainder 2014/

16 PRESTEA UNDERGROUND Existing underground mine, suspended in 2002 High grade ore body, 18 g/t Au in situ Feasibility Study to bring back into production completed in 2013 demonstrated positive economics Lower capex, quicker production alternative evaluated with internal study completed in Q Shrinkage mining = less dilution Significantly lower capex Quicker to production Similar cash operating costs per ounce to Feasibility Study Progressing to PEA, expected to be complete Q

17 CATALYSTS FOR VALUE CREATION Establish Wassa Main pit Operational cost savings achieved Updated Mineral Resource estimate for Wassa Wassa Underground construction begins First production from Wassa Underground Q Q Q Complete push back at Bogoso PEA on underground mining at Wassa complete Revised PEA for Prestea Underground First production Prestea Underground * Development of projects dependent on positive study results and adequate access to finance 17

18 Investment Case Current pipeline of development projects expected to reduce unit costs further Established gold mining company with 15 years of production history in Ghana 3.9 M oz. in Mineral Reserves & a further 2.4 M oz. in Measured & Indicated Mineral Resources Successfully reduced overall operating costs over last two years Offers investors leveraged, un-hedged exposure to the gold price Low operational risk in a stable African mining jurisdiction Significant exploration & development upside development 18

19 PROVEN AND PROBABLE RESERVES Dec 31, 2013 Proven Mineral Reserve Dec 31, 2013 Probable Mineral Reserve Dec 31, 2013 Proven and Probable Mineral Reserve tonnes grade g/t Au ounces tonnes grade g/t Au ounces tonnes grade g/t Au ounces Wassa Main , ,863 33, ,863 Father Brown Stockpiles Subtotal Wassa , ,960 34, ,970 Bogoso 2, , , Dumasi 3, , , Mampon , , Prestea South , , Prestea Underground , , Stockpiles Subtotal Bogoso 7, , ,397 19, ,977 Total 7, , ,357 54, ,947 * Please refer to the relevant disclosure on Mineral Reserve and Mineral Resource Estimates contained in our Annual Report for the year ended December 31,

20 MEASURED AND INDICATED MINERAL RESOURCES Dec 31, 2013 Measured Mineral Resources Dec 31, 2013 Indicated Mineral Resources Dec 31, 2013 Measured and Indicated Mineral Resources tonnes grade g/t Au ounces tonnes grade g/t Au ounces tonnes grade g/t Au ounces Wassa Main , ,568 45, ,580 Wassa Underground , , Father Brown Father Brown Underground , , Wassa Other , , Subtotal Wassa , ,314 51, ,327 Bogoso 2, , , Dumasi 3, , , ,032 Mampon , , Prestea South , , Prestea Underground , , Bogoso Other , , Subtotal Bogoso 6, , ,415 28, ,029 Total 7, , ,729 80, ,356 * Please refer to the relevant disclosure on Mineral Reserve and Mineral Resource Estimates contained in our Annual Report for the year ended December 31,

21 INFERRED MINERAL RESOURCES Dec 31, 2013 Inferred Mineral Resources tonnes grade g/t Au ounces Wassa Main Wassa Underground Father Brown Father Brown Underground Wassa Other Subtotal Wassa 1, Bogoso Dumasi Mampon Prestea South Prestea Underground 3, Bogoso Other Subtotal Bogoso 5, ,044 Total 6, ,311 * Please refer to the relevant disclosure on Mineral Reserve and Mineral Resource Estimates contained in our Annual Report for the year ended December 31,