DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION Document | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | GOLDEN STAR RESOURCES LTD. |
Entity Central Index Key | 0000903571 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 108,819,009 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | ||
Revenue | $ 273,017 | $ 315,497 |
Cost of sales excluding depreciation and amortization | 223,729 | 226,482 |
Depreciation and amortization | 33,939 | 31,792 |
Mine operating margin | 15,349 | 57,223 |
Other expenses/(income) | ||
Exploration expense | 2,959 | 1,871 |
General and administrative | 16,428 | 25,090 |
Finance expense, net | 18,072 | 8,485 |
Other income | (3,603) | (4,346) |
Gain on fair value of financial instruments, net | (6,786) | (2,057) |
Loss on conversion of 7% Convertible Debentures, net | 0 | 165 |
(Loss)/income before tax | (11,721) | 28,015 |
Deferred income tax expense/(recovery) | 12,350 | (12,944) |
Net (loss)/income and comprehensive (loss)/income | (24,071) | 40,959 |
Net (loss)/income attributable to non-controlling interest | (5,948) | 2,188 |
Net (loss)/income attributable to Golden Star shareholders | $ (18,123) | $ 38,771 |
Net (loss)/income per share attributable to Golden Star shareholders | ||
Basic (usd per share) | $ (0.21) | $ 0.52 |
Diluted (usd per share) | $ (0.21) | $ 0.48 |
Weighted average shares outstanding-basic (in shares) | 84.3 | 74.7 |
Weighted average shares outstanding-diluted (in shares) | 84.3 | 88.2 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME (Parenthetical) | Dec. 31, 2018 | Aug. 03, 2016 |
7% Convertible Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate | 7.00% | 7.00% |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 96,507 | $ 27,787 |
Accounts receivable | 3,213 | 3,428 |
Inventories | 35,196 | 50,653 |
Prepaids and other | 5,291 | 5,014 |
Total Current Assets | 140,207 | 86,882 |
RESTRICTED CASH | 6,545 | 6,505 |
MINING INTERESTS | 270,640 | 254,058 |
DEFERRED TAX ASSETS | 595 | 12,944 |
Total Assets | 417,987 | 360,389 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 78,484 | 94,623 |
Current portion of rehabilitation provisions | 7,665 | 6,566 |
Current portion of deferred revenue | 14,316 | 17,894 |
Current portion of long term debt | 27,482 | 15,864 |
Current portion of other liability | 6,410 | 13,498 |
Total Current Liabilities | 134,357 | 148,445 |
REHABILITATION PROVISIONS | 58,560 | 64,146 |
DEFERRED REVENUE | 105,632 | 92,062 |
LONG TERM DEBT | 73,224 | 79,741 |
DERIVATIVE LIABILITY | 4,177 | 10,963 |
OTHER LIABILITY | 0 | 6,786 |
Total Liabilities | 375,950 | 402,143 |
SHAREHOLDERS' EQUITY | ||
CONTRIBUTED SURPLUS | 37,258 | 35,284 |
DEFICIT | (831,283) | (794,180) |
Shareholders' equity attributable to Golden Star shareholders | 114,010 | 24,271 |
NON-CONTROLLING INTEREST | (71,973) | (66,025) |
Total Equity/(Deficit) | 42,037 | (41,754) |
Total Liabilities and Shareholders' Equity | 417,987 | 360,389 |
First preferred shares, without par value, unlimited shares authorized. No shares issued and outstanding | ||
SHAREHOLDERS' EQUITY | ||
SHARE CAPITAL | 0 | 0 |
Common shares, without par value, unlimited shares authorized | ||
SHAREHOLDERS' EQUITY | ||
SHARE CAPITAL | $ 908,035 | $ 783,167 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - First preferred shares - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | ||
Number of shares issued (shares) | 0 | 0 |
Number of shares outstanding (shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | ||
Net (loss)/income | $ (24,071) | $ 40,959 |
Reconciliation of net (loss)/income to net cash (used in)/provided by operating activities: | ||
Depreciation and amortization | 33,975 | 31,823 |
Share-based compensation | 1,278 | 12,554 |
Deferred income tax expense/(recovery) | 12,350 | (12,944) |
Gain on fair value of 7% Convertible Debentures embedded derivative | (6,786) | (2,095) |
Recognition of deferred revenue | (13,738) | (14,156) |
Proceeds from Royal Gold stream | 0 | 10,000 |
Reclamation expenditures | (5,316) | (5,992) |
Other | 11,925 | 2,475 |
Changes in working capital | (17,172) | (7,448) |
Net cash (used in)/provided by operating activities | (7,555) | 55,176 |
INVESTING ACTIVITIES: | ||
Additions to mining properties | (677) | (632) |
Additions to plant and equipment | (95) | (649) |
Additions to construction in progress | (44,163) | (67,591) |
Proceeds from asset disposal | 38 | 0 |
Change in accounts payable and deposits on mine equipment and material | (3,014) | 1,103 |
Increase in restricted cash | (40) | (41) |
Net cash used in investing activities | (47,951) | (67,810) |
FINANCING ACTIVITIES: | ||
Principal payments on debt | (15,607) | (2,198) |
Proceeds from debt agreements | 35,000 | 10,000 |
Debt repayment | (20,000) | (13,611) |
Shares issued, net | 124,772 | 24,456 |
Exercise of options | 61 | 10 |
Net cash provided by financing activities | 124,226 | 18,657 |
Increase in cash and cash equivalents | 68,720 | 6,023 |
Cash and cash equivalents, beginning of period | 27,787 | 21,764 |
Cash and cash equivalents, end of period | 96,507 | 27,787 |
5% Convertible Debentures | ||
FINANCING ACTIVITIES: | ||
Principal payments on debt | 0 | 0 |
Proceeds from debt agreements | 0 | 0 |
Debt repayment | 0 | (13,611) |
Royal Gold loan | ||
FINANCING ACTIVITIES: | ||
Principal payments on debt | 0 | 0 |
Proceeds from debt agreements | 0 | 0 |
Debt repayment | $ (20,000) | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 |
5% Convertible Debentures | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 5.00% | 5.00% | |
7% Convertible Debentures | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.00% | 7.00% |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY $ in Thousands | USD ($)shares | Share CapitalCommon sharesUSD ($)shares | Contributed SurplusUSD ($) | DeficitUSD ($) | Non-Controlling InterestUSD ($) |
Balance at beginning of period (shares) at Dec. 31, 2016 | shares | 67,071,290 | ||||
Balance at beginning of period at Dec. 31, 2016 | $ (120,761) | $ 746,542 | $ 33,861 | $ (832,951) | $ (68,213) |
Shares issued (see Note 13) (shares) | shares | 8,161,900 | ||||
Shares issued (see Note 13) | 35,682 | $ 35,682 | |||
Shares issued under DSUs (shares) | shares | 233,539 | ||||
Shares issued under DSUs | $ 0 | $ 521 | (521) | ||
Shares issued under options (shares) | shares | 5,000 | 4,750 | |||
Shares issued under options | $ 10 | $ 16 | (6) | ||
Shares issued under warrants (see Note 13) (shares) | shares | 644,736 | ||||
Shares issued under warrants (see Note 13) | $ 2,450 | ||||
Options granted net of forfeitures | 1,229 | 1,229 | |||
Deferred share units granted | 387 | 387 | |||
Performance and restricted share units granted | 334 | 334 | |||
Share issue costs | (2,044) | $ (2,044) | |||
Net (loss)/income | 40,959 | 38,771 | 2,188 | ||
Balance at end of period (shares) at Dec. 31, 2017 | shares | 76,116,215 | ||||
Balance at end of period at Dec. 31, 2017 | (41,754) | $ 783,167 | 35,284 | (794,180) | (66,025) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance1 | (60,734) | $ 783,167 | 35,284 | (813,160) | (66,025) |
Impact of adopting IFRS 15 on January 1, 2018 (see Note 3) | 0 | ||||
Shares issued (see Note 13) (shares) | shares | 32,642,100 | ||||
Shares issued (see Note 13) | 125,672 | $ 125,672 | |||
Shares issued under DSUs (shares) | shares | 36,194 | ||||
Shares issued under DSUs | $ (145) | $ 20 | (165) | ||
Shares issued under options (shares) | shares | 25,000 | 24,500 | |||
Shares issued under options | $ 61 | $ 77 | (16) | ||
Shares issued under warrants (see Note 13) | 2,450 | 2,450 | |||
Options granted net of forfeitures | 1,248 | 1,248 | |||
Deferred share units granted | 565 | 565 | |||
Performance and restricted share units granted | 342 | 342 | |||
Share issue costs | (901) | $ (901) | |||
Net (loss)/income | (24,071) | (18,123) | (5,948) | ||
Balance at end of period (shares) at Dec. 31, 2018 | shares | 108,819,009 | ||||
Balance at end of period at Dec. 31, 2018 | 42,037 | $ 908,035 | $ 37,258 | $ (831,283) | $ (71,973) |
Impact of adopting IFRS 15 on January 1, 2018 (see Note 3) | $ 18,980 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Basis Of Consolidation [Abstract] | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Golden Star Resources Ltd. ("Golden Star" or "the Company" or "we" or "our") is a Canadian federally-incorporated, international gold mining and exploration company headquartered in Toronto, Canada. The Company's shares are listed on the Toronto Stock Exchange (the "TSX") under the symbol GSC, the NYSE American (formerly NYSE MKT) under the symbol GSS and the Ghana Stock Exchange under the symbol GSR. The Company's registered office is located at 150 King Street West, Suite 1200, Toronto, Ontario, M5H 1J9, Canada. Through our 90% owned subsidiary, Golden Star (Wassa) Limited, we own and operate the Wassa open-pit gold mine, the Wassa underground mine and a carbon-in-leach ("CIL") processing plant (collectively, "Wassa"), located northeast of the town of Tarkwa, Ghana. Through our 90% owned subsidiary Golden Star (Bogoso/Prestea) Limited, the Company owns and operates the Bogoso gold mining and processing operations, the Prestea open-pit mining operations and the Prestea underground mine ("Prestea") located near the town of Prestea, Ghana. We hold and manage interests in several gold exploration projects in Ghana and in Brazil. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and with interpretations of the International Financial Reporting Interpretations Committee ("IFRIC") which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook – Accounting. These consolidated financial statements were approved by the Board of Directors of the Company on February 19, 2019 . Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries, whether owned directly or indirectly. The financial statements of the subsidiaries are prepared for the same period as the Company using consistent accounting policies for all periods presented, except for the changes in accounting policies described in Note 3 below. All inter-company balances and transactions have been eliminated. Subsidiaries are entities controlled by the Company. Non-controlling interests in the net assets of consolidated subsidiaries are a separate component of the Company's equity. These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and discharge of all liabilities in the normal course of business. These consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments which are measured at fair value through profit or loss. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | 3. SUMMARY OF ACCOUNTING POLICIES Cash and cash equivalents Cash includes cash deposits in any currency residing in chequing and sweep accounts. Cash equivalents consist of money market funds and other highly liquid investments purchased with maturities of three months or less. Investments with maturities greater than three months and up to one year are classified as short-term investments, while those with maturities in excess of one year are classified as long-term investments. Cash equivalents and short-term investments are stated at amortized cost, which typically approximates market value. Inventories Inventory classifications include "stockpiled ore," "in-process inventory," "finished goods inventory" and "materials and supplies". The stated value of all production inventories include direct production costs and attributable overhead and depreciation incurred to bring the materials to their current point in the processing cycle. General and administrative costs for corporate offices are not included in any inventories. Stockpiled ore represents coarse ore that has been extracted from the mine and is stored for future processing. Stockpiled ore is measured by estimating the number of tonnes (via truck counts or by physical surveys) added to, or removed from the stockpile, the number of contained ounces (based on assay data) and estimated gold recovery percentage. Stockpiled ore value is based on the costs incurred (including depreciation and amortization) in bringing the ore to the stockpile. Costs are added to the stockpiled ore based on current mining costs per tonne and are removed at the average cost per tonne of ore in the stockpile. In-process inventory represents material that is currently being treated in the processing plants to extract the contained gold and to transform it into a saleable product. The amount of gold in the in-process inventory is determined by assay and by measure of the quantities of the various gold-bearing materials in the recovery process. The in-process gold is valued at the average of the beginning inventory and the cost of material fed into the processing stream plus in-process conversion costs including applicable mine-site overheads, depreciation and amortization related to the processing facilities. Finished goods inventory is saleable gold in the form of doré bars. Included in the costs are the direct costs of the mining and processing operations as well as direct mine-site overheads, amortization and depreciation. Materials and supplies inventories consist mostly of equipment parts and other consumables required in the mining and ore processing activities. All inventories are valued at the lower of average cost or net realizable value. Property, plant and equipment Property, plant and equipment assets, including machinery, processing equipment, mining equipment, mine site facilities, buildings, vehicles and expenditures that extend the life of such assets, are initially recorded at cost including acquisition and installation costs. Property, plant and equipment are subsequently measured at cost, less accumulated depreciation and accumulated impairment losses. The costs of self-constructed assets include direct construction costs and direct overhead during the construction phase. Indirect overhead costs are not included in the cost of self-constructed assets. Depreciation for mobile equipment and other assets having estimated lives shorter than the estimated life of the ore reserves is calculated using the straight-line method at rates which depreciate the cost of the assets, less their anticipated residual values, if any, over their estimated useful lives. Mobile mining equipment is amortized over a five year life. Assets, such as processing plants, power generators and buildings, which have an estimated life equal to or greater than the estimated life of the ore reserves, are amortized over the life of the proven and probable reserves of the associated mining property using a units-of-production amortization method, less their anticipated residual values, if any. The net book value of property, plant and equipment assets is charged against income if the mine site is abandoned and it is determined that the assets cannot be economically transferred to another project or sold. The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each reporting period end, and adjusted prospectively if appropriate. Gains and losses on the disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount, and are recognized net in the consolidated statement of operations. Mining properties Mining property assets, including property acquisition costs, tailings storage facilities, mine-site development and drilling costs where proven and probable reserves have previously been established, pre-production waste stripping, condemnation drilling, roads, feasibility studies and wells are recorded at cost. The costs of self-constructed assets include direct construction costs, direct overhead costs and allocated interest during the construction phase. Indirect overhead costs are not included in the cost of self-constructed assets. Mining property assets are amortized over the life of the proven and probable reserves to which they relate, using a units-of-production amortization method. At open pit mines the costs of removing overburden from an ore body in order to expose ore during its initial development period are capitalized. Underground mine development costs Underground mine development costs include development costs to build new shafts, drifts and ramps that will enable the Company to physically access ore underground. The time over which the Company will continue to incur these costs depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific ore blocks or areas of the underground mine, and which only provide an economic benefit over the period of mining that ore block or area, are depreciated on a units-of-production basis, whereby the denominator is estimated ounces of gold in proven and probable reserves and the portion of resources within that ore block or area that is considered probable of economic extraction. If capitalized underground development costs provide an economic benefit over the entire mine life, the costs are depreciated on a units-of-production basis, whereby the denominator is the estimated ounces of gold in total accessible proven and probable reserves and the portion of resources that is considered probable of economic extraction. Borrowing costs Borrowing costs attributable to the acquisition, construction or production of a qualifying asset are capitalized. Qualifying assets are assets that require a significant amount of time to prepare for their intended use, including projects that are in the exploration and evaluation, development or construction stages. Capitalized borrowing costs are considered an element of the cost of the qualifying asset which is determined based on gross expenditures incurred on an asset. Capitalization ceases when the asset is substantially complete or if active development is suspended or ceases. Where the funds used to finance a qualifying asset form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to the relevant borrowings during the period. Where funds borrowed are directly attributable to a qualifying asset, the amount capitalized represents the borrowing costs specific to those borrowings. Other borrowing costs are recognized as an expense in the period in which they are incurred. Impairment of long-lived assets The Company assesses at each reporting period whether there is an indication that an asset or group of assets may be impaired. When impairment indicators exist, the Company estimates the recoverable amount of the asset and compares it against the asset's carrying amount. The recoverable amount is the higher of its fair value less cost of disposal ("FVLCD") and the asset's value in use ("VIU"). If the carrying amount exceeds the recoverable amount, an impairment loss is recorded in the consolidated statement of operations. In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset not already reflected in the estimates of future cash flows. The cash flows are based on best estimates of expected future cash flows from the continued use of the asset and its eventual disposal. FVLCD is best evidenced if obtained from an active market or binding sale agreement. Where neither exists, the fair value is based on the best estimates available to reflect the amount that could be received from an arm's length transaction. Future cash flows are based on estimated quantities of gold and other recoverable metals, expected price of gold (considering current and historical prices, price trends and related factors), production levels and cash costs of production, capital and reclamation costs, all based on detailed engineered life-of-mine plans. Numerous factors including, but not limited to, unexpected grade changes, gold recovery variances, shortages of equipment and consumables, and equipment failures could impact our ability to achieve forecasted production schedules from proven and probable reserves. Additionally, commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions used in the cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically. If an impairment loss reverses in a subsequent period, the carrying amount (post reversal) of the related asset is increased to the revised estimate of recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset previously. Reversals of impairment losses are recognized in the statement of operations in the period the reversals occur. Material changes to any of the factors or assumptions discussed above could result in future asset impairments. Rehabilitation provisions The Company records a liability and corresponding asset for the present value of the estimated costs of legal and constructive obligations for future site reclamation and closure where the liability is probable and a reasonable estimate can be made of the obligation. The estimated present value of the obligation is reassessed on a periodic basis or when new material information becomes available. Increases or decreases to the obligation usually arise due to changes in legal or regulatory requirements, the extent of environmental remediation required, methods of reclamation, cost estimates, inflation rates, or discount rates. Changes to the provision for reclamation and remediation obligations related to operating mines, which are not the result of current production of inventory, are recorded with an offsetting change to the related asset. Changes to the provision for reclamation and remediation obligations related to suspended mine operations are recognized in the consolidated statements of operations and comprehensive loss. The present value is determined based on current market assessments of the time value of money using discount rates based on the risk-free rate maturing approximating the timing of expected expenditures to be incurred, and adjusted for country related risks. The periodic unwinding of the discount is recognized in the consolidated statement of operations as a finance expense. Deferred revenue Until December 31, 2017, deferred revenue consists of payments received by the Company for future delivery of payable gold under the terms of the Company’s Streaming Agreement. As deliveries were made, the Company recorded a portion of the deferred revenue as sales, on a unit of production basis over the volume of gold expected to be delivered during the term of the streaming arrangement. The amount by which the deferred revenue balance was reduced and recognized into revenue was based on a rate per ounce of gold delivered under the stream. This rate per ounce of gold delivered was based on the remaining deferred revenue balance divided by the ounces that are expected to be delivered under the Stream Arrangement over the life of the arrangement. This estimate is re-evaluated at each reporting period with any resulting changes in estimate reflected prospectively. Prior to the adoption of IFRS 15 Revenue from Contracts with Customers, the Streaming Agreement was recorded as a contract for the future delivery of gold ounces at the contracted price. The upfront payments were accounted for as prepayments of yet-to-be delivered ounces under the contract and were recorded as deferred revenue. The initial term of the contract is 40 years and the deposit bears no interest. On January 1, 2018, the Company adopted the requirements of IFRS 15. The Company elected to use the modified retrospective approach to initially adopt IFRS 15 which resulted in recognizing the cumulative effect of prior period amounts as an adjustment to the opening balance sheet through opening deficit on January 1, 2018. From January 1, 2018, deferred revenue consists of: 1) initial cash payments received by the Company for future delivery of payable gold under the terms of the Company’s Streaming Agreement as defined in Note 11 , Deferred Revenue, and 2) a significant financing component of the Company’s Streaming Agreement. Deferred revenue is increased as interest expense is recognized based on the implicit interest rate of the discounted cash flows arising from the expected delivery of ounces under the Company’s Streaming Agreement. The amount by which the deferred revenue balance is reduced and recognized into revenue is based on a rate per ounce of gold delivered under the stream. This rate per ounce of gold delivered relating to the payments received by the Company is based on the remaining deferred revenue balance divided by the ounces that are expected to be delivered over the term of the Stream Agreement. As the Company’s Streaming Agreement contains a variable component, IFRS 15 requires that the transaction price be updated and re-allocated on an ongoing basis. As a result, the deferred revenue recognized per ounce of gold delivered under the Streaming Agreement will require an adjustment each time there is a significant change in the underlying gold production profile of a mine. Should a change in the transaction price be necessary, a retroactive adjustment to revenue will be made in the period in which the change occurs, to reflect the updated production profile expected to be delivered under the Streaming Agreement. Foreign currency transactions The Company's presentation currency of its consolidated financial statements is the U.S. dollar, as is the functional currency of its operations. The functional currency of all consolidated subsidiaries is the U.S. dollar. All values are rounded to the nearest thousand, unless otherwise stated. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at period end exchange rates. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into U.S. dollars at the exchange rate at the date that the fair value was determined. Income and expense items are translated at the exchange rate in effect on the date of the transaction. Exchange gains and losses resulting from the translation of these amounts are included in net loss, except those arising on the translation of equity investments at fair value through other comprehensive income that are recorded in other comprehensive income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at historical cost are translated at the exchange rate in effect at the transaction date . Income taxes Income taxes comprise the provision for (or recovery of) taxes actually paid or payable (current taxes) and for deferred taxes. Current taxes are based on taxable earnings in the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in the respective jurisdictions. Current income tax assets and current income tax liabilities are only offset if a legally enforceable right exists to offset the amounts and the Company intends to settle on a net basis or to realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Deferred income tax assets and liabilities are computed using enacted or substantially enacted income tax rates in effect when the temporary differences are expected to reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in the period of substantial enactment. The provision for or the recovery of deferred taxes is based on the changes in deferred tax assets and liabilities during the period. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized to the extent that it is probable that taxable earnings will be available against which deductible temporary differences can be utilized. Net income/(loss) per share Basic income/(loss) per share of common stock is calculated by dividing income available to Golden Star's common shareholders by the weighted average number of common shares issued and outstanding during the period. In periods with earnings, the calculation of diluted net income per common share uses the treasury stock method to compute the dilutive effects of stock options, warrants, convertible debentures and other potentially dilutive instruments. In periods of loss, diluted net loss per share is equal to basic income per share. Revenue recognition Until December 31, 2017, revenue from the sale of metal was recognized when the significant risks and rewards of ownership have passed to the purchaser. This occurs when the amount of revenue could be measured reliably, the metal had been delivered, title has passed to the buyer and it was probable that the economic benefits associated with the transaction will flow to the entity. Title and risk of ownership pass to the buyer on the day doré was shipped from the mine sites. On January 1, 2018, the Company adopted the requirements of IFRS 15, where revenue from the sale of metal is recognized when the Company transfers control over to a customer. There was no impact to the accounting of revenue from the sale of doré on adoption of IFRS 15. All of our spot sales of gold are transported to a South African gold refiner who locates a buyer and arranges for sale of our gold on the same day that the gold is shipped from the mine site. The sales price is based on the London P.M. fix on the day of shipment. Revenue recognition for the Company’s Streaming Agreement is disclosed in the accounting policy for deferred revenue. Share-based compensation Under the Company's Fourth Amended and Restated 1997 Stock Option Plan, common share options may be granted to executives, employees, consultants and non-employee directors. Compensation expense for such grants is recorded in the consolidated statements of operations and comprehensive (loss)/income, with a corresponding increase recorded in the contributed surplus account in the consolidated balance sheets. The expense is based on the fair value of the option at the time of grant, measured by reference to the fair value determined using a Black-Scholes valuation model, and is recognized over the vesting periods of the respective options on a graded basis. Consideration paid to the Company on exercise of options is credited to share capital. Under the Company's Deferred Share Unit ("DSU") plan, DSUs may be granted to executive officers and directors. Compensation expense for such grants is recorded in the consolidated statements of operations and comprehensive (loss)/income with a corresponding increase recorded in the contributed surplus account in the consolidated balance sheets. The expense is based on the fair values at the time of grant and is recognized over the vesting periods of the respective DSUs. Upon exercise the Company's compensation committee may, at its discretion, issue cash, shares or a combination thereof. Under the Company's Share Appreciation Rights ("SARs") plan allows SARs to be issued to executives, employees and directors. These awards are settled in cash on the exercise date equal to the Company's stock price less the strike price. Since these awards are settled in cash, the Company marks-to-market the associated expense for each award at the end of each reporting period using a Black-Scholes model. The Company accounts for these as liability awards and marks-to-market the fair value of the award until final settlement. Under the Company's Performance Share Units ("PSU") plan, PSUs may be granted to executives, employees and non-employee directors. Each PSU represents one notional common share that is redeemed for cash based on the value of a common share at the end of the three year performance period, to the extent performance and vesting criteria have been met. The PSUs vest at the end of a three year performance. The cash award is determined by multiplying the number of units by the performance adjusting factor, which ranges from 0% to 200% . The performance factor is determined by comparing the Company's share price performance to the share price performance of a peer group of companies as listed in the PSU plan. As the Company is required to settle these awards in cash, they are accounted for as liability awards with corresponding compensation expense recognized. Long term PSU liabilities are recognized on the balance sheet as Long Term Other Liability and the current portion is recorded as Other Liability. Under the Company's 2017 performance and restricted share unit plan (the "2017 PRSU Plan"), performance share units ("2017 PSUs") and restricted share units ("2017 RSUs" and, together with the 2017 PSUs, the "Share Units") may be issued to any employee or officer of the Company or its designated affiliates. Share Units may be redeemed for: (i) common shares issued from treasury; (ii) common shares purchased in the secondary market; (iii) a cash payment; or (iv) a combination of (i), (ii) and (iii). Each PRSU represents one notional common share that is redeemed for common shares or common shares plus cash subject to the consent of the Company based on the value of a common share at the end of the three year performance period, to the extent performance and vesting criteria have been met. The PRSUs vest at the end of a three year performance period. The award is determined by multiplying the number of Share Units by the performance adjustment factor, which ranges from 0% to 200% . The performance adjustment factor is determined by comparing the Company's share price performance to the share price performance of a peer group of companies as listed in the 2017 PRSU Plan. As the Company has a practice of settling these awards in common shares, they are accounted for as equity awards with corresponding compensation expense recognized. Leases Leases that transfer substantially all of the benefits and risks of ownership to the Company are recorded as finance leases and classified as property, plant and equipment with a corresponding amount recorded with current and long-term debt. All other leases are classified as operating leases under which leasing costs are expensed in the period incurred. The Company will adopt IFRS 16, which was issued in January 2016 and applies to annual reporting periods beginning on or after January 1, 2019. See Changes in accounting policies below. Financial instruments Until December 31, 2017, the Company recognized all financial assets initially at fair value and classifies them into one of the following three categories: fair value through profit or loss ("FVTPL"), available-for-sale ("AFS") or loans and receivables, as appropriate. The Company had not classified any of its financial assets as held to maturity. From January 1, 2018, the Company recognizes all financial assets initially at fair value and classifies them into one of the following measurement categories: fair value through profit or loss (“FVTPL”), fair value through other comprehensive income (“FVOCI”) or amortized cost, as appropriate. On adoption of IFRS 9 Financial Instruments , there was no accounting impact to the financial statements and there were no changes in the carrying values of any of the Company's financial assets. The Company recognizes all financial liabilities initially at fair value and classifies them as either FVTPL or loans and borrowings, as appropriate. The Company has not classified any of its derivatives as hedging instruments in an effective hedge. 5% Convertible Debentures The Company's 5% Convertible Debentures were considered financial instruments at FVTPL. The convertible debentures contained embedded derivatives that significantly modified the cash flows that otherwise would be required by the contract. The convertible debentures were recorded at fair value based on unadjusted quoted prices in active markets when available, otherwise by valuing the embedded derivative conversion feature and the debt component separately. The conversion feature was valued using a Black-Scholes model and the value of the debt was determined based on the present value of the future cash flows. Changes in fair value were recorded in the consolidated statement of operations. Upfront costs and fees related to the convertible debentures were recognized in the statement of operations as incurred and not deferred. The Company's 5% Convertible Debentures were fully settled during the year ended December 31, 2017 . Warrants The Company's warrants were considered financial instruments at FVTPL. Prior to the holder exercising the warrants in full in 2017, the holder of the warrants had an option to request a cashless exercise. As a result, the warrants were classified as financial liability instruments and were recorded at fair value at each reporting period end using a Black-Scholes model. Warrant pricing models required the input of certain assumptions including price volatility and expected life. All warrants were exercised during the year ended December 31, 2017 . Derivatives From time to time the Company may utilize foreign exchange and commodity price derivatives to manage exposure to fluctuations in foreign currency exchange rates and gold prices, respectively. The Company does not employ derivative financial instruments for trading purposes or for speculative purposes. Derivative instruments are recorded on the balance sheet at fair value with changes in fair value recorded in the consolidated statement of operations. The Company did not have any foreign exchange derivatives outstanding at December 31, 2018 . 7% Convertible Debentures embedded derivative The Company's 7% Convertible Debentures embedded derivative is considered a financial instrument at FVTPL. The embedded derivative was recorded at fair value on the date of debt issuance. It is subsequently remeasured at fair value at each reporting date, and the changes in the fair value are recorded in the consolidated statement of operations. The fair value of the embedded derivative is determined using a convertible note valuation model, using assumptions based on market conditions existing at the reporting date. Share capital Common shares are classified as equity. Costs directly attributable to the issue of new shares or share options are shown in equity as a deduction, net of tax, from the gross proceeds. Changes in accounting policies The Company has adopted the following new and revised standards, effective January 1, 2018. These changes were made in accordance with the applicable transitional provisions. IFRS 2 Share-based payments was amended to address (i) certain issues related to the accounting for cash settled awards, and (ii) the accounting for equity settled awards that include a "net settlement" feature in respect of employee withholding taxes effective for years beginning on or after January 1, 2018. There was no impact to the financial statements on adoption of this standard. IFRS 9 Financial Instruments was issued in July 2014 and includes (i) a third measurement category for financial assets - fair value through other comprehensive income; (ii) a single, forward-looking "expected loss" impairment model; and (iii) a mandatory effective date of annual periods beginning on or after January 1, 2018. On adoption of this standard, there was no accounting impact to the financial statements and there were no changes in the carrying values of any of the Company's financial assets. IFRS 15 Revenue from Contracts with Customers was amended to clarify how to (i) identify a performance obligation in a contract; (ii) determine whether a company is a principal or an agent; and (iii) determine whether the revenue from granting a license should be recognized at a point in time or over time. In addition to the clarifications, the amendments include two additional reliefs to reduce cost and complexity for a company when it first applies the new standard. The amendments have the same effective date as the standard, which is January 1, 2018. The impact of the initial adoption of IFRS 15 was $19.0 million . The adjustment was recorded as an increase to deferred revenue with a corresponding increase to opening deficit. Standards, interpretations and amendments not yet effective IFRS 16 Leases specifies how an IFRS reporter will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16's approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 was issued in January 2016 and applies to annual reporting periods beginning on or after January 1, 2019. The Company has completed an evaluation of the population of its contracts to ensure compliance with the new lease standard. The assessment has identified some contracts that will likely be capitalized under the new lease standard however the Company does not expect there to be a material impact on the financial statements upon adoption of IFRS 16 on January 1, 2019, which will be applied on a modified retrospective basis. IFRIC 23 Uncertainty over income tax treatments clarifies how the recognition and measurement requirements of IAS 12, Income Taxes, are applied where there is uncertainty over income tax treatments effective for years beginning on or after January 1, 2019. There is not expected to be any accounting impact to the financial statements on adoption of this standard. |
CRITICAL ACCOUNTING JUDGEMENTS,
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | 4. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS Preparation of our consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that can affect reported amounts of assets, liabilities, revenues and expenses and the accompanying disclosures. Estimates and assumptions are continuously evaluated and are based on management's historical experience and on other assumptions we believe to be reasonable under the circumstances. However, uncertainty about these judgments, estimates and assumptions could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Inventory valuation Inventories are recorded at the lower of average cost or net realizable value ("NRV"). The allocation of costs to ore in stockpiles and the determination of NRV involve the use of estimates. Stockpiled ore represents coarse ore that has been extracted from the mine and is stored for future processing. Stockpiled ore is measured using estimates such as the number of tonnes (via truck counts or by physical surveys) added to, or removed from the stockpile, the number of contained ounces (based on assay data) and estimated gold recovery percentage. Timing and recovery of stockpiled ore can vary significantly from the estimates. The net realizable value of materials and supplies is recorded based on the expected usage of the inventory items, salvage value and condition of the inventory items, all of which are based on management estimates and judgments. Mineral reserves and resources Determining mineral reserves and resources is a complex process involving numerous variables and is based on a professional evaluation using accepted international standards for the assessment of mineral reserves. Estimation is a subjective process, and the accuracy of such estimates is a function of the quantity and quality of available data, the assumptions made and judgments used in engineering and geological interpretation. Mineral reserve estimation may vary as a result of changes in the price of gold, production costs, and with additional knowledge of the ore deposits and mining conditions. Differences between management's assumptions including economic assumptions such as metal prices and market conditions could have a material effect in the future on the Company's results and financial position, particularly a change in the rate of depreciation and amortization of the related mining assets and the recognition of deferred revenue. Units of production depreciation The mineral properties and a large portion of the property, plant and equipment is depreciated/amortized using the units of production method over the expected operating life of the mine based on estimated recoverable ounces of gold, which are the prime determinants of the life of a mine. Estimated recoverable ounces of gold include proven and probable mineral reserves. Changes in the estimated mineral reserves and resources will result in changes to the depreciation charges over the remaining life of the operation. A decrease in the mineral reserves would increase depreciation and amortization expense and this could have a material impact on the operating results. The amortization base is updated on an annual basis based on the new mineral reserve and resource estimates. Carrying value of assets and impairment charges The Company undertakes a review of its assets at each reporting period to determine whether any indication of impairment exists. Where an indicator of impairment exists, a formal estimate of the recoverable amount of the asset or cash-generating unit ("CGU") is made, which is considered to be the higher of its FVLCD and VIU. An impairment loss is recognized when the carrying value of the asset or CGU is higher than the recoverable amount. In undertaking this review, management of the Company is required to make significant estimates of, amongst other things, discount rates, future production and sale volumes, metal prices, reserves and resource quantities, future operating and capital costs and reclamation costs to the end of the mine's life. These estimates are subject to various risks and uncertainties, which may ultimately have an effect on the expected recoverability of the carrying values of the asset or CGU. In determining a CGU, management has examined the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflows from other assets or group of assets. Rehabilitation provisions Environmental reclamation and closure liabilities are recognized at the time of environmental disturbance, in amounts equal to the discounted value of expected future reclamation and closure costs. The estimated future cash costs of such liabilities are based primarily upon environmental and regulatory requirements of the various jurisdictions in which we operate as well as any other constructive obligations that exist. The liability represents management's best estimates of cash required to settle the liability, inflation, assumptions of risks associated with future cash flows and the applicable risk-free interest rates for discounting the future cash outflow. The liability is reassessed and remeasured at each reporting date. Fair value of financial instruments, including embedded derivatives Where the fair value of financial assets and financial liabilities recorded in the financial statements cannot be derived from active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. When measuring the fair value of an asset or liability, the Company uses observable market data to the greatest extent possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) Income taxes We deal with uncertainties and judgments in the application of complex tax regulations in the various jurisdictions where our properties are located. The amount of taxes paid is dependent upon many factors, including negotiations with taxing authorities in the various jurisdictions and resolution of disputes arising from our international tax audits. We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in our various tax jurisdictions based on our best estimate of additional taxes payable. We adjust these tax estimates in light of changing facts and circumstances, however, due to the complexity of some of these uncertainties, the ultimate resolution may result in payment that is materially different from our estimates of our tax liabilities. If our estimate of tax liability proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater that the ultimate assessment, a tax benefit is recognized. A deferred tax asset is recognized to the extent that it is probable that taxable earnings will be available against which deductible temporary differences can be utilized. Deferred revenue Significant judgment is required in determining the appropriate accounting for the Streaming Agreement that has been entered into. Management has determined that based on the agreements reached that it assumes significant business risk associated with the timing and amount of ounces of gold being delivered. As such, the deposits received have been recorded as deferred revenue liabilities in the consolidated balance sheet. Deferred revenue is recognized as revenue based on the percentage of ounces delivered in the period over the total estimated ounces to be delivered over the life of the Streaming Agreement. Commencement of commercial production Prior to the period when a mine has reached management’s intended operating levels, costs incurred as part of the development of the related mining property are capitalized and any gold sales during the development period are offset against the cost capitalized. The Company defines the commencement of commercial production as the date that a mine has achieved a consistent level of production. Depreciation/amortization of capitalized costs for mining properties begins when operating levels intended by management has been reached. There are a number of factors the Company considers when determining if conditions exist for the commencement of commercial production of an operating mine. Management examines the following factors when making that judgement: • All major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed; • The completion of a reasonable period of testing of the mine properties; • The mine and/or mill has reached a pre-determined percentage of design capacity; and • The ability to sustain ongoing production of ore. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | 5. FINANCIAL INSTRUMENTS The following tables illustrate the classification of the Company's recurring fair value measurements for financial instruments within the fair value hierarchy and their carrying values and fair values as at December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 Level Carrying value Fair value Carrying value Fair value Financial Liabilities Fair value through profit or loss 7% Convertible Debentures embedded derivative 3 4,177 4,177 10,963 10,963 There were no non-recurring fair value measurements of financial instruments as at December 31, 2018 . The three levels of the fair value hierarchy are: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 - Inputs that are not based on observable market data. The Company's policy is to recognize transfers into and transfers out of the fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. During the year ended December 31, 2018 , there were no transfers between the levels of the fair value hierarchy. Gain on fair value of financial instruments in the Statements of Operations and Comprehensive (Loss)/Income includes the following components: For the Years Ended December 31, 2018 2017 Loss on fair value of 5% Convertible Debentures $ — $ 317 Gain on fair value of warrants — (86 ) Gain on warrant exercise — (193 ) Gain on fair value of 7% Convertible Debentures embedded derivative (6,786 ) (2,095 ) $ (6,786 ) $ (2,057 ) The valuation technique that is used to measure fair value is as follows: 7% Convertible Debentures embedded derivative The debt component of the 7% Convertible Debentures is recorded at amortized cost using the effective interest rate method, and the conversion feature is classified as an embedded derivative measured at fair value through profit or loss. The embedded derivative was valued at December 31, 2018 and December 31, 2017 using a convertible note valuation model. The significant inputs used in the convertible note valuation are as follows: December 31, 2018 December 31, 2017 Embedded derivative Risk premium 5.0 % 7.9 % Borrowing costs 10.0 % 15.0 % Expected volatility 45.0 % 45.0 % Remaining life (years) 2.6 3.6 The following table presents the changes in the 7% Convertible Debentures embedded derivative for the year ended December 31, 2018 : Fair value Balance at December 31, 2017 $ 10,963 Gain on fair value of 7% Convertible Debentures embedded derivative (6,786 ) Balance at December 31, 2018 $ 4,177 If the risk premium increases by 10% , the fair value of the 7% Convertible Debentures embedded derivative would decrease and the related gain in the Statement of Operations would increase by $0.2 million for the year ended December 31, 2018 . If the borrowing costs increases by 10% , the fair value of the 7% Convertible Debentures embedded derivative would decrease and the related gain in the Statement of Operations would increase by $0.2 million for the year ended December 31, 2018 . If the expected volatility increases by 10% , the fair value of the 7% Convertible Debentures embedded derivative would increase and the related gain in the Statement of Operations would decrease by $0.7 million for the year ended December 31, 2018 . |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Classes of current inventories [abstract] | |
INVENTORIES | 6. INVENTORIES Inventories include the following components: As of As of December 31, December 31, Stockpiled ore $ 6,613 $ 22,998 In-process ore 4,188 4,014 Materials and supplies 23,659 22,677 Finished goods 736 964 Total $ 35,196 $ 50,653 The cost of inventories expensed for the year ended December 31, 2018 and 2017 was $209.4 million and $209.2 million , respectively. Net realizable value adjustments of $2.8 million was recorded for stockpiled ore during the year ended December 31, 2018 ( year ended December 31, 2017 - $3.5 million ). During the year ended December 31, 2018 , a total of $2.8 million materials and supplies inventories were written off at Wassa. These are primarily related to open-pit mining equipment, materials and supplies as open-pit mining at Wassa was terminated in the first quarter of 2018. There were no write offs in the prior period. |
MINING INTERESTS
MINING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
MINING INTERESTS | 7. MINING INTERESTS The following table shows the breakdown of the cost, accumulated depreciation and net book value of plant and equipment, mining properties and construction in progress: Plant and equipment Mining properties Construction in progress Total Cost As of December 31, 2016 461,438 746,657 131,409 1,339,504 Additions 649 632 63,072 64,353 Transfers 24,269 48,122 (72,391 ) — Capitalized interest — — 5,285 5,285 Change in rehabilitation provision estimate — 3,022 — 3,022 Disposals and other (7,142 ) — (452 ) (7,594 ) Balance at December 31, 2017 $ 479,214 $ 798,433 $ 126,923 $ 1,404,570 Additions 95 677 45,485 46,257 Transfers 16,516 127,902 (144,418 ) — Capitalized interest — — 579 579 Change in rehabilitation provision estimate — 3,218 — 3,218 Disposals and other (17,065 ) — — (17,065 ) Balance at December 31, 2018 $ 478,760 $ 930,230 $ 28,569 $ 1,437,559 Accumulated depreciation As of December 31, 2016 431,698 692,789 — 1,124,487 Depreciation and amortization 12,385 20,431 — 32,816 Disposals and other (6,791 ) — — (6,791 ) Balance at December 31, 2017 $ 437,292 $ 713,220 $ — $ 1,150,512 Depreciation and amortization 12,349 20,900 — 33,249 Disposals and other (16,842 ) — — (16,842 ) Balance at December 31, 2018 $ 432,799 $ 734,120 $ — $ 1,166,919 Carrying amount Balance at December 31, 2017 $ 41,922 $ 85,213 $ 126,923 $ 254,058 Balance at December 31, 2018 $ 45,961 $ 196,110 $ 28,569 $ 270,640 As at December 31, 2018 , equipment under finance leases had net carrying amounts of $3.0 million ( December 31, 2017 - $1.6 million ). The total minimum lease payments are disclosed in Note 12 - Debt. No depreciation is charged to construction in progress assets. For the year ended December 31, 2018 , the general capitalization rate for borrowing costs was 7% . Commercial production was achieved February 1, 2018, therefore no capitalized interest was recorded since. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Incomes Taxes [Abstract] | |
INCOME TAXES | 8. INCOME TAXES We recognize deferred tax assets and liabilities based on the difference between the financial reporting and tax basis of assets and liabilities using the tax rates enacted or substantively enacted when the temporary differences are expected to reverse. Deferred tax assets are fully recognized when we conclude sufficient positive evidence exists to demonstrate that it is probable that a deferred tax asset will be realized. These factors included, but not limited to, (a) historic and expected future levels of taxable income; (b) tax plans that affect whether tax assets can be realized; and (c) the nature, amount and expected timing of reversal of taxable temporary differences. Levels of future income are affected by market price of gold, forecasted future costs of production and quantities of proven and probable gold reserves. If these factors or other circumstances changes, the Company records an adjustment to the recognition of deferred tax asset to reflect the Company’s latest assessment of the amount of deferred tax asset that is probable to be realized. Our net deferred tax assets at December 31, 2018 and 2017 include the following components: As of As of December 31, December 31, Deferred tax assets Tax losses carried forward $ 10,322 $ 17,773 Deductible temporary differences relating to provisions 5,995 4,821 Deferred tax liabilities Mine property costs 15,723 9,650 Net deferred tax assets $ 594 $ 12,944 The Company has recognized $0.6 million of net deferred tax assets as at December 31, 2018 following an assessment in the prior year of future profitability of the Company’s subsidiary Golden Star (Wassa) Limited and concluded the realization of the net deferred tax assets is probable. The composition of our unrecognized deferred tax assets by tax jurisdiction is summarized as follows: As of As of December 31, December 31, Deductible temporary differences Canada $ 8,844 $ 12,755 Ghana 31,509 44,232 $ 40,353 $ 56,987 Tax losses Canada $ 50,718 $ 48,411 U.S. 175 311 Ghana 287,545 257,771 $ 338,438 $ 306,493 Total unrecognized deferred tax assets Canada $ 59,562 $ 61,166 U.S. 175 311 Ghana 319,054 302,003 $ 378,791 $ 363,480 The income tax expense/(recovery) includes the following components: For the years ended December 31, 2018 2017 Current tax recovery Current tax on net earnings $ 12,350 $ — Deferred tax recovery Recovery of previously unrecognized deferred tax assets — (12,944 ) Income tax expense/(recovery) $ 12,350 $ (12,944 ) A reconciliation of expected income tax on net (loss)/income before minority interest at statutory rates with the actual income tax expense/(recovery) is as follows: For the years ended December 31, 2018 2017 Net (loss)/income before tax $ (11,721 ) $ 28,015 Statutory tax rate 26.5 % 26.5 % Tax benefit at statutory rate $ (3,106 ) $ 7,424 Foreign tax rates (15,562 ) (10,629 ) Other 132 74 Non taxable/deductible items (676 ) (20 ) Change in unrecognized deferred tax assets due to exchange rates 3,427 (1,180 ) Change in unrecognized deferred tax assets 28,135 (8,613 ) Deferred income tax expense/(recovery) $ 12,350 $ (12,944 ) At December 31, 2018 , the Company had a tax pool and loss carryovers expiring as follows: Canada Ghana Other 2019 $ — $ 33,488 $ — 2020 — 109,841 — 2021 — 12,822 2026 8,115 — 2027 12,306 117,889 — 2028 11,106 — — 2029 16,841 — — 2030 15,052 — — 2031 28,240 — — 2032 13,670 — — 2033 5,884 — 347 2034 — — 364 2035 8,049 — 1 2036 13,123 — 120 2037 14,827 Indefinite 37,867 577,012 — Total $ 185,080 $ 851,052 $ 832 $821.6 million of the Ghana tax pool is usable against taxable income generated at Prestea, with the remaining amount totaling $29.5 million usable against taxable income generated at Wassa. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other current payables [abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities include the following components: As of As of December 31, December 31, Trade and other payables $ 42,947 $ 44,048 Accrued liabilities 25,522 40,165 Payroll related liabilities 10,015 10,410 Total $ 78,484 $ 94,623 |
REHABILITATION PROVISIONS
REHABILITATION PROVISIONS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [abstract] | |
REHABILITATION PROVISIONS | 10. REHABILITATION PROVISIONS At December 31, 2018 , the total undiscounted amount of future cash needs for rehabilitation was estimated to be $73.5 million . A discount rate assumption of 2% and an inflation rate assumption of 2% were used to value the rehabilitation provisions. The changes in the carrying amount of the rehabilitation provisions are as follows: For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 Beginning balance $ 70,712 $ 77,382 Accretion of rehabilitation provisions 691 1,245 Changes in estimates 138 (1,923 ) Cost of reclamation work performed (5,316 ) (5,992 ) Balance at the end of the period $ 66,225 $ 70,712 Current portion $ 7,665 $ 6,566 Long term portion 58,560 64,146 Total $ 66,225 $ 70,712 During the year ended December 31, 2018 , the Company recorded an increase in estimate for Wassa of $1.0 million due to a revision in the timing of payments. At December 31, 2018 , the rehabilitation provision for Wassa was $17.2 million ( 2017 - $17.4 million ). The Company expects the payments for reclamation to be incurred between 2019 and 2027. During the year ended December 31, 2018 , the Company recorded a decrease in estimate for Prestea of $0.8 million . The decrease is due to a $3.1 million reduction in expected reclamation costs relating to the refractory liability and a $2.3 million increase in the expected reclamation costs relating to the non-refractory operation. The reduction of $3.1 million was primarily a result of a reduction in water treatment liability from ongoing treatment and a negative water balance. The reduction was recorded as other income since the carrying value of the underlying refractory assets were $nil after suspension of its operation in 2015. At December 31, 2018 , the rehabilitation provision for Prestea was $49.0 million ( 2017 - $53.3 million ). The Company expects the payments for reclamation to be incurred between 2019 and 2028. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Deferred Revenue [Abstract] | |
DEFERRED REVENUE | 11. DEFERRED REVENUE On July 28, 2015, the Company through its subsidiary Caystar Finance Co. completed a $130 million gold purchase and sale agreement (“Streaming Agreement”) with RGLD, a wholly-owned subsidiary of Royal Gold, Inc. ("RGI"). This Streaming Agreement was subsequently amended on December 30, 2015 to provide an additional $15 million of streaming advance payment. The Streaming percentages were adjusted as follows to reflect the $15 million additional advance payment: From January 1, 2016, the Company will deliver 9.25% of gold production from Wassa and Prestea to RGLD at a cash purchase price of 20% of spot gold. From January 1, 2018, Golden Star will deliver 10.5% of gold production from Wassa and Prestea at a cash purchase price of 20% of spot gold until 240,000 ounces have been delivered. Thereafter, 5.5% of gold production from Wassa and Prestea at a cash purchase price of 30% of spot gold price will be delivered. During the year ended December 31, 2018 , the Company sold 23,692 ounces of gold to RGLD. Revenue recognized on the ounces sold to RGLD during the year ended December 31, 2018 consisted of $6.0 million of cash payment proceeds and $13.7 million of deferred revenue recognized in the period (see Note 17 ). The Company has delivered a total of 78,461 ounces of gold to RGLD since the inception of the Streaming Agreement. For the Years Ended December 31, 2018 2017 Beginning balance $ 109,956 $ 114,112 Impact of adopting IFRS 15 on January 1, 2018 (see Note 3) 18,980 — Deposits received — 10,000 Deferred revenue recognized (13,738 ) (14,156 ) Interest on financing component of deferred revenue 4,750 — Balance at the end of the period $ 119,948 $ 109,956 Current portion $ 14,316 $ 17,894 Long term portion 105,632 92,062 Total $ 119,948 $ 109,956 During the year ended December 31, 2018 , the Company recognized $10.6 million deferred revenue, $3.1 million amortization of financing component, and $4.8 million interest on financing component of deferred revenue. Had the Company not adopted IFRS 15, deferred revenue recognized for the year ended December 31, 2018 would have been $13.7 million and there would have been no amortization of financing component or interest on financing component of deferred revenue. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
DEBT | 12. DEBT The following table displays the components of our current and long term debt instruments: As of As of December 31, 2018 December 31, 2017 Current debt: Equipment financing credit facility $ — $ 147 Finance leases 1,151 1,229 Ecobank Loan III 5,555 2,222 Ecobank Loan IV 4,000 — Vendor agreement 16,776 12,266 Total current debt $ 27,482 $ 15,864 Long term debt: Finance leases $ 532 $ 269 Ecobank Loan III 14,380 7,337 Ecobank Loan IV 13,700 — 7% Convertible Debentures 44,612 42,515 Royal Gold loan — 18,817 Vendor agreement — 10,803 Total long term debt $ 73,224 $ 79,741 Current portion $ 27,482 $ 15,864 Long term portion 73,224 79,741 Total $ 100,706 $ 95,605 Equipment financing credit facility Bogoso/Prestea and Wassa maintained an equipment financing facility with Caterpillar Financial Services Corporation, with Golden Star as the guarantor of all amounts borrowed. The facility provided credit financing for mining equipment at a fixed interest rate of 6.5% . Amounts drawn under this facility were repayable over a period of two to five years. Each outstanding equipment loan was secured by the title of the specific equipment purchased with the loan until the loan was repaid in full. Finance leases The Company financed mining equipment at Wassa and Bogoso/Prestea through equipment financing leases. These finance leases are payable in equal installments over a period of 60 months and have implicit interest rates of 6.9% . Each outstanding finance lease is secured by the title of the specific equipment purchased with the lease until the lease has been repaid in full. During the year ended December 31, 2018 , the Company entered into two financing lease agreements totaling $1.9 million for a period of 24 months . Ecobank Loan III On February 22, 2017, the Company through its subsidiary Golden Star (Wassa) Limited closed a $25 million secured Medium Term Loan Facility ("Ecobank Loan III") with Ecobank Ghana Limited. Ecobank Loan III has a term of 60 months from the date of initial drawdown and is secured by, among other things, Wassa's existing plant, and certain machinery and equipment having a specified value. The interest rate on the loan is three month LIBOR plus 8% , per annum, payable monthly in arrears beginning a month following the initial drawdown. Repayment of principal commences six months following the initial drawdown and is thereafter payable quarterly in arrears. The Company had twelve months to drawdown the loan. On January 24, 2018, the Company drew down $15.0 million of the Ecobank Loan III. The full $25.0 million has been drawn as at December 31, 2018. Ecobank Loan IV On June 28, 2018, the Company through its subsidiary Golden Star (Wassa) Limited closed a $20.0 million secured loan facility ("Ecobank Loan IV") with Ecobank Ghana Limited and used the facility to repay in full the $20.0 million Royal Gold loan. The loan is secured by, among other things, Wassa's existing plant, and certain machinery and equipment having a specified value. There are no prepayment penalties associated with Ecobank Loan IV and the loan is repayable within 60 months of initial drawdown. Repayment of principal commenced September 2018 and is thereafter payable quarterly in arrears. Interest is payable monthly in arrears at an interest rate equal to three month LIBOR plus a spread of 7.5% per annum. Royal Gold loan In July 2015, the Company through its subsidiary Caystar Finance Co. closed a $20.0 million term loan with RGI and subsequently drew down $20.0 million of the facility. The loan has a term of 4 years and is secured by, among other things, assets of Wassa and Bogoso/Prestea. Interest is payable based on the average daily London Bullion Market Association ("LBMA") gold price multiplied by 62.5% divided by 10,000 to a maximum interest rate of 11.5% per annum. Interest payments are to be made on the last business day of each fiscal quarter, commencing in the quarter which the funding occurred. The fair value of the loan is determined net of initial valuation of the warrants issued to RGI and financing fees incurred. Commencing June 30, 2017, the excess cash flow provision came into effect. No excess cash flow repayments were made. For the year ended December 31, 2018, the interest rate was approximately 8% with a total of $0.8 million paid during the year. On June 28, 2018, the Company used Ecobank Loan IV to repay in full the $20.0 million Royal Gold loan. 7% Convertible Debentures The 7% Convertible Debentures were issued on August 3, 2016, in the amount of $65.0 million due August 15, 2021. The Company entered into exchange and purchase agreements with two holders of its 5% Convertible Debentures due June 1, 2017 to exchange $42.0 million principal amount of the outstanding 5% Convertible Debentures for an equal principal amount of 7% Convertible Debentures (the "Exchange"), with such principal amount being included in the issuance of the $65.0 million total aggregate principal amount of the 7% Convertible Debentures. The Company did not receive any cash proceeds from the Exchange. The 7% Convertible Debentures are governed by the terms of an indenture dated August 3, 2016, by and between the Company and The Bank of New York Mellon, as indenture trustee. The 7% Convertible Debentures are senior unsecured obligations of the Company, bear interest at a rate of 7.0% per annum, payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2017, and will mature on August 15, 2021, unless earlier repurchased, redeemed or converted. Subject to earlier redemption or purchase, the 7% Convertible Debentures are convertible at any time until the close of business on the third business day immediately preceding August 15, 2021 at the option of the holder, and may be settled, at the Company's election, in cash, common shares of the Company, or a combination of cash and common shares based on an initial conversion rate. The initial conversion rate of the 7% Convertible Debentures, subject to adjustment, is approximately 222 common shares of the Company per $1,000 principal amount of 7% Convertible Debentures being converted, which is equivalent to an initial conversion price of approximately $4.50 per common share. The initial conversion rate is subject to adjustment upon the occurrence of certain events. If the 7% Convertible Debentures are converted before August 1, 2019, the Company will, in addition to the consideration payable with the conversion, be required to make a conversion make-whole payment in cash, common shares of the Company or a combination thereof, at the Company's election, equal to the present value of the remaining scheduled payments of interest that would have been made on the 7% Convertible Debentures converted had such debentures remained outstanding from the conversion date to August 1, 2019, subject to certain restrictions. The present value of the remaining scheduled interest payments will be computed using a discount rate equal to 2.0% . Prior to August 15, 2019, the Company may not redeem the 7% Convertible Debentures except in the event of certain changes in applicable tax law. On or after August 15, 2019, the Company may redeem all or part of the outstanding 7% Convertible Debentures at the redemption price, only if the last reported sales price of the Company's common shares for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date the Company provides the notice of redemption to holders exceeds 130% of the conversion price in effect on each such trading day. The redemption price is equal to the sum of (1) 100% of the principal amount of the 7% Convertible Debentures to be redeemed, (2) any accrued and unpaid interest to, but excluding, the redemption date, and (3) a redemption make-whole payment, payable in cash, common shares of the Company or a combination thereof, at the Company's election, equal to the present value of the remaining scheduled payments of interest that would have been made on the 7% Convertible Debentures to be redeemed had such debentures remained outstanding from the redemption date to August 15, 2021 (excluding interest accrued to, but excluding, the redemption date, which is otherwise paid pursuant to the preceding clause (2)). The conversion feature referred to above is an embedded derivative. The Company selected to bifurcate the conversion feature from the host instrument, thereby separating it from the debt component. The debt component is recorded at amortized cost, and the embedded derivative is accounted for at fair value. At August 3, 2016, the date of the debt issuance, the fair value of the embedded derivative was $12.3 million . At December 31, 2018 , the fair value of the embedded derivative was $4.2 million ( December 31, 2017 - $11.0 million ). The revaluation gain of $6.8 million is recorded in the Statement of Operations (year ended December 31, 2017 - revaluation gain of $2.1 million ). There were no conversions during the year (December 31, 2017 - gain on conversions of $2.1 million ). During the first quarter of 2017, a total of 1,889,110 shares were issued on conversion of $8.5 million principal amount of 7% Convertible Debentures. The Company recorded a net loss on conversions of $0.2 million . The Company also made make-whole interest payments of $1.4 million as a result of the conversions. There were no conversions during the rest of 2017. As at December 31, 2017, $51.5 million principal amount of 7% Convertible Debentures remained outstanding. There were no conversions of the 7% Convertible Debentures during 2018 , therefore, as at December 31, 2018 , $51.5 million principal amount of 7% Convertible Debentures remains outstanding. The changes in the carrying amount of the 7% Convertible Debentures are as follows: For the Years Ended December 31, 2018 2017 Beginning balance $ 42,515 $ 47,617 Conversions — (6,947 ) Accretion of 7% Convertible Debentures discount 2,097 1,845 Balance at the end of the period $ 44,612 $ 42,515 Vendor agreement On May 4, 2016, the Company entered into an agreement with a significant account creditor to settle $36.5 million of current liabilities. Under this agreement, the Company paid $12.0 million and deferred the payment of the remaining $24.5 million until January 2018, after which the outstanding balance will be repaid in equal installments over 24 months commencing on January 31, 2018. Interest of 7.5% will accrue and be payable beginning in January 2017. A $2.7 million gain was recognized in Other Income on remeasurement of the deferral during the second quarter of 2016. Schedule of payments on outstanding debt as of December 31, 2018 : Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 Year ending December 31, 2022 Year ending December 31, 2023 Maturity Finance leases Principal $ 1,151 $ 532 $ — $ — $ — 2020 Interest 94 8 — — — Ecobank Loan III Principal 5,555 5,555 5,555 3,611 — 2022 Interest 1,739 1,189 632 101 — Ecobank Loan IV Principal 4,000 4,000 4,000 4,000 2,000 2023 Interest 1,645 1,250 847 448 74 7% Convertible Debentures Principal — — 51,498 — — August 15, 2021 Interest 3,605 3,605 3,605 — — Vendor agreement Principal 17,507 — — — — 2019 Interest 1,072 — — — — Total principal $ 28,213 $ 10,087 $ 61,053 $ 7,611 $ 2,000 Total interest 8,155 6,052 5,084 549 74 $ 36,368 $ 16,139 $ 66,137 $ 8,160 $ 2,074 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
SHARE CAPITAL | 13. SHARE CAPITAL During the year ended December 31, 2018, the Company consolidated the common shares of the Company on the basis of one post-consolidation common share for every five pre-consolidation common shares. The common shares of the Company began trading on a consolidation-adjusted basis on the TSX and the NYSE American when the markets opened on October 30, 2018. All share data and equity-based compensation plans have been retroactively adjusted to give effect to the consolidation. Note Number of Common Shares Share Capital Balance at December 31, 2016 67,071,290 $ 746,542 Bought deal 6,272,790 26,203 Conversion of 7% Convertible Debentures 1,889,110 9,479 Shares issued under DSUs 233,539 521 Shares issued under options 4,750 16 Shares issued under warrants 644,736 2,450 Share issue costs — (2,044 ) Balance at December 31, 2017 76,116,215 $ 783,167 Private placement a 32,642,100 125,672 Shares issued under DSUs 36,194 20 Shares issued under options 24,500 77 Share issue costs — (901 ) Balance at December 31, 2018 108,819,009 $ 908,035 a. On October 1, 2018, the Company completed a $125.7 million strategic investment with La Mancha Holding S.à r.l. ("La Mancha"), a Luxembourg-incorporated private gold investment company through a private placement. La Mancha was issued 32,642,100 Golden Star common shares, representing approximately 30% of the outstanding share capital (on a non-diluted basis) after giving effect to La Mancha's investment. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Our commitments and contingencies include the following items: Environmental bonding in Ghana The Ghana Environmental Protection Agency ("EPA") requires environmental compliance bonds that provide assurance for environmental remediation at our Bogoso/Prestea and Wassa mining operations. To meet this requirement the Company has environmental bonds totaling $9.6 million and $8.1 million for Wassa and Bogoso/Prestea respectively, with a commercial bank in Ghana. These bonds are guaranteed by Golden Star Resources Ltd. There is also a cross guarantee between Wassa and Bogoso/Prestea. The Company also held cash deposits of $3.5 million and $3.0 million for each operation, which are recorded as restricted cash on the consolidated balance sheets. Government of Ghana's rights to increase its participation Under Act 703, the Government of Ghana has the right to acquire a special share in our Ghanaian subsidiaries at any time for no consideration or such consideration as the Government of Ghana and such subsidiaries might agree, and a pre-emptive right to purchase all gold and other minerals produced by such subsidiaries. A special share carries no voting rights and does not participate in dividends, profits or assets. If the Government of Ghana acquires a special share, it may require the Company to redeem the special share at any time for no consideration or for consideration determined by the Company. To date, the Government of Ghana has not sought to exercise any of these rights at our properties. Royalties Government of Ghana The Government of Ghana receives a royalty equal to 5% of mineral revenues earned by Bogoso/Prestea and Wassa. Dunkwa Properties As part of the acquisition of the Dunkwa properties in 2003, the Company agreed to pay the seller a net smelter return royalty on future gold production from the Mansiso and Asikuma properties. As per the acquisition agreement, there will be no royalty due on the first 200,000 ounces produced from Mampon which is located on the Asikuma property. The amount of the royalty is based on a sliding scale which ranges from 2% of net smelter return at gold prices at or below $300 per ounce and progressively increases to 3.5% for gold prices in excess of $400 per ounce. Since the ounces mined at Mampon were below the 200,000 ounces threshold, we are not required to pay a royalty on this property. Operating leases and capital commitments The Company is a party to certain contracts relating to operating leases, office rent and capital commitments. Future minimum payments under these agreements as at December 31, 2018 are as follows: Less than 1 year $ 1,383 Between 1 and 5 years 183 More than 5 years — Total $ 1,566 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
SHARE-BASED COMPENSATION | 15. SHARE-BASED COMPENSATION Share-based compensation expenses recognized in general and administrative expense in the Statements of Operations and Comprehensive (Loss)/Income, are as follows: For the Years Ended December 31, 2018 2017 Share options $ 1,248 $ 1,229 Deferred share units 565 387 Share appreciation rights (502 ) 482 Performance share units (33 ) 10,456 $ 1,278 $ 12,554 Share options On May 5, 2016, the Fourth Amended and Restated 1997 Stock Option Plan (the "Stock Option Plan") was approved by shareholders to (i) reserve an additional 2,000,000 common shares for the Stock Option Plan, thereby increasing the total number of common shares issuable from 5,000,000 common shares to 7,000,000 common shares under the Stock Option Plan; (ii) provide for the grant of "incentive stock options" (being stock options designated as "incentive stock options" in an option agreement and that are granted in accordance with the requirements of, and that conforms to the applicable provisions of, Section 422 of the Internal Revenue Code); and (iii) to make such other changes to update the provisions of the Stock Option Plan in light of current best practices. Options granted are non-assignable and are exercisable for a period of ten years or such other period as is stipulated in a stock option agreement between Golden Star and the optionee. Under the Plan, we may grant options to employees, consultants and directors of the Company or its subsidiaries for up to 7,000,000 shares, of which 1,917,767 are available for grant as of December 31, 2018 ( December 31, 2017 - 2,114,517 ). The exercise price of each option is not less than the closing price of our shares on the Toronto Stock Exchange on the day prior to the date of grant. Options typically vest over periods ranging from immediately to four years from the date of grant. Vesting periods are determined at the discretion of the Compensation Committee. The fair value of option grants is estimated at the grant dates using the Black-Scholes option-pricing model. Fair values of options granted during the year ended December 31, 2018 and 2017 were based on the weighted average assumptions noted in the following table: For the Years Ended December 31, 2018 2017 Expected volatility 70.06% 73.70% Risk-free interest rate 2.39% 1.86% Expected lives 5.68 years 5.99 years The weighted average fair value per option granted during the year ended December 31, 2018 was $2.82 CAD ( year ended December 31, 2017 - $4.20 CAD). As at December 31, 2018 , there was $0.6 million of share-based compensation expense ( December 31, 2017 - $0.5 million ) relating to the Company's share options to be recorded in future periods. For the year ended December 31, 2018 , the Company recognized an expense of $1.2 million ( year ended December 31, 2017 - $1.2 million ). A summary of option activity under the Company's Stock Option Plan during the years ended December 31, 2018 and 2017 is as follows: Options Weighted– Weighted– Outstanding as of December 31, 2016 3,223 6.45 5.7 Granted 470 6.40 9.7 Exercised (5 ) 2.75 7.3 Forfeited (128 ) 11.35 1.8 Expired (234 ) 10.95 0 Outstanding as of December 31, 2017 3,326 5.93 5.9 Granted 642 4.61 9.2 Exercised (25 ) 3.24 1.6 Forfeited (116 ) 8.96 3.6 Expired (329 ) 9.35 0 Outstanding as of December 31, 2018 3,498 5.28 6.3 Exercisable as of December 31, 2017 2,536 6.30 5.1 Exercisable as of December 31, 2018 2,664 5.42 5.5 The number of options outstanding by strike price as of December 31, 2018 is shown in the following table: Options outstanding Options exercisable Number outstanding at December 31, 2018 Weighted-average remaining contractual life Weighted-average exercise price Number outstanding at December 31, 2018 Weighted-average exercise price Range of exercise price (Cdn$) ('000) (years) (Cdn$) ('000) (Cdn$) 1.50 to 2.50 604 6.1 1.90 604 1.90 2.51 to 3.50 534 7.1 2.81 405 2.82 3.51 to 4.50 581 4.9 4.35 581 4.35 4.51 to 5.50 689 9.1 4.63 205 4.68 5.51 to 7.50 487 7.7 6.48 266 6.46 7.51 to 10.50 378 2.9 9.50 378 9.50 10.51 to 17.65 225 1.9 14.92 225 14.92 3,498 6.3 5.28 2,664 5.42 The number of options outstanding by strike price as of December 31, 2017 is shown in the following table: Options outstanding Options exercisable Number outstanding at December 31, 2017 Weighted-average remaining contractual life Weighted-average exercise price Number outstanding at December 31, 2017 Weighted-average exercise price Range of exercise price (Cdn$) ('000) (years) (Cdn$) ('000) (Cdn$) 1.50 to 2.50 617 7 1.90 500 1.90 2.51 to 3.50 536 8 2.80 277 2.80 3.51 to 4.50 616 5.8 4.30 589 4.30 4.51 to 5.50 52 8.8 4.80 26 4.90 5.51 to 7.50 513 8.5 6.40 177 6.40 7.51 to 10.50 691 2.3 8.90 666 9.00 10.51 to 17.65 302 2.5 15.10 302 15.10 3,326 5.9 5.93 2,536 6.30 Deferred share units ("DSUs") The Company's Deferred Share Unit Plan (the “DSU Plan”) was adopted on March 9, 2011 and was amended and restated as of March 14, 2016 (the “Restatement Effective Date”). The DSU Plan has been implemented for directors and executive officers of the Company in order to (i) encourage the directors and executive officers of the Company to own Common Shares of the Company and to facilitate such Common Share ownership; and (ii) provide directors and executive officers of the Company with incentives in the form of deferred share units ("DSUs") in order to allow the Company to reduce its reliance on stock options and other long-term incentive plans for the same purposes, so as to conform with current best practices regarding directors’ and executive officers’ compensation. The DSU Plan is administered by the Compensation Committee. Pursuant to the DSU Plan, directors may elect to receive all or part of their retainer in DSUs having a market value equal to the portion of the retainer to be received in that form, subject to such limits as the Compensation Committee may impose. The Compensation Committee may also grant to any director or executive officer, in each year, DSUs having a market value not greater than the total compensation payable to such director or executive officer for that year, including any salary or bonus but excluding any director’s retainer. The number of DSUs to be issued is determined by dividing the amount of the retainer or base salary determined as the basis for the award by the volume-weighted average trading price of a Common Share (as reported by the NYSE American) for the 20 trading days immediately preceding the date the DSUs are awarded. The vesting schedule of the DSUs is determined at the discretion of the Compensation Committee, but generally in the case of DSUs granted to directors in lieu of director retainers, the DSUs vest immediately on the award date. DSUs otherwise awarded to directors and officers as part of total compensation payable generally vest one-third on each of the first three anniversaries of the award date. At the election of the Compensation Committee in its sole discretion, each DSU granted after the Restatement Effective Date may be redeemed for: (a) cash payment equal to the market value of one Common Share on the date of redemption (the “Redemption Value”), after deduction of applicable taxes and other source deductions required by applicable laws; (b) such number of Common Shares purchased by the Company on the public market as have an aggregate market value equal to the Redemption Value; or (c) any combination of the foregoing, so long as the aggregate redemption price has a fair market value equal to the Redemption Value. In addition to the foregoing, the Compensation Committee in its sole discretion, may redeem DSUs granted prior to the Restatement Effective Date for Common Shares issued by the Company from treasury. For the year ended December 31, 2018 , the DSUs that were granted vested immediately and a compensation expense of $0.6 million was recognized for these grants ( year ended December 31, 2017 - $0.4 million ). As of December 31, 2018 , there was no unrecognized compensation expense related to DSUs granted under the Company's DSU Plan. A summary of DSU activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of DSUs, beginning of period ('000) 1,018 1,146 Granted 150 105 Exercised (82 ) (233 ) Number of DSUs, end of period ('000) 1,086 1,018 Share appreciation rights ("SARs") On February 13, 2012, the Company adopted a Share Appreciation Rights ("SARs") Plan. The plan allows SARs to be issued to executives, employees and directors that vest after a period of three years. These awards are settled in cash on the exercise date equal to the Company's stock price less the strike price. Since these awards are settled in cash, the Company marks-to-market the associated expense for each award at the end of each reporting period using a Black-Scholes model. The Company accounts for these as liability awards and marks-to-market the fair value of the award until final settlement. As of December 31, 2018 , there was approximately $0.3 million of total unrecognized compensation cost related to unvested SARs ( December 31, 2017 - $0.4 million ). For the year ended December 31, 2018 , the Company recognized a recovery of $0.5 million related to these cash settled awards ( year ended December 31, 2017 - $0.5 million expense). A summary of the SARs activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of SARs, beginning of period ('000) 533 537 Granted 304 292 Exercised (36 ) (158 ) Forfeited (127 ) (138 ) Number of SARs, end of period ('000) 674 533 Performance share units ("PSUs") On January 1, 2014, the Company adopted a Performance Share Unit ("PSU") Plan. Each PSU represents one notional common share that is redeemed for cash based on the value of a common share at the end of the three year performance period, to the extent performance and vesting criteria have been met. The PSUs vest at the end of a three year performance period. The cash award is determined by multiplying the number of units by the performance adjustment factor, which ranges from 0% to 200% . The performance adjustment factor is determined by comparing the Company's share price performance to the share price performance of a peer group of companies as listed in the PSU Plan. As the Company is required to settle these awards in cash, they are accounted for as liability awards with corresponding compensation expense recognized. For the year ended December 31, 2018 , the Company recognized $0.4 million recovery related to PSU's ( year ended December 31, 2017 - $10.1 million ). As at December 31, 2018 , the PSU liability of $6.4 million is recognized on the Balance Sheet as current portion of other liability. A summary of the PSU activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of PSUs, beginning of period ('000) 2,721 3,096 Settled (1,548 ) (375 ) Number of PSUs, end of period ('000) 1,172 2,721 2017 Performance and restricted share units ("PRSUs") On May 4, 2017, the Company adopted a 2017 performance and restricted share unit plan (the "2017 PRSU Plan"). Pursuant to the 2017 PRSU Plan, performance share units ("2017 PSUs") and restricted share units ("2017 RSUs" and, together with the 2017 PSUs, the "Share Units") may be issued to any employee or officer of the Company or its designated affiliates. Share Units may be redeemed for: (i) common shares issued from treasury; (ii) common shares purchased in the secondary market; (iii) a cash payment; or (iv) a combination of (i), (ii) and (iii). Each PRSU represents one notional common share that is redeemed for common shares or common shares plus cash subject to the consent of the Company based on the value of a common share at the end of the three year performance period, to the extent performance and vesting criteria have been met. The PRSUs vest at the end of a three year performance period. The award is determined by multiplying the number of Share Units by the performance adjustment factor, which ranges from 0% to 200% . The performance adjustment factor is determined by comparing the Company's share price performance to the share price performance of a peer group of companies as listed in the 2017 PRSU Plan. As the Company has a practice of settling these awards in common shares, they are accounted for as equity awards with corresponding compensation expense recognized. PRSUs are accounted for as equity awards with a corresponding compensation expense recognized. For the year ended December 31, 2018 , the Company recognized $0.3 million expense ( year ended December 31, 2017 - $0.3 million ). A summary of the PRSU activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of PRSUs, beginning of period ('000) 339 — Granted 480 339 Forfeited (28 ) — Number of PRSUs, end of period ('000) 791 339 |
(LOSS)_INCOME PER COMMON SHARE
(LOSS)/INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
(LOSS)/INCOME PER COMMON SHARE | 16. (LOSS)/INCOME PER COMMON SHARE During the year ended December 31, 2018 , the Company incurred a net loss therefore the shares for the period are not dilutive. The following table provides a reconciliation between basic and diluted (loss)/income per common share: For the Years Ended December 31, 2018 2017 Net (loss)/income attributable to Golden Star shareholders $ (18,123 ) $ 38,771 Adjustments: Interest expense on 7% Convertible Debentures — 3,657 Accretion of 7% Convertible Debentures discount — 1,845 Gain on fair value of 7% Convertible Debentures embedded derivative — (2,095 ) Diluted (loss)/income $ (18,123 ) $ 42,178 Weighted average number of basic shares (millions) 1 84.3 74.7 Dilutive securities: Options — 0.5 Deferred share units — 1.1 Performance and restricted share units — 0.3 7% Convertible Debentures — 11.6 Weighted average number of diluted shares (millions) 84.3 88.2 (Loss)/income per share attributable to Golden Star shareholders: Basic $ (0.21 ) $ 0.52 Diluted $ (0.21 ) $ 0.48 1 See Note 13 for share consolidation details. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [abstract] | |
REVENUE | 17. REVENUE Revenue includes the following components: For the Years Ended December 31, 2018 2017 Revenue - Streaming Agreement Cash payment proceeds $ 6,036 $ 6,138 Deferred revenue recognized 13,738 14,156 19,774 20,294 Revenue - Spot sales 253,243 295,203 Total revenue $ 273,017 $ 315,497 |
COST OF SALES EXCLUDING DEPRECI
COST OF SALES EXCLUDING DEPRECIATION AND AMORTIZATION | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
COST OF SALES EXCLUDING DEPRECIATION AND AMORTIZATION | 18. COST OF SALES EXCLUDING DEPRECIATION AND AMORTIZATION Cost of sales excluding depreciation and amortization include the following components: For the Years Ended December 31, 2018 2017 Contractors $ 32,536 $ 41,297 Electricity 17,663 20,558 Fuel 7,347 11,137 Raw materials and consumables 41,910 51,996 Salaries and benefits 58,501 53,582 Transportation costs 1,751 2,116 General and administrative 9,490 7,695 Other 6,830 8,997 Mine operating expenses $ 176,028 $ 197,378 Severance charges 14,858 9,232 Operating costs from metal inventory 12,886 167 Inventory net realizable value adjustment and write-off 5,655 2,410 Royalties 14,302 17,295 $ 223,729 $ 226,482 |
FINANCE EXPENSE, NET
FINANCE EXPENSE, NET | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
FINANCE EXPENSE, NET | 19. FINANCE EXPENSE, NET Finance income and expense includes the following components: For the Years Ended December 31, 2018 2017 Interest income $ (559 ) $ (72 ) Interest expense, net of capitalized interest (see Note 7) 13,281 6,039 Interest on financing component of deferred revenue (see Note 11) 4,750 — Net foreign exchange gain (91 ) (172 ) Accretion of rehabilitation provision 691 1,245 Conversion make-whole payment — 1,445 $ 18,072 $ 8,485 On February 1, 2018, Prestea Underground mine achieved commercial production, therefore no capitalized interest was recorded since. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
OTHER INCOME | 20. OTHER INCOME Other income includes the following components: For the Years Ended December 31, 2018 2017 (Gain)/loss on disposal of assets (305 ) 672 Gain on reduction of asset retirement obligations (3,080 ) (4,945 ) Other income (218 ) (73 ) $ (3,603 ) $ (4,346 ) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | 21. RELATED PARTY TRANSACTIONS There were no material related party transactions for the years ended December 31, 2018 and 2017 other than the items disclosed below. Key management personnel Key management personnel is defined as members of the Board of Directors and certain senior officers. Compensation of key management personnel are as follows, with such compensation made on terms equivalent to those prevailing in an arm's length transaction: For the Years Ended December 31, 2018 2017 Salaries, wages, and other benefits $ 3,753 $ 2,800 Bonuses 1,052 787 Share-based compensation 1,965 7,487 $ 6,770 $ 11,074 |
PRINCIPAL SUBSIDIARIES
PRINCIPAL SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2018 | |
Interests In Other Entities [Abstract] | |
PRINCIPAL SUBSIDIARIES | 22. PRINCIPAL SUBSIDIARIES The consolidated financial statements include the accounts of the Company and all of its subsidiaries at December 31, 2018 . The principal operating subsidiaries are Wassa and Prestea, in which the Company has a 90% ownership interest in each. Set out below is summarized financial information for each subsidiary that has non-controlling interests that are material to the group. The amounts are disclosed on a 100% basis and disclosure for each subsidiary are based on those included in the consolidated financial statements before inter-company eliminations. Summarized statement of financial position Wassa Prestea As of December 31, As of December 31, 2018 2017 2018 2017 Non-controlling interest percentage 10 % 10 % 10 % 10 % Current assets $ 129,656 $ 94,760 $ 13,633 $ 25,023 Current liabilities 150,404 160,725 1,152,156 1,058,732 (20,748 ) (65,965 ) (1,138,523 ) (1,033,709 ) Non-current assets 141,262 138,416 134,090 131,245 Non-current liabilities 42,588 25,016 62,737 76,373 98,674 113,400 71,353 54,872 Net assets/(liabilities) 77,926 47,435 (1,067,170 ) (978,837 ) Non-controlling interest $ 15,605 $ 12,562 $ (87,578 ) $ (78,587 ) Summarized income statement Wassa Prestea For the years ended December 31, For the years ended December 31, 2018 2017 2018 2017 Revenue $ 190,016 $ 156,908 $ 93,134 $ 138,295 Net income/(loss) and comprehensive income/(loss) 30,491 16,924 (88,332 ) 4,619 Summarized cash flows Wassa Prestea For the years ended December 31, For the years ended December 31, 2018 2017 2018 2017 Cash flows provided by/(used in) operating activities 57,897 27,486 (77,115 ) 3,505 Cash flows used in investing activities (34,984 ) (21,744 ) (11,956 ) (43,616 ) Cash flows (used in)/provided by financing activities (31,112 ) 7,468 85,581 42,078 |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
SEGMENTED INFORMATION | 23. SEGMENTED INFORMATION Segmented revenue and results The Company has reportable segments as identified by the individual mining operations. Segments are operations reviewed by the executive management. Each segment is identified based on quantitative and qualitative factors. For the Years Ended December 31, Wassa Prestea Other Corporate Total 2018 Revenue 183,078 89,939 — — 273,017 Mine operating expenses 86,916 89,112 — — 176,028 Severance charges 4,970 9,888 — — 14,858 Operating costs from metal inventory 7,184 5,702 — — 12,886 Inventory net realizable value adjustment and write-off 3,684 1,971 — — 5,655 Royalties 9,508 4,794 — — 14,302 Cost of sales excluding depreciation and amortization 112,262 111,467 — — 223,729 Depreciation and amortization 22,066 11,873 — — 33,939 Mine operating margin/(loss) 48,750 (33,401 ) — — 15,349 Income tax expense 12,350 — — — 12,350 Net income/(loss) attributable to non-controlling interest 3,043 (8,991 ) — — (5,948 ) Net income/(loss) attributable to Golden Star 27,994 (25,351 ) (8,543 ) (12,223 ) (18,123 ) Capital expenditures 35,420 11,414 — — 46,834 2017 Revenue $ 167,376 $ 148,121 $ — $ — $ 315,497 Mine operating expenses 115,625 81,753 — — 197,378 Severance charges 6,316 2,916 — — 9,232 Operating costs from/(to) metal inventory 5,080 (4,913 ) — — 167 Inventory net realizable value adjustment and write-off 2,410 — — — 2,410 Royalties 8,652 8,643 — — 17,295 Cost of sales excluding depreciation and amortization 138,083 88,399 — — 226,482 Depreciation and amortization 20,052 11,740 — — 31,792 Mine operating margin 9,241 47,982 — — 57,223 Net income attributable to non-controlling interest 1,693 495 — — 2,188 Net income/(loss) attributable to Golden Star $ 17,644 $ 50,050 $ (3,701 ) $ (25,222 ) $ 38,771 Capital expenditures $ 21,583 $ 48,055 $ — $ — $ 69,638 Segmented Assets The following table presents the segmented assets: Wassa Prestea Other Corporate Total December 31, 2018 Total assets $ 181,446 $ 147,815 $ 898 $ 87,828 $ 417,987 December 31, 2017 Total assets $ 195,180 $ 158,715 $ 4,257 $ 2,237 $ 360,389 Information about major customers Currently, approximately 90% of our gold production is sold through a South African gold refinery. Except for the sales to RGLD as part of the Streaming Agreement, the refinery arranges for the sale of gold on the day it is shipped from the mine sites and we receive payment for gold sold two working days after the gold leaves the mine site. The global gold market is competitive with numerous banks and refineries willing to buy gold on short notice. Therefore, we believe that the loss of our current customer would not materially delay or disrupt revenue. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Statement of cash flows [abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 24. SUPPLEMENTAL CASH FLOW INFORMATION During the year ended December 31, 2018 and 2017 , there was no payment of income taxes. The Company paid $7.9 million of interest during the year ended December 31, 2018 (the year ended December 31, 2017 - $7.3 million ). Changes in working capital for the year ended December 31, 2018 and 2017 are as follows: For the Years Ended December 31, 2018 2017 Decrease in accounts receivable $ 215 $ 3,871 Decrease/(increase) in inventories 9,187 (7,684 ) Increase in prepaids and other (737 ) (2,132 ) Decrease in accounts payable and accrued liabilities (25,837 ) (1,503 ) Total changes in working capital $ (17,172 ) $ (7,448 ) Other includes the following components: For the Years Ended December 31, 2018 2017 (Gain)/loss on disposal of assets $ (305 ) $ 672 Inventory net realizable value adjustment and write-off 5,544 2,410 Loss on fair value of 5% Convertible Debentures — 317 Gain on fair value of warrants — (86 ) Loss/(gain) on fair value of marketable securities 175 (64 ) Accretion of vendor agreement 731 731 Accretion of rehabilitation provisions (see Note 10) 691 1,245 Amortization of financing fees 1,322 378 Accretion of 7% Convertible Debentures discount 2,097 1,845 Gain on reduction of rehabilitation provisions (3,080 ) (4,945 ) Loss on conversion of 7% Convertible Debentures, net — 165 Gain on warrant exercise — (193 ) Interest on financing component of deferred revenue (see Note 11) 4,750 — $ 11,925 $ 2,475 Reconciliation of debt arising from financing activities during the year ended December 31, 2018 and 2017 : Equipment financing credit facility Finance leases Ecobank Loan III Ecobank Loan IV Vendor agreement 5% Convertible Debentures 7% Convertible Debentures Royal Gold loan Total December 31, 2016 $ 1,119 $ 1,959 $ — $ — $ 22,338 $ 13,294 $ 47,617 $ 18,496 $ 104,823 Cash flows Proceeds from debt agreements — — 10,000 — — — — — 10,000 Principal payments on debt (972 ) (1,226 ) — — — — — — (2,198 ) Fair value loss on the 5% Convertible Debentures — — — — — 317 — — 317 5% Convertible Debentures repayment — — — — — (13,611 ) — — (13,611 ) Non-cash changes Capitalized loan fee — — (499 ) — — — — — (499 ) New lease — 765 — — — — — — 765 Conversion of 7% Convertible Debentures — — — — — — (6,947 ) — (6,947 ) Accretion of debt — — 58 — 731 — 1,845 321 2,955 December 31, 2017 $ 147 $ 1,498 $ 9,559 $ — $ 23,069 $ — $ 42,515 $ 18,817 $ 95,605 Cash flows Proceeds from debt agreements — — 15,000 20,000 — — — — 35,000 Principal payments on debt (147 ) (1,714 ) (4,723 ) (1,999 ) (7,024 ) — — — (15,607 ) Royal Gold loan repayment — — — — — — — (20,000 ) (20,000 ) Non-cash changes Capitalized loan fee — — — (340 ) — — — — (340 ) New lease — 1,899 — — — — — — 1,899 Accretion of debt — — 99 39 731 — 2,097 1,183 4,149 December 31, 2018 $ — $ 1,683 $ 19,935 $ 17,700 $ 16,776 $ — $ 44,612 $ — $ 100,706 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of general information about financial statements [Abstract] | |
FINANCIAL RISK MANAGEMENT | 25. FINANCIAL RISK MANAGEMENT Our exposure to market risk includes, but is not limited to, the following risks: changes in interest rates on our debt, changes in foreign currency exchange rates and commodity price fluctuations. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. We manage the liquidity risk inherent in these financial obligations by preparing monthly financial summaries, quarterly forecasts and annual long-term budgets which forecast cash needs and expected cash availability to meet future obligations. Typically these obligations are met by cash flows from operations and from cash on hand. Scheduling of capital spending and acquisitions of financial resources may also be employed, as needed and as available, to meet the cash demands of our obligations. Our ability to repay or refinance our future obligations depends on a number of factors, some of which may be beyond our control. Factors that influence our ability to meet these obligations include general global economic conditions, credit and capital market conditions, results of operations, mineral reserves and resources and the price of gold. The following table shows our contractual obligations as at December 31, 2018 : Payment due (in thousands) by period (Stated in thousands of U.S dollars) Less than 1 1 to 3 years 3 to 5 years More than Total Accounts payable and accrued liabilities 1 $ 84,894 $ — $ — $ — $ 84,894 Debt 2 28,213 78,751 2,000 — 108,964 Interest on long term debt 8,155 11,685 74 — 19,914 Purchase obligations 13,762 — — — 13,762 Rehabilitation provisions 3 7,665 27,908 26,283 11,613 73,469 Total $ 142,689 $ 118,344 $ 28,357 $ 11,613 $ 301,003 1 Includes the current portion of the PSU liabilities of $6.4 million . 2 Includes the 7% Convertible Debentures maturing in August 2021, the finance leases and the vendor agreement. Golden Star may not redeem the 7% Convertible Debentures prior to August 15, 2019, except in the event of certain changes in applicable tax law. On or after August 15, 2019, the Company may redeem all or part of the outstanding 7% Convertible Debentures at the redemption price, only if the last reported sales price of the Company's common shares for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date the Company provides the notice of redemption to holders exceeds 130% of the conversion price in effect on each such trading day. The presentation shown above assumes payment is made in cash and also assumes no conversions of the 7% Convertible Debentures into common shares by the holders prior to the maturity date. 3 Rehabilitation provisions indicates the expected undiscounted cash flows for each period. As at December 31, 2018 , the Company has current assets of $140.2 million compared to current liabilities of $134.4 million . As at December 31, 2018 , the Company had a cash balance of $96.5 million . The Company expects to meet its short-term financial needs through its cash on hand, cash flow from operations. Interest rate risk Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our 7% Convertible Debentures, vendor agreement and the outstanding loans under our equipment financing facility bear interest at a fixed rate and are not subject to changes in interest payments. The Ecobank Loan III interest rate is three month LIBOR plus 8% , per annum. Based on our current $20.3 million outstanding balance on Ecobank Loan III, a 100 basis points change in the three month LIBOR rate would result in a nominal change in interest expense. The Ecobank Loan IV interest rate is three month LIBOR plus a spread of 7.5% per annum. Based on our current $18.0 million outstanding balance on Ecobank Loan IV, a 100 basis points change in the three month LIBOR rate would result in a nominal change in interest expense. We have not entered into any agreements to hedge against unfavorable changes in interest rates, but may in the future actively manage our exposure to interest rate risk. Foreign currency exchange rate risk Currency risk is risk that the fair value of future cash flows will fluctuate because of changes in foreign currency exchange rates. In addition, the value of cash and cash equivalents and other financial assets and liabilities denominated in foreign currencies can fluctuate with changes in currency exchange rates. Since our revenues are denominated in U.S. dollars and our operating units transact much of their business in U.S. dollars, we are typically not subject to significant impacts from currency fluctuations. However, certain purchases of labor, operating supplies and capital assets are denominated in Ghana cedis, euros, British pounds, Australian dollars, South African rand and Canadian dollars. To accommodate these purchases, we maintain operating cash accounts in non-US dollar currencies and appreciation of these non-US dollar currencies against the U.S. dollar results in a foreign currency gain and a decrease in non-U.S. dollar currencies results in a loss. In the past, we have entered into forward purchase contracts for South African rand, euros and other currencies to hedge expected purchase costs of capital assets. During 2018 and 2017, we had no currency related derivatives. At December 31, 2018 and December 31, 2017 , we held $1.9 million and $3.8 million , respectively, of foreign currency. Commodity price risk Gold is our primary product and, as a result, changes in the price of gold can significantly affect our results of operations and cash flows. Based on our gold production in the year, a $100 per ounce change in gold price would result in approximately a $20.6 million and $19.6 million change in our sales revenues and operating cash flows, respectively. To reduce gold price volatility, we have at various times entered into gold price hedges. As at December 31, 2018 , the Company did not have any outstanding gold price derivative contracts. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Our credit risk is primarily associated with liquid financial assets and derivatives. We limit exposure to credit risk on liquid financial assets by holding our cash, cash equivalents, restricted cash and deposits at highly-rated financial institutions. Risks associated with gold trade receivables is considered minimal as we sell gold to a credit-worthy buyer who settles promptly within two days of receipt of gold bullion. |
CAPITAL RISK MANAGEMENT
CAPITAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CAPITAL RISK MANAGEMENT | 26. CAPITAL RISK MANAGEMENT The Company manages its capital in a manner that will allow it to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance. In the management of capital, the Company includes the components of equity, long-term debt, net of cash and cash equivalents, and investments. As of As of December 31, December 31, Equity $ 42,037 $ (41,754 ) Long-term debt 73,224 79,741 $ 115,261 $ 37,987 Cash and cash equivalents 96,507 27,787 $ 211,768 $ 65,774 The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In doing so, the Company may issue new shares, restructure or issue new debt and acquire or dispose of assets. In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. The Company's treasury policy specifies that cash is to be held in banks with a rating of A or higher by Moody's or Standard & Poor's. In addition, the Company's investment policy allows investment of surplus funds in permitted investments consisting of US treasury bills, notes and bonds, government sponsored agency debt obligations, corporate debt or municipal securities with credit rating of at least AA. All investments must have a maximum term to maturity of one year. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Statement of compliance | Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and with interpretations of the International Financial Reporting Interpretations Committee ("IFRIC") which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook – Accounting. These consolidated financial statements were approved by the Board of Directors of the Company on February 19, 2019 . |
Basis of presentation | Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries, whether owned directly or indirectly. The financial statements of the subsidiaries are prepared for the same period as the Company using consistent accounting policies for all periods presented, except for the changes in accounting policies described in Note 3 below. All inter-company balances and transactions have been eliminated. Subsidiaries are entities controlled by the Company. Non-controlling interests in the net assets of consolidated subsidiaries are a separate component of the Company's equity. These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and discharge of all liabilities in the normal course of business. These consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments which are measured at fair value through profit or loss. |
Cash and cash equivalents | Cash and cash equivalents Cash includes cash deposits in any currency residing in chequing and sweep accounts. Cash equivalents consist of money market funds and other highly liquid investments purchased with maturities of three months or less. Investments with maturities greater than three months and up to one year are classified as short-term investments, while those with maturities in excess of one year are classified as long-term investments. Cash equivalents and short-term investments are stated at amortized cost, which typically approximates market value. |
Inventories | Inventories Inventory classifications include "stockpiled ore," "in-process inventory," "finished goods inventory" and "materials and supplies". The stated value of all production inventories include direct production costs and attributable overhead and depreciation incurred to bring the materials to their current point in the processing cycle. General and administrative costs for corporate offices are not included in any inventories. Stockpiled ore represents coarse ore that has been extracted from the mine and is stored for future processing. Stockpiled ore is measured by estimating the number of tonnes (via truck counts or by physical surveys) added to, or removed from the stockpile, the number of contained ounces (based on assay data) and estimated gold recovery percentage. Stockpiled ore value is based on the costs incurred (including depreciation and amortization) in bringing the ore to the stockpile. Costs are added to the stockpiled ore based on current mining costs per tonne and are removed at the average cost per tonne of ore in the stockpile. In-process inventory represents material that is currently being treated in the processing plants to extract the contained gold and to transform it into a saleable product. The amount of gold in the in-process inventory is determined by assay and by measure of the quantities of the various gold-bearing materials in the recovery process. The in-process gold is valued at the average of the beginning inventory and the cost of material fed into the processing stream plus in-process conversion costs including applicable mine-site overheads, depreciation and amortization related to the processing facilities. Finished goods inventory is saleable gold in the form of doré bars. Included in the costs are the direct costs of the mining and processing operations as well as direct mine-site overheads, amortization and depreciation. Materials and supplies inventories consist mostly of equipment parts and other consumables required in the mining and ore processing activities. All inventories are valued at the lower of average cost or net realizable value. Inventory valuation Inventories are recorded at the lower of average cost or net realizable value ("NRV"). The allocation of costs to ore in stockpiles and the determination of NRV involve the use of estimates. Stockpiled ore represents coarse ore that has been extracted from the mine and is stored for future processing. Stockpiled ore is measured using estimates such as the number of tonnes (via truck counts or by physical surveys) added to, or removed from the stockpile, the number of contained ounces (based on assay data) and estimated gold recovery percentage. Timing and recovery of stockpiled ore can vary significantly from the estimates. The net realizable value of materials and supplies is recorded based on the expected usage of the inventory items, salvage value and condition of the inventory items, all of which are based on management estimates and judgments. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment assets, including machinery, processing equipment, mining equipment, mine site facilities, buildings, vehicles and expenditures that extend the life of such assets, are initially recorded at cost including acquisition and installation costs. Property, plant and equipment are subsequently measured at cost, less accumulated depreciation and accumulated impairment losses. The costs of self-constructed assets include direct construction costs and direct overhead during the construction phase. Indirect overhead costs are not included in the cost of self-constructed assets. Depreciation for mobile equipment and other assets having estimated lives shorter than the estimated life of the ore reserves is calculated using the straight-line method at rates which depreciate the cost of the assets, less their anticipated residual values, if any, over their estimated useful lives. Mobile mining equipment is amortized over a five year life. Assets, such as processing plants, power generators and buildings, which have an estimated life equal to or greater than the estimated life of the ore reserves, are amortized over the life of the proven and probable reserves of the associated mining property using a units-of-production amortization method, less their anticipated residual values, if any. The net book value of property, plant and equipment assets is charged against income if the mine site is abandoned and it is determined that the assets cannot be economically transferred to another project or sold. The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each reporting period end, and adjusted prospectively if appropriate. Gains and losses on the disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount, and are recognized net in the consolidated statement of operations. |
Mining properties | Mining properties Mining property assets, including property acquisition costs, tailings storage facilities, mine-site development and drilling costs where proven and probable reserves have previously been established, pre-production waste stripping, condemnation drilling, roads, feasibility studies and wells are recorded at cost. The costs of self-constructed assets include direct construction costs, direct overhead costs and allocated interest during the construction phase. Indirect overhead costs are not included in the cost of self-constructed assets. Mining property assets are amortized over the life of the proven and probable reserves to which they relate, using a units-of-production amortization method. At open pit mines the costs of removing overburden from an ore body in order to expose ore during its initial development period are capitalized. Mineral reserves and resources Determining mineral reserves and resources is a complex process involving numerous variables and is based on a professional evaluation using accepted international standards for the assessment of mineral reserves. Estimation is a subjective process, and the accuracy of such estimates is a function of the quantity and quality of available data, the assumptions made and judgments used in engineering and geological interpretation. Mineral reserve estimation may vary as a result of changes in the price of gold, production costs, and with additional knowledge of the ore deposits and mining conditions. Differences between management's assumptions including economic assumptions such as metal prices and market conditions could have a material effect in the future on the Company's results and financial position, particularly a change in the rate of depreciation and amortization of the related mining assets and the recognition of deferred revenue. |
Units of production depreciation | Units of production depreciation The mineral properties and a large portion of the property, plant and equipment is depreciated/amortized using the units of production method over the expected operating life of the mine based on estimated recoverable ounces of gold, which are the prime determinants of the life of a mine. Estimated recoverable ounces of gold include proven and probable mineral reserves. Changes in the estimated mineral reserves and resources will result in changes to the depreciation charges over the remaining life of the operation. A decrease in the mineral reserves would increase depreciation and amortization expense and this could have a material impact on the operating results. The amortization base is updated on an annual basis based on the new mineral reserve and resource estimates. |
Underground mine development costs | Underground mine development costs Underground mine development costs include development costs to build new shafts, drifts and ramps that will enable the Company to physically access ore underground. The time over which the Company will continue to incur these costs depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific ore blocks or areas of the underground mine, and which only provide an economic benefit over the period of mining that ore block or area, are depreciated on a units-of-production basis, whereby the denominator is estimated ounces of gold in proven and probable reserves and the portion of resources within that ore block or area that is considered probable of economic extraction. If capitalized underground development costs provide an economic benefit over the entire mine life, the costs are depreciated on a units-of-production basis, whereby the denominator is the estimated ounces of gold in total accessible proven and probable reserves and the portion of resources that is considered probable of economic extraction. |
Borrowing costs | Borrowing costs Borrowing costs attributable to the acquisition, construction or production of a qualifying asset are capitalized. Qualifying assets are assets that require a significant amount of time to prepare for their intended use, including projects that are in the exploration and evaluation, development or construction stages. Capitalized borrowing costs are considered an element of the cost of the qualifying asset which is determined based on gross expenditures incurred on an asset. Capitalization ceases when the asset is substantially complete or if active development is suspended or ceases. Where the funds used to finance a qualifying asset form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to the relevant borrowings during the period. Where funds borrowed are directly attributable to a qualifying asset, the amount capitalized represents the borrowing costs specific to those borrowings. Other borrowing costs are recognized as an expense in the period in which they are incurred. |
Impairment of long-lived assets | Impairment of long-lived assets The Company assesses at each reporting period whether there is an indication that an asset or group of assets may be impaired. When impairment indicators exist, the Company estimates the recoverable amount of the asset and compares it against the asset's carrying amount. The recoverable amount is the higher of its fair value less cost of disposal ("FVLCD") and the asset's value in use ("VIU"). If the carrying amount exceeds the recoverable amount, an impairment loss is recorded in the consolidated statement of operations. In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset not already reflected in the estimates of future cash flows. The cash flows are based on best estimates of expected future cash flows from the continued use of the asset and its eventual disposal. FVLCD is best evidenced if obtained from an active market or binding sale agreement. Where neither exists, the fair value is based on the best estimates available to reflect the amount that could be received from an arm's length transaction. Future cash flows are based on estimated quantities of gold and other recoverable metals, expected price of gold (considering current and historical prices, price trends and related factors), production levels and cash costs of production, capital and reclamation costs, all based on detailed engineered life-of-mine plans. Numerous factors including, but not limited to, unexpected grade changes, gold recovery variances, shortages of equipment and consumables, and equipment failures could impact our ability to achieve forecasted production schedules from proven and probable reserves. Additionally, commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions used in the cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically. If an impairment loss reverses in a subsequent period, the carrying amount (post reversal) of the related asset is increased to the revised estimate of recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset previously. Reversals of impairment losses are recognized in the statement of operations in the period the reversals occur. Material changes to any of the factors or assumptions discussed above could result in future asset impairments. Carrying value of assets and impairment charges The Company undertakes a review of its assets at each reporting period to determine whether any indication of impairment exists. Where an indicator of impairment exists, a formal estimate of the recoverable amount of the asset or cash-generating unit ("CGU") is made, which is considered to be the higher of its FVLCD and VIU. An impairment loss is recognized when the carrying value of the asset or CGU is higher than the recoverable amount. In undertaking this review, management of the Company is required to make significant estimates of, amongst other things, discount rates, future production and sale volumes, metal prices, reserves and resource quantities, future operating and capital costs and reclamation costs to the end of the mine's life. These estimates are subject to various risks and uncertainties, which may ultimately have an effect on the expected recoverability of the carrying values of the asset or CGU. In determining a CGU, management has examined the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflows from other assets or group of assets. |
Rehabilitation provisions | Rehabilitation provisions The Company records a liability and corresponding asset for the present value of the estimated costs of legal and constructive obligations for future site reclamation and closure where the liability is probable and a reasonable estimate can be made of the obligation. The estimated present value of the obligation is reassessed on a periodic basis or when new material information becomes available. Increases or decreases to the obligation usually arise due to changes in legal or regulatory requirements, the extent of environmental remediation required, methods of reclamation, cost estimates, inflation rates, or discount rates. Changes to the provision for reclamation and remediation obligations related to operating mines, which are not the result of current production of inventory, are recorded with an offsetting change to the related asset. Changes to the provision for reclamation and remediation obligations related to suspended mine operations are recognized in the consolidated statements of operations and comprehensive loss. The present value is determined based on current market assessments of the time value of money using discount rates based on the risk-free rate maturing approximating the timing of expected expenditures to be incurred, and adjusted for country related risks. The periodic unwinding of the discount is recognized in the consolidated statement of operations as a finance expense. Rehabilitation provisions Environmental reclamation and closure liabilities are recognized at the time of environmental disturbance, in amounts equal to the discounted value of expected future reclamation and closure costs. The estimated future cash costs of such liabilities are based primarily upon environmental and regulatory requirements of the various jurisdictions in which we operate as well as any other constructive obligations that exist. The liability represents management's best estimates of cash required to settle the liability, inflation, assumptions of risks associated with future cash flows and the applicable risk-free interest rates for discounting the future cash outflow. The liability is reassessed and remeasured at each reporting date. |
Fair value of financial instruments, including embedded derivatives | Fair value of financial instruments, including embedded derivatives Where the fair value of financial assets and financial liabilities recorded in the financial statements cannot be derived from active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. When measuring the fair value of an asset or liability, the Company uses observable market data to the greatest extent possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) |
Deferred revenue | Deferred revenue Until December 31, 2017, deferred revenue consists of payments received by the Company for future delivery of payable gold under the terms of the Company’s Streaming Agreement. As deliveries were made, the Company recorded a portion of the deferred revenue as sales, on a unit of production basis over the volume of gold expected to be delivered during the term of the streaming arrangement. The amount by which the deferred revenue balance was reduced and recognized into revenue was based on a rate per ounce of gold delivered under the stream. This rate per ounce of gold delivered was based on the remaining deferred revenue balance divided by the ounces that are expected to be delivered under the Stream Arrangement over the life of the arrangement. This estimate is re-evaluated at each reporting period with any resulting changes in estimate reflected prospectively. Prior to the adoption of IFRS 15 Revenue from Contracts with Customers, the Streaming Agreement was recorded as a contract for the future delivery of gold ounces at the contracted price. The upfront payments were accounted for as prepayments of yet-to-be delivered ounces under the contract and were recorded as deferred revenue. The initial term of the contract is 40 years and the deposit bears no interest. On January 1, 2018, the Company adopted the requirements of IFRS 15. The Company elected to use the modified retrospective approach to initially adopt IFRS 15 which resulted in recognizing the cumulative effect of prior period amounts as an adjustment to the opening balance sheet through opening deficit on January 1, 2018. From January 1, 2018, deferred revenue consists of: 1) initial cash payments received by the Company for future delivery of payable gold under the terms of the Company’s Streaming Agreement as defined in Note 11 , Deferred Revenue, and 2) a significant financing component of the Company’s Streaming Agreement. Deferred revenue is increased as interest expense is recognized based on the implicit interest rate of the discounted cash flows arising from the expected delivery of ounces under the Company’s Streaming Agreement. The amount by which the deferred revenue balance is reduced and recognized into revenue is based on a rate per ounce of gold delivered under the stream. This rate per ounce of gold delivered relating to the payments received by the Company is based on the remaining deferred revenue balance divided by the ounces that are expected to be delivered over the term of the Stream Agreement. As the Company’s Streaming Agreement contains a variable component, IFRS 15 requires that the transaction price be updated and re-allocated on an ongoing basis. As a result, the deferred revenue recognized per ounce of gold delivered under the Streaming Agreement will require an adjustment each time there is a significant change in the underlying gold production profile of a mine. Should a change in the transaction price be necessary, a retroactive adjustment to revenue will be made in the period in which the change occurs, to reflect the updated production profile expected to be delivered under the Streaming Agreement. Deferred revenue Significant judgment is required in determining the appropriate accounting for the Streaming Agreement that has been entered into. Management has determined that based on the agreements reached that it assumes significant business risk associated with the timing and amount of ounces of gold being delivered. As such, the deposits received have been recorded as deferred revenue liabilities in the consolidated balance sheet. Deferred revenue is recognized as revenue based on the percentage of ounces delivered in the period over the total estimated ounces to be delivered over the life of the Streaming Agreement. |
Foreign currency transactions | Foreign currency transactions The Company's presentation currency of its consolidated financial statements is the U.S. dollar, as is the functional currency of its operations. The functional currency of all consolidated subsidiaries is the U.S. dollar. All values are rounded to the nearest thousand, unless otherwise stated. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at period end exchange rates. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into U.S. dollars at the exchange rate at the date that the fair value was determined. Income and expense items are translated at the exchange rate in effect on the date of the transaction. Exchange gains and losses resulting from the translation of these amounts are included in net loss, except those arising on the translation of equity investments at fair value through other comprehensive income that are recorded in other comprehensive income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at historical cost are translated at the exchange rate in effect at the transaction date . |
Income taxes | Income taxes Income taxes comprise the provision for (or recovery of) taxes actually paid or payable (current taxes) and for deferred taxes. Current taxes are based on taxable earnings in the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in the respective jurisdictions. Current income tax assets and current income tax liabilities are only offset if a legally enforceable right exists to offset the amounts and the Company intends to settle on a net basis or to realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Deferred income tax assets and liabilities are computed using enacted or substantially enacted income tax rates in effect when the temporary differences are expected to reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in the period of substantial enactment. The provision for or the recovery of deferred taxes is based on the changes in deferred tax assets and liabilities during the period. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized to the extent that it is probable that taxable earnings will be available against which deductible temporary differences can be utilized. Income taxes We deal with uncertainties and judgments in the application of complex tax regulations in the various jurisdictions where our properties are located. The amount of taxes paid is dependent upon many factors, including negotiations with taxing authorities in the various jurisdictions and resolution of disputes arising from our international tax audits. We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in our various tax jurisdictions based on our best estimate of additional taxes payable. We adjust these tax estimates in light of changing facts and circumstances, however, due to the complexity of some of these uncertainties, the ultimate resolution may result in payment that is materially different from our estimates of our tax liabilities. If our estimate of tax liability proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater that the ultimate assessment, a tax benefit is recognized. A deferred tax asset is recognized to the extent that it is probable that taxable earnings will be available against which deductible temporary differences can be utilized. |
Net income/(loss) per share | Net income/(loss) per share Basic income/(loss) per share of common stock is calculated by dividing income available to Golden Star's common shareholders by the weighted average number of common shares issued and outstanding during the period. In periods with earnings, the calculation of diluted net income per common share uses the treasury stock method to compute the dilutive effects of stock options, warrants, convertible debentures and other potentially dilutive instruments. In periods of loss, diluted net loss per share is equal to basic income per share. |
Revenue recognition | Revenue recognition Until December 31, 2017, revenue from the sale of metal was recognized when the significant risks and rewards of ownership have passed to the purchaser. This occurs when the amount of revenue could be measured reliably, the metal had been delivered, title has passed to the buyer and it was probable that the economic benefits associated with the transaction will flow to the entity. Title and risk of ownership pass to the buyer on the day doré was shipped from the mine sites. On January 1, 2018, the Company adopted the requirements of IFRS 15, where revenue from the sale of metal is recognized when the Company transfers control over to a customer. There was no impact to the accounting of revenue from the sale of doré on adoption of IFRS 15. All of our spot sales of gold are transported to a South African gold refiner who locates a buyer and arranges for sale of our gold on the same day that the gold is shipped from the mine site. The sales price is based on the London P.M. fix on the day of shipment. Revenue recognition for the Company’s Streaming Agreement is disclosed in the accounting policy for deferred revenue. |
Share-based compensation | Share-based compensation Under the Company's Fourth Amended and Restated 1997 Stock Option Plan, common share options may be granted to executives, employees, consultants and non-employee directors. Compensation expense for such grants is recorded in the consolidated statements of operations and comprehensive (loss)/income, with a corresponding increase recorded in the contributed surplus account in the consolidated balance sheets. The expense is based on the fair value of the option at the time of grant, measured by reference to the fair value determined using a Black-Scholes valuation model, and is recognized over the vesting periods of the respective options on a graded basis. Consideration paid to the Company on exercise of options is credited to share capital. Under the Company's Deferred Share Unit ("DSU") plan, DSUs may be granted to executive officers and directors. Compensation expense for such grants is recorded in the consolidated statements of operations and comprehensive (loss)/income with a corresponding increase recorded in the contributed surplus account in the consolidated balance sheets. The expense is based on the fair values at the time of grant and is recognized over the vesting periods of the respective DSUs. Upon exercise the Company's compensation committee may, at its discretion, issue cash, shares or a combination thereof. Under the Company's Share Appreciation Rights ("SARs") plan allows SARs to be issued to executives, employees and directors. These awards are settled in cash on the exercise date equal to the Company's stock price less the strike price. Since these awards are settled in cash, the Company marks-to-market the associated expense for each award at the end of each reporting period using a Black-Scholes model. The Company accounts for these as liability awards and marks-to-market the fair value of the award until final settlement. Under the Company's Performance Share Units ("PSU") plan, PSUs may be granted to executives, employees and non-employee directors. Each PSU represents one notional common share that is redeemed for cash based on the value of a common share at the end of the three year performance period, to the extent performance and vesting criteria have been met. The PSUs vest at the end of a three year performance. The cash award is determined by multiplying the number of units by the performance adjusting factor, which ranges from 0% to 200% . The performance factor is determined by comparing the Company's share price performance to the share price performance of a peer group of companies as listed in the PSU plan. As the Company is required to settle these awards in cash, they are accounted for as liability awards with corresponding compensation expense recognized. Long term PSU liabilities are recognized on the balance sheet as Long Term Other Liability and the current portion is recorded as Other Liability. Under the Company's 2017 performance and restricted share unit plan (the "2017 PRSU Plan"), performance share units ("2017 PSUs") and restricted share units ("2017 RSUs" and, together with the 2017 PSUs, the "Share Units") may be issued to any employee or officer of the Company or its designated affiliates. Share Units may be redeemed for: (i) common shares issued from treasury; (ii) common shares purchased in the secondary market; (iii) a cash payment; or (iv) a combination of (i), (ii) and (iii). Each PRSU represents one notional common share that is redeemed for common shares or common shares plus cash subject to the consent of the Company based on the value of a common share at the end of the three year performance period, to the extent performance and vesting criteria have been met. The PRSUs vest at the end of a three year performance period. The award is determined by multiplying the number of Share Units by the performance adjustment factor, which ranges from 0% to 200% . The performance adjustment factor is determined by comparing the Company's share price performance to the share price performance of a peer group of companies as listed in the 2017 PRSU Plan. As the Company has a practice of settling these awards in common shares, they are accounted for as equity awards with corresponding compensation expense recognized. |
Leases | Leases Leases that transfer substantially all of the benefits and risks of ownership to the Company are recorded as finance leases and classified as property, plant and equipment with a corresponding amount recorded with current and long-term debt. All other leases are classified as operating leases under which leasing costs are expensed in the period incurred. The Company will adopt IFRS 16, which was issued in January 2016 and applies to annual reporting periods beginning on or after January 1, 2019. See Changes in accounting policies below. |
Financial instruments | Financial instruments Until December 31, 2017, the Company recognized all financial assets initially at fair value and classifies them into one of the following three categories: fair value through profit or loss ("FVTPL"), available-for-sale ("AFS") or loans and receivables, as appropriate. The Company had not classified any of its financial assets as held to maturity. From January 1, 2018, the Company recognizes all financial assets initially at fair value and classifies them into one of the following measurement categories: fair value through profit or loss (“FVTPL”), fair value through other comprehensive income (“FVOCI”) or amortized cost, as appropriate. On adoption of IFRS 9 Financial Instruments , there was no accounting impact to the financial statements and there were no changes in the carrying values of any of the Company's financial assets. The Company recognizes all financial liabilities initially at fair value and classifies them as either FVTPL or loans and borrowings, as appropriate. The Company has not classified any of its derivatives as hedging instruments in an effective hedge. 5% Convertible Debentures The Company's 5% Convertible Debentures were considered financial instruments at FVTPL. The convertible debentures contained embedded derivatives that significantly modified the cash flows that otherwise would be required by the contract. The convertible debentures were recorded at fair value based on unadjusted quoted prices in active markets when available, otherwise by valuing the embedded derivative conversion feature and the debt component separately. The conversion feature was valued using a Black-Scholes model and the value of the debt was determined based on the present value of the future cash flows. Changes in fair value were recorded in the consolidated statement of operations. Upfront costs and fees related to the convertible debentures were recognized in the statement of operations as incurred and not deferred. The Company's 5% Convertible Debentures were fully settled during the year ended December 31, 2017 . Warrants The Company's warrants were considered financial instruments at FVTPL. Prior to the holder exercising the warrants in full in 2017, the holder of the warrants had an option to request a cashless exercise. As a result, the warrants were classified as financial liability instruments and were recorded at fair value at each reporting period end using a Black-Scholes model. Warrant pricing models required the input of certain assumptions including price volatility and expected life. All warrants were exercised during the year ended December 31, 2017 . Derivatives From time to time the Company may utilize foreign exchange and commodity price derivatives to manage exposure to fluctuations in foreign currency exchange rates and gold prices, respectively. The Company does not employ derivative financial instruments for trading purposes or for speculative purposes. Derivative instruments are recorded on the balance sheet at fair value with changes in fair value recorded in the consolidated statement of operations. The Company did not have any foreign exchange derivatives outstanding at December 31, 2018 . 7% Convertible Debentures embedded derivative The Company's 7% Convertible Debentures embedded derivative is considered a financial instrument at FVTPL. The embedded derivative was recorded at fair value on the date of debt issuance. It is subsequently remeasured at fair value at each reporting date, and the changes in the fair value are recorded in the consolidated statement of operations. The fair value of the embedded derivative is determined using a convertible note valuation model, using assumptions based on market conditions existing at the reporting date. |
Share capital | Share capital Common shares are classified as equity. Costs directly attributable to the issue of new shares or share options are shown in equity as a deduction, net of tax, from the gross proceeds. |
Changes in accounting policies and standards, interpretations and amendments not yet effective | Changes in accounting policies The Company has adopted the following new and revised standards, effective January 1, 2018. These changes were made in accordance with the applicable transitional provisions. IFRS 2 Share-based payments was amended to address (i) certain issues related to the accounting for cash settled awards, and (ii) the accounting for equity settled awards that include a "net settlement" feature in respect of employee withholding taxes effective for years beginning on or after January 1, 2018. There was no impact to the financial statements on adoption of this standard. IFRS 9 Financial Instruments was issued in July 2014 and includes (i) a third measurement category for financial assets - fair value through other comprehensive income; (ii) a single, forward-looking "expected loss" impairment model; and (iii) a mandatory effective date of annual periods beginning on or after January 1, 2018. On adoption of this standard, there was no accounting impact to the financial statements and there were no changes in the carrying values of any of the Company's financial assets. IFRS 15 Revenue from Contracts with Customers was amended to clarify how to (i) identify a performance obligation in a contract; (ii) determine whether a company is a principal or an agent; and (iii) determine whether the revenue from granting a license should be recognized at a point in time or over time. In addition to the clarifications, the amendments include two additional reliefs to reduce cost and complexity for a company when it first applies the new standard. The amendments have the same effective date as the standard, which is January 1, 2018. The impact of the initial adoption of IFRS 15 was $19.0 million . The adjustment was recorded as an increase to deferred revenue with a corresponding increase to opening deficit. Standards, interpretations and amendments not yet effective IFRS 16 Leases specifies how an IFRS reporter will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16's approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 was issued in January 2016 and applies to annual reporting periods beginning on or after January 1, 2019. The Company has completed an evaluation of the population of its contracts to ensure compliance with the new lease standard. The assessment has identified some contracts that will likely be capitalized under the new lease standard however the Company does not expect there to be a material impact on the financial statements upon adoption of IFRS 16 on January 1, 2019, which will be applied on a modified retrospective basis. IFRIC 23 Uncertainty over income tax treatments clarifies how the recognition and measurement requirements of IAS 12, Income Taxes, are applied where there is uncertainty over income tax treatments effective for years beginning on or after January 1, 2019. There is not expected to be any accounting impact to the financial statements on adoption of this standard. |
Commencement of commercial production | Commencement of commercial production Prior to the period when a mine has reached management’s intended operating levels, costs incurred as part of the development of the related mining property are capitalized and any gold sales during the development period are offset against the cost capitalized. The Company defines the commencement of commercial production as the date that a mine has achieved a consistent level of production. Depreciation/amortization of capitalized costs for mining properties begins when operating levels intended by management has been reached. There are a number of factors the Company considers when determining if conditions exist for the commencement of commercial production of an operating mine. Management examines the following factors when making that judgement: • All major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed; • The completion of a reasonable period of testing of the mine properties; • The mine and/or mill has reached a pre-determined percentage of design capacity; and • The ability to sustain ongoing production of ore. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of financial liabilities | The following tables illustrate the classification of the Company's recurring fair value measurements for financial instruments within the fair value hierarchy and their carrying values and fair values as at December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 Level Carrying value Fair value Carrying value Fair value Financial Liabilities Fair value through profit or loss 7% Convertible Debentures embedded derivative 3 4,177 4,177 10,963 10,963 |
Disclosure of gain (loss) on fair value of financial instruments | Gain on fair value of financial instruments in the Statements of Operations and Comprehensive (Loss)/Income includes the following components: For the Years Ended December 31, 2018 2017 Loss on fair value of 5% Convertible Debentures $ — $ 317 Gain on fair value of warrants — (86 ) Gain on warrant exercise — (193 ) Gain on fair value of 7% Convertible Debentures embedded derivative (6,786 ) (2,095 ) $ (6,786 ) $ (2,057 ) |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities | The significant inputs used in the convertible note valuation are as follows: December 31, 2018 December 31, 2017 Embedded derivative Risk premium 5.0 % 7.9 % Borrowing costs 10.0 % 15.0 % Expected volatility 45.0 % 45.0 % Remaining life (years) 2.6 3.6 |
Schedule of changes in financial liabilities | The following table presents the changes in the 7% Convertible Debentures embedded derivative for the year ended December 31, 2018 : Fair value Balance at December 31, 2017 $ 10,963 Gain on fair value of 7% Convertible Debentures embedded derivative (6,786 ) Balance at December 31, 2018 $ 4,177 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Classes of current inventories [abstract] | |
Schedule of inventories | Inventories include the following components: As of As of December 31, December 31, Stockpiled ore $ 6,613 $ 22,998 In-process ore 4,188 4,014 Materials and supplies 23,659 22,677 Finished goods 736 964 Total $ 35,196 $ 50,653 |
MINING INTERESTS (Tables)
MINING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Summary of the cost, accumulated depreciation and net book value of plant and equipment, mining properties and construction in progress | The following table shows the breakdown of the cost, accumulated depreciation and net book value of plant and equipment, mining properties and construction in progress: Plant and equipment Mining properties Construction in progress Total Cost As of December 31, 2016 461,438 746,657 131,409 1,339,504 Additions 649 632 63,072 64,353 Transfers 24,269 48,122 (72,391 ) — Capitalized interest — — 5,285 5,285 Change in rehabilitation provision estimate — 3,022 — 3,022 Disposals and other (7,142 ) — (452 ) (7,594 ) Balance at December 31, 2017 $ 479,214 $ 798,433 $ 126,923 $ 1,404,570 Additions 95 677 45,485 46,257 Transfers 16,516 127,902 (144,418 ) — Capitalized interest — — 579 579 Change in rehabilitation provision estimate — 3,218 — 3,218 Disposals and other (17,065 ) — — (17,065 ) Balance at December 31, 2018 $ 478,760 $ 930,230 $ 28,569 $ 1,437,559 Accumulated depreciation As of December 31, 2016 431,698 692,789 — 1,124,487 Depreciation and amortization 12,385 20,431 — 32,816 Disposals and other (6,791 ) — — (6,791 ) Balance at December 31, 2017 $ 437,292 $ 713,220 $ — $ 1,150,512 Depreciation and amortization 12,349 20,900 — 33,249 Disposals and other (16,842 ) — — (16,842 ) Balance at December 31, 2018 $ 432,799 $ 734,120 $ — $ 1,166,919 Carrying amount Balance at December 31, 2017 $ 41,922 $ 85,213 $ 126,923 $ 254,058 Balance at December 31, 2018 $ 45,961 $ 196,110 $ 28,569 $ 270,640 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Incomes Taxes [Abstract] | |
Summary of Deferred Tax Assets | The composition of our unrecognized deferred tax assets by tax jurisdiction is summarized as follows: As of As of December 31, December 31, Deductible temporary differences Canada $ 8,844 $ 12,755 Ghana 31,509 44,232 $ 40,353 $ 56,987 Tax losses Canada $ 50,718 $ 48,411 U.S. 175 311 Ghana 287,545 257,771 $ 338,438 $ 306,493 Total unrecognized deferred tax assets Canada $ 59,562 $ 61,166 U.S. 175 311 Ghana 319,054 302,003 $ 378,791 $ 363,480 Our net deferred tax assets at December 31, 2018 and 2017 include the following components: As of As of December 31, December 31, Deferred tax assets Tax losses carried forward $ 10,322 $ 17,773 Deductible temporary differences relating to provisions 5,995 4,821 Deferred tax liabilities Mine property costs 15,723 9,650 Net deferred tax assets $ 594 $ 12,944 |
Income Tax Recovery | The income tax expense/(recovery) includes the following components: For the years ended December 31, 2018 2017 Current tax recovery Current tax on net earnings $ 12,350 $ — Deferred tax recovery Recovery of previously unrecognized deferred tax assets — (12,944 ) Income tax expense/(recovery) $ 12,350 $ (12,944 ) |
Schedule of Expected Income Tax on Net Loss | A reconciliation of expected income tax on net (loss)/income before minority interest at statutory rates with the actual income tax expense/(recovery) is as follows: For the years ended December 31, 2018 2017 Net (loss)/income before tax $ (11,721 ) $ 28,015 Statutory tax rate 26.5 % 26.5 % Tax benefit at statutory rate $ (3,106 ) $ 7,424 Foreign tax rates (15,562 ) (10,629 ) Other 132 74 Non taxable/deductible items (676 ) (20 ) Change in unrecognized deferred tax assets due to exchange rates 3,427 (1,180 ) Change in unrecognized deferred tax assets 28,135 (8,613 ) Deferred income tax expense/(recovery) $ 12,350 $ (12,944 ) |
Schedule Of Tax Pool And Loss Carryover Expiration | At December 31, 2018 , the Company had a tax pool and loss carryovers expiring as follows: Canada Ghana Other 2019 $ — $ 33,488 $ — 2020 — 109,841 — 2021 — 12,822 2026 8,115 — 2027 12,306 117,889 — 2028 11,106 — — 2029 16,841 — — 2030 15,052 — — 2031 28,240 — — 2032 13,670 — — 2033 5,884 — 347 2034 — — 364 2035 8,049 — 1 2036 13,123 — 120 2037 14,827 Indefinite 37,867 577,012 — Total $ 185,080 $ 851,052 $ 832 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other current payables [abstract] | |
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued liabilities include the following components: As of As of December 31, December 31, Trade and other payables $ 42,947 $ 44,048 Accrued liabilities 25,522 40,165 Payroll related liabilities 10,015 10,410 Total $ 78,484 $ 94,623 |
REHABILITATION PROVISIONS (Tabl
REHABILITATION PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [abstract] | |
Schedule of changes in the carrying amount of rehabilitation provisions | The changes in the carrying amount of the rehabilitation provisions are as follows: For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 Beginning balance $ 70,712 $ 77,382 Accretion of rehabilitation provisions 691 1,245 Changes in estimates 138 (1,923 ) Cost of reclamation work performed (5,316 ) (5,992 ) Balance at the end of the period $ 66,225 $ 70,712 Current portion $ 7,665 $ 6,566 Long term portion 58,560 64,146 Total $ 66,225 $ 70,712 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Deferred Revenue [Abstract] | |
Schedule of deferred revenue | For the Years Ended December 31, 2018 2017 Beginning balance $ 109,956 $ 114,112 Impact of adopting IFRS 15 on January 1, 2018 (see Note 3) 18,980 — Deposits received — 10,000 Deferred revenue recognized (13,738 ) (14,156 ) Interest on financing component of deferred revenue 4,750 — Balance at the end of the period $ 119,948 $ 109,956 Current portion $ 14,316 $ 17,894 Long term portion 105,632 92,062 Total $ 119,948 $ 109,956 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Disclosure of detailed information about borrowings | The following table displays the components of our current and long term debt instruments: As of As of December 31, 2018 December 31, 2017 Current debt: Equipment financing credit facility $ — $ 147 Finance leases 1,151 1,229 Ecobank Loan III 5,555 2,222 Ecobank Loan IV 4,000 — Vendor agreement 16,776 12,266 Total current debt $ 27,482 $ 15,864 Long term debt: Finance leases $ 532 $ 269 Ecobank Loan III 14,380 7,337 Ecobank Loan IV 13,700 — 7% Convertible Debentures 44,612 42,515 Royal Gold loan — 18,817 Vendor agreement — 10,803 Total long term debt $ 73,224 $ 79,741 Current portion $ 27,482 $ 15,864 Long term portion 73,224 79,741 Total $ 100,706 $ 95,605 |
Schedule of changes in borrowings | The changes in the carrying amount of the 7% Convertible Debentures are as follows: For the Years Ended December 31, 2018 2017 Beginning balance $ 42,515 $ 47,617 Conversions — (6,947 ) Accretion of 7% Convertible Debentures discount 2,097 1,845 Balance at the end of the period $ 44,612 $ 42,515 |
Schedule of payments on outstanding debt | Schedule of payments on outstanding debt as of December 31, 2018 : Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 Year ending December 31, 2022 Year ending December 31, 2023 Maturity Finance leases Principal $ 1,151 $ 532 $ — $ — $ — 2020 Interest 94 8 — — — Ecobank Loan III Principal 5,555 5,555 5,555 3,611 — 2022 Interest 1,739 1,189 632 101 — Ecobank Loan IV Principal 4,000 4,000 4,000 4,000 2,000 2023 Interest 1,645 1,250 847 448 74 7% Convertible Debentures Principal — — 51,498 — — August 15, 2021 Interest 3,605 3,605 3,605 — — Vendor agreement Principal 17,507 — — — — 2019 Interest 1,072 — — — — Total principal $ 28,213 $ 10,087 $ 61,053 $ 7,611 $ 2,000 Total interest 8,155 6,052 5,084 549 74 $ 36,368 $ 16,139 $ 66,137 $ 8,160 $ 2,074 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Schedule of changes in share capital | Note Number of Common Shares Share Capital Balance at December 31, 2016 67,071,290 $ 746,542 Bought deal 6,272,790 26,203 Conversion of 7% Convertible Debentures 1,889,110 9,479 Shares issued under DSUs 233,539 521 Shares issued under options 4,750 16 Shares issued under warrants 644,736 2,450 Share issue costs — (2,044 ) Balance at December 31, 2017 76,116,215 $ 783,167 Private placement a 32,642,100 125,672 Shares issued under DSUs 36,194 20 Shares issued under options 24,500 77 Share issue costs — (901 ) Balance at December 31, 2018 108,819,009 $ 908,035 a. On October 1, 2018, the Company completed a $125.7 million strategic investment with La Mancha Holding S.à r.l. ("La Mancha"), a Luxembourg-incorporated private gold investment company through a private placement. La Mancha was issued 32,642,100 Golden Star common shares, representing approximately 30% of the outstanding share capital (on a non-diluted basis) after giving effect to La Mancha's investment. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Schedule of future minimum payments | Future minimum payments under these agreements as at December 31, 2018 are as follows: Less than 1 year $ 1,383 Between 1 and 5 years 183 More than 5 years — Total $ 1,566 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
Non-cash employee compensation expenses recognized in general and administrative expense in the Statements of Operations and Comprehensive Income | Share-based compensation expenses recognized in general and administrative expense in the Statements of Operations and Comprehensive (Loss)/Income, are as follows: For the Years Ended December 31, 2018 2017 Share options $ 1,248 $ 1,229 Deferred share units 565 387 Share appreciation rights (502 ) 482 Performance share units (33 ) 10,456 $ 1,278 $ 12,554 |
Fair value assumptions estimated at the grant dates using the Black-Scholes option-pricing model | Fair values of options granted during the year ended December 31, 2018 and 2017 were based on the weighted average assumptions noted in the following table: For the Years Ended December 31, 2018 2017 Expected volatility 70.06% 73.70% Risk-free interest rate 2.39% 1.86% Expected lives 5.68 years 5.99 years |
Schedule of number and weighted average remaining contractual life of outstanding share options | A summary of option activity under the Company's Stock Option Plan during the years ended December 31, 2018 and 2017 is as follows: Options Weighted– Weighted– Outstanding as of December 31, 2016 3,223 6.45 5.7 Granted 470 6.40 9.7 Exercised (5 ) 2.75 7.3 Forfeited (128 ) 11.35 1.8 Expired (234 ) 10.95 0 Outstanding as of December 31, 2017 3,326 5.93 5.9 Granted 642 4.61 9.2 Exercised (25 ) 3.24 1.6 Forfeited (116 ) 8.96 3.6 Expired (329 ) 9.35 0 Outstanding as of December 31, 2018 3,498 5.28 6.3 Exercisable as of December 31, 2017 2,536 6.30 5.1 Exercisable as of December 31, 2018 2,664 5.42 5.5 |
Schedule of range of exercise prices of outstanding share options | The number of options outstanding by strike price as of December 31, 2018 is shown in the following table: Options outstanding Options exercisable Number outstanding at December 31, 2018 Weighted-average remaining contractual life Weighted-average exercise price Number outstanding at December 31, 2018 Weighted-average exercise price Range of exercise price (Cdn$) ('000) (years) (Cdn$) ('000) (Cdn$) 1.50 to 2.50 604 6.1 1.90 604 1.90 2.51 to 3.50 534 7.1 2.81 405 2.82 3.51 to 4.50 581 4.9 4.35 581 4.35 4.51 to 5.50 689 9.1 4.63 205 4.68 5.51 to 7.50 487 7.7 6.48 266 6.46 7.51 to 10.50 378 2.9 9.50 378 9.50 10.51 to 17.65 225 1.9 14.92 225 14.92 3,498 6.3 5.28 2,664 5.42 The number of options outstanding by strike price as of December 31, 2017 is shown in the following table: Options outstanding Options exercisable Number outstanding at December 31, 2017 Weighted-average remaining contractual life Weighted-average exercise price Number outstanding at December 31, 2017 Weighted-average exercise price Range of exercise price (Cdn$) ('000) (years) (Cdn$) ('000) (Cdn$) 1.50 to 2.50 617 7 1.90 500 1.90 2.51 to 3.50 536 8 2.80 277 2.80 3.51 to 4.50 616 5.8 4.30 589 4.30 4.51 to 5.50 52 8.8 4.80 26 4.90 5.51 to 7.50 513 8.5 6.40 177 6.40 7.51 to 10.50 691 2.3 8.90 666 9.00 10.51 to 17.65 302 2.5 15.10 302 15.10 3,326 5.9 5.93 2,536 6.30 |
Summary of other equity activity | A summary of the PRSU activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of PRSUs, beginning of period ('000) 339 — Granted 480 339 Forfeited (28 ) — Number of PRSUs, end of period ('000) 791 339 A summary of the PSU activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of PSUs, beginning of period ('000) 2,721 3,096 Settled (1,548 ) (375 ) Number of PSUs, end of period ('000) 1,172 2,721 xpense). A summary of the SARs activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of SARs, beginning of period ('000) 533 537 Granted 304 292 Exercised (36 ) (158 ) Forfeited (127 ) (138 ) Number of SARs, end of period ('000) 674 533 A summary of DSU activity during the year ended December 31, 2018 and 2017 : For the Years Ended December 31, 2018 2017 Number of DSUs, beginning of period ('000) 1,018 1,146 Granted 150 105 Exercised (82 ) (233 ) Number of DSUs, end of period ('000) 1,086 1,018 |
(LOSS)_INCOME PER COMMON SHARE
(LOSS)/INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Reconciliation between basic and diluted income/(loss) per common share | The following table provides a reconciliation between basic and diluted (loss)/income per common share: For the Years Ended December 31, 2018 2017 Net (loss)/income attributable to Golden Star shareholders $ (18,123 ) $ 38,771 Adjustments: Interest expense on 7% Convertible Debentures — 3,657 Accretion of 7% Convertible Debentures discount — 1,845 Gain on fair value of 7% Convertible Debentures embedded derivative — (2,095 ) Diluted (loss)/income $ (18,123 ) $ 42,178 Weighted average number of basic shares (millions) 1 84.3 74.7 Dilutive securities: Options — 0.5 Deferred share units — 1.1 Performance and restricted share units — 0.3 7% Convertible Debentures — 11.6 Weighted average number of diluted shares (millions) 84.3 88.2 (Loss)/income per share attributable to Golden Star shareholders: Basic $ (0.21 ) $ 0.52 Diluted $ (0.21 ) $ 0.48 1 See Note 13 for share consolidation details. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [abstract] | |
Components of revenue | Revenue includes the following components: For the Years Ended December 31, 2018 2017 Revenue - Streaming Agreement Cash payment proceeds $ 6,036 $ 6,138 Deferred revenue recognized 13,738 14,156 19,774 20,294 Revenue - Spot sales 253,243 295,203 Total revenue $ 273,017 $ 315,497 |
COST OF SALES EXCLUDING DEPRE_2
COST OF SALES EXCLUDING DEPRECIATION AND AMORTIZATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Cost of sales excluding depreciation and amortization | Cost of sales excluding depreciation and amortization include the following components: For the Years Ended December 31, 2018 2017 Contractors $ 32,536 $ 41,297 Electricity 17,663 20,558 Fuel 7,347 11,137 Raw materials and consumables 41,910 51,996 Salaries and benefits 58,501 53,582 Transportation costs 1,751 2,116 General and administrative 9,490 7,695 Other 6,830 8,997 Mine operating expenses $ 176,028 $ 197,378 Severance charges 14,858 9,232 Operating costs from metal inventory 12,886 167 Inventory net realizable value adjustment and write-off 5,655 2,410 Royalties 14,302 17,295 $ 223,729 $ 226,482 |
FINANCE EXPENSE, NET (Tables)
FINANCE EXPENSE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Components of finance income and expense | Finance income and expense includes the following components: For the Years Ended December 31, 2018 2017 Interest income $ (559 ) $ (72 ) Interest expense, net of capitalized interest (see Note 7) 13,281 6,039 Interest on financing component of deferred revenue (see Note 11) 4,750 — Net foreign exchange gain (91 ) (172 ) Accretion of rehabilitation provision 691 1,245 Conversion make-whole payment — 1,445 $ 18,072 $ 8,485 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Schedule Of Other Income | Other income includes the following components: For the Years Ended December 31, 2018 2017 (Gain)/loss on disposal of assets (305 ) 672 Gain on reduction of asset retirement obligations (3,080 ) (4,945 ) Other income (218 ) (73 ) $ (3,603 ) $ (4,346 ) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
Compensation of key management personnel | Compensation of key management personnel are as follows, with such compensation made on terms equivalent to those prevailing in an arm's length transaction: For the Years Ended December 31, 2018 2017 Salaries, wages, and other benefits $ 3,753 $ 2,800 Bonuses 1,052 787 Share-based compensation 1,965 7,487 $ 6,770 $ 11,074 |
PRINCIPAL SUBSIDIARIES (Tables)
PRINCIPAL SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interests In Other Entities [Abstract] | |
Schedule of subsidiaries | Summarized statement of financial position Wassa Prestea As of December 31, As of December 31, 2018 2017 2018 2017 Non-controlling interest percentage 10 % 10 % 10 % 10 % Current assets $ 129,656 $ 94,760 $ 13,633 $ 25,023 Current liabilities 150,404 160,725 1,152,156 1,058,732 (20,748 ) (65,965 ) (1,138,523 ) (1,033,709 ) Non-current assets 141,262 138,416 134,090 131,245 Non-current liabilities 42,588 25,016 62,737 76,373 98,674 113,400 71,353 54,872 Net assets/(liabilities) 77,926 47,435 (1,067,170 ) (978,837 ) Non-controlling interest $ 15,605 $ 12,562 $ (87,578 ) $ (78,587 ) Summarized income statement Wassa Prestea For the years ended December 31, For the years ended December 31, 2018 2017 2018 2017 Revenue $ 190,016 $ 156,908 $ 93,134 $ 138,295 Net income/(loss) and comprehensive income/(loss) 30,491 16,924 (88,332 ) 4,619 Summarized cash flows Wassa Prestea For the years ended December 31, For the years ended December 31, 2018 2017 2018 2017 Cash flows provided by/(used in) operating activities 57,897 27,486 (77,115 ) 3,505 Cash flows used in investing activities (34,984 ) (21,744 ) (11,956 ) (43,616 ) Cash flows (used in)/provided by financing activities (31,112 ) 7,468 85,581 42,078 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments | For the Years Ended December 31, Wassa Prestea Other Corporate Total 2018 Revenue 183,078 89,939 — — 273,017 Mine operating expenses 86,916 89,112 — — 176,028 Severance charges 4,970 9,888 — — 14,858 Operating costs from metal inventory 7,184 5,702 — — 12,886 Inventory net realizable value adjustment and write-off 3,684 1,971 — — 5,655 Royalties 9,508 4,794 — — 14,302 Cost of sales excluding depreciation and amortization 112,262 111,467 — — 223,729 Depreciation and amortization 22,066 11,873 — — 33,939 Mine operating margin/(loss) 48,750 (33,401 ) — — 15,349 Income tax expense 12,350 — — — 12,350 Net income/(loss) attributable to non-controlling interest 3,043 (8,991 ) — — (5,948 ) Net income/(loss) attributable to Golden Star 27,994 (25,351 ) (8,543 ) (12,223 ) (18,123 ) Capital expenditures 35,420 11,414 — — 46,834 2017 Revenue $ 167,376 $ 148,121 $ — $ — $ 315,497 Mine operating expenses 115,625 81,753 — — 197,378 Severance charges 6,316 2,916 — — 9,232 Operating costs from/(to) metal inventory 5,080 (4,913 ) — — 167 Inventory net realizable value adjustment and write-off 2,410 — — — 2,410 Royalties 8,652 8,643 — — 17,295 Cost of sales excluding depreciation and amortization 138,083 88,399 — — 226,482 Depreciation and amortization 20,052 11,740 — — 31,792 Mine operating margin 9,241 47,982 — — 57,223 Net income attributable to non-controlling interest 1,693 495 — — 2,188 Net income/(loss) attributable to Golden Star $ 17,644 $ 50,050 $ (3,701 ) $ (25,222 ) $ 38,771 Capital expenditures $ 21,583 $ 48,055 $ — $ — $ 69,638 Segmented Assets The following table presents the segmented assets: Wassa Prestea Other Corporate Total December 31, 2018 Total assets $ 181,446 $ 147,815 $ 898 $ 87,828 $ 417,987 December 31, 2017 Total assets $ 195,180 $ 158,715 $ 4,257 $ 2,237 $ 360,389 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement of cash flows [abstract] | |
Schedule of supplemental cash flow information | Changes in working capital for the year ended December 31, 2018 and 2017 are as follows: For the Years Ended December 31, 2018 2017 Decrease in accounts receivable $ 215 $ 3,871 Decrease/(increase) in inventories 9,187 (7,684 ) Increase in prepaids and other (737 ) (2,132 ) Decrease in accounts payable and accrued liabilities (25,837 ) (1,503 ) Total changes in working capital $ (17,172 ) $ (7,448 ) Other includes the following components: For the Years Ended December 31, 2018 2017 (Gain)/loss on disposal of assets $ (305 ) $ 672 Inventory net realizable value adjustment and write-off 5,544 2,410 Loss on fair value of 5% Convertible Debentures — 317 Gain on fair value of warrants — (86 ) Loss/(gain) on fair value of marketable securities 175 (64 ) Accretion of vendor agreement 731 731 Accretion of rehabilitation provisions (see Note 10) 691 1,245 Amortization of financing fees 1,322 378 Accretion of 7% Convertible Debentures discount 2,097 1,845 Gain on reduction of rehabilitation provisions (3,080 ) (4,945 ) Loss on conversion of 7% Convertible Debentures, net — 165 Gain on warrant exercise — (193 ) Interest on financing component of deferred revenue (see Note 11) 4,750 — $ 11,925 $ 2,475 Reconciliation of debt arising from financing activities during the year ended December 31, 2018 and 2017 : Equipment financing credit facility Finance leases Ecobank Loan III Ecobank Loan IV Vendor agreement 5% Convertible Debentures 7% Convertible Debentures Royal Gold loan Total December 31, 2016 $ 1,119 $ 1,959 $ — $ — $ 22,338 $ 13,294 $ 47,617 $ 18,496 $ 104,823 Cash flows Proceeds from debt agreements — — 10,000 — — — — — 10,000 Principal payments on debt (972 ) (1,226 ) — — — — — — (2,198 ) Fair value loss on the 5% Convertible Debentures — — — — — 317 — — 317 5% Convertible Debentures repayment — — — — — (13,611 ) — — (13,611 ) Non-cash changes Capitalized loan fee — — (499 ) — — — — — (499 ) New lease — 765 — — — — — — 765 Conversion of 7% Convertible Debentures — — — — — — (6,947 ) — (6,947 ) Accretion of debt — — 58 — 731 — 1,845 321 2,955 December 31, 2017 $ 147 $ 1,498 $ 9,559 $ — $ 23,069 $ — $ 42,515 $ 18,817 $ 95,605 Cash flows Proceeds from debt agreements — — 15,000 20,000 — — — — 35,000 Principal payments on debt (147 ) (1,714 ) (4,723 ) (1,999 ) (7,024 ) — — — (15,607 ) Royal Gold loan repayment — — — — — — — (20,000 ) (20,000 ) Non-cash changes Capitalized loan fee — — — (340 ) — — — — (340 ) New lease — 1,899 — — — — — — 1,899 Accretion of debt — — 99 39 731 — 2,097 1,183 4,149 December 31, 2018 $ — $ 1,683 $ 19,935 $ 17,700 $ 16,776 $ — $ 44,612 $ — $ 100,706 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of general information about financial statements [Abstract] | |
Schedule Of Contractual Obligations | The following table shows our contractual obligations as at December 31, 2018 : Payment due (in thousands) by period (Stated in thousands of U.S dollars) Less than 1 1 to 3 years 3 to 5 years More than Total Accounts payable and accrued liabilities 1 $ 84,894 $ — $ — $ — $ 84,894 Debt 2 28,213 78,751 2,000 — 108,964 Interest on long term debt 8,155 11,685 74 — 19,914 Purchase obligations 13,762 — — — 13,762 Rehabilitation provisions 3 7,665 27,908 26,283 11,613 73,469 Total $ 142,689 $ 118,344 $ 28,357 $ 11,613 $ 301,003 1 Includes the current portion of the PSU liabilities of $6.4 million . 2 Includes the 7% Convertible Debentures maturing in August 2021, the finance leases and the vendor agreement. Golden Star may not redeem the 7% Convertible Debentures prior to August 15, 2019, except in the event of certain changes in applicable tax law. On or after August 15, 2019, the Company may redeem all or part of the outstanding 7% Convertible Debentures at the redemption price, only if the last reported sales price of the Company's common shares for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date the Company provides the notice of redemption to holders exceeds 130% of the conversion price in effect on each such trading day. The presentation shown above assumes payment is made in cash and also assumes no conversions of the 7% Convertible Debentures into common shares by the holders prior to the maturity date. 3 Rehabilitation provisions indicates the expected undiscounted cash flows for each period. |
CAPITAL RISK MANAGEMENT (Tables
CAPITAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Components of equity, long-term debt, net of cash and cash equivalents and investments | In the management of capital, the Company includes the components of equity, long-term debt, net of cash and cash equivalents, and investments. As of As of December 31, December 31, Equity $ 42,037 $ (41,754 ) Long-term debt 73,224 79,741 $ 115,261 $ 37,987 Cash and cash equivalents 96,507 27,787 $ 211,768 $ 65,774 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Golden Star Limited | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 90.00% |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Mobile Mining Equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, useful life | 5 years |
SUMMARY OF ACCOUNTING POLICIE_3
SUMMARY OF ACCOUNTING POLICIES - Deferred revenue (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Streaming Agreement | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Initial term of contract | 40 years |
SUMMARY OF ACCOUNTING POLICIE_4
SUMMARY OF ACCOUNTING POLICIES - Share-based compensation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award requisite service period | 4 years |
Performance share units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share conversion ratio | 1 |
Award requisite service period | 3 years |
Performance restricted share units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award requisite service period | 3 years |
Minimum | Performance share units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award performance adjusting factor | 0.00% |
Minimum | Performance restricted share units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award performance adjusting factor | 0.00% |
Maximum | Performance share units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award performance adjusting factor | 200.00% |
Maximum | Performance restricted share units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award performance adjusting factor | 200.00% |
SUMMARY OF ACCOUNTING POLICIE_5
SUMMARY OF ACCOUNTING POLICIES - Financial Instruments (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 |
5% Convertible Debentures | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 5.00% | 5.00% | |
7% Convertible Debentures | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.00% | 7.00% |
SUMMARY OF ACCOUNTING POLICIE_6
SUMMARY OF ACCOUNTING POLICIES - Accounting changes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Significant Accounting Policies [Abstract] | |||
Impact of adopting IFRS 15 | $ (18,980) | $ 18,980 | $ 0 |
FINANCIAL INSTRUMENTS - Fair va
FINANCIAL INSTRUMENTS - Fair value measurements for financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 |
5% Convertible Debentures | |||
Disclosure of financial liabilities [line items] | |||
Borrowings, interest rate | 5.00% | 5.00% | |
7% Convertible Debentures | |||
Disclosure of financial liabilities [line items] | |||
Borrowings, interest rate | 7.00% | 7.00% | |
Carrying value | Level 3 | Convertible Debentures | 7% Convertible Debentures | |||
Disclosure of financial liabilities [line items] | |||
Financial Liabilities | $ 4,177 | $ 10,963 | |
Fair value | Level 3 | Convertible Debentures | 7% Convertible Debentures | |||
Disclosure of financial liabilities [line items] | |||
Financial Liabilities | $ 4,177 | $ 10,963 |
FINANCIAL INSTRUMENTS - (Gain)_
FINANCIAL INSTRUMENTS - (Gain)/loss on fair value of financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Loss on fair value of 5% Convertible Debentures | $ 0 | $ 317 | |
Gain on fair value of warrants | 0 | (86) | |
Gain on warrant exercise | 0 | (193) | |
Gain on fair value of 7% Convertible Debentures embedded derivative | (6,786) | (2,095) | |
(Gain)/loss on fair value of financial instruments, net | $ (6,786) | $ (2,057) | |
5% Convertible Debentures | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings, interest rate | 5.00% | 5.00% | |
7% Convertible Debentures | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings, interest rate | 7.00% | 7.00% |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Repayment | $ 20,000 | $ 13,611 | |
Debt repayments of interest | 7,900 | 7,300 | |
Shares issued under warrants | 2,450 | ||
Potential decrease from change in borrowing costs | (200) | ||
Potential increase from change in volatility | 700 | ||
Gain on warrant exercise | $ 0 | $ (193) | |
5% Convertible Debentures | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings, interest rate | 5.00% | 5.00% | |
Repayment | $ 0 | $ 13,611 | |
7% Convertible Debentures | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings, interest rate | 7.00% | 7.00% | |
Repayment | $ 0 | $ 0 | |
Potential gain from change in risk premium | (200) | ||
Share Capital | Common shares | |||
Disclosure of detailed information about financial instruments [line items] | |||
Shares issued under warrants (shares) | 644,736 | ||
Shares issued under warrants | $ 2,450 | $ 2,450 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Inputs (Details) - 7% Convertible Debentures embedded derivative | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Risk premium | 5.00% | 7.90% |
Borrowing costs | 10.00% | 15.00% |
Expected volatility | 45.00% | 45.00% |
Remaining life (years) | 2 years 7 months 6 days | 3 years 7 months 6 days |
FINANCIAL INSTRUMENTS - Changes
FINANCIAL INSTRUMENTS - Changes of financial liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
7% Convertible Debentures embedded derivative | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities, beginning balance | $ 10,963 | |
Financial liabilities, ending balance | 4,177 | $ 10,963 |
7% Convertible Debentures | ||
Disclosure of financial liabilities [line items] | ||
Gain on fair value of 7% Convertible Debentures embedded derivative | $ (6,786) | $ (2,100) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Stockpiled ore | $ 6,613 | $ 22,998 |
In-process ore | 4,188 | 4,014 |
Materials and supplies | 23,659 | 22,677 |
Finished goods | 736 | 964 |
Inventories | 35,196 | 50,653 |
Cost of inventories expensed during period | 209,400 | 209,200 |
Inventory net realizable value adjustment and write-off | 2,800 | 3,500 |
Wassa | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Inventory net realizable value adjustment and write-off | $ 2,800 | $ 0 |
MINING INTERESTS (Details)
MINING INTERESTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | $ 254,058 | ||
Ending balance | 270,640 | $ 254,058 | |
Equipment under finance leases | 3,000 | 1,600 | |
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,404,570 | 1,339,504 | |
Additions | 46,257 | 64,353 | |
Transfers | 0 | 0 | |
Capitalized interest | 579 | 5,285 | |
Change in rehabilitation provision estimate | 3,218 | 3,022 | |
Disposals and other | (17,065) | (7,594) | |
Ending balance | 1,437,559 | 1,404,570 | |
Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,150,512 | 1,124,487 | |
Depreciation and amortization | 33,249 | 32,816 | |
Disposals and other | (16,842) | (6,791) | |
Ending balance | 1,166,919 | 1,150,512 | |
Plant and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 41,922 | ||
Ending balance | 45,961 | 41,922 | |
Plant and equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 479,214 | 461,438 | |
Additions | 95 | 649 | |
Transfers | 16,516 | 24,269 | |
Capitalized interest | 0 | 0 | |
Change in rehabilitation provision estimate | 0 | 0 | |
Disposals and other | (17,065) | (7,142) | |
Ending balance | 478,760 | 479,214 | |
Plant and equipment | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 437,292 | 431,698 | |
Depreciation and amortization | 12,349 | 12,385 | |
Disposals and other | (16,842) | (6,791) | |
Ending balance | 432,799 | 437,292 | |
Mining properties | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 85,213 | ||
Ending balance | 196,110 | 85,213 | |
Mining properties | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 798,433 | 746,657 | |
Additions | 677 | 632 | |
Transfers | 127,902 | 48,122 | |
Capitalized interest | 0 | 0 | |
Change in rehabilitation provision estimate | 3,218 | 3,022 | |
Disposals and other | 0 | 0 | |
Ending balance | 930,230 | 798,433 | |
Mining properties | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 713,220 | 692,789 | |
Depreciation and amortization | 20,900 | 20,431 | |
Disposals and other | 0 | 0 | |
Ending balance | 734,120 | 713,220 | |
Construction in progress | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 126,923 | ||
Ending balance | 28,569 | 126,923 | |
Construction in progress | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 126,923 | 131,409 | |
Additions | 45,485 | 63,072 | |
Transfers | (144,418) | (72,391) | |
Capitalized interest | 579 | 5,285 | |
Change in rehabilitation provision estimate | 0 | 0 | |
Disposals and other | 0 | (452) | |
Ending balance | 28,569 | 126,923 | |
Construction in progress | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Disposals and other | 0 | 0 | |
Ending balance | $ 0 | $ 0 | |
7% Convertible Debentures | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Borrowings, interest rate | 7.00% | 7.00% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred tax assets | $ 594 | $ 12,944 |
Tax losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 10,322 | 17,773 |
Deductible temporary differences relating to provisions | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 5,995 | 4,821 |
Mine property costs | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | $ 15,723 | $ 9,650 |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Asset Not Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Entity Location [Line Items] | ||
Deductible temporary differences | $ 40,353 | $ 56,987 |
Tax losses | 338,438 | 306,493 |
Total unrecognized deferred tax assets | 378,791 | 363,480 |
Canada | ||
Entity Location [Line Items] | ||
Deductible temporary differences | 8,844 | 12,755 |
Tax losses | 50,718 | 48,411 |
Total unrecognized deferred tax assets | 59,562 | 61,166 |
U.S. | ||
Entity Location [Line Items] | ||
Tax losses | 175 | 311 |
Total unrecognized deferred tax assets | 175 | 311 |
Ghana | ||
Entity Location [Line Items] | ||
Deductible temporary differences | 31,509 | 44,232 |
Tax losses | 287,545 | 257,771 |
Total unrecognized deferred tax assets | $ 319,054 | $ 302,003 |
INCOME TAXES - Income Tax Recov
INCOME TAXES - Income Tax Recovery Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax recovery | ||
Current tax on net earnings | $ 12,350 | $ 0 |
Recovery of previously unrecognized deferred tax assets | 0 | (12,944) |
Income tax expense/(recovery) | $ 12,350 | $ (12,944) |
INCOME TAXES - Income Tax Rec_2
INCOME TAXES - Income Tax Recovery Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Incomes Taxes [Abstract] | ||
Net (loss)/income before tax | $ (11,721) | $ 28,015 |
Statutory tax rate | 26.50% | 26.50% |
Tax benefit at statutory rate | $ (3,106) | $ 7,424 |
Foreign tax rates | (15,562) | (10,629) |
Other | 132 | 74 |
Non taxable/deductible items | (676) | (20) |
Change in unrecognized deferred tax assets due to exchange rates | 3,427 | (1,180) |
Change in unrecognized deferred tax assets | 28,135 | (8,613) |
Tax expense | $ 12,350 | $ (12,944) |
INCOME TAXES - Schedule Of Tax
INCOME TAXES - Schedule Of Tax Pool And Loss Carryover Expiration (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Canada | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | $ 185,080 |
Canada | 2019 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Canada | 2020 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Canada | 2021 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Canada | 2026 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 8,115 |
Canada | 2027 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 12,306 |
Canada | 2028 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 11,106 |
Canada | 2029 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 16,841 |
Canada | 2030 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 15,052 |
Canada | 2031 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 28,240 |
Canada | 2032 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 13,670 |
Canada | 2033 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 5,884 |
Canada | 2034 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Canada | 2025 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 8,049 |
Canada | 2036 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 13,123 |
Canada | 2037 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 14,827 |
Canada | Indefinite | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 37,867 |
Ghana | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 851,052 |
Ghana | Prestea | |
Entity Location [Line Items] | |
Tax pool and loss carryover | 821,600 |
Ghana | Wassa | |
Entity Location [Line Items] | |
Tax pool and loss carryover | 29,500 |
Ghana | 2019 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 33,488 |
Ghana | 2020 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 109,841 |
Ghana | 2021 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 12,822 |
Ghana | 2026 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | |
Ghana | 2027 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 117,889 |
Ghana | 2028 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2029 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2030 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2031 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2032 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2033 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2034 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2025 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2036 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Ghana | 2037 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | |
Ghana | Indefinite | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 577,012 |
Other | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 832 |
Other | 2019 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2020 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2021 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | |
Other | 2026 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2027 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2028 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2029 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2030 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2031 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2032 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 0 |
Other | 2033 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 347 |
Other | 2034 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 364 |
Other | 2025 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 1 |
Other | 2036 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 120 |
Other | 2037 | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | |
Other | Indefinite | |
Entity Location [Line Items] | |
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | $ 0 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other current payables [abstract] | ||
Trade and other payables | $ 42,947 | $ 44,048 |
Accrued liabilities | 25,522 | 40,165 |
Payroll related liabilities | 10,015 | 10,410 |
Total | $ 78,484 | $ 94,623 |
REHABILITATION PROVISIONS (Deta
REHABILITATION PROVISIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial liabilities [line items] | ||||
Beginning balance | $ 70,712 | $ 77,382 | ||
Accretion of rehabilitation provision | 691 | 1,245 | ||
Changes in estimates | 138 | (1,923) | ||
Cost of reclamation work performed | (5,316) | (5,992) | ||
Balance at the end of the period | 66,225 | 70,712 | ||
Current portion | $ 7,665 | $ 6,566 | ||
Long term portion | 58,560 | 64,146 | ||
Total | 70,712 | 77,382 | 66,225 | 70,712 |
Wassa | ||||
Disclosure of financial liabilities [line items] | ||||
Beginning balance | 17,400 | |||
Accretion of rehabilitation provision | 1,000 | |||
Balance at the end of the period | 17,200 | 17,400 | ||
Total | 17,400 | 17,400 | 17,200 | 17,400 |
Prestea | ||||
Disclosure of financial liabilities [line items] | ||||
Beginning balance | 53,300 | |||
Changes in estimates | (800) | |||
Balance at the end of the period | 49,000 | 53,300 | ||
Total | 53,300 | $ 53,300 | 49,000 | $ 53,300 |
Prestea | Refractory Operation | ||||
Disclosure of financial liabilities [line items] | ||||
Changes in estimates | (3,100) | |||
Prestea | Non-Refractory Operation | ||||
Disclosure of financial liabilities [line items] | ||||
Changes in estimates | $ 2,300 | |||
Provision for decommissioning, restoration and rehabilitation costs | ||||
Disclosure of financial liabilities [line items] | ||||
Undiscounted future cash needs for rehabilitation | $ 73,469 | |||
Discount rate assumption | 2.00% | |||
Inflation rate assumption | 2.00% |
DEFERRED REVENUE (Details)
DEFERRED REVENUE (Details) $ in Thousands | Jul. 28, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)oz | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)oz | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 30, 2015USD ($) |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||||
Gold delivered to date through Streaming Agreement (in ounces) | oz | 240,000 | 78,461 | |||||||
Gold sold (in ounces) | oz | 23,692 | ||||||||
Deferred income, beginning balance | $ 119,948 | $ 109,956 | $ 114,112 | ||||||
Impact of adopting IFRS 15 on January 1, 2018 (see Note 3) | $ 18,980 | $ (18,980) | $ 0 | ||||||
Deposits received | 0 | 10,000 | |||||||
Deferred revenue recognized | (13,738) | (14,156) | |||||||
Interest on financing component of deferred revenue (see Note 11) | 4,750 | 0 | |||||||
Deferred income, ending balance | 119,948 | 109,956 | $ 109,956 | ||||||
Current portion | 14,316 | 17,894 | |||||||
Long term portion | 105,632 | 92,062 | |||||||
Total | $ 119,948 | 109,956 | 114,112 | $ 109,956 | $ 119,948 | $ 109,956 | |||
Deferred revenue recognized | 10,600 | ||||||||
Deferred revenue amortization | 3,100 | ||||||||
Streaming Agreement | |||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||||
Cash payment proceeds | $ 130,000 | $ 6,036 | $ 6,138 | ||||||
Streaming advance payment amount | $ 15,000 | ||||||||
Production delivery percentage | 0.055 | 0.105 | 0.0925 | ||||||
Cash purchase price as a percentage of spot gold | 0.3 | 0.2 | |||||||
Initial term of contract | 40 years | ||||||||
Deferred revenue recognized | $ (13,738) | $ (14,156) |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 03, 2016 | Jul. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||||
Current portion | $ 27,482,000 | $ 15,864,000 | |||
Long term portion | 73,224,000 | 79,741,000 | |||
Total | 100,706,000 | 95,605,000 | |||
Equipment financing credit facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current portion | 0 | 147,000 | |||
Finance leases | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current portion | 1,151,000 | 1,229,000 | |||
Long term portion | 532,000 | 269,000 | |||
Ecobank Loan III | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current portion | 5,555,000 | 2,222,000 | |||
Long term portion | 14,380,000 | 7,337,000 | |||
Total | 20,300,000 | ||||
Ecobank Loan IV | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current portion | 4,000,000 | 0 | |||
Long term portion | 13,700,000 | $ 0 | |||
Total | $ 18,000,000 | ||||
5% Convertible Debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate | 5.00% | 5.00% | |||
7% Convertible Debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long term portion | $ 44,612,000 | $ 42,515,000 | |||
Total | $ 44,612,000 | 42,515,000 | $ 47,617,000 | ||
Borrowings, interest rate | 7.00% | 7.00% | |||
Royal Gold loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long term portion | $ 0 | 18,817,000 | |||
Total | $ 20,000,000 | ||||
Borrowings, interest rate | 8.00% | 11.50% | |||
Vendor agreement | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current portion | $ 16,776,000 | 12,266,000 | |||
Long term portion | $ 0 | $ 10,803,000 | |||
Borrowings, interest rate | 7.50% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | May 04, 2018USD ($) | Jan. 24, 2018USD ($) | Aug. 03, 2016USD ($)$ / shares | Mar. 31, 2017USD ($)shares | Dec. 31, 2018USD ($)lease | Dec. 31, 2017USD ($)shares | Jun. 28, 2018USD ($) | Feb. 22, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2015USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Number of finance leases | lease | 2 | |||||||||
Drawdown amount from debt | $ 35,000,000 | $ 10,000,000 | ||||||||
Debt repayments of interest | $ 7,900,000 | 7,300,000 | ||||||||
Percentage of conversion price in effect | 130.00% | |||||||||
Credit derivative, fair value | $ 12,300,000 | |||||||||
Borrowings | $ 100,706,000 | 95,605,000 | ||||||||
Loss on conversion of 7% Convertible Debentures, net | 0 | 165,000 | ||||||||
Conversion make-whole payment | 0 | 1,445,000 | ||||||||
Current liabilities, financed via vendor agreement | 134,357,000 | 148,445,000 | ||||||||
Equipment financing credit facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Drawdown amount from debt | $ 0 | 0 | ||||||||
Finance leases | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, term | 24 months | |||||||||
Gross finance lease obligations | $ 1,900,000 | |||||||||
Drawdown amount from debt | $ 0 | 0 | ||||||||
Ecobank Loan III | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, term | 60 months | |||||||||
Notional amount | $ 25,000,000 | $ 25,000,000 | ||||||||
Borrowings, principal payment commencement, period from initial drawdown | 6 months | |||||||||
Borrowings, drawdown period | 12 months | |||||||||
Drawdown amount from debt | $ 15,000,000 | $ 15,000,000 | 10,000,000 | |||||||
Borrowings | $ 20,300,000 | |||||||||
Ecobank Loan IV | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, term | 60 months | |||||||||
Notional amount | $ 20,000,000 | |||||||||
Drawdown amount from debt | $ 20,000,000 | $ 0 | ||||||||
Borrowings | $ 18,000,000 | |||||||||
5% Convertible Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 5.00% | 5.00% | ||||||||
Drawdown amount from debt | $ 0 | $ 0 | ||||||||
Notes and debentures issued | 42,000,000 | |||||||||
7% Convertible Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 7.00% | 7.00% | ||||||||
Notional amount | $ 51,500,000 | 51,500,000 | ||||||||
Drawdown amount from debt | $ 0 | 0 | ||||||||
Notes and debentures issued | $ 65,000,000 | |||||||||
Investment options, exercise price | $ / shares | $ 4.50 | |||||||||
Discount rate used in current estimate of value in use | 2.00% | |||||||||
Number of trading days, exceeding threshold | 20 days | |||||||||
Number of trading days, consecutive days | 30 days | |||||||||
Percentage of conversion price in effect | 130.00% | |||||||||
Redemption price, percentage of principal | 100.00% | |||||||||
Other comprehensive income, net of tax, gains (losses) on revaluation | $ 6,786,000 | 2,100,000 | ||||||||
Conversion of stock, amount | $ 8,500,000 | |||||||||
Convertible debt, conversion ratio | 0.2220 | |||||||||
Borrowings | $ 44,612,000 | 42,515,000 | $ 47,617,000 | |||||||
Loss on conversion of 7% Convertible Debentures, net | 200,000 | |||||||||
Conversion make-whole payment | $ 1,400,000 | |||||||||
Royal Gold loan | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 8.00% | 11.50% | ||||||||
Borrowings, term | 4 years | |||||||||
Notional amount | $ 20,000,000 | |||||||||
Drawdown amount from debt | $ 0 | 0 | ||||||||
Debt repayments of interest | $ 800,000 | |||||||||
Borrowings | $ 20,000,000 | |||||||||
Debt interest payments calculation multiple | 0.625 | |||||||||
Debt interest payments calculation dividing basis | 10,000 | |||||||||
Vendor agreement | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 7.50% | |||||||||
Borrowings, term | 24 months | |||||||||
Drawdown amount from debt | $ 0 | 0 | ||||||||
Repayments of borrowings, classified as financing activities | $ 12,000,000 | |||||||||
Current liabilities, financed via vendor agreement | $ 36,500,000 | |||||||||
Vendor agreement, due in next twelve months | $ 24,500,000 | |||||||||
Gain on deferral of payables | $ 2,700,000 | |||||||||
LIBOR | Ecobank Loan III | Floating interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, adjustment to interest rate basis | 8.00% | |||||||||
LIBOR | Ecobank Loan IV | Floating interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, adjustment to interest rate basis | 7.50% | 7.50% | ||||||||
Common shares | Share Capital | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Conversion of 7% Convertible Debentures (shares) | shares | 1,889,110 | 1,889,110 | ||||||||
Convertible Debentures | 7% Convertible Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Gain on conversions | $ 2,100,000 | |||||||||
Subsidiaries | Equipment financing credit facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 6.50% | |||||||||
Subsidiaries | Finance leases | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 6.90% | |||||||||
Borrowings, term | 60 months | |||||||||
Subsidiaries | Minimum | Equipment financing credit facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, term | 2 years | |||||||||
Subsidiaries | Maximum | Equipment financing credit facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, term | 5 years | |||||||||
7% Convertible Debentures embedded derivative | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Financial Liabilities | $ 4,177,000 | $ 10,963,000 |
DEBT - Schedule of changes in c
DEBT - Schedule of changes in carrying amount of debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Beginning balance | $ 95,605 | |
Conversions | $ 6,947 | |
Accretion of 7% Convertible Debentures discount | 4,149 | 2,955 |
Balance at the end of the period | 100,706 | 95,605 |
7% Convertible Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Beginning balance | 42,515 | 47,617 |
Conversions | 0 | 6,947 |
Accretion of 7% Convertible Debentures discount | 2,097 | 1,845 |
Balance at the end of the period | $ 44,612 | $ 42,515 |
DEBT - Schedule of payments on
DEBT - Schedule of payments on outstanding debt (Details) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 03, 2016 | Jul. 31, 2015USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 100,706,000 | $ 95,605,000 | |||
Year ending December 31, 2019 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 36,368,000 | ||||
Year ending December 31, 2019 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 28,213,000 | ||||
Year ending December 31, 2019 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 8,155,000 | ||||
Year ending December 31, 2020 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 16,139,000 | ||||
Year ending December 31, 2020 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 10,087,000 | ||||
Year ending December 31, 2020 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 6,052,000 | ||||
Year ending December 31, 2021 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 66,137,000 | ||||
Year ending December 31, 2021 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 61,053,000 | ||||
Year ending December 31, 2021 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 5,084,000 | ||||
Year ending December 31, 2022 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 8,160,000 | ||||
Year ending December 31, 2022 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 7,611,000 | ||||
Year ending December 31, 2022 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 549,000 | ||||
Year ending December 31, 2023 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 2,074,000 | ||||
Year ending December 31, 2023 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 2,000,000 | ||||
Year ending December 31, 2023 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 74,000 | ||||
Finance leases | Year ending December 31, 2019 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 1,151,000 | ||||
Finance leases | Year ending December 31, 2019 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 94,000 | ||||
Finance leases | Year ending December 31, 2020 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 532,000 | ||||
Finance leases | Year ending December 31, 2020 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 8,000 | ||||
Finance leases | Year ending December 31, 2021 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Finance leases | Year ending December 31, 2021 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Finance leases | Year ending December 31, 2022 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Finance leases | Year ending December 31, 2022 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Finance leases | Year ending December 31, 2023 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Finance leases | Year ending December 31, 2023 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Ecobank Loan III | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 20,300,000 | ||||
Ecobank Loan III | Year ending December 31, 2019 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 5,555,000 | ||||
Ecobank Loan III | Year ending December 31, 2019 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 1,739,000 | ||||
Ecobank Loan III | Year ending December 31, 2020 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 5,555,000 | ||||
Ecobank Loan III | Year ending December 31, 2020 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 1,189,000 | ||||
Ecobank Loan III | Year ending December 31, 2021 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 5,555,000 | ||||
Ecobank Loan III | Year ending December 31, 2021 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 632,000 | ||||
Ecobank Loan III | Year ending December 31, 2022 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 3,611,000 | ||||
Ecobank Loan III | Year ending December 31, 2022 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 101,000 | ||||
Ecobank Loan III | Year ending December 31, 2023 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Ecobank Loan III | Year ending December 31, 2023 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Ecobank Loan IV | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 18,000,000 | ||||
Ecobank Loan IV | Year ending December 31, 2019 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 4,000,000 | ||||
Ecobank Loan IV | Year ending December 31, 2019 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 1,645,000 | ||||
Ecobank Loan IV | Year ending December 31, 2020 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 4,000,000 | ||||
Ecobank Loan IV | Year ending December 31, 2020 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 1,250,000 | ||||
Ecobank Loan IV | Year ending December 31, 2021 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 4,000,000 | ||||
Ecobank Loan IV | Year ending December 31, 2021 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 847,000 | ||||
Ecobank Loan IV | Year ending December 31, 2022 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 4,000,000 | ||||
Ecobank Loan IV | Year ending December 31, 2022 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 448,000 | ||||
Ecobank Loan IV | Year ending December 31, 2023 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 2,000,000 | ||||
Ecobank Loan IV | Year ending December 31, 2023 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 74,000 | ||||
7% Convertible Debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 44,612,000 | $ 42,515,000 | $ 47,617,000 | ||
Borrowings, interest rate | 7.00% | 7.00% | |||
7% Convertible Debentures | Year ending December 31, 2019 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 0 | ||||
7% Convertible Debentures | Year ending December 31, 2019 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 3,605,000 | ||||
7% Convertible Debentures | Year ending December 31, 2020 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
7% Convertible Debentures | Year ending December 31, 2020 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 3,605,000 | ||||
7% Convertible Debentures | Year ending December 31, 2021 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 51,498,000 | ||||
7% Convertible Debentures | Year ending December 31, 2021 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 3,605,000 | ||||
7% Convertible Debentures | Year ending December 31, 2022 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
7% Convertible Debentures | Year ending December 31, 2022 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
7% Convertible Debentures | Year ending December 31, 2023 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
7% Convertible Debentures | Year ending December 31, 2023 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 0 | ||||
Royal Gold loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 20,000,000 | ||||
Debt interest payments calculation multiple | 0.625 | ||||
Debt interest payments calculation dividing basis | 10,000 | ||||
Borrowings, interest rate | 8.00% | 11.50% | |||
Vendor agreement | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate | 7.50% | ||||
Vendor agreement | Year ending December 31, 2019 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 17,507,000 | ||||
Vendor agreement | Year ending December 31, 2019 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 1,072,000 | ||||
Vendor agreement | Year ending December 31, 2020 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2020 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2021 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2021 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2022 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2022 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2023 | Principal | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | 0 | ||||
Vendor agreement | Year ending December 31, 2023 | Interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt | $ 0 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 | |
Issue of equity | $ 125,672 | $ 35,682 | ||
Reconciliation of number of shares outstanding [abstract] | ||||
Shares issued under options (shares) | 25,000 | 5,000 | ||
Balance at beginning of period | $ (120,761) | $ (41,754) | $ (120,761) | |
Shares issued under DSUs | (145) | 0 | ||
Shares issued under options | 61 | 10 | ||
Shares issued under warrants | 2,450 | |||
Share issue costs | (901) | (2,044) | ||
Balance at end of period | $ 42,037 | (41,754) | ||
Percentage of outstanding share capital | 30.00% | |||
7% Convertible Debentures | ||||
Reconciliation of number of shares outstanding [abstract] | ||||
Borrowings, interest rate | 7.00% | 7.00% | ||
Common shares | Share Capital | ||||
Issue of equity | $ 125,672 | $ 35,682 | ||
Increase (decrease) in number of ordinary shares issued | 32,642,100 | 8,161,900 | ||
Reconciliation of number of shares outstanding [abstract] | ||||
Balance at beginning of period (shares) | 67,071,290 | 76,116,215 | 67,071,290 | |
Bought deal (shares) | 6,272,790 | |||
Conversion of 7% Convertible Debentures (shares) | 1,889,110 | 1,889,110 | ||
Shares issued under DSUs (shares) | 36,194 | 233,539 | ||
Shares issued under options (shares) | 24,500 | 4,750 | ||
Shares issued under warrants (shares) | 644,736 | |||
Balance at end of period (shares) | 108,819,009 | 76,116,215 | ||
Balance at beginning of period | $ 746,542 | $ 783,167 | $ 746,542 | |
Private placement | 26,203 | |||
Conversion of 7% Convertible Debentures | 9,479 | |||
Shares issued under DSUs | 20 | 521 | ||
Shares issued under options | 77 | 16 | ||
Shares issued under warrants | 2,450 | 2,450 | ||
Share issue costs | (901) | (2,044) | ||
Balance at end of period | $ 908,035 | $ 783,167 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands | Dec. 31, 2018USD ($)$ / ozoz | Dec. 31, 2017USD ($) |
Disclosure of subsidiaries [line items] | ||
Restricted cash | $ 6,545 | $ 6,505 |
Net smelter return royalty, amount exempt | oz | 200,000 | |
Wassa | ||
Disclosure of subsidiaries [line items] | ||
Assets to which significant restrictions apply | $ 9,600 | |
Restricted cash | $ 3,500 | |
Mineral revenue, royalties | 5.00% | |
Prestea | ||
Disclosure of subsidiaries [line items] | ||
Assets to which significant restrictions apply | $ 8,100 | |
Restricted cash | $ 3,000 | |
Mineral revenue, royalties | 5.00% | |
Minimum | ||
Disclosure of subsidiaries [line items] | ||
Net smelter return royalty, percentage | 2.00% | |
Net smelter return royalty, threshold per ounce | $ / oz | 300 | |
Maximum | ||
Disclosure of subsidiaries [line items] | ||
Net smelter return royalty, percentage | 3.50% | |
Net smelter return royalty, threshold per ounce | $ / oz | 400 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Operating Leases and Capital Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies [Abstract] | |
Less than 1 year | $ 1,383 |
Between 1 and 5 years | 183 |
More than 5 years | 0 |
Total | $ 1,566 |
SHARE-BASED COMPENSATION - Empl
SHARE-BASED COMPENSATION - Employee compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Performance share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Non-cash employee compensation expense | $ (400) | $ 10,100 |
General and administrative expense | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Non-cash employee compensation expense | 1,278 | 12,554 |
General and administrative expense | Share options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Non-cash employee compensation expense | 1,248 | 1,229 |
General and administrative expense | Deferred share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Non-cash employee compensation expense | 565 | 387 |
General and administrative expense | Share appreciation rights | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Non-cash employee compensation expense | (502) | 482 |
General and administrative expense | Performance share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Non-cash employee compensation expense | $ (33) | $ 10,456 |
SHARE-BASED COMPENSATION - Fair
SHARE-BASED COMPENSATION - Fair value assumptions for share options (Details) - year | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Payment Arrangements [Abstract] | ||
Expected volatility | 70.06% | 73.70% |
Risk-free interest rate | 2.39% | 1.86% |
Expected lives (in years) | 5.68 | 5.99 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018USD ($)shares | Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2017CAD ($) | May 05, 2016shares | Dec. 31, 2015shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of shares authorised (in shares) | shares | 7,000,000 | 2,000,000 | 5,000,000 | |||
Expiration period | 10 years | 10 years | ||||
Number of shares available for grant (in shares) | shares | 1,917,767 | 2,114,517 | ||||
Weighted average fair value per option granted (usd per share) | $ 2.82 | $ 4.20 | ||||
Future share-based compensation | $ 600 | $ 500 | ||||
Other current liabilities | $ 6,410 | 13,498 | ||||
Award requisite service period | 4 years | 4 years | ||||
Performance and restricted share units granted | $ 342 | 334 | ||||
Share appreciation rights | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Unrecognized share-based compensation expense | $ 300 | 400 | ||||
Award requisite service period | 3 years | 3 years | ||||
Performance share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | $ (400) | 10,100 | ||||
Share conversion ratio | 1 | 1 | ||||
Award requisite service period | 3 years | 3 years | ||||
Performance restricted share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Award requisite service period | 3 years | 3 years | ||||
Minimum | Performance share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Award performance adjusting factor | 0.00% | 0.00% | ||||
Minimum | Performance restricted share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Award performance adjusting factor | 0.00% | 0.00% | ||||
Maximum | Performance share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Award performance adjusting factor | 200.00% | 200.00% | ||||
Maximum | Performance restricted share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Award performance adjusting factor | 200.00% | 200.00% | ||||
Contributed Surplus | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | $ 342 | 300 | ||||
Performance and restricted share units granted | 342 | 334 | ||||
General and administrative expense | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | 1,278 | 12,554 | ||||
General and administrative expense | Share options | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | 1,248 | 1,229 | ||||
General and administrative expense | Deferred share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | 565 | 387 | ||||
General and administrative expense | Share appreciation rights | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | (502) | 482 | ||||
General and administrative expense | Performance share units | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based compensation expense | $ (33) | $ 10,456 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of option activity (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)sharesyear | Dec. 31, 2017USD ($)sharesyear | |
Options | ||
Beginning balance outstanding (in shares) | shares | 3,326 | 3,223 |
Granted (in shares) | shares | 642 | 470 |
Exercised (in shares) | shares | (25) | (5) |
Forfeited (in shares) | shares | (116) | (128) |
Expired (in shares) | shares | (329) | (234) |
Ending balance outstanding (in shares) | shares | 3,498 | 3,326 |
Options exercisable (in shares) | shares | 2,664 | 2,536 |
Weighted– Average Exercise price ($CAD) | ||
Beginning balance outstanding (in $CAD per share) | $ | $ 5.93 | $ 6.45 |
Granted (in $CAD per share) | $ | 4.61 | 6.40 |
Exercised (in $CAD per share) | $ | 3.24 | 2.75 |
Forfeited (in $CAD per share) | $ | 8.96 | 11.35 |
Expired (in $CAD per share) | $ | 9.35 | 10.95 |
Ending balance outstanding (in $CAD per share) | $ | 5.28 | 5.93 |
Weighted Average Exercise price exercisable (in $CAD per share) | $ | $ 5.42 | $ 6.30 |
Weighted– Average Remaining Contractual Term (Years) | ||
Beginning balance outstanding | year | 5.9 | 5.7 |
Granted | year | 9.2 | 9.7 |
Exercised | year | 1.6 | 7.3 |
Forfeited | year | 3.6 | 1.8 |
Ending balance outstanding | year | 6.3 | 5.9 |
Weighted Average Remaining Contractual Term exercisable | year | 5.5 | 5.1 |
SHARE-BASED COMPENSATION - Numb
SHARE-BASED COMPENSATION - Number of options outstanding by strike price (Details) shares in Thousands | Dec. 31, 2018USD ($)sharesyear | Dec. 31, 2018CAD ($)sharesyear | Dec. 31, 2017USD ($)sharesyear | Dec. 31, 2016USD ($)sharesyear |
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 3,498 | 3,498 | 3,326 | 3,223 |
Options outstanding, Weighted-average remaining contractual life | year | 6.3 | 6.3 | 5.9 | 5.7 |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 5.28 | $ 5.93 | $ 6.45 | |
Options exercisable, Number outstanding (in shares) | shares | 2,664 | 2,664 | 2,536 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 5.42 | $ 6.30 | ||
0.30 to 0.50 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 604 | 604 | 617 | |
Options outstanding, Weighted-average remaining contractual life | year | 6.1 | 6.1 | 7 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 1.90 | $ 1.90 | ||
Options exercisable, Number outstanding (in shares) | shares | 604 | 604 | 500 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 1.90 | $ 1.90 | ||
0.30 to 0.50 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 1.5 | |||
0.30 to 0.50 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 2.5 | |||
0.51 to 1.00 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 534 | 534 | 536 | |
Options outstanding, Weighted-average remaining contractual life | year | 7.1 | 7.1 | 8 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 2.81 | $ 2.80 | ||
Options exercisable, Number outstanding (in shares) | shares | 405 | 405 | 277 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 2.82 | $ 2.80 | ||
0.51 to 1.00 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 2.51 | |||
0.51 to 1.00 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 3.5 | |||
1.01 to 1.50 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 581 | 581 | 616 | |
Options outstanding, Weighted-average remaining contractual life | year | 4.9 | 4.9 | 5.8 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 4.35 | $ 4.30 | ||
Options exercisable, Number outstanding (in shares) | shares | 581 | 581 | 589 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 4.35 | $ 4.30 | ||
1.01 to 1.50 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 3.51 | |||
1.01 to 1.50 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 4.5 | |||
1.51 to 2.50 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 689 | 689 | 52 | |
Options outstanding, Weighted-average remaining contractual life | year | 9.1 | 9.1 | 8.8 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 4.63 | $ 4.80 | ||
Options exercisable, Number outstanding (in shares) | shares | 205 | 205 | 26 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 4.68 | $ 4.90 | ||
1.51 to 2.50 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 4.51 | |||
1.51 to 2.50 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 5.5 | |||
2.51 to 3.50 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 487 | 487 | 513 | |
Options outstanding, Weighted-average remaining contractual life | year | 7.7 | 7.7 | 8.5 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 6.48 | $ 6.40 | ||
Options exercisable, Number outstanding (in shares) | shares | 266 | 266 | 177 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 6.46 | $ 6.40 | ||
2.51 to 3.50 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 5.51 | |||
2.51 to 3.50 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 7.5 | |||
3.51 to 5.00 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 378 | 378 | 302 | |
Options outstanding, Weighted-average remaining contractual life | year | 2.9 | 2.9 | 2.5 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 9.50 | $ 15.10 | ||
Options exercisable, Number outstanding (in shares) | shares | 378 | 378 | 302 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 9.50 | $ 15.10 | ||
3.51 to 5.00 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 7.51 | |||
3.51 to 5.00 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 10.5 | |||
10.51 to 17.65 | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Options outstanding, Number outstanding (in shares) | shares | 225 | 225 | 691 | |
Options outstanding, Weighted-average remaining contractual life | year | 1.9 | 1.9 | 2.3 | |
Options outstanding, Weighted-average exercise price (in Cdn$ per share) | $ 14.92 | $ 8.90 | ||
Options exercisable, Number outstanding (in shares) | shares | 225 | 225 | 666 | |
Options exercisable, Weighted-average exercise price (in Cdn$ per share) | $ 14.92 | $ 9 | ||
10.51 to 17.65 | Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 10,510 | |||
10.51 to 17.65 | Maximum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price (in Cdn$ per share) | $ 17,650 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of DSU activity (Details) - Deferred share units - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of units, beginning of period (in shares) | 1,018 | 1,146 |
Grants (in shares) | 150 | 105 |
Exercises (in shares) | (82) | (233) |
Number of units, end of period (in shares) | 1,086 | 1,018 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of SAR activity (Details) - Share appreciation rights - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of units, beginning of period (in shares) | 533 | 537 |
Grants (in shares) | 304 | 292 |
Exercises (in shares) | (36) | (158) |
Forfeited (in shares) | (127) | (138) |
Number of units, end of period (in shares) | 674 | 533 |
SHARE-BASED COMPENSATION - Su_4
SHARE-BASED COMPENSATION - Summary of PSU and PRSU activity (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Performance share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of units, beginning of period (in shares) | 2,721 | 3,096 |
Settled (in shares) | (1,548) | (375) |
Number of units, end of period (in shares) | 1,172 | 2,721 |
Performance restricted share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of units, beginning of period (in shares) | 339 | 0 |
Grants (in shares) | 480 | 339 |
Forfeited (in shares) | (28) | 0 |
Number of units, end of period (in shares) | 791 | 339 |
(LOSS)_INCOME PER COMMON SHAR_2
(LOSS)/INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 | |
Earnings per share [abstract] | |||
Net (loss)/income attributable to Golden Star shareholders | $ (18,123) | $ 38,771 | |
Adjustments: | |||
Interest expense on 7% Convertible Debentures | 0 | 3,657 | |
Accretion of 7% Convertible Debentures discount | 0 | 1,845 | |
Gain on fair value of 7% Convertible Debentures embedded derivative | 0 | (2,095) | |
Diluted (loss)/income | $ (18,123) | $ 42,178 | |
Weighted average shares outstanding-basic (in shares) | 84.3 | 74.7 | |
Dilutive securities: | |||
Options (in shares) | 0 | 0.5 | |
Deferred stock units (in shares) | 0 | 1.1 | |
Performance and restricted share units (in shares) | 0 | 0.3 | |
Convertible Debentures (in shares) | 0 | 11.6 | |
Weighted average shares outstanding-diluted (in shares) | 84.3 | 88.2 | |
(Loss)/income per share attributable to Golden Star shareholders: | |||
Basic (usd per share) | $ (0.21) | $ 0.52 | |
Diluted (usd per share) | $ (0.21) | $ 0.48 | |
7% Convertible Debentures | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.00% | 7.00% |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | Jul. 28, 2015 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Deferred revenue recognized | $ 13,738 | $ 14,156 | |
Total revenue | 273,017 | 315,497 | |
Streaming Agreement | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Cash payment proceeds | $ 130,000 | 6,036 | 6,138 |
Deferred revenue recognized | 13,738 | 14,156 | |
Total revenue | 19,774 | 20,294 | |
Spot Sales | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total revenue | $ 253,243 | $ 295,203 |
COST OF SALES EXCLUDING DEPRE_3
COST OF SALES EXCLUDING DEPRECIATION AND AMORTIZATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||
Contractors | $ 32,536 | $ 41,297 |
Electricity | 17,663 | 20,558 |
Fuel | 7,347 | 11,137 |
Raw materials and consumables | 41,910 | 51,996 |
Salaries and benefits | 58,501 | 53,582 |
Transportation costs | 1,751 | 2,116 |
General and administrative | 9,490 | 7,695 |
Other | 6,830 | 8,997 |
Mine operating expenses | 176,028 | 197,378 |
Severance charges | 14,858 | 9,232 |
Operating costs from metal inventory | 12,886 | 167 |
Inventory net realizable value adjustment and write-off | 5,655 | 2,410 |
Royalties | 14,302 | 17,295 |
Cost of sales excluding depreciation and amortization | $ 223,729 | $ 226,482 |
FINANCE EXPENSE, NET (Details)
FINANCE EXPENSE, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||
Interest income | $ (559) | $ (72) |
Interest expense, net of capitalized interest (see Note 7) | 13,281 | 6,039 |
Interest on financing component of deferred revenue (see Note 11) | 4,750 | 0 |
Net foreign exchange gain | (91) | (172) |
Accretion of rehabilitation provision | 691 | 1,245 |
Conversion make-whole payment | 0 | 1,445 |
Finance expense, net | $ 18,072 | $ 8,485 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||
(Gain)/loss on disposal of assets | $ (305) | $ 672 |
Gain on reduction of rehabilitation provisions | (3,080) | (4,945) |
Other income | (218) | (73) |
Other operating income (expense) | $ (3,603) | $ (4,346) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party [Abstract] | ||
Salaries, wages, and other benefits | $ 3,753 | $ 2,800 |
Bonuses | 1,052 | 787 |
Share-based compensation | 1,965 | 7,487 |
Key management personnel compensation | $ 6,770 | $ 11,074 |
PRINCIPAL SUBSIDIARIES (Details
PRINCIPAL SUBSIDIARIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | ||
Current assets | $ 140,207 | $ 86,882 |
Current liabilities | 134,357 | 148,445 |
Non-controlling interest | (71,973) | (66,025) |
Revenue | 273,017 | 315,497 |
Net income/(loss) and comprehensive income/(loss) | (24,071) | 40,959 |
Cash flows provided by/(used in) operating activities | (7,555) | 55,176 |
Cash flows used in investing activities | (47,951) | (67,810) |
Cash flows (used in)/provided by financing activities | $ 124,226 | $ 18,657 |
Golden Star Limited | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 90.00% | |
Wassa | ||
Disclosure of subsidiaries [line items] | ||
Non-controlling interest percentage | 10.00% | 10.00% |
Current assets | $ 129,656 | $ 94,760 |
Current liabilities | 150,404 | 160,725 |
Current assets (liabilities) | (20,748) | (65,965) |
Non-current assets | 141,262 | 138,416 |
Non-current liabilities | 42,588 | 25,016 |
Noncurrent Assets (Liabilities) | 98,674 | 113,400 |
Net assets/(liabilities) | 77,926 | 47,435 |
Non-controlling interest | 15,605 | 12,562 |
Revenue | 190,016 | 156,908 |
Net income/(loss) and comprehensive income/(loss) | 30,491 | 16,924 |
Cash flows provided by/(used in) operating activities | 57,897 | 27,486 |
Cash flows used in investing activities | (34,984) | (21,744) |
Cash flows (used in)/provided by financing activities | $ (31,112) | $ 7,468 |
Prestea | ||
Disclosure of subsidiaries [line items] | ||
Non-controlling interest percentage | 10.00% | 10.00% |
Current assets | $ 13,633 | $ 25,023 |
Current liabilities | 1,152,156 | 1,058,732 |
Current assets (liabilities) | (1,138,523) | (1,033,709) |
Non-current assets | 134,090 | 131,245 |
Non-current liabilities | 62,737 | 76,373 |
Noncurrent Assets (Liabilities) | 71,353 | 54,872 |
Net assets/(liabilities) | (1,067,170) | (978,837) |
Non-controlling interest | (87,578) | (78,587) |
Revenue | 93,134 | 138,295 |
Net income/(loss) and comprehensive income/(loss) | (88,332) | 4,619 |
Cash flows provided by/(used in) operating activities | (77,115) | 3,505 |
Cash flows used in investing activities | (11,956) | (43,616) |
Cash flows (used in)/provided by financing activities | $ 85,581 | $ 42,078 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 273,017 | $ 315,497 |
Mine operating expenses | 176,028 | 197,378 |
Severance charges | 14,858 | 9,232 |
Operating costs from metal inventory | 12,886 | 167 |
Inventory net realizable value adjustment and write-off | 5,655 | 2,410 |
Royalties | 14,302 | 17,295 |
Cost of sales excluding depreciation and amortization | 223,729 | 226,482 |
Depreciation and amortization | 33,939 | 31,792 |
Mine operating margin | 15,349 | 57,223 |
Current tax expense (income) | 12,350 | 0 |
Net income attributable to non-controlling interest | (5,948) | 2,188 |
Net income/(loss) attributable to Golden Star | (18,123) | 38,771 |
Capital expenditures | 46,834 | 69,638 |
Total assets | $ 417,987 | 360,389 |
Gold Production, Sale Location | South Africa | ||
Disclosure of operating segments [line items] | ||
Concentration risk percentage | 90.00% | |
Operating segments | Wassa | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 183,078 | 167,376 |
Mine operating expenses | 86,916 | 115,625 |
Severance charges | 4,970 | 6,316 |
Operating costs from metal inventory | 7,184 | 5,080 |
Inventory net realizable value adjustment and write-off | 3,684 | 2,410 |
Royalties | 9,508 | 8,652 |
Cost of sales excluding depreciation and amortization | 112,262 | 138,083 |
Depreciation and amortization | 22,066 | 20,052 |
Mine operating margin | 48,750 | 9,241 |
Current tax expense (income) | 12,350 | |
Net income attributable to non-controlling interest | 3,043 | 1,693 |
Net income/(loss) attributable to Golden Star | 27,994 | 17,644 |
Capital expenditures | 35,420 | 21,583 |
Total assets | 181,446 | 195,180 |
Operating segments | Prestea | ||
Disclosure of operating segments [line items] | ||
Revenue | 89,939 | 148,121 |
Mine operating expenses | 89,112 | 81,753 |
Severance charges | 9,888 | 2,916 |
Operating costs from metal inventory | 5,702 | (4,913) |
Inventory net realizable value adjustment and write-off | 1,971 | 0 |
Royalties | 4,794 | 8,643 |
Cost of sales excluding depreciation and amortization | 111,467 | 88,399 |
Depreciation and amortization | 11,873 | 11,740 |
Mine operating margin | (33,401) | 47,982 |
Current tax expense (income) | 0 | |
Net income attributable to non-controlling interest | (8,991) | 495 |
Net income/(loss) attributable to Golden Star | (25,351) | 50,050 |
Capital expenditures | 11,414 | 48,055 |
Total assets | 147,815 | 158,715 |
Operating segments | Other | ||
Disclosure of operating segments [line items] | ||
Revenue | 0 | 0 |
Mine operating expenses | 0 | 0 |
Severance charges | 0 | 0 |
Operating costs from metal inventory | 0 | 0 |
Inventory net realizable value adjustment and write-off | 0 | 0 |
Royalties | 0 | 0 |
Cost of sales excluding depreciation and amortization | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Mine operating margin | 0 | 0 |
Current tax expense (income) | 0 | |
Net income attributable to non-controlling interest | 0 | 0 |
Net income/(loss) attributable to Golden Star | (8,543) | (3,701) |
Capital expenditures | 0 | 0 |
Total assets | 898 | 4,257 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Revenue | 0 | 0 |
Mine operating expenses | 0 | 0 |
Severance charges | 0 | 0 |
Operating costs from metal inventory | 0 | 0 |
Inventory net realizable value adjustment and write-off | 0 | 0 |
Royalties | 0 | 0 |
Cost of sales excluding depreciation and amortization | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Mine operating margin | 0 | 0 |
Current tax expense (income) | 0 | |
Net income attributable to non-controlling interest | 0 | 0 |
Net income/(loss) attributable to Golden Star | (12,223) | (25,222) |
Capital expenditures | 0 | 0 |
Total assets | $ 87,828 | $ 2,237 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | ||
Income taxes paid (refund) | $ 0 | $ 0 |
Debt repayments of interest | $ 7,900,000 | $ 7,300,000 |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION - Changes in Working Capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | ||
Decrease in accounts receivable | $ 215 | $ 3,871 |
Decrease/(increase) in inventories | 9,187 | (7,684) |
Increase in prepaids and other | (737) | (2,132) |
Decrease in accounts payable and accrued liabilities | (25,837) | (1,503) |
Total changes in working capital | $ (17,172) | $ (7,448) |
SUPPLEMENTAL CASH FLOW INFORM_5
SUPPLEMENTAL CASH FLOW INFORMATION - Reconciliation of Other Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | ||
(Gain)/loss on disposal of assets | $ (305) | $ 672 |
Inventory net realizable value adjustment and write-off | 5,544 | 2,410 |
Loss on fair value of 5% Convertible Debentures | 0 | 317 |
Gain on fair value of warrants | 0 | (86) |
Loss/(gain) on fair value of marketable securities | 175 | (64) |
Accretion of vendor agreement | 731 | 731 |
Accretion of rehabilitation provisions (see Note 10) | 691 | 1,245 |
Amortization of financing fees | 1,322 | 378 |
Accretion of 7% Convertible Debentures discount | 2,097 | 1,845 |
Gain on reduction of rehabilitation provisions | (3,080) | (4,945) |
Loss on conversion of 7% Convertible Debentures, net | 0 | 165 |
Gain on warrant exercise | 0 | (193) |
Interest on financing component of deferred revenue (see Note 11) | 4,750 | 0 |
Other | $ 11,925 | $ 2,475 |
SUPPLEMENTAL CASH FLOW INFORM_6
SUPPLEMENTAL CASH FLOW INFORMATION - Reconciliation by Loan (Details) - USD ($) $ in Thousands | Jan. 24, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 | Jul. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||||
Beginning of period | $ 95,605 | $ 104,823 | |||
Proceeds from debt agreements | 35,000 | 10,000 | |||
Principal payments on debt | (15,607) | (2,198) | |||
Fair value loss on the 5% Convertible Debentures | 0 | 317 | |||
Repayment | (20,000) | (13,611) | |||
Capitalized loan fee | (340) | (499) | |||
New lease | 1,899 | 765 | |||
Conversion of 7% Convertible Debentures | (6,947) | ||||
Accretion of debt | 4,149 | 2,955 | |||
End of period | 100,706 | 95,605 | |||
Equipment financing credit facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning of period | 147 | 1,119 | |||
Proceeds from debt agreements | 0 | 0 | |||
Principal payments on debt | (147) | (972) | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | 0 | 0 | |||
Capitalized loan fee | 0 | 0 | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 0 | 0 | |||
End of period | 0 | 147 | |||
Finance leases | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning of period | 1,498 | 1,959 | |||
Proceeds from debt agreements | 0 | 0 | |||
Principal payments on debt | (1,714) | (1,226) | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | 0 | 0 | |||
Capitalized loan fee | 0 | 0 | |||
New lease | 1,899 | 765 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 0 | 0 | |||
End of period | 1,683 | 1,498 | |||
Ecobank Loan III | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning of period | 9,559 | 0 | |||
Proceeds from debt agreements | $ 15,000 | 15,000 | 10,000 | ||
Principal payments on debt | (4,723) | 0 | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | 0 | 0 | |||
Capitalized loan fee | 0 | (499) | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 99 | 58 | |||
End of period | 19,935 | 9,559 | |||
Ecobank Loan IV | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning of period | 0 | 0 | |||
Proceeds from debt agreements | 20,000 | 0 | |||
Principal payments on debt | (1,999) | 0 | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | 0 | 0 | |||
Capitalized loan fee | (340) | 0 | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 39 | 0 | |||
End of period | $ 17,700 | 0 | |||
Vendor agreement | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate | 7.50% | ||||
Beginning of period | $ 23,069 | 22,338 | |||
Proceeds from debt agreements | 0 | 0 | |||
Principal payments on debt | (7,024) | 0 | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | 0 | 0 | |||
Capitalized loan fee | 0 | 0 | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 731 | 731 | |||
End of period | $ 16,776 | $ 23,069 | |||
5% Convertible Debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate | 5.00% | 5.00% | |||
Beginning of period | $ 0 | $ 13,294 | |||
Proceeds from debt agreements | 0 | 0 | |||
Principal payments on debt | 0 | 0 | |||
Fair value loss on the 5% Convertible Debentures | 317 | ||||
Repayment | 0 | (13,611) | |||
Capitalized loan fee | 0 | 0 | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 0 | 0 | |||
End of period | $ 0 | 0 | |||
7% Convertible Debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate | 7.00% | 7.00% | |||
Beginning of period | $ 42,515 | 47,617 | |||
Proceeds from debt agreements | 0 | 0 | |||
Principal payments on debt | 0 | 0 | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | 0 | 0 | |||
Capitalized loan fee | 0 | 0 | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | (6,947) | |||
Accretion of debt | 2,097 | 1,845 | |||
End of period | $ 44,612 | 42,515 | |||
Royal Gold loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate | 8.00% | 11.50% | |||
Beginning of period | $ 18,817 | 18,496 | |||
Proceeds from debt agreements | 0 | 0 | |||
Principal payments on debt | 0 | 0 | |||
Fair value loss on the 5% Convertible Debentures | 0 | ||||
Repayment | (20,000) | 0 | |||
Capitalized loan fee | 0 | 0 | |||
New lease | 0 | 0 | |||
Conversion of 7% Convertible Debentures | 0 | ||||
Accretion of debt | 1,183 | 321 | |||
End of period | $ 0 | $ 18,817 |
FINANCIAL RISK MANAGEMENT - Sch
FINANCIAL RISK MANAGEMENT - Schedule of Contractual Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 03, 2016 | |
Disclosure of financial liabilities [line items] | ||||
Accounts payable and accrued liabilities | $ 84,894 | |||
Debt | 100,706 | $ 95,605 | ||
Interest on long term debt | 19,914 | |||
Purchase obligations | 13,762 | |||
Total | 301,003 | |||
Other current liabilities | $ 6,410 | 13,498 | ||
Percentage of conversion price in effect | 130.00% | |||
Provision for decommissioning, restoration and rehabilitation costs | ||||
Disclosure of financial liabilities [line items] | ||||
Rehabilitation provisions | $ 73,469 | |||
Convertible Debentures, Finance Leases and Vendor Agreements | ||||
Disclosure of financial liabilities [line items] | ||||
Debt | 108,964 | |||
7% Convertible Debentures | ||||
Disclosure of financial liabilities [line items] | ||||
Debt | $ 44,612 | $ 42,515 | $ 47,617 | |
Borrowings, interest rate | 7.00% | 7.00% | ||
Number of trading days, exceeding threshold | 20 days | |||
Number of trading days, consecutive days | 30 days | |||
Percentage of conversion price in effect | 130.00% | |||
Less than 1 year | ||||
Disclosure of financial liabilities [line items] | ||||
Accounts payable and accrued liabilities | $ 84,894 | |||
Debt | 36,368 | |||
Interest on long term debt | 8,155 | |||
Purchase obligations | 13,762 | |||
Total | 142,689 | |||
Less than 1 year | Provision for decommissioning, restoration and rehabilitation costs | ||||
Disclosure of financial liabilities [line items] | ||||
Rehabilitation provisions | 7,665 | |||
Less than 1 year | Convertible Debentures, Finance Leases and Vendor Agreements | ||||
Disclosure of financial liabilities [line items] | ||||
Debt | 28,213 | |||
1 to 3 years | ||||
Disclosure of financial liabilities [line items] | ||||
Accounts payable and accrued liabilities | 0 | |||
Interest on long term debt | 11,685 | |||
Purchase obligations | 0 | |||
Total | 118,344 | |||
1 to 3 years | Provision for decommissioning, restoration and rehabilitation costs | ||||
Disclosure of financial liabilities [line items] | ||||
Rehabilitation provisions | 27,908 | |||
1 to 3 years | Convertible Debentures, Finance Leases and Vendor Agreements | ||||
Disclosure of financial liabilities [line items] | ||||
Debt | 78,751 | |||
3 to 5 years | ||||
Disclosure of financial liabilities [line items] | ||||
Accounts payable and accrued liabilities | 0 | |||
Interest on long term debt | 74 | |||
Purchase obligations | 0 | |||
Total | 28,357 | |||
3 to 5 years | Provision for decommissioning, restoration and rehabilitation costs | ||||
Disclosure of financial liabilities [line items] | ||||
Rehabilitation provisions | 26,283 | |||
3 to 5 years | Convertible Debentures, Finance Leases and Vendor Agreements | ||||
Disclosure of financial liabilities [line items] | ||||
Debt | 2,000 | |||
More than 5 years | ||||
Disclosure of financial liabilities [line items] | ||||
Accounts payable and accrued liabilities | 0 | |||
Interest on long term debt | 0 | |||
Purchase obligations | 0 | |||
Total | 11,613 | |||
More than 5 years | Provision for decommissioning, restoration and rehabilitation costs | ||||
Disclosure of financial liabilities [line items] | ||||
Rehabilitation provisions | 11,613 | |||
More than 5 years | Convertible Debentures, Finance Leases and Vendor Agreements | ||||
Disclosure of financial liabilities [line items] | ||||
Debt | $ 0 |
FINANCIAL RISK MANAGEMENT - Nar
FINANCIAL RISK MANAGEMENT - Narrative (Details) | Jan. 24, 2018USD ($) | Dec. 31, 2018USD ($)$ / oz | Dec. 31, 2017USD ($) | Jun. 28, 2018 | Dec. 31, 2016USD ($) | Aug. 03, 2016 | Jul. 31, 2015USD ($) |
Disclosure of financial liabilities [line items] | |||||||
Current portion of other liability | $ 6,410,000 | $ 13,498,000 | |||||
Other non-current liabilities | 0 | 6,786,000 | |||||
Current assets | 140,207,000 | 86,882,000 | |||||
Current liabilities | 134,357,000 | 148,445,000 | |||||
Cash and cash equivalents | 96,507,000 | 27,787,000 | $ 21,764,000 | ||||
Proceeds from debt agreements | 35,000,000 | 10,000,000 | |||||
Shares issued, net | 124,772,000 | 24,456,000 | |||||
Debt | $ 100,706,000 | 95,605,000 | |||||
Projected change in gold price, per ounce | $ / oz | 100 | ||||||
Foreign currency amount | $ 1,900,000 | 3,800,000 | |||||
Projected change in revenue | 20,600,000 | ||||||
Projected change in operating cash flows | 19,600,000 | ||||||
7% Convertible Debentures | |||||||
Disclosure of financial liabilities [line items] | |||||||
Proceeds from debt agreements | $ 0 | 0 | |||||
Borrowings, interest rate | 7.00% | 7.00% | |||||
Debt | $ 44,612,000 | 42,515,000 | $ 47,617,000 | ||||
5% Convertible Debentures | |||||||
Disclosure of financial liabilities [line items] | |||||||
Proceeds from debt agreements | $ 0 | $ 0 | |||||
Borrowings, interest rate | 5.00% | 5.00% | |||||
Royal Gold loan | |||||||
Disclosure of financial liabilities [line items] | |||||||
Proceeds from debt agreements | $ 0 | $ 0 | |||||
Borrowings, interest rate | 8.00% | 11.50% | |||||
Debt interest payments calculation multiple | 0.625 | ||||||
Debt interest payments calculation dividing basis | 10,000 | ||||||
Debt | $ 20,000,000 | ||||||
Ecobank Loan III | |||||||
Disclosure of financial liabilities [line items] | |||||||
Proceeds from debt agreements | $ 15,000,000 | $ 15,000,000 | 10,000,000 | ||||
Debt | 20,300,000 | ||||||
Ecobank Loan IV | |||||||
Disclosure of financial liabilities [line items] | |||||||
Proceeds from debt agreements | 20,000,000 | $ 0 | |||||
Debt | $ 18,000,000 | ||||||
LIBOR | Floating interest rate | Ecobank Loan III | |||||||
Disclosure of financial liabilities [line items] | |||||||
Borrowings, adjustment to interest rate basis | 8.00% | ||||||
LIBOR | Floating interest rate | Ecobank Loan IV | |||||||
Disclosure of financial liabilities [line items] | |||||||
Borrowings, adjustment to interest rate basis | 7.50% | 7.50% |
CAPITAL RISK MANAGEMENT (Detail
CAPITAL RISK MANAGEMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||
Equity | $ 42,037 | $ (41,754) | $ (120,761) |
Long-term debt | 73,224 | 79,741 | |
Total equity less long-term debt | 115,261 | 37,987 | |
Cash and cash equivalents | 96,507 | 27,787 | $ 21,764 |
Total equity less long-term debt plus cash and cash equivalents | $ 211,768 | $ 65,774 |
Uncategorized Items - gss-20181
Label | Element | Value |
Retained earnings [member] | ||
Cumulative Effect Of New Accounting Principle In Period Of Adoption1 | gss_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption1 | $ (18,980,000) |