GSS - Earnings call transcript Q3 2021 | Golden Star Resources LTD.

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Operator

Good morning, ladies and gentlemen and welcome to the Golden Star Resources Third Quarter 2021 Results Conference Call. At this time, all lines are in a listen-only mode and following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Tuesday, November 2, 2021. I would now like to turn the conference over to Mr. Michael Stoner. ahead. go Please

Michael Stoner

yesterday much us very we thank everyone we you obviously Thank to our that Slide on disclaimer, time. in Kelsey available QX, our joining announced that your transaction forward-looking for address point where On XXXX leave for also we'll is particularly website presentation you own the the and morning. results will and X, The you to I'd on like you statements. to read call

by joined COO; over I'm with call, Wray, CFO; our then the our the On will who to And Crew, Graham Andrew kick off VP call. Paul and hand CEO; to that I Exploration. our Thank Thompson, Andrew is you. Mitch Wasel, our

Andrew Wray

start a where briefly future a current Thank you very plans of much, reminder business the Wassa. Michael we I’ll Slide there together very on and are is and and for everybody. hello where what with as there X to

just and billion. MMG. that we X make of share, not as and USDXXX on currently There China five upon talk announcement They on this note financing USDX.X Moving Shanghai the operate condition and transaction, per from million. We where in familiar cap all clear. establish should is market gold for acquiring mining those Star to cash we few is of are quite USDX.XX years and for Chifeng then that a and in about value in mining before this Michael operator for the allows listed assets ago there at no offer really to yesterday's Golden announced those equates on business Slide QX overview is results. Gold which there the get mentioned Chifeng into approximately

terms January, regulatory shareholder got transaction. In other we probably approvals, closing the conditions mid-January, at met. the various in you expecting we're approvals, so approvals, timeline, through the Once can expect terms we've this time, of there, point likely in see of of and

really an of in are objection approvals, Ghana. standard In to regulatory will beyond three ones can various on that - in There itself, We'll QX order to transaction sure to mention I'm nature. the time. the but premier that when to Minister, the are key this the from then approvals already results. no Q&A, gone of Chifeng to I that And that that you we different working deal on the for terms terms shareholder ones transaction in the come we're the the approvals, proceed. see China, of overview those for a to as separate points to approval take sought which equates I the through you in back think be are that we've just value happy in questions get what of gives said, the once And

volumes focus offset and Moving the those overall, rut underground processing little in will on the the of continued no I material. which underground the terms much what the there. to to mine. and pretty and the balance in that operations of of financials But in fairly with Graham think, results there, some beyond grade I key the the think means bit And, terms real feature talk surprises, Slide about of of above the areas key use X we results stockpiles, on quarter, It's really, sheet. low lower expectations. more a line the the our business solid Paul,

of bit results detail talk our Graham in optimization terms invest program about further that of a that commissioning will will Paste In capital quarter that little growth Fill is how later and the for in during to then the then some on little future around restart the of bit process good. and the business and continue on, sheet give exploration progressing. balance a from and We Wassa mine Mitch

really to I Ghanian X quarter on and in fourth we've uptick the and the in as from terms think one are operators of travel on well continued be minimize a noticeable as in us by as a the health case the and over we around the Ghana over before with inconveniences of seen seen QX to Moving get rates, region a certainly we've Slide they're we We’ve track addressed we've where second to operators, it in terms year. terms which COVID. safety spoken just But focus on some think the I says outlook, got protocols of capture me country to come bringing which for much and we that one managing have little then I on to And and a previously the whole. about quarter the messages And just there place on barriers. of impact also deliver development hand most and is to operations. final of the continues guidance quarter, in helped as cases during some expat more here so western real those, screening full of in both the more encouraging. rates operators jumbo the very the in progress And bit that, Graham in problem

detail hand I'll that, over the with to Graham to give So on operation. it more

Graham Crew

Andrew. Thanks,

work work MineFill little backfill that group with in So now on testing the Australia more and Mines system just a a collaboration back in everyone’s commissioning, moving in called But over the this with test - of has Slide in aware University QX. Technology going well. information been Services We've Ghana. suspended to that, doing Paste we bit XX gone on

cement thing And the was continuing second at content. a design though have which October. day to which we key during We the is And - results, XX% show on slightly that this country meeting based based slag moving of on on to there's alternative we're it's of maximum also percent are XX work after got we're test it. on moved process during moving degradation of with that if percentage, criteria really cement XX. - filling we're that a our binder an using completed we've slag available some the higher percentage set to using within binder a alternative test, and test now mixes identified any We've binder another in higher quarter,

So lab results really that's level. a good showing at

looking we So that for be XXXX. through full the running then plant forward and should production to

the with little available bit to we plan on mining ore as as half, restricted we touched tonnes little down Now quarter talked second when areas. moving a on on a the the revised bit for restricted mentioned, Andrew we're about

we know some in day, up around late work back bit of grade Panel pillar recovery quarter. a you that a on X,XXX averaging So late the that benefit the X help to tonnes quarter, great in in per us did little

development that increase was see are total coming development there, you that, Andrew improvement. we've position to better But flexibility. that and results continued So and for to pleasing What build a obviously still inventory to can there our as see. the looking things there on, XXXX seen the said, fill production with in and work do more Paste

operating that the the supported processing obviously stockpiles, mentioned. reduced flow unit the Andrew low grade costs the cost can the by side, costs, volumes And as had impact On see an have on to you capital continuing answers on ounces the and quarter. and spend on continued system moving effect ventilation on investments work but importantly, the investment smaller over the of doing capital the low the

the had slightly all in invest. of production trend back there, all some increasing So lower than in cost are we but original we continuing to the on plan

that's grade hand hadn’t into talk out parts a to that as areas, - of reserves. I'll that Just that, infill been mine really And for over in drilling terms put area about doing previously bring move of the in results. upper we some release we that's of the that we've planning drilling, to We've some the is are drilling on the some area so, area body to this ore program. as this, higher upper looking positive highlighted we Paul mine we with that some those and financial through of the the of identified the

Paul Thomson

you, just year Golden a to quarter Thank comparing exceptional that so into quarter context That when Slide If factors. QX, solid Graham. of XXXX as considered due so things XXXX. primarily can please for be quarter last go put to QX, XX, we to an Star, to two has been more

So the that price high. quarter in gold was all essentially time

the we of stream that of So average of we quarter cost average an price with total actually realized incorporation there -during X,XXX. a spot X,XXX

note had tonnes X,XXX other day. very we is the that almost high was rate to thing mining underground per The

to pleased hard expect production significant restated the looking deliver the QX guidance actually in has in production worked year so, So this say really We made team June the that that with XXXX. accordance in debt always a quarter. XXXX from this our with site we I'm issued in being to contribution stockpiles. at

financial business the spot so reasonable environment and of impact an to the X,XXX gold ounces, sold strong sold, of lower ounces quarter slightly financial so Turning performance, XX.X the the course, realized perspective. ounce lower macro price, from a respect was price thousands stream. or the QX we to per With gold despite gold the of average X,XXX

XX%, $XX.X to, factors. So as operating million due of of sales resulted the $XX.X The alluded of combination this a million. cost in was main by Graham increased note of then revenues profit to have

from materials being stockpiles, that's industry. processing the costs, expect the being experienced cost more grade and in low an So drilling sorry, pressures the broader higher low,

labor, primarily and So relate to these consumables. fuel

earnings a that million. the higher an in of returned increased The drilling but quarter mine financial If derivative plant gain in to XXXX. And the quarter. the year, fair value the control prior comparison seen number of due projects impact relates instruments we’ve in the during and depreciation, the $X.X of was the to This point in grade obviously completion this to So of XXXX has the flow. is drilling. rescheduling in not to costs due capital cash to

the to which gain So is and again quarter item. in non-cash this relates hedge a the positions,

that so in was these two items to relate which number $XX.X and adjustments there's the to expenses to other a million of Turning primarily. adjusted category, the EBITDA, were included EBITDA

there's non-cash of $XX.X firstly, XXXX recognized for for and So the year-to-date. allowance Prestea in disposal consideration deferred a million million aggregate an the that's $XX.X

million a $X.X corporate of respect was costs. in there of charge Secondly, development

share, of rounded or per a this that So turning attributable following obviously is $X.X the function to net the factors. million adjusted shareholders, income $X.XX was

So to was then ounces lower XXXX. realized lower sales with driven by lower comparison QX, to revenues in and the obviously price the ounces, which production the due there's lower

I as And direct higher of due depreciation Then low loss. which it those is of FTR grade got and cost, the costs base. was mentioned in mining depreciation stockpile we've terms the of cost we non-cash. to In I for $XX.X asset sales million the higher record settlement terms mentioned, the increased had derecognition the prices then for achieved, the increased depreciable

Turning that to balance in more terms stronger, a balance to sheet the report pleased the for we've Slide continued provide robust XX, business. base reposition the of sheet, I'm to to

there key So events were the two during quarter. notable

and the revolver million we Firstly with repayment, cash the settlement credit facility debenture, of of had and convertible secondly, drawdown Macquarie. $XX.X the and from

amount this RCF $XX So on million. to the total takes the drawn

two toward this repayment profile million. million and these is quarter. position debt For whilst lowered the of actions, overall being end And out the [$XX.X] of we investing the capital, during $XX.X total done cost net principal was $XX.X the million. at actually the quarter pushed The being CapEx cash of all we've position the

per place window the QX, average, provides of with floor circa to ounces end a reference probably hedge for which price the going with program business forward. in X,XXX we've sensible delivers to which a of XX.XXXX is ceiling XXXX Just got hedge a the on and quarter program, X,XXX the

net business convertible next a flow management the to slide for cash particularly bridge, during with repayment quarter consideration debenture. of the Turning the the the on was cash key the

$XX.X convertible flow in as the got key we quarter so million. started with repayment, the bridge operational ended we generation things quarter and cash debenture we've the to $XX.X of million. a on quarter healthy million $XX.X the for the So with Wassa of balance preparation cash The follows: cash know for

QX. to investment is used to development that underpin Then been exploration is note during million $XX.X point So, respect activities financing with to continue to in debenture million not be there repayment reflects has is Other ATM and this Macquarie the $X.X quarter. in continues this XXXX. we invest and in QX, drawdown. of With Wassa spent convertible the capital future facility - during to the the settlement the

XX, section So included please. to hand for proceeds which there the the financials Mitch within are us Slide going takes that, to and are geology no quarter. over the exploration ATM I'll run to through who's With

Mitch Wasel

The Slide The XX, was as up lease mining to of have of $XX the focusing the Paul. guidance for come Wassa million a the reserves. to XXXX. up somewhere at we down-dip where between Thanks, about continue our just efforts is little of majority we year. in a that probably is we where the under focus current bit and be the were Actually exploration $XX both going overview million $XX million. brief and we forecast test should in

is XX down-dip now up-dip at XXXX, a XXXX XXXX, drilling. for number was actually longitudinal drill Slide that see proceed to in gone rigs and have the or on outside drilled and to main it we meters of X.X the a in density deposits there X.X the where follow-up to Wassa mine the XX will been that the it XX Slide area Slide new shell tonne. is with XXX with well success now. we've We've intersected meters of and looking XX gram X.X some lines well. tonne, as which meters north meters per Progressing over strike we we reserves on The let's the hole the particular that in XX and intersected has that per dotted drilled at of locations. a successful the to coming near there. drilled meters to red duplicate the XXX both one So the north drilling several in section meters XXXX drilled that XX. that south of along over off hole, from had underground the which other hole at shows the focus previous zone XX XX roughly We as with targets One are south, grams both there, X.X meters late we'll which areas Wassa ISO The in is was are We've be that’s and into deposit to just many To able X.X. to of results to zones year intersected the results exploration include interesting after now, itself. shows end. quite number that some of within the actually up-dip

that Essentially, that drilled the the not where mineralization, the You'll going did at right mineralization on on per wrapping are concentrating side up there tonne. there. year, to exploration on see corner mine we which there. side did the year. down-dip there. the on see Dead top back shown mine pointed to there. fence holes remaining And Hill upper there we drilling you, hand up lower it's part just give to at any Man On forecast closures back Andrew. stuff your are over a out were I'll DMH main The of grade Graham on a the hand do going left that's Mid-East high the that X.X for about up grams in there was there section meters known we are you drilling and looking the the off focus be to the intersect full the for meters for is is we hand hand mineralization Andrew about be in that and on fence at four that to did during anticipated zones up right to self-action intersected X.X XXX last MEPA, intersected pin mineralization, One programs ME the the I we interesting you last brief the the drove that sack section we on we last

Andrew Wray

very much, Mitch. Thanks

can very the thing some three. together XX, to and year see areas focus I where focused the Q&A. withstanding go I we beyond. to for not Slide news as delivering target on and other hand was on the plan business, Kelsey for that, quarter there the the term remained the back targets, to and over finished with you at the everyone the mentioned progress finishing on With and yesterday, just I'll outset, longer can So only And

Operator

Capital. Thank ahead. Adams come you. go question Bryce from CIBC does [Operator from Please Instructions] Your first

Bryce Adams

good for my Good and Thanks morning question. afternoon. taking

Firstly, the filed price to earlier at trading, discount it's to yesterday the a but in year. also deal the PA premium recent decent announced the

So PA a pursue And sale there's approach factors? two in was these realized? why that a could what your the lot value balancing when to of be

Andrew Wray

Hi, Bryce, Andrew. this is

- me Let I'll take question. that

trying In what terms level long-term assess any delivery and the the table interest same think risked the look of at you in equation today. versus price, tradeoff deal terms I that delivery is the between with of price, it's the on the to the of long-term

to although, the that the potential reinvesting a can of a years value, into As needs the few bit you out. - moment, deliver And of business conscious PA at the fair does that. you business. have see, order we're as that's a capital of in go to deliver say, to lot we're There's back investment all out

So there's they reliance out prices are. holding on a certain gold where

in trading average price that trading that as to a current felt as recent opportunity balance we've with take both mind, of the well good and the to offered offered shareholders. been at, we So, some levels,

Bryce Adams

Okay, I understood.

the price still wide. levels and spread deal current the between Secondly, trading is

transaction. here the they, you What and Now, the somewhat is fairly spread closing explain key wide risks do as do you towards it's progress the marketplace? the see in

Andrew Wray

and Yes, we're I seem today was the X%. spread I night, think last where about trading

offer I around probably And, of think price. views as that's required. you of linked to some approvals say, the the

condition. there's mentioned, I no As financing

objection, there. shareholder end It's in the China process, at are of things that in approval is looking there standard main obviously required, So probably approvals of see to approvals typically how no and And I where the three fairly which don't an as well. then terms there's the think votes comes issue in the ones. Ghana progress

think a I the it the Chifeng positive bit Potentially, go people all feedback people a to when with dialogue dialogue the China comfortable. that There's Chifeng, there. process. that, deals middle in good had fairway is expert closer in approached the history get for And we more transaction. authorities of made that through level - move than rejected ahead regulators nature, of trades But would of with being of for which I had by say the there it's as not regulatory fairly through, they've transaction. am I the is they've is And other Chinese mean I deal sure this price. the a those of So, process more we've with had the we've to throughout we've Ghana, lot

they're comfortable happening, with is do process. that they So of what and is as need their what planned, part to what

think, well can, then in shareholder we've ourselves are we So probably positioned I later December. as respect. as votes planned And that the in

I a will the take think, I risk from where what view say its perspective, my see trade, lot own to So needs can market that. in we of don't of but it that's

Bryce Adams

Okay, thanks.

mentioned through know around Chifeng and can co that that You or it with conditions. XX% in buyer acquiring if go a co-buyer for but driving the partner probability it, of the Star go - you no the the I - But you the What's shares. don't talk financing language release potential Golden alone? press to a what's can go

Graham Crew

of is Fund of partner you're the Industrial bank, So fund so referring a part CIIT Bank. to a

is So advantages bank particularly funding. in Chinese to that and would the terms effectively there a it's at bank. it's that, some of approvals. way major timing look And is And I

which ratios. of series the trigger a certain certain have they go exchange, if U.K., tests processes are above Shanghai bit the the class on like tests, you Given which in

gives to for there's, ratios below there. it keep they additional may So that you that cash it it from further our so was then, availability, And themselves perspective. with that stay key that way, decide sense cash have. the ambitious them both some this fully more means it funded was looking into resources you announcement, structurally, and But then enables as they to the be if ensure growth Chifeng them business, those benefits of of also do, this the you investment think, fairly Chifeng, I some to The ultimately well they other know, through opportunities know, very of at makes there's by firepower. plans on the bit fund, on way flexibility side bringing easy board that's more as given, that the funding but to finance a and planned potentially

Bryce Adams

Okay.

it from understanding, to just be So my regulatory advantageous would preference go approvals. be for might their the then without the but partner,

Graham Crew

think to, suits I may in direction, don't From really them doesn't I know, speak of to they've whatever are, our and can you this terms they their in go them. it got go both routes, preferences No to to for terms really the perspective, highlighted flexibility of anything transaction. the they've that change think I what really us decide

very by memory from at structured way think you similar of think Shandong of financing this in also the that partner. did Cardinal I acquisition sort look bringing I the they something

a it's trodden Chinese fairly for well of path companies. So sort listed

Bryce Adams

questions this that. around, time for Cheers. me thanks there from apologies, Graham, Okay, no my are thanks, everyone. but

Graham Crew

Thanks for let us. be Bryce it one

Operator

next from come ahead. from [Operator does [Daniel question Please Instructions] McConaughey Rockport Your Investments]. go

Unidentified Analyst

Andrew and everyone. day Good

Andrew Wray

Hey, Dan.

Unidentified Analyst

to of ask that Andrew, when was I going permit. Thank expect you. questions first-off you Couple would on no the objection you one? one,

Andrew Wray

comes the the end typically process. That right Dan at of

I that once I other most have conditions we wise. to So, calendar are of And falls of when actually guess conscious be fulfilled. thought got just the would

might difficult the people. be right early of So late it to hold get January, December,

we to January we the very in more would the end second process towards So closing. expect week be as the that to probably of of get

Unidentified Analyst

Chifeng of companies? two know - decision Andrew, and you transition talked how you. it's is not And have for of I of or of thank the terms can is the of in this give employees management acquisition? about and call, the us been et your what between you your this cetera - Okay, but with of the a your dealing history - bit what do

Andrew Wray

Chifeng kept exactly bit capacity six I got got of knows a a country presence understand approach. quite talking And are. that had and they so relationships little obviously time, about better They've the some developed time, other Yes, everybody think all been think Bibiani months first what they've we've means, ground Ghana important. country had which a we think and since I know some by over they previously looking well, in for I to for to on capability were an is probably as almost as and each in at the team in

an capability You employees on, views phase take we're plan our in impact country. if level our or by plan We London, and and the through understanding most I'm the honest, the And key important fairly operation on. think, other that U.K., process And know process. be the in really stakeholders that was treated given which do the their of, through to interest now and Ghana of I and engage obviously know, they that are comes the they there, PA think in that that ensuring that's able Wassa they investment of for given. we be transition, Ghana development the they're then what much us, and to don't in I And in of need to PA is way business keen going those in to a CSR they're see head need programs push office to the they've in that. to impressed to take and been London. very is In keen the do to and people delivering very message

day from So next people skills they'll team and And that, at on can. smooth week two the on day this in site probably real as so those week go more at relationships as or and to we a achieve that build the some there handover stage in of months you next have focus a then, as place. order know, end familiarity the we we to through get

Unidentified Analyst

Okay.

So they want right the plan. at the people site closing through

Andrew Wray

Yes.

Unidentified Analyst

all thank much Andrew, the very great. best. you Okay

Andrew Wray

Thank welcome. you. You’re

Operator

time, this further may questions no are proceed. There you at please

Andrew Wray

much. all of and happy to got very on progress. than how contact see any If things Okay. Thank of to then anything, is more you be points those you've our and details there follow-up

So you very everybody. And much to again time appreciate today. the thank

Operator

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

Golden Star Resources (GSS) 2 Nov 212021 Q3 Earnings call transcript