Golden Star Resources Ltd. (USA)(NYSEMKT:GSS) has repaid the remaining principal amount amounting to $13.6 million of its 5% convertible debentures which were due on June 1, 2017, together with accrued interest, in cash.
André van Niekerk, the CFO and Executive Vice President and Chief Financial Officer of Golden Star, reported that in 2016, the company took many important measures towards strengthening their balance sheet. These comprised restructuring the 5% Convertible Debentures, in an attempt to secure a strong financial future for company’s shareholders.
The CFO added that he is extremely delighted that they have repaid the remaining amount of the 5% Convertible Debentures, as intended, as this will simplify overall balance sheet as company continue along its path to become a top grade, low cost gold manufacturer. All monetary amounts indicate to U.S. dollars unless otherwise mentioned.
Last month, Golden Star posted its operational and financial results for the first quarter closed March 31, 2017. The Q1 2017 represents company’s strongest quarterly output since the close of the refractory operation in the Q3 2015. Gold production increased 9% to 57,795 ounces in the Q1 2017 compared to Q1 2016.
Cash operating cost a ounce1 of $798 and AISC a ounce1 was $977 in the Q1 2017. Costs projected to decline further as Wassa Underground remains to ramp up and the Prestea Underground Gold Mine commences production.
Golden Star reported capital expenditures of $16.7 million in Q1 2017. Cash provided by operations prior to changes in working capital came at $17.7 million in Q1 2017 while mine operating margin was $8.7 million.
Consolidated cash balance stood at $36.5 million as of the close of March 31, 2017, with the firm remaining fully funded to close its capital program and fulfill its debt repayments for the year. Golden Star is on track to meet its FY2017 guidance in terms of cash operating cost a ounce1, AISC a ounce1, capital expenditures and gold production.