Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) Debentures Repayment

Golden Star Resources Ltd. (USA) (NYSEMKT:GSS)

Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) has strengthened its balance sheet with the repayment of 5% senior unsecured debentures worth $13.6 million. Full repayment comes on the heels of the company posting its strongest quarterly production since the cessation of refractory operations in 2015.

Strengthening Balance Sheet

The repayment aligns with the company’s push to become a high grade, low-cost gold producer. Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) plans to lower its costs of operation as part of an effort that seeks to strengthen the balance sheet even further.

“In 2016 Golden Star took a number of important steps towards strengthening our balance sheet. These included restructuring the 5.0% Convertible Debentures, in order to secure a robust financial future for our shareholders. I am very pleased that we have repaid the balance of the 5.0% Convertible Debentures, as planned, as this will further simplify our balance sheet […],” said Chief Financial Officer, Andre Van Niekerk.

Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) posted its strongest quarter for the first three months of the year after gold production soared to highs of 57,795 ounces. The first quarter represented the third consecutive quarter of record gold production levels. The company attributes the stellar performance to the impact of high grade underground ore at Wassa Underground.

Focus now shifts to bringing Prestea Underground into production. Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) plans to do so by optimizing the relationship between open pit and underground operations at Wassa. Both open pit operations should increase the company’s gold production, heading into the New Year end while also reducing cash operating costs.

Management Changes

Separately, Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) has confirmed that Tony Jensen and Bill Yeates have left the company following the annual general shareholder meeting. Mona Quartey has since joined the company as a director.

Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) they leave is very different from the one they joined and our transformation into a high-grade, low-cost, mid-tier producer is well underway. I am delighted that Mona is joining the Board and we will all benefit from her experience in finance, politics and operating in Ghana. 2017 is on track to be another important year for Golden Star and we have a strong team at all levels of the Company to enable us to deliver our objectives,” said Chairman Tim Baker.

Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) stock was down by 3.24% in Friday’s trading session ending the week at $0.640 a share. GSS is “little to no” change in today’s early trading.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.