Golden Star Resources Inc. (GSS) has announced fourth-quarter and 2014 production results for its Bogoso and Wassa mines.
The company’s gold production and sales amounted to 72,085 ounces in 2014, up 19% from the previous quarter. Of this, 25,831 ounces of gold were contributed by the Wassa mine and 46,254 ounces by Bogoso. For 2014, gold sales form Wassa were 112,831 ounces while the same from Bogoso came in at 147,957 ounces.
Golden Star’s shares rose 12.5% following the news release.
Cash and cash equivalents stood at $39 million at the end of 2014, after the company drew $10 million in cash from the Ecobank loan and paid off $1.4 million for equipment required for the development of an underground operation at Wassa.
Before the end of 2014, Wassa mine received the necessary permits to start construction of the exploration decline, which will aid in definition drilling and a bulk sample of the higher grade ore below the Wassa Main pit.
The decline will form the main access to the underground operation once the feasibility study on a combined open pit and underground mining operation at Wassa have a positive outcome and the necessary mining permits are received. The outcome of the feasibility study is expected by the end of first-quarter 2015.
The underground mining equipment is expected on site within the first quarter of 2015 which will allow for construction of the decline to start in Apr 2015.
For 2015, production at Wassa mine is expected to be in the range of 105,000-120,000 ounces of gold, while at Bogoso it is expected to be in the range of 145,000-155,000 ounces of gold. Cash operating costs per ounce at the Wassa mine is projected to be in the range of $850-$990 and at Bogoso it is expected to be in the range of $870-$960.
Sustaining capital expenditure at Wassa is anticipated to be $14 million in 2015 and at Bogoso it is expected to be $3 million. Development capital expenditure in 2015 is anticipated to be $27 million at Wassa and $13 million at Bogoso.
Golden Star currently carries a Zacks Rank #2 (Buy).
Other companies in the mining space worth considering include Pretium Resources Inc. (PVG), Rubicon Minerals Corp. (RBY) and Sandstorm Gold Ltd. (SAND). All of these stocks hold a Zacks Rank #2 (Buy).
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