CREATING A LEADING AFRICAN GOLD PRODUCER - Q2 2019 Results | August 2019
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Q2 2019 Results | August 2019
CREATING A LEADING
AFRICAN GOLD PRODUCER
NYSE AMERICAN: GSS | TSX: GSC 1
DISCLAIMER
SAFE HARBOUR: Some statements contained in this presentation are forward-looking statements or In this presentation, we use the terms "cash operating cost per ounce", "All-In Sustaining Cost per
forward-looking information (collectively, “forward-looking statements”) within the meaning of the ounce" and "AISC per ounce". These terms should be considered as Non-GAAP Financial Measures as
United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities defined in applicable Canadian and United States securities laws and should not be considered in
laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve isolation or as a substitute for measures of performance prepared in accordance with International
risks and uncertainties that could cause actual results to differ materially. Such statements include Financial Reporting Standards ("IFRS"). "Cash operating cost per ounce" for a period is equal to the
comments regarding: estimated gold production, cash operating costs, All-in Sustaining Costs and cost of sales excluding depreciation and amortization for the period less royalties, the cash
capital expenditures for 2019; ongoing investment to increase drill density, increase stope component of metals inventory net realizable value adjustments and severance charges divided by
availability and expand development at Wassa; the sourcing of ore at Prestea in H2 2019; an the number of ounces of gold sold (excluding pre-commercial production ounces) during the period.
expected grade increase at Prestea in H2 2019; underground productivity and tonnage being ,"All-In Sustaining Costs per ounce" commences with cash operating costs and then adds sustaining
expected to increase at Prestea in H2 2019; open pit production being expected to continue at a capital expenditures, corporate general and administrative costs, mine site exploratory drilling and
similar grade at Prestea during Q3 2019; completion of the refurbishing of the underground railway greenfield evaluation costs and environmental rehabilitation costs, divided by the number of ounces
at Prestea in Q3 2019 resulting in improved throughput; the installation of a new larger rock breaker of gold sold (excluding pre-commercial production ounces) during the period. This measure seeks to
at Prestea; the implementation of initiatives identified by CSA Global at Prestea; the conversion of represent the total costs of producing gold from operations. These measures are not representative
Inferred resource to Indicated resource at Wassa Deep in H2 2019 and providing a Resource and of all cash expenditures as they do not include income tax payments or interest costs. Changes in
Reserve update in early 2020; the timing of a decision on the Father Brown deposit; a resource numerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery,
update and assessment of project viability for Father Brown in Q3 2019; the Company’s anticipated and the costs of labor, consumables and mine site general and administrative activities can cause
debt maturity schedule; and the exploration upside of the Wassa and Prestea these measures to increase or decrease. We believe that these measures are the same or similar to
Undergrounds. Factors that could cause actual results to differ materially include timing of and the measures of other gold mining companies, but may not be comparable to similarly totaled
unexpected events at the Prestea and/or the Wassa processing plants; variations in ore grade, measures in every instance. Please see our "Management's Discussion and Analysis of Financial
tonnes mined, crushed or milled; delay or failure to receive board or government approvals and Condition and Results of Operations for the three and six months ended June 30, 2019" for a
permits; construction delays; the availability and cost of electrical power; timing and availability of reconciliation of these Non-GAAP measures to the nearest IFRS measure.
external financing on acceptable terms or at all; technical, permitting, mining or processing issues,
including difficulties in establishing the infrastructure for Wassa Underground or Prestea INFORMATION: The information contained in this presentation has been obtained by Golden Star
Underground, inconsistent power supplies, plant and/or equipment failures and an inability to from its own records and from other sources deemed reliable, however no representation or
obtain supplies and materials on reasonable terms (including pricing) or at all; changes in U.S. and warranty is made as to its accuracy or completeness. The technical information relating to Golden
Canadian securities markets; heavy rainfall and flooding of underground mines; and fluctuations in Star's material properties disclosed herein is based upon technical reports prepared and filed
gold price and input costs and general economic conditions. pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and other publicly available information regarding the Company, including the following: (i) "NI 43-
There can be no assurance that future developments affecting the Company will be those 101 Technical Report on a Feasibility Study of the Wassa Open Pit Mine and Underground Project in
anticipated by management. Please refer to the discussion of these and other factors in our Annual Ghana" effective December 31, 2014; and (ii) "NI 43- 101 Technical Report on Resources and
Information Form for the year ended December 31, 2018 filed and available at www.sedar.com. The Reserves, Golden Star Resources, Bogoso/ Prestea Gold Mine, Ghana" effective December 31, 2018.
forecasts contained in this presentation constitute management's current estimates, as of the date Additional information is included in Golden Star's Annual Information Form for the year ended
of this presentation, with respect to the matters covered therein. We expect that these estimates December 31, 2018 which is filed and available on www.sedar.com. Mineral Reserves were prepared
will change as new information is received and that actual results will vary from these estimates, under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the
possibly by material amounts. While we may elect to update these estimates at any time, we do not Company. Dr. Raffield is a "Qualified Person" as defined by NI 43- 101. The Qualified Person
undertake to update any estimate at any particular time or in response to any particular event. reviewing and validating the estimation of the Mineral Resources is Mitchel Wasel, Golden Star
Investors and others should not assume that any forecasts in this presentation represent Resources Vice President of Exploration.
management's estimate as of any date other than the date of this presentation.
CURRENCY: All monetary amounts refer to United States dollars unless otherwise indicated.
NYSE AMERICAN: GSS | TSX: GSC 2
GOLDEN STAR SNAPSHOT
AFRICA
Wassa Quick Facts (ON 100% BASIS) Prestea Quick Facts (ON 100% BASIS)
Ownership 90% GSR (Wassa) Ltd., Ownership 90% GSR (Prestea/Bogoso)
10% Ghana Ltd., 10% Ghana
M&I Mineral 3.4 Moz M&I Mineral Resources 2.6 Moz
(1)
Resources (1)
Inferred Mineral 6.4 Moz Inferred Mineral 701 koz
Resources(1) Resources(1)
P&P Mineral Reserves(2) 1.5 Moz P&P Mineral Reserves(2) 317 koz
Processing Plant CIL (capacity 7,800 tpd) Processing Plant CIL (capacity 4,000 tpd)
Gold Recovery 87.4%
Gold Recovery 95.7%
Mining Type Underground Mining Type Underground (Alimak)
(Longhole) Shaft capacity 1,500 tpd
Ramp capacity 5,000
tpd
Production 2017A 130 koz
Production 2017A 137 koz 2018A 75 koz
2018A 150 koz 2019E 40-45 koz
2019E 150-160 koz
Prestea Wassa
Cash Operating Cost/oz(3) 2017A - $880 Cash Operating 2017A $632 Gold Mine Gold Mine
2018A - $629 Cost/oz(3) 2018A $1,292
2019E - $600-$650 2019E $1,450-$1,650 Father Brown ACCRA
Satellite Deposit
TAKORADI
1. See Mineral Resource and Mineral Reserve tables and notes on slides 39-41.
NYSE AMERICAN: GSS | TSX: GSC 2. See note on slide 2 regarding Non-GAAP Financial Measures. 3
Q2 2019 OVERVIEW
▪ Gold Production: 48,422 ounces
▪ 37,356 ounces of gold production at Wassa
▪ 11,066 ounces of gold production at Prestea
▪ Gold revenue for Q2 2019 totaled $61.9 million
▪ Gold sales totaled 48,742 ounces in the second quarter of 2019
▪ Mine operating margin of $8.7 million compared to $10.2 million in the second quarter of
2018
▪ Cash operating cost per ounce1 of $886 and All-In Sustaining Cost (“AISC”) per ounce1 of
$1,212
▪ Cash position of $66.2 million at June 30, 2019
▪ Production guidance revised to 190,000 - 205,000 ounces from 220,000 - 240,000 ounces,
cash operating costs per ounce revised to $800 - $850 from $620 - $680 per ounce and AISC
per ounce revised to $1,100 - $1,200 from $875 - $955 per ounce
▪ Initial independent review of Prestea completed and short-term changes being implemented
while next steps being planned
▪ High grade extension drilling results from Prestea reported on June 3, 20192
▪ Key management team changes announced with Andrew Wray appointed President & Chief
Executive Office and Graham Crew appointed Chief Operating Officer
Subsequent to Q2 2019
▪ Drilling results at Wassa and Father Brown deposits including the extension of gold
mineralization at both locations reported July 15, 20193
▪ Commitment letter signed with Macquarie Bank for $60 million senior secured credit facility
to refinance specific debt facilities
Notes:
1. See note on slide 2 regarding Non-GAAP Financial Measures.
2. See press release dated June 3, 2019, titled, “Golden Star Reports Initial High Grade Extension Drilling Results from Prestea Underground Gold Mine and Project Update”.
3. See press release dated July 15, 2019, titled, “Golden Star Announces Drilling Results at its Wassa and Father Brown Deposits Including the Extension of Gold Mineralization at
Both Locations”.
NYSE AMERICAN: GSS | TSX: GSC 4
REVISED GUIDANCE
▪ Production guidance reduced as a result of performance at both operations being below expectations
▪ Capital expenditure expectations remains unchanged
▪ Cash operating costs and AISC will be higher than initially expected
Wassa
▪ Volumes mined in line with expectations but grade lower than originally planned
Prestea
▪ Measures identified in the recent operational review to be prioritized and implemented
Gold production (Koz) Cash operating costs1 ($/oz) All-in sustaining costs ($/oz)1
Revised Original Revised Original Revised Original
Wassa 150 – 160 170 – 180 600 – 650 560 – 600 880 – 940 Not disclosed
Prestea 40 – 45 50 – 60 1,450 – 1,650 840 – 1,000 1,900 – 2,150 Not disclosed
Consolidated 190 – 205 220 – 240 800 – 850 620 – 680 1,100 –1,200 875 – 955
Notes:
1. See note on slide 2 regarding Non-GAAP Financial Measures.
NYSE AMERICAN: GSS | TSX: GSC 5
WASSA - FLAGSHIP ASSET
NYSE AMERICAN: GSS | TSX: GSC 6
WASSA: 80,000 OUNCES PRODUCED IN H1 2019 AT 3,500 TPD OF ORE MINED
Q2 2019 Results
42,910
38,097 37,562
▪ Underground material mined (ore + waste) increased over the quarter 37,356
▪ Slightly lower underground ore mined in Q2 2019 compare to previous
quarter
▪ Ore mining rate affected by limited stope access in June
▪ Lower than planned grades encountered during the quarter in several
stopes
Q3 2018 Q4 2018 Q1 2019 Q2 2019
4.3 Gold Production (ounces)
3.6 3.8 3.5
Q2 2019 Q1 2019 Q2 2018
Ore Mined UG kt 312,115 326,747 238,953
4,203 4,335 4,255 4,289
3,406 3,364 3,631 3,430 Grade Mined UG g/t 3.51 4.31 4.99
Ore Processed kt 364,901 366,790 375,932
Q3 2018 Q4 2018 Q1 2019 Q2 2019
Recovery % 95.9 95.6 96.1
UG Ore Mining rate (tpd) UG Ore + Waste Mining rate (tpd) Gold Produced oz 37,356 42,910 38,532
UG Gold Grade mined (g/t)
NYSE AMERICAN: GSS | TSX: GSC 7
WASSA: UPDATING THE GRADE CONTROL MODEL
Q2 Production Results
Budgeted: 29,792 t at 5.39 g/t
▪ Q2 ore sourced from stopes with unexpected low grade Mined: 49,423 t at 5.58 g/t
▪ At the time of budget planning, little definition
drilling available for the stopes
▪ 30,000 m of definition drilling in H1 2019 to
update the grade control model
▪ Stopes shape from updated grade control model
different from stopes shape from budget/long
range model - See example for 620 Level
▪ 22% of Q2 stoping ore sourced from outside of budget
stopes
▪ Grade and tonnage of the updated stopes variable
▪ Tend to find more tonnes per level with an overall
lower average grade
Budgeted: 47,064 t at 5.26 g/t
▪ Mining rate limited by stope availability Mined: 47,744 t at 2.28 g/t
Map of Wassa 620 Level
In Blue, shape of the stopes budgeted
In Red, shape of the stopes mined
NYSE AMERICAN: GSS | TSX: GSC 8
WASSA: INCREASING VOLUME AND GRADE PREDICTABILITY
N S
Outlook
▪ Ongoing investment to increase drill density to
anticipate lower-grade stopes and sequence them
accordingly
▪ Target 12 months of definition drilling Mined out pits
available
▪ 26,000 m of definition drilling to be
completed in 2H 2019
▪ Ongoing investment to increase stope availability
Paste plant construction to start in H2 2019
▪ Commissioning expected in Q3 2020
▪ Capital cost: $23 million
▪ Operating cost: $5-7 per tonne
▪ Ongoing investment to expand development to get
to 5,000 tpd
▪ Strengthen mining fleet: purchase of
In Grey, mined out stopes/pits and H1 2019 definition drilling
loaders, jumbo, 60t trucks
In Blue, stopes and development for H2 2019
1,100 m
Wassa long section
NYSE AMERICAN: GSS | TSX: GSC 9
WASSA: COSTS IMPACTED BY LOWER PRODUCTION
Costs 991
▪ Cash operating costs and AISC per oz impacted by the lower 946
production during the quarter 807
760
▪ Underground mining and processing costs per tonne stable 656
613 614
quarter over quarter 552
Outlook
▪ The grade and mining rate are expected to stay at similar levels for
the rest of the year
▪ Revised 2019 Guidance:
▪ Production: 150,000 to 160,000 ounces (from 170,000 to Q3 2018 Q4 2018 Q1 2019 Q2 2019
180,000 ounces) Cash Operating Costs (US$/oz) AISC (US$/oz)
▪ Cash operating costs: $600/oz to $650/oz (from $560/oz to
$600/oz)
▪ AISC: $880/oz to $940 per oz (original guidance not Q2 2019 Q1 2019 Q2 2018
disclosed)
UG Mining Cost $/t ore 40 37 38
Processing Cost $/t ore 22 21 22
G&A Cost $/t ore 10 10 12
Cash Operating Costs $/oz 655 552 610
AISC $/oz 941 760 994
NYSE AMERICAN: GSS | TSX: GSC 10PRESTEA - OPERATIONAL REVIEW UNDERWAY
NYSE AMERICAN: GSS | TSX: GSC 11PRESTEA: MINING RATE STABLE, GRADE REMAINS THE FOCUS
19,016
Q2 2019 Production Results
▪ Open pit grade and throughput higher than previous quarter
11,284 11,065
▪ Improved grade reconciliation during the quarter 10,374
▪ Low strip ratio (1.4:1)
▪ Underground mining rate slightly lower than previous quarter
▪ Rock breaker upgrade in June impacted skipping for 15 days
▪ Adjusted underground mining rate of 489 tpd excluding rock breaker
downtime
▪ Underground grade lower than previous quarter
▪ Ore sourced from stopes with low grade Q3 2018 Q4 2018 Q1 2019 Q2 2019
Gold Production (ounces)
▪ Ongoing high level of dilution
10.4
8.6
6.3
4.1
Q2 2019 Q1 2019 Q2 2018
Ore Mined
kt 195,455 83,385 76,920
(Open Pit and UG)
489 Ore Processed kt 211,873 134,332 373,599
430 408
376
322 4.1 UG 6.3 UG 13.6 UG
Grade Processed g/t
1.6 OP 1.3 OP 2.3 OP
Recovery % 83.2 87.4 88.0
Q3 2018 Q4 2018 Q1 2019 Q2 2019
UG Ore Mining rate (tpd) Adjusted UG Ore Mining rated (tpd)
UG Gold Grade mined (g/t) Gold Produced oz 11,066 10,374 22,677
NYSE AMERICAN: GSS | TSX: GSC 12PRESTEA: WASTE ZONES CONTINUED TO AFFECT THE GRADE MINED
Waste zones identified with definition drilling
Q2 2019 Production Results
▪ Q2 ore sourced from S2, S4, S6, S8 and S9
▪ Low grade in those stopes due to: 21 Level
▪ Waste zones not identified beforehand due to lack of
definition drilling
▪ High dilution related to limited QAQC on long hole drilling
and blasting and stope height
Outlook
▪ Definition drilling in progress at 25m x 25m spacing to identify
waste zones earlier
▪ Introduced finger raising and shorter raises to work around
the waste zones
▪ Positive results observed from QAQC implemented on long hole
drilling and blasting from S9 and onwards
▪ Waste from 17L skipped separately from ore since May to improve
dilution 24 Level
▪ Looking at similar options for 24L
▪ For H2 2019, ore to be sourced from S9, S11, S12, S13, S14 and
Prestea Alimak stopes with status as of June 30th, 2019
development ore
▪ Grade expected to improve
NYSE AMERICAN: GSS | TSX: GSC 13PRESTEA: COSTS IMPACTED BY UNDERGROUND GRADE AND VOLUME
Costs
▪ Costs impacted by low production grade and below target throughput 2,143
2,120
▪ Largely fixed cost at Prestea Underground
1,865
▪ Cost very sensitive to grade
1,867
Outlook 1,363 1,677
▪ Underground productivity, mining rate and throughput expected to increase 1,463
for H2 2019, with rock breaker, railway and ventilation raise work completed
1,110
▪ Open pit production expected to continue at similar grade during Q3
▪ Revised 2019 Guidance:
▪ Production: 40,000 to 45,000 ounces (from 50,000 to 60,000)
▪ Cash operating costs: $1,450/oz to $1,650/oz (from $840/oz to
$1,000/oz)
Q3 2018 Q4 2018 Q1 2019 Q2 2019
▪ AISC: $1,900/oz to $2,150/oz (original guidance not disclosed)
▪ Focus on cost reductions to minimize cash outflows
Cash Operating Costs (US$/oz) AISC (US$/oz)
Q2 2019 Q1 2019 Q2 2018 Projects
▪ 50% of the underground railway refurbished during the quarter
UG Mining Cost $/t ore 191 191 276 ▪ 100% to be refurbished by end of Q3 2019
▪ Reliable railway will improve throughput
Processing Cost $/t ore 30 36 22 ▪ Underground rock breaker and tipping area upgraded
▪ Rock breaker responsible for significant downtime in Q1 2019
▪ Better availability observed since installation in early June
G&A Cost $/t ore 22 14 10
▪ New larger rock breaker to be installed in coming month to handle
higher volume
Cash Operating Costs $/oz 1,677 1,463 1,149
AISC $/oz 2,143 1,865 1,293
NYSE AMERICAN: GSS | TSX: GSC 14PRESTEA: INDEPENDENT REVIEW OBSERVATIONS
Well established operation
May 2019 Jun 2019 Jul 2019 ▪ Resource model aligned with standard
▪ Processing plant well adapted to lower throughput
▪ Competent workforce
Tender Offer CSA site visit Initial CSA ▪ Highly prospective land package
CSA selected Observations ▪ Multiple upside options
Lower grade than planned
▪ Insufficient geological and geotechnical data
Excessive dilution ▪ Poor definition of reef position
& ▪ Inadequate alignment of Alimak raises to reef position
Excessive ore loss ▪ Low QAQC on long hole drilling and blasting
▪ Lack of geotechnical expertise
Lower productivity than planned
▪ Alimak raise length (150-160 m) contributing to poor
geotechnical conditions
▪ Low equipment mechanical availability
▪ Lack of access to top level
NYSE AMERICAN: GSS | TSX: GSC 15PRESTEA: INDEPENDENT REVIEW INITIAL RECOMMENDATIONS AND NEXT STEPS
▪ Increase definition drilling underway to provide accurate information on reef location and grade
distribution within the reef
▪ More than 100 low-cost initiatives identified by CSA, including:
▪ Develop geotechnical block model
▪ Improve supervision, implement KPIs and management operating system
▪ Purchase critical small equipment (e.g. forklift) for Alimak installation and supervision
▪ Run a workshop on site to prioritise and cost initiatives
▪ Initiatives to be implemented by the operational team supported by a dedicated project team
Improvements embedded and new plan
Prioritisation and Implementation of low-cost quick win initiatives starting to deliver
Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2020 Feb 2020 Mar 2020 Apr 2020
Design of long-term plan (CSA) Implementation of long-term plan
▪ Establish whether existing or modified Alimak mining is appropriate
▪ Assess whereas to introduce a complementary mining method to bring additional
flexibility (trade off review)
▪ Revise production and cost targets
NYSE AMERICAN: GSS | TSX: GSC 16EXPLORATION
NYSE AMERICAN: GSS | TSX: GSC 17WASSA DEEP: EXTENDING MINERALISATION by 200m
2,000 m
Q2 2019 Results
19400N
19350N
19200N
19000N
18900N
18700N
18500N
N Mined out pits S ▪ Eight rigs on site, 27 holes and 23,271 m drilled in H1 2019
▪ High grade mineralization extended 200 m south of the known
mineralization
BSDD19-394D2
▪ Positive impact on future resource update expected
22.7m @ 8.9 g/t ▪ Deposit remains open to the south and at depth
▪ Improved understanding of the orebody thanks to infill drilling
BS18DD394D1 ▪ Confirmed continuity of the deposit grade and thickness
13.9m @ 3.2 g/t
17.6m @ 34.1 g/t
▪ Newly converted Indicated resources expected to
15.7m @ 4.1 g/t increase mine life
BSDD19004
14.8m @ 2.6 g/t BSDD19-400M
19.5m @ 5.4 g/t
Outlook
1,500 m
BSDD19-396D1
14.3m @ 6.2 g/t
BSDD19-394D3
BSDD19-396D2 15.9m @ 4.5 g/t ▪ Focus on infill drilling to convert Inferred resource to Indicated
25.6m @ 4.1 g/t resource in H2 2019
BSDD19-388D3 ▪ 10,000 m to 15,000 m drilling remaining for 2019
25.2m @ 3.3 g/t
▪ Potential to increase mine life
OPEN
4.3m @ 12.2 g/t
29m @5.5 g/t ▪ Resource and Reserve update early 2020
6m @12.6 g/t ▪ Further work on defining geological structures
8.4m @ 6.5 g/t
BSDD19-388D3
32.5m @ 5.3 g/t
4.8m @ 5.7 g/t
OPEN BS18DD392D3
12.8m @ 2.1 g/t
All drill holes represent H1 2019 drilling
22.4m @ 2.5 g/t
7.7m @ 3.7 g/t
NYSE AMERICAN: GSS | TSX: GSC 18WASSA BROWNFIELD: HIGHLY PROSPECTIVE TARGETS ALONG THE TREND
CLOSE TO HAUL ROAD Wassa Plant
SAK & Ballyebo Prospects Capacity: 7,800 tpd
Current utilization: ~3,500 tpd
Existing GSR Haul Road
85 km long from Wassa to Father
SAK Brown
Wassa Main
Ballyebo
Chichiwelli
Indicated Resources: 52 koz
(850 kt at 1.9 g/t)
Benso
Indicated Resources: 112 koz (1,200 kt at 2.9 g/t)
Abada & Apotunso Prospects Under pit intercept 15.5 m at 6.2 g/t
Veining similar to Prestea
Historical intercepts including 8 m
at 5.48 g/t Father Brown
See next slides
NYSE AMERICAN: GSS | TSX: GSC 19FATHER BROWN COMPLEX: HIGH GRADE SHOOT EXTENDED by 200m
Q2 2019 Results
Mined out pits
W E ▪ Two rigs on site,
▪ 11 holes in Q2 2019
▪ 22 holes in H1 2019 (12,197 m)
▪ Improved understanding of the orebody:
ADK ▪ ADK structure interpreted as being the primary gold
(Adoikrom) bearing fluid pathway
▪ Focus drilling on ADK
▪ ADK high grade shoot confirmed by recent drilling
Gold (in g/t)
▪ 200m extension identified, with a 8.1 m intersect grading
900 m
FBZ (Father Brown) 8.7 g/t, 825 m below surface
▪ Pending assay could extend mineralization further
Outlook
▪ Assays for the last hole pending
High grade shoot extension identified in Q2 ▪ To be released Q3 2019
2019 ▪ Next resource update expected in Q3 2019
▪ 28 holes drilled since the last resource update (Dec 2018)
Pending assay ▪ Project viability to be assessed internally early Q3 2019
▪ Results will drive future drilling decisions
Cross section of Father Brown complex
NYSE AMERICAN: GSS | TSX: GSC 20FATHER BROWN COMPLEX: MOST ADVANCED SATELLITE DEPOSIT
Decision
2011 2012 2013 2014 2015 H1 2018 H2 2018 H1 2019 GateH2 2019 H1 2020 H2 2020
Open pit mining and Infill and step-out drilling Infill and step-out drilling IF APPROVED
haulage to Wassa plant 16 holes (8,236 m) 22 holes (12,197 m) - Infill drilling
~300 koz mined (2.2 Mt at - Metallurgical and geotechnical tests
4.4 g/t) - Preliminary design
Internal study
Resource increase
by 93%
Tonnage (kt) Grade (g/t) Gold (koz)
Father Brown Indicated 656 8.67 183
Inferred 997 5.44 174 ▪ Potential ore feed to utilize available capacity at Wassa plant
located 85km north of the Father Brown Complex
Adoikrom Indicated 327 5.3 55
Inferred 1,316 7.1 300 ▪ Infrastructure available on site
Total Indicated 982 7.5 238
▪ Two high grade underground structures identified, Adoikrom and
Inferred 2,313 6.4 475 Father Brown
As of December 31, 2018
NYSE AMERICAN: GSS | TSX: GSC 21PRESTEA – HIGH GRADE EXTENSION DRILLING RESULTS
▪ Confirmed extension of the plunge of the ore shoot
towards North
▪ Opens additional exploration targets
▪ Potential addition to the resources and reserves on 24L
NYSE AMERICAN: GSS | TSX: GSC 22FINANCIAL RESULTS
NYSE AMERICAN: GSS | TSX: GSC 23Q2 2019 CONSOLIDATED FINANCIAL RESULTS
(000s) Q2 2019 Q2 2018 % Change H1 2019 H1 2018 % Change
Gold Revenues 61,915 77,121 (20)% 129,172 147,940 (13)%
- Wassa 47,893 48,588 (1)% 101,885 93,940 8%
- Prestea 14,022 28,533 (51)% 27,287 54,000 (49)%
Cost of sales excluding depreciation & amortization 46,506 57,717 19% 90,310 117,291 23%
Depreciation and amortization 6,749 9,235 27% 13,611 17,456 22%
Mine operating margin/(loss) 8,660 10,169 (15)% 25,251 13,193 91%
- Wassa 16,525 12,485 32% 39,365 21,992 79%
- Prestea (7,865) (2,316) (100)%+ (14,114) (8,799) (60)%
Loss before tax (5,604) (3,777) (48)% (1,061) (1,281) 17%
- Wassa 14,608 11,407 28% 35,658 19,502 83%
- Prestea (9,320) (2,785) (100)%+ (16,013) (10,018) (60)%
- Corporate & other (10,892) (12,399) 12% (20,706) (10,765) (92)%
Income tax expense 5,278 3,783 (40)% 12,480 6,674 (87)%
Net loss attributable to Golden Star Shareholders (9,036) (6,642) (36)% (10,960) (5,627) (95)%
Basic loss per share (EPS) (0.08) (0.09) 11% (0.10) (0.07) (43)%
Adjusted net income attributable to Golden Star Shareholders 872 2,408 (64)% 10,266 285 100%+
Adjusted earnings per share (AEPS) 0.01 0.03 (67)% 0.09 0.00 100%
NYSE AMERICAN: GSS | TSX: GSC 24NET CASH FLOW BRIDGE
NYSE AMERICAN: GSS | TSX: GSC 25DEBT REFINANCING
CURRENT DEBT MATURITY SCHEDULE (000s) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2021 2022 2023 Total
Finance Leases 361 297 626 72 - - - - - 1,356
Ecobank Loan III 1,389 1,389 1,389 1,389 1,389 1,389 5,555 3,611 - 17,499
Ecobank Loan IV 1,000 1,000 1,000 1,000 1,000 1,000 4,000 4,000 2,000 16,000
7% Convertible Debentures - - - - - - 51,498 - - 51,498
Vendor Agreement 8,755 8,755 - - - - - - - 17,510
Total Principal 11,505 11,441 3,015 2,461 2,389 2,389 61,053 7,611 2,000 103,863
Total Interest 3,117 1,243 2,509 643 2,387 517 5,084 549 74 16,123
Total Debt Service 14,622 12,684 5,524 3,104 4,776 2,906 66,137 8,160 2,074 119,986
FUTURE DEBT MATURITY SCHEDULE (000s) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2021 2022 2023 Total
Finance Leases 361 297 626 72 - - - - - 1,356
7% Convertible Debentures - - - - - - 51,498 - - 51,498
New Debt Facility - - - - 5,000 5,000 20,000 20,000 10,000 60,000
Total Principal 361 297 626 72 5,000 5,000 71,498 20,000 10,000 112,854
Total Interest 2,785 1,100 3,160 1,083 2,886 993 6,164 2,166 722 21,059
Total Debt Service 3,146 1,397 3,786 1,155 7,886 5,993 77,662 22,166 10,722 133,913
▪ Ecobank Loan III, Ecobank Loan IV and Vendor Agreement will be refinanced with new $60 million debt facility. Additional $9.0 million in cash/debt after
refinancing.
NYSE AMERICAN: GSS | TSX: GSC 26CORPORATE RESPONSIBILITY
NYSE AMERICAN: GSS | TSX: GSC 27HEALTH AND SAFETY
Near Miss Reporting* & Inspection AIFR1 & TRIFR2 GSR Malaria Prevention
378 358
326
5.87
5.28
3.89 876
146
768
91 1.89
0.76 1.19
36 1,077 409
691
263
2017 2018 2019 YTD 2017 2018 2019 YTD 2017 2018 2019 YTD
Near miss Reporting Inspections AIFR TRIFR Workforce Cases Days Lost
LEADING PRACTICE SAFETY LEADERSHIP & PERFORMANCE MALARIA
▪ Featured in UN Global Compact ▪ 93% of leaders completed leadership training ▪ Least cases in 7 years
Canada Leading Practice Guide ▪ 10 safety standards developed by workforce ▪ Order of magnitude better than background
Sustainable Development Goal ▪ TRIFR of 1.19 in line with peer group ▪ Case rates just 0.35 per capita
(SDG) 3 ▪ Near miss reporting 2.5 times better than
▪ Over 250 workforce safety 2017
champions ▪ Systems enhanced
* Near miss reporting significant increase over pre-program baseline. 1. AIFR: All Injury Frequency Rate.
* AIFR and TRIFR have increased as a result of programs to enhance 2. TRIFR: Total Recordable Injury Frequency Rate.
reporting.
NYSE AMERICAN: GSS | TSX: GSC 28CORPORATE RESPONSIBILITY
LEADING PRACTICE
▪ Featured in UN Global Compact Canada Leading Practice Guide
SDG 1 & 8
▪ Oil palm plantation supports over 700 families
PARTNERSHIP
▪ Community agreements in development for Wassa operations
▪ World Environment Day celebrations
PERFORMANCE
▪ No reportable environmental incidents
▪ 100% conformance to statutory monitoring and regulatory
guidelines
LOCAL CONTENT
▪ Employees 30% host community and 98% Ghanaian
▪ Contractors 74% host community
NYSE AMERICAN: GSS | TSX: GSC 29WRAP-UP
▪ Proven focus on responsible mining recognized with several industry awards
in Ghana and internationally
▪ Two operating assets and significant landholding in highly prospective,
under explored proven Ashanti gold belt
▪ Wassa: underground deposit in excess of 5.6 Moz of Inferred and 1.7 Moz
of M&I Mineral Resources producing 150 Koz with significant growth
potential
▪ Prestea: high grade underground deposit with current operational review
underway to improve performance and return to free cash generation
▪ Optionality from other satellite deposits, including Father Brown, to utilize
latent installed processing capacity at both sites
▪ Long track record of operating successfully in Ghana, a well developed and
stable mining jurisdiction in West Africa with excellent relationships with
our stakeholders
▪ New COO with extensive underground mining expertise
NYSE AMERICAN: GSS | TSX: GSC 30
30Appendix
NYSE AMERICAN: GSS | TSX: GSC 31FATHER BROWN COMPLEX: RESOURCE UPDATE NEXT QUARTER
N Mined out pits S
N S
Mined out pits
560 m
900 m
Gold (in g/t)
High grade
shoot
orientation
Gold (in g/t)
Long section of FBZ
High grade shoot extension
identified in Q2 2019
Pending assay
Long section of ADK
NYSE AMERICAN: GSS | TSX: GSC 32CAPITAL STRUCTURE
DEBT As at June 30, 2019 Interest ROYAL GOLD STREAM
Convertible Debentures $45.8 m 7% ▪ Tier 1 = Deliver 10.5% of gold production at a cash purchase price of 20%
of spot gold until 240 koz is reached
Ecobank III $17.2 m 8.9% ▪ The company has delivered 89,624 oz of gold to Royal Gold since
Ecobank IV $15.7 m 9.0% inception
▪ Tier 2 = Thereafter 5.5% of gold production at a cash purchase price of
VRA $17.1 m 9.0% 30% of spot gold price will be delivered
CASH AT JUNE 30, 2019
▪ $66.2 million
NYSE AMERICAN: GSS | TSX: GSC 33WASSA MINE QUICK FACTS
Wassa Quick Facts (ON 100% BASIS)
Ownership 90% GSR (Wassa) Ltd., 10%
Ghana
M&I Mineral Resources (1) 3.4 Moz
Inferred Mineral Resources(1) 6.4 Moz
P&P Mineral Reserves(2) 1.5 Moz
Processing Plant CIL (capacity 7,800 tpd)
Gold Recovery 95.7%
Mining Type Underground (Longhole)
Wassa is in south-western Ghana, approximately 40 km from the Ramp capacity 4,000 tpd
Prestea Gold Mine. Golden Star commenced production from the
surface operation at Wassa in 2005 and commercial production was Production 2017A 137 koz
achieved at Wassa Underground on January 1, 2017. In early 2018 2018A 150 koz
Wassa transitioned into an underground-focused operation. 2019E 150-160 koz
Wassa Underground has exploration upside through extension drilling Cash Operating Cost(3) 2017A - $880
of B Shoot North, step out drilling on B Shoot South, step out drilling 2018A - $629
on the 242 Trend and the extension of the F Shoot. This work is 2019E - $600-$650
expected to increase the mine life of Wassa Underground in the short,
medium and long term.
1. See Mineral Resource notes on slide 21.
NYSE AMERICAN: GSS | TSX: GSC 2. See Mineral Reserves notes on slide 19.
34
3. See note on slide 2 regarding Non-GAAP Financial Measures.PRESTEA MINE QUICK FACTS
Prestea Quick Facts (ON 100% BASIS)
Ownership 90% GSR (Prestea/Bogoso) Ltd.,
10% Ghana
M&I Mineral Resources (1) 2.6 Moz
Inferred Mineral Resources(1) 701 koz
P&P Mineral Reserves(2) 317 koz
Processing Plant CIL (capacity 4,000 tpd)
Gold Recovery 87.4%
Prestea is in south-western Ghana, approximately 40km from the Mining Type Underground (Alimak)
Wassa Gold Mine. Previously, production was being delivered from Shaft capacity 1,500 tpd
the Prestea Open Pits and the Prestea Underground Gold Mine. In the
second half of 2018, Prestea became an underground-focused Production 2017A 130koz
operation. 2018A 75koz
2019E 40-45koz
Prestea Underground has exploration upside through the extension
and definition of the West Reef ore body, with the objective of
Cash Operating Cost(3) 2017A $632
increasing the supply of high grade ore to the processing plant in the
near term. Other focuses of the exploration program include initial 2018A $1,292
testing of the Main Reef and South Gap areas, which have the 2019E $1,450-$1,650
potential to add ore to the mine plan in the medium to long term.
1. See Mineral Resource notes on www.gsr.com.
NYSE AMERICAN: GSS | TSX: GSC 2. See Mineral Reserves notes on gsr.com.
3. See note on slide 2 regarding Non-GAAP Financial Measures. 35LA MANCHA: A SUPPORTIVE STRATEGIC SHAREHOLDER
Evolution Mining and Endeavour Mining Relative Performance
Since La Mancha Investment Mkt. Cap:
▪ One of the largest investors globally in gold sector with assets value of US$ 1.1 bn $4,191 mn
▪ A long-term partner for three mining companies worldwide, with subsequent cash Gold Price Evolution Selected Australian Peers
investments after the initial investment
▪ In 2018, La Mancha invested $125.6 mn for a 30% stake in Golden Star
Mkt. Cap:
$377 mn
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
Jan-16
Jan-17
Jan-18
Jan-19
Oct-15
Oct-16
Oct-17
Oct-18
29.9% holding 9.5% holding 30.0% holding
(3.9% collared)
Mkt. Cap:
Gold Price Endeavour Selected African Peers $1,611 mn
▪ Market cap: US$2.1B ▪ Market cap: US$5.7B ▪ Market cap: US$458M Mkt. Cap:
▪ Mines & Projects: 4 +1 ▪ Mines: 5 ▪ Mines: 2 $205 mn
▪ 2019E Prod.: 615-695 Koz ▪ FY19 Prod.: 753 Koz ▪ 2019E Prod.: 190-205 Koz
▪ 2019E AISC: US$ 760-810/oz ▪ FY19 AISC: A$ 924/oz ▪ 2019E AISC: $1,100-1,200/oz
▪ Reserves: 7.9 Moz ▪ Reserves: 7.5 Moz ▪ Reserves: 1.8 Moz
▪ M+I+I Resources: 16.2 Moz ▪ M+I+I Resources: 14.7 Moz ▪ M+I+I Resources: 13.2 Moz
Source: Bloomberg and companies websites
NYSE AMERICAN: GSS | TSX: GSC Note: Market data as of 26-Jul-2019, Resources and Reserves as of 31-Dec2018
36MINERAL RESERVE STATEMENT
Dec 31, 2018 Dec 31, 2018 Dec 31, 2018
Proven and Probable
Proven Mineral Reserve Probable Mineral Reserve
Mineral Reserves Mineral Reserve
tonnes grade ounces tonnes grade ounces tonnes grade ounces
(000) g/t Au (000) (000) g/t Au (000) (000) g/t Au (000)
Wassa Open Pit - - - 9,920 1.57 500 9,920 1.57 500
Wassa Underground 834 4.55 122 6,647 3.87 827 7,481 3.95 949
Stockpiles 1,205 0.63 24 - - - 1,205 0.63 24
Subtotal Wassa 2,039 2.23 146 16,567 2.49 1,327 18,606 2.46 1,473
Mampon - - - - - - - - -
Prestea South - - - - - - - - -
Prestea Underground 37 9.07 11 789 12.04 305 826 11.91 316
Stockpiles 27 1.18 1 - - - 27 1.18 1
Subtotal Prestea 64 5.74 12 789 12.04 305 853 11.57 317
GSR Total 2,103 2.34 158 17,356 2.93 1,632 19,459 2.86 1,790
Notes to the Mineral Reserve Estimate:
1. The stated Mineral Reserves comply with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and are classified in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum’s “CIM Definition Standards – For Mineral Resources and Mineral Reserves”. Mineral Reserve estimates reflect the Company’s reasonable expectation that all necessary permits and
approvals will be obtained and maintained. Mining dilution and mining recovery vary by deposit and have been applied in estimating the Mineral Reserves.
2. Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources. Mineral Reserve estimates include mining dilution at grades assumed to be zero.
3. The 2018 Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Executive Vice President and Chief Technical Officer for the Company. Dr. Raffield is a QP as defined by NI 43-101.
4. The Mineral Reserves at December 31, 2018 were estimated using a gold price assumption of $1,250 per ounce.
5. The slope angles of all pit designs are based on geotechnical criteria as established by external consultants. The size and shape of the pit designs are guided by consideration of the results from a pit optimization
program.
6. Cut-off grades have been estimated based on operating cost projections, mining dilution and recovery, royalty and stream payment requirements and applicable metallurgical recovery.
7. Marginal cut-off grade estimate for the Wassa open pit is 0.7 grams per tonne (“g/t”) of gold (“Au”).
8. Break-even cut-off grade estimates for the underground mines are as follows: Wassa Underground 2.4 g/t Au; and the Prestea Underground Gold Mine (“Prestea Underground”) 7.0 g/t Au.
9. Prestea Underground Proven Mineral Reserve includes underground broken stocks.
10. Numbers may not add due to rounding.
11. Only non-refractory material is included in Mineral Reserves.
NYSE AMERICAN: GSS | TSX: GSC 37MEASURED AND INDICATED MINERAL RESOURCE
Dec 31, 2018 Dec 31, 2018 Dec 31, 2018
Measured and Indicated
Measured and Indicated Measured Mineral Resources Indicated Mineral Resources
Mineral Resources
Mineral Resources
tonnes grade ounces tonnes grade ounces tonnes grade ounces
(000) g/t Au (000) (000) g/t Au (000) (000) g/t Au (000)
Wassa Open Pit 0 0.00 0 28,042 1.39 1,254 28,042 1.39 1,254
Wassa Underground 593 5.66 108 11,914 4.21 1,613 12,507 4.28 1,721
Father Brown Adoikrom UG 0 0 0 981 7.54 238 981 7.54 238
Wassa Other 0 0 0 2,308 2.36 175 2,308 2.36 175
Subtotal Wassa 593 5.66 108 43,246 2.36 3,281 43,839 2.40 3,388
Bogoso/Prestea Refractory 0 0 0 17,677 2.85 1,619 17,677 2.85 1,619
Mampon 0 0 0 83 1.71 5 83 1.71 5
Prestea South 0 0 0 1,521 2.15 105 1,521 2.15 105
Prestea Underground 9 30.07 9 1,298 16.73 698 1,308 16.82 707
Bogoso/Prestea Other 0 0 0 2,387 1.66 128 2,387 1.66 128
Subtotal Bogoso/Prestea 9 30.07 9 22,966 3.46 2,555 22,975 3.47 2,564
Total 602 6.03 117 66,212 2.74 5,836 66,814 2.77 5,952
TOTAL NON-REFRACTORY 602 6.03 117 48,535 2.7 4,216 49,137 2.74 4,333
NYSE AMERICAN: GSS | TSX: GSC 38INFERRED MINERAL RESOURCE
Notes to Mineral Resource Estimates
December 31, 2018 1. The Mineral Resources for “Bogoso/Prestea Others” include
Inferred Mineral Resources Chujah, Dumasi, Bogoso North, Buesichem, Opon and Ablifa.
tonnes grade ounces 2. The Wassa Underground Mineral Resource has been estimated
below the $1,450 per ounce of gold pit shell using an economic
(000) g/t Au (000) gold grade cut-off of 2.1 g/t Au, which the Company believes
Wassa Open Pit 23 0.74 1 would be the lower cut-off grade for underground mining and
Wassa Underground 50,661 3.65 5,945 constrained to a 0.4 g/t Au mineralized grade shell.
3. The Father Brown Underground Mineral Resource has been
Father Brown Adoikrom UG 2,313 6.38 475 estimated below the $1,450 per ounce of gold pit shell using an
Wassa Other 382 2.10 26 economic gold grade cut-off of 3.2 g/t Au, which the Company
Subtotal Wassa 53,379 3.76 6,446 believes would be the lower cut-off grade for underground
mining.
Mampon 14 1.68 1 4. Prestea Underground Mineral Resource has been estimated
Prestea South 68 1.89 4 below the $1,450 per ounce pit shell of Prestea South down to
Prestea Underground 2488 8.42 674 3,800 metres elevation using a gold cut-off grade at 6.1 g/t Au.
5. Mineral Resources were estimated using optimized pit shells at
Bogoso/Prestea Others 468 1.50 23 a gold price of $1,450 per ounce. Other than gold price, the
Subtotal Bogoso/Prestea 3,038 7.18 701 same optimized pit shell and underground parameters and
Bogoso/Prestea Refractory 916 2.61 77 modifying factors used to determine the Mineral Reserves were
used to determine the Mineral Resources.
Total (including refractory) 57,333 3.92 7,224 6. Mineral Resources are inclusive of Mineral Reserves.
TOTAL NON-REFRACTORY 56,417 3.94 7,147 7. Numbers may not add correctly due to rounding.
NYSE AMERICAN: GSS | TSX: GSC 39CONTACT US
Tania Shaw, VP, Investor Relations &
Corporate Affairs
+1.416.583.3800
investor@gsr.com
NYSE American: GSS
TSX: GSC
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