Message #58 From:
NewsBot Date: February 29, 2008 06:57:42 AM
Golden Star Reports Financial Results for Fourth Quarter and Year-End 2007
Golden Star Resources Ltd. (AMEX:GSS)(TSX:GSC)(GSE:GSR) today announced
its audited year-end results for 2007 and unaudited fourth quarter
results. All currency in this news release is expressed in U.S. dollars,
unless otherwise noted. The Company will host a live webcast and
conference call, to discuss its quarterly results on Thursday, February
28, at 11:00 a.m. ET. To access the webcast and conference call, go to
the home page of the Company’s website, www.gsr.com.
Tom Mair, Interim President and CEO, said, “We
achieved record gold production in the full year and the fourth quarter
despite a number of issues, including some beyond our control. We expect
ongoing optimization of the Bogoso sulfide processing plant to
contribute to improved bottom line results going forward. Many of the
challenges that we faced in 2007, including the country-wide power
restrictions in Ghana, appear to be behind us and we are looking forward
to a consistently improving 2008.”
Mr. Mair also commented that, “As disclosed
in a separate press release, year-on-year Mineral Reserves increased 19%
in 2007, primarily as the result of a positive feasibility study on the
HBB properties; Mineral Reserves at Bogoso/Prestea increased
year-on-year more than replacing depletion, and a partial replacement of
rising depletion was also achieved at our Wassa mine.”
2007 RESULTS AND HIGHLIGHTS
Net loss of $36.4 million, or $0.159 per share (including a valuation
allowance for tax assets of $22.9 million or $0.101 per share);
Operating cash flow of $6.7 million, or $0.029 per share;
Increase in revenues of 43% to $175.6 million;
Record gold sales of 246,278 ounces from Bogoso/Prestea and Wassa (not
including 7,803 ounces produced by the Bogoso sulfide processing plant
prior to its July 1, 2007 in-service date);
Average realized gold price of $713 per ounce, up 17% from the 2006
average realized gold price of $607 per ounce; and
Average cash operating cost of $602 per ounce.
FOURTH QUARTER 2007 RESULTS AND HIGHLIGHTS
Record quarterly gold sales of 88,015 ounces compared to 53,406 ounces
of gold sales for the fourth quarter of 2006, a 64.8% increase;
Increased gold sales at Wassa of 39,948 ounces compared to gold sales
of 28,532 ounces for the fourth quarter of 2006. This represents a 40%
increase in ounces of gold sold;
Net loss of $17.8 million or $0.077 per share (including a valuation
allowance for tax assets of $22.9 million or $0.098 per share;
Revenues of $69.9 million;
Development of the Hwini-Butre and Benso properties commenced with the
start of construction of the haul road from Benso to Wassa in October
2007; and
Completed offering of $125 million senior unsecured convertible
debentures.
OVERVIEW
We had a net loss of $36.4 million or $0.159 per share, on revenues of
$175.6 million for 2007 compared to net income of $64.7 million or
$0.312 per share on revenues of $122.6 million for 2006. The net loss
for 2007 was impacted by gains on sale of assets as well as by a tax
valuation allowance and a loss on debt retirement as shown in the
following table.
