TORONTO, March 18, 2019 /CNW/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE:
GSR) ("Golden Star" or the "Company") announces that it
has received approval from the board to commence a normal course
issuer bid ("NCIB") to purchase up to an aggregate of 5,440,950
common shares (the "Shares"), representing approximately 5% of the
issued and outstanding Shares as of March
15, 2019.
Pursuant to the NCIB, the Company may, if considered advisable,
purchase the Shares through the facilities of the NYSE American
from time to time over the next 12 months. Such purchases may
commence on March 25, 2019 and will
conclude on the earlier of the date on which purchases under the
bid have been completed or March 24,
2020. All Shares will be purchased for cancellation. The
price which the Company will pay for any such Shares will be the
prevailing market price at the time of acquisition.
The Board of Directors believes that the purchase of its Shares
would be an appropriate use of corporate funds, in the best
interests of the Company and its shareholders, when the underlying
value of the Company is not reflected in the market price of its
shares, subject to other capital allocation priorities.
Furthermore, the purchases would be expected to benefit all persons
who continue to hold Shares by increasing the underlying value of
their equity interest in the Company if the repurchased Shares are
cancelled.
All monetary amounts refer to United States dollars
unless otherwise indicated.
Company Profile:
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
underground mines in Ghana,
West Africa. Listed on the NYSE
American, the Toronto Stock Exchange and the Ghana Stock Exchange,
Golden Star is focused on delivering
strong margins and free cash flow from its two high-grade, low cost
underground mines. Gold production guidance for 2019 is
220,000–240,000 ounces at a cash operating cost per
ounce1 of $620–$680. As the winner of the PDAC 2018
Environmental and Social Responsibility Award, Golden Star is committed to leaving a positive
and sustainable legacy in its areas of operation.
Notes 1.
See "Non-GAAP Financial Measures".
|
Non-GAAP Financial Measures
In this press release, we use the term "cash operating cost per
ounce". This term should be considered as Non-GAAP Financial
Measures as defined in applicable Canadian and United States securities laws and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with International Financial
Reporting Standards ("IFRS"). "Cash operating cost per ounce" for a
period is equal to the cost of sales excluding depreciation and
amortization for the period less royalties, the cash component of
metals inventory net realizable value adjustments and severance
charges divided by the number of ounces of gold sold (excluding
pre-commercial production ounces) during the period. This measure
is not representative of all cash expenditures as it does not
include income tax payments or interest costs. Changes in numerous
factors including, but not limited to, mining rates, milling rates,
gold grade, gold recovery, and the costs of labor, consumables and
mine site general and administrative activities can cause this
measure to increase or decrease. We believe that this measure is
the same or similar to the measures of other gold mining companies,
but may not be comparable to similarly titled measures in every
instance. Please see our "Management's Discussion and Analysis of
Financial Condition and Results of Operations for the year ended
December 31, 2018" for a
reconciliation of this Non-GAAP Financial Measures to the nearest
IFRS measure.
Statements Regarding Forward-Looking Information
Some statements contained in this news release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and "forward looking
information" within the meaning of Canadian securities
laws. Generally, forward-looking information and statements
can be identified by the use of forward-looking terminology such as
"plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes" or
variations of such words and phrases (including negative or
grammatical variations) or statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation thereof.
Forward-looking information and statements include, but are not
limited to, statements and information regarding the total number
of Shares to be purchased under the Bid; and the expectation that
purchased under the Bid will benefit all persons who continue to
hold Shares. Investors are cautioned that forward-looking
statements and information are inherently uncertain and involve
risks, assumptions and uncertainties that could cause actual facts
to differ materially. There can be no assurance that future
developments affecting the Company will be those anticipated by
management. We expect estimates will change as new information is
received. While we may elect to update these estimates at any time,
we do not undertake any estimate at any particular time or in
response to any particular event.
View original
content:http://www.prnewswire.com/news-releases/golden-star-announces-normal-course-issuer-bid-300813252.html
SOURCE Golden Star Resources Ltd.