~*~Mining and Metals Du Jour~*~

[ConferredDiligence]

GSS Beats by .02, Slight Y/Y Miss on Revenue.

Very solid results for a $1 miner...

The Company expects to strengthen its gold production and profitability in 2017, with an increase in ounces produced of 31-44% compared to 2016 production and a decrease in cash operating cost per ounce of 1-11% compared to the 2016 result. Accordingly, 2017 guidance is as follows:

•Gold production of 255,000-280,000 ounces
•Cash operating cost per ounce1 of $780-$860
•AISC per ounce1 of $970-$1,070
•Capital expenditures of $58 million

HIGHLIGHTS:

2016 full year consolidated guidance achieved on all metrics of gold production, cash operating cost per ounce, All-In Sustaining Cost ("AISC") per ounce and capital expenditures

Gold production of 194,054 ounces in 2016 and 53,403 ounces during the fourth quarter of 2016, representing Golden Star's strongest quarterly performance of the year

Cash operating cost per ounce of $872 in 2016, an 11% decrease compared to 2015, and $880 per ounce in the fourth quarter of 2016, reflecting Golden Star's on-going transition into a low cost, non-refractory producer

AlSC per ounce of $1,093 in 2016 and $1,197 in the fourth quarter of 2016

Capital expenditures of $84.4 million in 2016, with 84% representing development capital primarily for the advancement of the Wassa Underground Gold Mine ("Wassa Underground") and the Prestea Underground Gold Mine ("Prestea Underground")

Post-period end, commercial production was achieved at Wassa Underground on January 1, 2017

West Reef ore body intersected on 24 Level for the first time by Golden Star's mining operations at Prestea Underground and first Alimak mining equipment moved underground - commercial production on schedule for mid-2017

Mine operating margin of $27.5 million in 2016, compared to a mine operating loss of $27.6 million in 2015 due to the closure of the high cost, refractory operations in the third quarter of 2015

Cash generated by operations before changes in working capital of $75.5 million ($0.26 per share) in 2016, a 41% increase compared to 2015

Consolidated cash balance of $21.8 million, prior to the receipt of the $10 million scheduled advance payment under the streaming transaction on January 3, 2017 from RGLD Gold AG ("RGLD"), a subsidiary of Royal Gold, Inc.

In addition the Company received net proceeds of C$32.7 million ($24.8 million) from the bought deal public offering, which completed on February 7, 2017

http://seekingalpha.com/pr/16748977-golden-star-reports-fourth-quarter-full-year-2016-results