Golden Star Resources Ltd. (GSS) stock prices skyrocketed by 29.52% some time after market trading commenced on July 29th, 2021, bringing the price per share up to USD$2.72 early on in the trading day.
Wassa Production Improvements
The second quarter of fiscal 2021 production came out to a total of 37.9 thousand ounces from Wassa, coming out to an all-in sustaining cost of USD$1182 per ounce. The first half of the fiscal year produced a total of 78 thousand ounces at an all-in sustaining cost of USD$1140 per ounce. Full-year 2021 production guidance anticipates volumes in the range of 145 to 155 thousand ounces.
GSS Stock’s Continued Growth
The Wassa underground grade averaged 3.1 grams per ton over the course of the quarter, which is in line with the reserve grade. This also represents a 4% increase from the average reported for the first quarter of 2021.Q2 2021 saw the continued investment by GSS stock in infill drilling and development at the Wassa facility, setting the stage for the company’s planned future production expansion.
Continued Trajectory of Success
Capital expenditure for the second quarter of 2021 came in at USD$12 million. The quarter also reported the continuation of paste fill test work, with the positive results providing the basis for a second test stope that is current in progress. Should it be successful, this will lead to the restart of the planned filling schedule in the fourth quarter of 2021.
Solid Liquidity Position
GSS stock reported cash reserves having increased by USD$6.6 million in the second quarter, with the company reporting USD$72.7 million as of June 30th, 2021. Net debt was reduced to USD$31 million over the course of the quarter. The senior secured credit facility with Macquarie Bank Ltd. was restructures and upsized. Since, it has a three-year term and facilitates the provision of a USD$90 million revolving credit facility, with USD$30 million of undrawn liquidity. The amortization profile was also restructured, resulting in the release of USD$30 million of liquidity in 2021 and 2022.
Future Outlook for GSS Stock
Armed with its expanded liquidity position and the success of its Q2 2021 financial reports, GSS stock is poised to capitalize on opportunities to continue expanding the scope of its business. The company is keen to extend its market reach, with investors hoping it will result in significant and sustained increases in shareholder value.
