TORONTO, July 29, 2015 /PRNewswire/ - Golden Star today reports its financial results for the quarter ended June 30, 2015 ("the second quarter" or "the period"). All references to currency are to US dollars.

Gold produced and sold during the second quarter was 55,132 ounces compared to 63,245 ounces in the prior quarter
Revenue for the second quarter was $65.8 million compared to $76.5 million for the prior quarter
Cost of sales before depreciation and amortization was $78.7 million and cash operating cost per ounce1 totaled $1,113 for the second quarter
Cash used by operations for the second quarter was $2.7 million with a consolidated cash balance of $21.4 million at period end
Solid performance from Wassa open pit operations as improved grade reduced cash operating costs per ounce
Environmental permit received to develop Prestea's open pit operations and mining subsequently commenced
Bogoso operations continued to be impacted by fluctuating power supply and refractory mining will now be curtailed earlier to focus on higher margin Prestea development
Operating plan updated in response to lower gold price and guidance revised accordingly
Financing arrangement for $150 million with Royal Gold, Inc. and its wholly-owned subsidiary, successfully closed


1 See "Non-GAAP Financial Measures".

Sam Coetzer, President and CEO of Golden Star, commented:

"Recent market dynamics combined with ongoing in-country operating challenges have reaffirmed our commitment to our stated strategy. That strategy remains to favour margin over ounces and to pursue growth from low cost non-refractory ore sources. In this context we have made two critical changes to our near term operating plan. We have commenced open pit mining at Prestea's surface deposits to deliver higher margin ounces to the non-refractory plant at Bogoso. These will replace lower margin production from tailings retreatment. The suspension of the Bogoso refractory business in a responsible manner will commence with immediate effect. The result of these changes is a reduction in total ounces produced but an increase in potential returns to shareholders as direct operating costs are expected to reduce dramatically.

Our development projects have progressed well over the quarter. With the closure of the financing transaction with Royal Gold we can accelerate these projects to deliver ounces in 2016. At Wassa construction of the twin declines has started and the project is on schedule. Ongoing operations at Wassa have not been impacted by the project and production at this mine was improved in the quarter. At Prestea underground we will shortly release the findings of the Feasibility Study which I expect to show improvements in capital efficiency. We remain on target to transform this business to a lower cost gold producer by the end of 2016."

Golden Star management will conduct a conference call and webcast tomorrow, July 30, 2015, to discuss these results at 10:00am EDT.

- See more at: http://www.gsr.com/investors/news/news-details/2015/Golden-Star-Second-Quarter-2015-Financial-Results/default.aspx#sthash.jIwsnXPp.dpuf