Golden Star Resources : Q2 2021 Financial StatementsPDF (462 KB)

Condensed Interim Consolidated Financial Statements

For the Three and Six Months Ended June 30, 2021 and June 30, 2020

TABLE OF CONTENTS

FINANCIAL STATEMENTS

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

NOTES TO THE FINANCIAL STATEMENTS

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1. NATURE OF OPERATIONS	7
2. BASIS OF PRESENTATION	7
3. CHANGES IN ACCOUNTING POLICIES	8
4. SEGMENTED INFORMATION	9
5. DISCONTINUED OPERATIONS	11
6. REVENUE	12
7. COST OF SALES EXCLUDING DEPRECIATION AND AMORTIZATION	12
8. FINANCE EXPENSE, NET	13
9. INCOME TAXES	13
10. (LOSS)/INCOME PER COMMON SHARE	14
11. ACCOUNTS AND OTHER RECEIVABLES	15
12. INVENTORIES	16
13. MINING INTERESTS	16
14. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	17
15. REHABILITATION PROVISIONS	17
16. DEFERRED REVENUE	17
17. DEBT	18
18. LEASE LIABILITIES	20
19. SHARE CAPITAL	20
20. SHARE-BASED COMPENSATION	21
21. RELATED PARTY TRANSACTIONS	23
22. DERIVATIVE FINANCIAL INSTRUMENTS	23
23. SUPPLEMENTAL CASH FLOW INFORMATION	25
24. COMMITMENTS AND CONTINGENCIES	26
25. SUBSEQUENT EVENTS	26
26. PRIOR PERIOD COMPARATIVES	26

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GOLDEN STAR RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE (LOSS) / INCOME

(Stated in thousands of U.S. dollars except per share data)

(Unaudited)

			Three Months Ended		Six Months Ended
			June 30,			June 30,
	Notes	2021			2020 1	2021	2020 1
Revenue	6		64,393			75,368	129,381	129,455
Cost of sales excluding depreciation and amortization	7		31,871			33,564	63,256	59,581
Depreciation and amortization			7,052			6,272		14,379		11,382
Mine operating profit			25,470			35,532	51,746	58,492
Other expenses
Exploration expense			1,396			446	2,204	1,190
Corporate general and administrative expense			4,192			4,312	9,154	9,487
Share-based compensation expense	20		893			665	1,479	1,569
Other expense, net			17,747			(642)	20,641	6
Loss/(gain) on fair value of derivative financial instruments, net	22		694			1,776		(6,547)		(2,286)
Income before finance and tax			548			28,975	24,815	48,526
Finance expense, net	8		1,011			3,346		4,749		6,924
(Loss)/Income from continuing operations before tax			(463)			25,629	20,066	41,602
Income tax expense	9		9,955			13,971		19,671		22,206

Net (loss)/income and comprehensive (loss)/income from continuing operations

Net loss and comprehensive loss from discontinued operations

Net (loss)/income and comprehensive (loss)/income

(10,418)	11,658	395	19,396
-		(3,326)		-		(11,052)
(10,418)	8,332	395	8,344

Net income/(loss) and comprehensive income/(loss) attributable to non-controlling interest

Net (loss)/income and comprehensive (loss)/income attributable to Golden Star shareholders

1,697	559	3,505	(258)
(12,115)	7,773	(3,110)	8,602
(10,418)	8,332	395	8,344

Net (loss)/income from continuing operations per share	10
attributable to Golden Star shareholders
Basic	$	(0.11)	$	0.08	$	(0.03)	$	0.14
Diluted	$	(0.11)	$	0.08	$	(0.03)	$	0.12
Net loss from discontinued operations per share attributable to	10
Golden Star shareholders
Basic	$	-	$	(0.01)	$	-	$	(0.06)
Diluted	$	-	$	(0.01)	$	-	$	(0.06)
Net (loss)/income per share attributable to Golden Star	10
shareholders
Basic	$	(0.11)	$	0.07	$	(0.03)	$	0.08
Diluted	$	(0.11)	$	0.07	$	(0.03)	$	0.07

1Refer to Note 26 for information on revised prior period comparatives.

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

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GOLDEN STAR RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(Stated in thousands of U.S. dollars)

(Unaudited)

			As of		As of
	Notes		June 30,		December 31,
	2021	2020 1
ASSETS
CURRENT ASSETS
Cash and cash equivalents		72,727	60,809
Accounts and other receivables	11	5,084	23,759
Inventories	12	34,926	30,600
Prepaids and other		6,237	6,548
Derivative assets	22	423		-
Total Current Assets			119,397		121,716
RESTRICTED CASH		2,315	2,131
ACCOUNTS AND OTHER RECEIVABLES	11	12,770	12,602
MINING INTERESTS	13	247,904	207,412
DERIVATIVE ASSETS	22	1,099		-
Total Assets			383,485		343,861
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities	14	40,040	41,297
Current portion of rehabilitation provisions	15	3,035	2,018
Current portion of deferred revenue	16	8,190	7,646
Current portion of long-term debt	17	51,224	49,735
Current portion of lease liabilities	18	2,653	296
Current portion of derivative liability	22		-	3,312
Current income tax liabilities		10,298	12,774
Total Current Liabilities			115,440		117,078
REHABILITATION PROVISIONS	15	13,793	15,550
DEFERRED REVENUE	16	94,254	96,916
LONG-TERM DEBT	17	52,522	54,547
LEASE LIABILITIES	18	31,232	1,185
DERIVATIVE LIABILITY	22		-	1,713
DEFERRED TAX LIABILITY		34,705	31,098
Total Liabilities			341,946		318,087
SHAREHOLDERS' EQUITY
SHARE CAPITAL
First preferred shares, without par value, unlimited shares authorized. No shares issued			-		-
and outstanding
Common shares, without par value, unlimited shares authorized	19	932,319	918,013
CONTRIBUTED SURPLUS		39,833	38,769
DEFICIT		(954,029)	(950,919)
Shareholders' equity attributable to Golden Star shareholders			18,123		5,863
NON-CONTROLLING INTEREST		23,416	19,911
Total Equity			41,539		25,774
Total Liabilities and Shareholders' Equity			383,485		343,861

1Refer to Note 26 for information on revised prior period comparatives and Note 24 for Commitments and Contingencies. The accompanying notes are an integral part of the condensed interim consolidated financial statements.

Signed on behalf of the Board,
"Timothy C. Baker"	"Mona Quartey"
Timothy C. Baker, Director	Mona Quartey, Director

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GOLDEN STAR RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Stated in thousands of U.S. dollars)

(Unaudited)

			Three Months Ended	Six Months Ended
			June 30,	June 30,
	Notes		2021		2020 1		2021			2020 1
OPERATING ACTIVITIES:
Net (loss)/income from continuing operations		(10,418)	11,658		395			19,396
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization		7,211	6,848		14,666			11,613
Share-based compensation expense	20	893	665		1,479			1,569
Income tax expense	9	9,955	13,971		19,671			22,206
Loss/(gain) on fair value of derivative financial instruments,	22	694	1,776		(6,547)			(2,286)
net
Deferred revenue recognized	6	(1,557)	(2,422)		(3,421)			(4,302)
Reclamation expenditures	15	(336)	(195)		(612)			(522)
Other non-cash items	23	16,722	2,643		20,858			4,407
Changes in working capital and taxes paid	23		(10,320)		(3,979)		(23,346)			(13,547)
Net cash provided by operating activities of continuing		12,844	30,965		23,143			38,534
operations
Net cash used in operating activities of discontinued			-	(10,764)		-	(14,784)
operations
Net cash provided by operating activities		12,844	20,201		23,143			23,750
INVESTING ACTIVITIES:
Additions to mining interests	13	(12,230)	(11,918)		(22,043)			(21,828)
Change in accounts payable and deposits on mine		1,818	2,320		(938)			(198)
equipment and material
Decrease in restricted cash			-		(4)		(184)			(5)
Net cash used in investing activities of continuing		(10,412)	(9,602)		(23,165)			(22,031)
operations
Net cash used in investing activities of discontinued			-	(1,889)		-	(4,569)
operations
Net cash used in investing activities		(10,412)	(11,491)		(23,165)			(26,600)
FINANCING ACTIVITIES:
Principal payments on Macquarie Credit Facility	17		-	(5,000)		-	(5,000)
Principal payments on lease liabilities	18	(937)	(522)		(1,867)			(926)
Shares issued, net of issuance costs	19	5,174		-	13,807			-
Exercise of stock options and DSUs and settlement of			-	(36)		-	473
PRSUs
Net cash provided/(used) by financing activities of		4,237	(5,558)		11,940			(5,453)
continuing operations
Net cash used in financing activities of discontinued			-	(7)		-	(13)
operations
Net cash provided/(used) by financing activities			4,237		(5,565)		11,940			(5,466)
Increase/(decrease) in cash and cash equivalents		6,669	3,145		11,918			(8,316)
Cash and cash equivalents, beginning of period			66,058		41,906		60,809			53,367
Cash and cash equivalents, end of period		72,727	45,051		72,727			45,051

1Refer to Note 26 for information on revised prior period comparatives and Note 23 for Supplemental cash flow information. The accompanying notes are an integral part of the condensed interim consolidated financial statements.

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