Q3 2021 Financial StatementsPDF (523 KB)

Condensed Interim Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2021 and

September 30, 2020

TABLE OF CONTENTS

FINANCIAL STATEMENTS

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

2

GOLDEN STAR RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

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

(Unaudited)

				Three Months Ended			Nine Months Ended
				September 30,			September 30,
	Notes	2021			2020 1			2021			2020 1
Revenue	6			64,329			74,235			193,710			203,690
Cost of sales excluding depreciation and amortization	7			36,748			31,137			100,004			90,718
Depreciation and amortization				8,113			5,675			22,492			17,057
Mine operating profit				19,468			37,423			71,214			95,915
Other expenses
Exploration expense				1,028			369			3,232			1,559
Corporate general and administrative expense				4,341			4,703			13,495			14,190
Share-based compensation expense	21			1,055			495			2,534			2,064
Other expense, net	8			14,434			2,629			35,075			2,635
(Gain)/loss on fair value of derivative financial instruments, net	23			(660)			3,735			(7,207)			1,449
(Loss)/Income before finance and tax				(730)			25,492			24,085			74,018
Finance expense, net	9			2,853			3,672			7,602			10,596
(Loss)/Income from continuing operations before tax				(3,583)			21,820			16,483			63,422
Income tax expense	10			7,435			13,782			27,106			35,988
Net (loss)/income and comprehensive (loss)/income from				(11,018)			8,038			(10,623)			27,434
continuing operations
Net loss and comprehensive loss from discontinued operations				-			(43,700)			-			(54,752)
Net loss and comprehensive loss				(11,018)			(35,662)			(10,623)			(27,318)
Net income and comprehensive income attributable to non-				1,381			31,599			4,886			31,341
controlling interest
Net loss and comprehensive loss attributable to Golden Star				(12,399)			(67,261)			(15,509)			(58,659)
shareholders
				(11,018)			(35,662)			(10,623)			(27,318)
Net (loss)/income from continuing operations per share	11
attributable to Golden Star shareholders
Basic	$	(0.11)	$	0.13	$	(0.14)	$	0.28
Diluted	$	(0.11)	$	0.13	$	(0.14)	$	0.27
Net loss from discontinued operations per share attributable to	11
Golden Star shareholders
Basic	$	-	$	(0.74)	$	-	$	(0.81)
Diluted	$	-	$	(0.74)	$	-	$	(0.81)
Net loss per share attributable to Golden Star shareholders	11
Basic	$	(0.11)	$	(0.61)	$	(0.14)	$	(0.53)
Diluted	$	(0.11)	$	(0.61)	$	(0.14)	$	(0.53)

1Refer to Note 27 for information on revised prior period comparatives.

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

3

GOLDEN STAR RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(Stated in thousands of U.S. dollars)

(Unaudited)

			As of		As of
	Notes		September 30,		December 31,
	2021	2020 1
ASSETS
CURRENT ASSETS
Cash and cash equivalents		50,472	60,809
Accounts and other receivables	12	6,604	23,759
Inventories	13	32,502	30,600
Prepaids and other		5,074	6,548
Derivative assets	23	571		-
Total Current Assets			95,223		121,716
RESTRICTED CASH		2,315	2,131
ACCOUNTS AND OTHER RECEIVABLES	12		-	12,602
MINING INTERESTS	14	252,814	207,412
DERIVATIVE ASSETS	23	1,611		-
Total Assets			351,963		343,861
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities	15	39,699	41,297
Current portion of rehabilitation provisions	16	3,600	2,018
Current portion of deferred revenue	17	8,321	7,646
Current portion of long-term debt	18		-	49,735
Current portion of lease liabilities	19	2,924	296
Current portion of derivative liability	23		-	3,312
Current income tax liabilities		11,462	12,774
Total Current Liabilities			66,006		117,078
REHABILITATION PROVISIONS	16	12,996	15,550
DEFERRED REVENUE	17	92,923	96,916
LONG-TERM DEBT	18	82,426	54,547
LEASE LIABILITIES	19	30,426	1,185
DERIVATIVE LIABILITY	23		-	1,713
DEFERRED TAX LIABILITY		35,937	31,098
Total Liabilities			320,714		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	20	932,291	918,013
CONTRIBUTED SURPLUS		40,589	38,769
DEFICIT		(966,428)	(950,919)
Shareholders' equity attributable to Golden Star shareholders			6,452		5,863
NON-CONTROLLING INTEREST		24,797	19,911
Total Equity			31,249		25,774
Total Liabilities and Shareholders' Equity			351,963		343,861

1Refer to Note 27 for information on revised prior period comparatives and Note 25 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

4

GOLDEN STAR RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Stated in thousands of U.S. dollars)

(Unaudited)

			Three Months Ended	Nine Months Ended
			September 30,		September 30,
	Notes	2021	2020 1		2021	2020 1
OPERATING ACTIVITIES:
Net (loss)/income from continuing operations		(11,018)	8,038		(10,623)	27,434
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization		8,369	5,838		23,035	17,453
Share-based compensation expense	21	1,055	495		2,534	2,064
Income tax expense	10	7,435	13,782		27,106	35,988
(Gain)/loss on fair value of derivative financial instruments,	23	(660)	3,735		(7,207)	1,449
net
Deferred revenue recognized	6	(1,851)	(1,989)		(5,272)	(6,290)
Reclamation expenditures	16	(257)	(399)		(869)	(920)
Other non-cash items	24	15,064	1,000		35,922	5,407
Changes in working capital and taxes paid	24		(862)		(4,423)		(24,208)		(17,973)
Net cash provided by operating activities of continuing		17,275	26,077		40,418	64,612
operations
Net cash used in operating activities of discontinued			-	(7,184)		-	(21,969)
operations
Net cash provided by operating activities			17,275		18,893		40,418		42,643
INVESTING ACTIVITIES:
Additions to mining interests	14	(13,298)	(8,644)		(35,341)	(30,472)
Change in accounts payable and deposits on mine		(3,003)	(3,064)		(3,940)	(3,262)
equipment and material
Decrease in restricted cash			-		-		(184)		(5)
Net cash used in investing activities of continuing		(16,301)	(11,708)		(39,465)	(33,739)
operations
Net cash used in investing activities of discontinued			-	(2,906)		-	(7,475)
operations
Net cash used in investing activities		(16,301)	(14,614)		(39,465)	(41,214)
FINANCING ACTIVITIES:
Proceeds from Macquarie Revolving Credit Facility	18	29,235		-	29,235		-
Principal repayments on Macquarie Credit Facility	18		-	(5,000)		-	(10,000)
Principal repayment of 7% Convertible Debentures	18	(51,498)		-	(51,498)		-
Principal payments on lease liabilities	19	(938)	(130)		(2,805)	(1,056)
Shares issued, net of issuance costs	20	(28)		-	13,779		-
Exercise of stock options			-		4,093		-		4,566
Net cash used by financing activities of continuing		(23,229)	(1,037)		(11,290)	(6,490)
operations
Net cash used in financing activities of discontinued			-	(7)		-	(20)
operations
Net cash used by financing activities			(23,229)		(1,044)		(11,290)		(6,510)
(Decrease)/increase in cash and cash equivalents		(22,255)	3,235		(10,337)	(5,081)
Cash and cash equivalents, beginning of period			72,727		45,051		60,809		53,367
Cash and cash equivalents, end of period		50,472	48,286		50,472	48,286

1Refer to Note 27 for information on revised prior period comparatives and Note 24 for Supplemental cash flow information. The accompanying notes are an integral part of the condensed interim consolidated financial statements.

5