Golden Star Announces 2000 Year-End and Fourth Quarter Financial Results

Apr 19, 2001, 01:00 ET from Golden Star Resources Ltd.

    DENVER, April 19 /PRNewswire/ -- Golden Star Resources Ltd.
 (Toronto: GSC; OTC Bulletin Board:   GSRSF) announced a net loss of
 $14.9 million and $13.0 million respectively for the fourth quarter and for
 the full year ended December 31, 2000.
     These results compare to a net income of $0.5 million in the fourth
 quarter of 1999 and a net loss of $24.4 million for the full year of 1999.
 The major factor contributing to the fourth quarter 2000 loss was
 $15.0 million of property abandonment charge and write-offs related to
 exploration and development projects in South America and Africa which were
 placed on a care and maintenance basis during 2000.
     The most significant aspect of the full year 2000 results was also the
 impact of property abandonment charges and write-downs totaling $16.7 million.
 The write-downs in 2000 as well as the $23.9 million of write-downs in 1999
 reflect the Company's continued shift in its direction and focus from a pure
 exploration company, to a production, development and advanced stage
 exploration company.  A number of the properties written off during 2000 will
 be retained and could be actively explored in the future, but the write-down
 reflects their present potential, in view of the continuing low gold price, a
 lack of exploration funds and depressed markets for gold equities.  Going
 forward, available funds will be more focused on the development and
 acquisition of advanced stage exploration projects, rather than on the
 exploration of early stage properties.
     The year 2000 marked the Company's first full year as majority owner and
 operator of the Bogoso Mine in Ghana, West Africa.  Output during 2000 totaled
 108,600 ounces of gold with an average realized price of $280 per ounce and an
 average total cash cost of $209 per ounce.  Gold revenues for the year were
 $30.4 million.
     Gold sales in the fourth quarter of 2000 totaled 19,195 ounces at an
 average price of $269 per ounce.  Total cash cost averaged $245 per ounce.  In
 comparison, during the fourth quarter of 1999, following the Company's
 September 30, 1999 acquisition of the Bogoso property, the Bogoso Mine sold
 36,074 ounces of gold at an average price of $293 per ounce and total cash
 costs averaged $165 per ounce.
     On a consolidated basis and for the full year of 2000, depreciation and
 depletion expense increased to $7.3 million from $3.0 million during 1999,
 primarily the result of the inclusion of a full year's amortization expense
 from the Bogoso mine during 2000.  General and administrative expenditures
 totaled $2.9 million in 2000, as compared to $3.7 million for 1999.  The
 decrease in general and administrative expenditures resulted from the
 Company's ongoing cost reduction efforts.  Interest and other revenues of
 $0.8 million were up slightly from $0.7 million in 1999.
     Consolidated cash and short-term investments as of December 31, 2000 were
 $1.0 million, down from $2.9 million as of December 31, 1999.  While the
 Bogoso Mine generated $6.6 million of operating cash flow during 2000, debt
 service, capital equipment, corporate office overhead and costs to maintain
 the most promising exploration projects combined to draw 2000 year-end cash
 balances down by $1.9 million to $1.0 million.  Working capital as of
 December 31, 2000 decreased to $4.5 million from $6.0 million at December 31,
 1999, mainly the result of lower cash balances and lower receivables at the
 end of 2000.
     While mine operations are scheduled to cease by mid-2001, stock-piled ores
 should allow the mill to continue operations into early 2002.  Continued
 operations after 2001 will be dependent upon development of a sulfide mining
 project on the Bogoso property, for which a feasibility study is to be
 completed in the current quarter of 2001 and/or the acquisition of additional
 oxide ore reserves from areas near the Bogoso property.  Negotiations are
 currently underway with Barnato Exploration Limited, Prestea Gold Resources
 and the Government of Ghana to acquire the Prestea property, which adjoins the
 southern boundary of the Bogoso mining lease.
     Golden Star holds a 70% equity interest in the Bogoso gold mine in Ghana,
 a 30% equity interest in the Omai gold mine in Guyana, and a 50% interest in
 the Gross Rosebel gold project in Suriname.  In addition, the Company has
 other gold and diamond exploration interests in the Guiana Shield in South
 America and in West Africa.  Golden Star currently has approximately
 38 million shares outstanding.  The Company is listed on the Toronto Stock
 Exchange under the symbol "GSC" and trades on the OTC Bulletin Board under the
 symbol "GSRSF".
 
     The above forward-looking statements involve risks and uncertainties
 including those relating to exploration, the establishment of reserves,
 potential mine development, the recovery of any reserves, the burn rate at
 which the Company consumes its available cash, and the Company's ability to
 continue as a going concern.  Please refer to a discussion of these and other
 factors in Golden Star's 10-K, 10-Q and other Securities and Exchange
 Commission filings.
 
     For further information, please contact: GOLDEN STAR RE

SOURCES LTD., Allan J. Marter, Vice President and Chief Financial Officer, (303-830-9000) or (800) 553-8436, Denver, Colorado

SOURCE Golden Star Resources Ltd.
    DENVER, April 19 /PRNewswire/ -- Golden Star Resources Ltd.
 (Toronto: GSC; OTC Bulletin Board:   GSRSF) announced a net loss of
 $14.9 million and $13.0 million respectively for the fourth quarter and for
 the full year ended December 31, 2000.
     These results compare to a net income of $0.5 million in the fourth
 quarter of 1999 and a net loss of $24.4 million for the full year of 1999.
 The major factor contributing to the fourth quarter 2000 loss was
 $15.0 million of property abandonment charge and write-offs related to
 exploration and development projects in South America and Africa which were
 placed on a care and maintenance basis during 2000.
     The most significant aspect of the full year 2000 results was also the
 impact of property abandonment charges and write-downs totaling $16.7 million.
 The write-downs in 2000 as well as the $23.9 million of write-downs in 1999
 reflect the Company's continued shift in its direction and focus from a pure
 exploration company, to a production, development and advanced stage
 exploration company.  A number of the properties written off during 2000 will
 be retained and could be actively explored in the future, but the write-down
 reflects their present potential, in view of the continuing low gold price, a
 lack of exploration funds and depressed markets for gold equities.  Going
 forward, available funds will be more focused on the development and
 acquisition of advanced stage exploration projects, rather than on the
 exploration of early stage properties.
     The year 2000 marked the Company's first full year as majority owner and
 operator of the Bogoso Mine in Ghana, West Africa.  Output during 2000 totaled
 108,600 ounces of gold with an average realized price of $280 per ounce and an
 average total cash cost of $209 per ounce.  Gold revenues for the year were
 $30.4 million.
     Gold sales in the fourth quarter of 2000 totaled 19,195 ounces at an
 average price of $269 per ounce.  Total cash cost averaged $245 per ounce.  In
 comparison, during the fourth quarter of 1999, following the Company's
 September 30, 1999 acquisition of the Bogoso property, the Bogoso Mine sold
 36,074 ounces of gold at an average price of $293 per ounce and total cash
 costs averaged $165 per ounce.
     On a consolidated basis and for the full year of 2000, depreciation and
 depletion expense increased to $7.3 million from $3.0 million during 1999,
 primarily the result of the inclusion of a full year's amortization expense
 from the Bogoso mine during 2000.  General and administrative expenditures
 totaled $2.9 million in 2000, as compared to $3.7 million for 1999.  The
 decrease in general and administrative expenditures resulted from the
 Company's ongoing cost reduction efforts.  Interest and other revenues of
 $0.8 million were up slightly from $0.7 million in 1999.
     Consolidated cash and short-term investments as of December 31, 2000 were
 $1.0 million, down from $2.9 million as of December 31, 1999.  While the
 Bogoso Mine generated $6.6 million of operating cash flow during 2000, debt
 service, capital equipment, corporate office overhead and costs to maintain
 the most promising exploration projects combined to draw 2000 year-end cash
 balances down by $1.9 million to $1.0 million.  Working capital as of
 December 31, 2000 decreased to $4.5 million from $6.0 million at December 31,
 1999, mainly the result of lower cash balances and lower receivables at the
 end of 2000.
     While mine operations are scheduled to cease by mid-2001, stock-piled ores
 should allow the mill to continue operations into early 2002.  Continued
 operations after 2001 will be dependent upon development of a sulfide mining
 project on the Bogoso property, for which a feasibility study is to be
 completed in the current quarter of 2001 and/or the acquisition of additional
 oxide ore reserves from areas near the Bogoso property.  Negotiations are
 currently underway with Barnato Exploration Limited, Prestea Gold Resources
 and the Government of Ghana to acquire the Prestea property, which adjoins the
 southern boundary of the Bogoso mining lease.
     Golden Star holds a 70% equity interest in the Bogoso gold mine in Ghana,
 a 30% equity interest in the Omai gold mine in Guyana, and a 50% interest in
 the Gross Rosebel gold project in Suriname.  In addition, the Company has
 other gold and diamond exploration interests in the Guiana Shield in South
 America and in West Africa.  Golden Star currently has approximately
 38 million shares outstanding.  The Company is listed on the Toronto Stock
 Exchange under the symbol "GSC" and trades on the OTC Bulletin Board under the
 symbol "GSRSF".
 
     The above forward-looking statements involve risks and uncertainties
 including those relating to exploration, the establishment of reserves,
 potential mine development, the recovery of any reserves, the burn rate at
 which the Company consumes its available cash, and the Company's ability to
 continue as a going concern.  Please refer to a discussion of these and other
 factors in Golden Star's 10-K, 10-Q and other Securities and Exchange
 Commission filings.
 
     For further information, please contact: GOLDEN STAR RESOURCES LTD.,
 Allan J. Marter, Vice President and Chief Financial Officer, (303-830-9000) or
 (800) 553-8436, Denver, Colorado
 
 SOURCE  Golden Star Resources Ltd.