1. F Y 2 0 1 4 F I N A N C I A L R E S U L T S
0 2 . 1 5
1
2. DISCLAIMER AND OTHER MATTERS
SAFE HARBOR: Some statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual
results to differ materially. Such statements include comments regarding: transformation of Golden Star to a non-refractory miner with a declining cash cost profile; grade
forecasts, strip ratios and production expectations for 2015, including our cash operating costs and expected operational improvements; life of mine cash operating costs for
combined operations from the start of 2016; the timing for completing refractory mining at Bogoso and placing refractory operations on care and maintenance; estimated capital
expenditures; the timing for continuing processing at Bogoso; expectations regarding the impact of weather in 2015; expectations regarding production from tailings retreatment;
use of the existing Wassa processing plant and Bogoso oxide and sulfide processing plants; matters relating to the PEA for Wassa, including estimated post-tax internal rate of
return and net present value of Wassa underground (including assumed discount rates), the timing for first production from Wassa underground, pre-production capital
expenditures, and the life of mine cash operating costs and sustaining costs at Wassa underground; matters relating to the PEA for Prestea, including estimated post-tax internal
rate of return and net present value of Prestea (including assumed discount rates), the timing for first production from Prestea, pre-production capital expenditures, and the life of
mine cash operating costs and sustaining costs at Prestea; cost contraction and margin growth; timing for receiving underground mining permits; timing of feasibility studies at
Wassa and Prestea; timing for commencing construction at Wassa Underground and commencing development at Prestea; timing for updated mineral reserves and resources;; and
our mineral reserve and mineral resource estimates. Factors that could cause actual results to differ materially include timing of and unexpected events at the Bogoso oxide and
sulfide processing plants and/or at the Wassa processing plant; variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory
and transition ores; delay or failure to receive board or government approvals and permits; the availability and cost of electrical power; timing and availability of external financing
on acceptable terms; technical, permitting, mining or processing issues, including difficulties in establishing the infrastructure for Wassa Underground; changes in U.S. and
Canadian securities markets; and fluctuations in gold price and input costs and general economic conditions. There can be no assurance that future developments affecting the
Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Annual Information Form for the year ended December 31,
2013. Additional factors, if applicable, will be included in our Annual Information Form for the year ended December 31, 2014, which will be filed on SEDAR at www.sedar.com.
The forecasts contained in this presentation constitute management's current estimates, as of the date of this presentation, with respect to the matters covered thereby. We expect
that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update
these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that
any forecasts in this presentation represent management's estimate as of any date other than the date of this presentation.
NON-GAAP FINANCIAL MEASURES: In this presentation, we use the terms "cash operating cost per ounce" or “CoC per ounce” and "all-in sustaining cost per ounce“ or “AISC
per ounce”. These terms should be considered as Non-GAAP Financial Measures as defined in applicable Canadian and United States securities laws and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with GAAP. "Cash operating cost per ounce" for a period is equal to the cost of sales excluding
depreciation and amortization for the period less royalties and production taxes, minus the cash component of metals inventory net realizable value adjustments and severance
charges divided by the number of ounces of gold sold during the period. "All-in sustaining costs per ounce" commences with cash operating costs and then adds sustaining capital
expenditures, corporate general and administrative costs, mine site exploratory drilling and greenfield evaluation costs and environmental rehabilitation costs. This measure seeks
to represent the total costs of producing gold from operations. These measures are not representative of all cash expenditures as they do not include income tax payments or
interest costs. These measures are not necessarily indicative of operating profit or cash flow from operations as would be determined under International Financial Reporting
Standards. Changes in numerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site
general and administrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar to the measures of other gold
mining companies, but may not be comparable to similarly titled measures in every instance. In order to indicate to stakeholders the company's earnings excluding the non-cash
(gain)/loss on the fair value of debentures, non-cash impairment charges and severance charges, the Company calculates adjusted net loss attributable to Golden Star
shareholders" and "adjusted net loss per share attributable to Golden Star shareholders" to supplement the condensed interim consolidated financial statements.
INFORMATION: The information contained in this presentation has been obtained by Golden Star from its own records and from other sources deemed reliable, however no
representation or warranty is made as to its accuracy or completeness. The technical information relating to Golden Star's material properties disclosed herein is based upon
technical reports prepared and filed pursuant to National Instrument 43-101 Standards for Disclosure of Mineral Properties ("NI 43-101") and other publicly available information
regarding the Company, including the following: (i) “NI 43-101 Technical Report on a Preliminary Economic Assessment of the Wassa Open Pit Mine and Underground Project in
Ghana” effective October 30, 2014 prepared by SRK Consulting (UK) Limited; (ii) “NI 43-101 Technical Report on Resources and Reserves, Golden Star Resources Ltd., Bogoso
Prestea Gold Mine, Ghana” effective December 31, 2013 prepared by SRK Consulting (UK) Limited, and (iii) “NI 43-101 Technical Report on Preliminary Economic Assessment of
Shrinkage Mining of the West Reef Resource, Prestea Underground Mine, Ghana”. Additional information is included in Golden Star's Annual Information Form for the year ended
December 31, 2013 which is filed on SEDAR. Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the
Company. Dr. Raffield is a "Qualified Person" as defined by Canada's National Instrument 43-101. The Qualified Person reviewing and validating the estimation of the Mineral
Resources is S. Mitchel Wasel, Golden Star Resources Vice President of Exploration.
CURRENCY: All monetary amounts refer to United States dollars unless otherwise indicated.
FY2014 Financial Results Presentation2
3. MANAGEMENT PARTICIPANTS
Sam Coetzer
President and
Chief Executive Officer
André van Niekerk
Executive Vice President and
Chief Financial Officer
Martin Raffield
Senior Vice President,
Technical Services
Angela Parr
Vice President, Investor
Relations and Corporate Affairs
4. DELIVERING ON STRATEGY
FY2014 Financial Results Presentation4
STRATEGY ACTION
Favour operating margin over total
ounces produced
150,000 ounces of historic annual
Bogoso production to be replaced with
75,000 high margin ounces from
Prestea
Leverage off existing infrastructure
IRR on development projects in excess
of 70% achieved through operational
leverage
Financing for both projects in progress
Reduce costs at existing operations
through behavioural change and
productivity enhancements
Costs and expenses declined for four
consecutive quarters in 2014
Full year cost of sales (before D&A)
reduced 19% from prior year
Disciplined focus on return on capital
Investment in development drilling
extended Wassa’s LOM and increased
resource grade
Decision taken not to continue
refractory operations
5. Q4 2014 OPERATIONAL PERFORMANCE SOLID
5 FY2014 Financial Results Presentation
MINING DEVELOPMENT OPTIMISATION
Head GRADE
improvements at both
mines
Prestea PEA shows
HIGH RETURNS
and QUICK
PAYBACK
EFFECTIVE
PLANNING limited
load shedding impact to
both mines
72,085 ounces
produced and sold,
18% improvement on
Q3’14
PERMIT
RECEIVED to
commence decline at
Wassa
HUMAN CAPITAL
DEVELOPMENT
allows for reduced expat
headcount and lower
G&A
LARGE
STOCKPILES
accumulated by year end
- derisks 2015 production
Underground mining
EQUIPMENT
ORDERED for Wassa
18% HEAD
COUNT
REDUCTION at
Bogoso has not impacted
productivity
6. Q4 2014 FINANCIALS MARK RETURN TO PROFITABILITY
FY2014 Financial Results Presentation6
REVENUE MARKEDLY HIGHER
Revenue for Q4 2014 increased 11% , with 18%
more ounces at 6% lower realised price than
Q3 2014
COSTS CONTINUETO REDUCE
Total mine operating expenses were flat quarter
over quarter at $71 M
COC per ounce1 reduced 13% from prior quarter
to $919
IMPROVED PROFITABILITY
Adjusted net income to shareholders of $8.8 M
1. See note on slide 2 regarding Non-GAAP Financial Measures
7. FY 2014 FINANCIALS REFLECT IMPROVED MARGINS
FY2014 Financial Results Presentation7
REVENUE DECLINED
Revenue declined over prior year with 21%
reduction in ounces sold at 11% lower realised
prices
COSTS SIGNIFICANTLY REDUCED AGAIN
Mine operating expenses reduced 12% to $298 M
year on year but COC per ounce1 increased
marginally with lower production
LOSSES REDUCED
Adjusted net loss reduced to $12 M from $21 M
in FY 2013
1. See note on slide 2 regarding Non-GAAP Financial Measures
8. COST OF SALES REDUCING
FY2014 Financial Results Presentation8
$84
$78
$71 $71
$50
$55
$60
$65
$70
$75
$80
$85
$90
Q1 2014 Q2 2014 Q3 2014 Q4 2014
Cost of Sales before Depreciation and Amortization ($ M)
— Improved operating practices reduced costs throughout year
—Reduced reagent usage
—Improved maintenance practices
—Lower head count
— FY14 mine operating expenses and cost of sales 12% and
19% lower than FY 2013 respectively
9. — Cash operating costs per ounce1 declined consistently through 2014
— Q4 2014 lowest cash costs since 2010
— Q4 2014 cost performance bodes well for 2015 guidance
— FY 2014 cash operating costs per ounce higher than prior year, but
AISC 6% lower
— LOM cash costs expected to reduce to below $700/oz from 20163
CASH OPERATING COSTS PER OUNCE REDUCING
1. See note on slide 2 regarding Non-GAAP Financial Measures
2. AISC is All-in Sustaining Costs. See note on slide 2 regarding Non-GAAP Financial Measures.
3. LOM is from 2016 onwards and assumes Wassa construction and Prestea development proceed as per respective PEA reports.
FY2014 Financial Results Presentation9
$1,206 $1,201
$1,052
$919
Q1 2014 Q2 2014 Q3 2014 Q4 2014
$1,349
AISC2:
$1,523
$1,049 $1,090 $860 -
980
FY 2013 FY 2014 FY 2015
$1,030
– 1,160
$1,326 $1,252
$1,222
$1,059
10. WASSA Q4’14 OPERATIONAL PERFORMANCE IMPROVED
Q4 2014 Q3 2014
Ore mined kt 653 631
Good equipment availability and improved
weather conditions
Waste mined kt 2,830 2,317
Stripping progressed to allow for construction
of underground decline in Q1 2015
Ore processed kt 651 613
Ore processed increased with effective
planning to manage load shedding
Grade
processed
g/t 1.32 1.20 Grade generally increases with depth
Recovery % 93.4 91.9 Recovery driven largely by grade
Gold sales oz 25,831 22,716
10 FY2014 Financial Results Presentation
11. WASSA FINANCIAL PERFORMANCE STEADYING
Cash operating cost per oz1
$955 $967
$1,072
$908
$971
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
Q1 14 Q2 14 Q3 14 Q4 14 FY 14
— Q4 2014 revenues improved on
prior quarter with increased gold
sales, despite lower price achieved
— Q4 2014 cost of sales (before
D&A) reduced 5% from prior
quarter
— Cash operating costs per ounce
declined in Q4’14 with improved
grade
— Capital expenditure increased in
Q4’14 with construction of new
tailings facility
— Full year capital expenditure of
$16.4 M (FY 2013: $33.6 M)
— Development capital $7.9 M
— Tailings facility $2.9 M
— Other sustaining capital $4.6 M
1. See note on slide 2 regarding Non-GAAP Financial Measures
FY2014 Financial Results Presentation11
12. — Grade forecast to improve consistently across quarters, to
average 1.4 – 1.5 g/t Au for 2015
— Production forecast to be stable in 2015 at between
105,000-120,000 ounces
—Production increases with each quarter, Q4 2015 strongest quarter
— Cash operating costs per ounce reducing to $850–990 in line with
grade improvement and lower strip
— Impact of load shedding on processing throughput is a key risk
— Capital expenditure expected to be $41 M
—Sustaining capital of $14 M including $6 M on tailings facility
—Wassa underground development capital of $27 M
WASSA GEARING UP IN 2015
FY2014 Financial Results Presentation12
13. BOGOSO Q4 2014 OPERATIONAL PERFORMANCE STRONG
13 FY2014 Financial Results Presentation
Q4 2014 Q3 2014
Ore mined refractory kt 730 775
Good access to ore maintained in the
quarter
Waste mined kt 1,694 2,143 Strip ratio continues to reduce
Refractory ore processed kt 665 559
Plant operating at capacity despite load
shedding
Refractory grade g/t 2.73 2.67 Improved grade in line with plan
Gold recovery – refractory % 72.2 72.7 Recoveries stable in Biox plant
Non-refractory ore processed kt 332 315
Tailings retreatment performing
satisfactorily
Non-refractory grade g/t 1.02 1.07 Mining in higher grade benches continues
Gold recovery - non-
refractory
% 39.4 42.4 Recovery impacted by grade
Gold sold refractory oz 41,968 33,610
Gold sold non-refractory oz 4,286 4,844
Total gold sold oz 46,254 38,454
14. BOGOSO FINANCIAL PERFORMANCE
Cash operating cost per oz1
$1,489
$1,415
$1,041
$926
$1,180
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q1 14 Q2 14 Q3 14 Q4 14 FY 14
— Higher production increased
Q4 2014 revenues over prior
quarter, despite lower gold
price
— Expenses and costs largely in
line with Q3 2014, but unit
costs reduced
— Mine operating margin
increased in Q4 2014 to $5.5 M
— Q4 2014 represents lowest
cash operating costs per ounce
in 4 years
— Capital expenditure for FY 2014
minimised and focused on
Prestea mines
1. See note on slide 2 regarding non-GAAP financial measures
FY2014 Financial Results Presentation14
15. — In excess 400,000 tonnes of ore currently on stockpile
— Production of 145,000-155,000 ounces forecast for 2015
— Refractory mining complete in Q3 2015, processing to continue
in Q4 2015
— Weather not expected to impact mining in 2015
— Grade of 2.5 g/t Au forecast for hard rock mining
— Tailings retreatment continue in 2015, expected to contribute
circa 17k ounces
— Refractory operations to be placed on care and maintenance in
Q4 2015
— $15 M of capital expenditure forecast for 2015, $13 M of which
on Prestea mines
BOGOSO MINE GENERATING RETURNS IN 2015
FY2014 Financial Results Presentation15
16. BROWNFIELD PROJECTS LEVERAGE OFF EXISTING INFRASTRUCTURE
PROJECT
WASSA
UNDERGROUND PRESTEA COMBINED
MINING
Underground mining
below existing open pit
Underground mining in
well established mine
Low risk development
at established mines
PROCESSING
Existing Wassa
processing plant
Modified Bogoso
processing plant
Operational leverage
achieved
SUPPORT
INFRASTRUCTURE
Fully in place 15km haul road
improvements
Minimal new
infrastructure required
CAPEX $41M $40M Low capex projects
FIRST GOLD H1 2016 H2 2016 Near term production
16 FY2014 Financial Results Presentation
*Assumption of a gold price of $1,200 per ounce used in these calculations. For further critical assumptions used in these assessments, please refer to the reports titled “NI 43-101 Technical
Report on a Preliminary Economic Assessment of the Wassa Open Pit Mine and Underground Project in Ghana” and “NI 43-101 Technical Report on Preliminary Economic Assessment of Shrinkage
Mining of the West Reef Resource, Prestea Underground Mine, Ghana” both of which are filed on SEDAR.
17. BOTH PROJECTS OFFER SUPERIOR RETURNS
17 FY2014 Financial Results Presentation
PROJECT
WASSA
UNDERGROUND PRESTEA COMBINED
COC PER OZ $684 $370
LOM below $700
from 2016
AISC PER OZ $778 $518
LOM below $750
from 2016
IRR 78% 72%
Superior risk
adjusted returns
NPV5% $271M $121M
Offers substantial value
to shareholders
PAY BACK PERIOD N/A 2.5 years Quick payback
*Assumption of a gold price of $1,200 per ounce used in these calculations. For further critical assumptions used in these assessments, please refer to the reports titled “NI 43-101 Technical
Report on a Preliminary Economic Assessment of the Wassa Open Pit Mine and Underground Project in Ghana” and “NI 43-101 Technical Report on Preliminary Economic Assessment of Shrinkage
Mining of the West Reef Resource, Prestea Underground Mine, Ghana” both of which are filed on SEDAR.
18. — Golden star is transforming to a non-refractory miner with a
declining cash cost profile
— Potential for new ore sources to add near and long term
production
COST CONTRACTION AND MARGIN GROWTH
18
1. See note on slide 2 regarding Non-GAAP Financial Measures of Cash Operating Costs and All-in Sustaining Costs per ounce
FY2014 Financial Results Presentation
300
400
500
600
700
800
900
1,000
0
100,000
200,000
300,000
400,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Prestea
Bogoso
Wassa
CoC
AISC
19. DEVELOPMENT PROJECTS WAY FORWARD
— First phase permits in place, underground mining permit to
follow in 2015
— Wassa funded with existing debt facility, Prestea funding
discussions underway
— Feasibility studies on both projects due in H1 2015
— Wassa construction expected to commence Q2 2015
— Pending conclusion of successful capital raising for Prestea,
first production from both projects expected in 2016
FY2014 Financial Results Presentation19
Golden Star will continue to assess and develop its existing assets
to lower our group cost profile and improve shareholder returns
20. NEAR TERM CATALYSTS FOR VALUE CREATION
Q1 2015 Q2 20152014 Q3 2015 2016
First
production
from Wassa
Underground
First
production
from Prestea
* Development of projects dependent on positive study results and adequate access to finance
PEA for
Wassa
Underground
released
Updated
Mineral
Resource
estimate for
Wassa
Wassa
Feasibility
study
complete
Prestea
Feasibility
study
complete
Revised
PEA for
Prestea
complete
Prestea
development
commences
20 FY2014 Financial Results Presentation
Q4 2015
Wassa
decline
construction
begins
Updated
Mineral
Reserves &
Resources
announced
21. Investment Case
Established gold mining company with
15 years of production history in Ghana
Successfully reduced overall operating
costs over last two years
Development projects to deliver low cost
ounces through 2026
Largest land package on the Ashanti
Gold belt
Low political risk in a stable African
mining jurisdiction
Significant exploration & development
upside development
Offers investors leveraged, un-hedged
exposure to the gold price
22. MANAGEMENT AND BOARD
Sam Coetzer
President and
CEO
Sam was appointed CEO in January 2013
after joining Golden Star in March 2011 as
COO. Sam is a mining engineer and a
member of the World Gold Council. He
has over 26 years of international mining
experience with Kinross, Xstrata, Xstrata
Coal and Placer Dome.
André van Niekerk
EVP and CFO
André joined Golden Star in 2006 and
spent five years in Ghana as the head of
finance and business operations, after
which he transferred to the corporate
office as Controller. André was appointed
to the role of CFO in 2014. Prior to joining
Golden Star, André spent six years with
KPMG serving clients in the mining and oil
and gas industries
Daniel Owiredu
EVP and COO
Daniel was appointed COO in January
2013, after joining Golden Star in
September 2006 as VP, Ghana Operations.
He has more than 20 years of experience
in the mining sector in Ghana and West
Africa. Most recently, Daniel was Deputy
Chief Operating Officer for AngloGold
Ashanti where he successfully managed
the construction and operation of the
Bibiani, Siguiri, and the Obuasi mines.
Tim Baker
Chairman
Tim was appointed Chairman in January
2013. Tim most recently served as the
COO of Kinross. He is a geologist with
over 30 years of global project
development and operational experience
in Chile, Tanzania, United States,
Venezuela, Kenya and Liberia.
Tony Jensen
Director
Tony has over 25 years of mining industry
experience and is CEO of Royal Gold Inc.
Prior to joining Royal Gold, Tony was the
Mine General Manager of the Cortez Joint
Venture and spent eighteen years with
Placer Dome. Tony has extensive
experience in operations in the United
States and Chile where he held several
senior management positions.
Chris Thompson
Director
Chris has 40 years of experience in
international mining. Chris formerly served
as Chairman and CEO of Gold Fields
Limited, Chairman of the World Gold
Council and Founder, President and CEO of
Castle Group Inc. Chris has held
directorships at over 25 public gold mining
companies
23. Anu is the Managing Director of Miniqs
Limited, a private group primarily
interested in developing resource projects.
She is also a Director of Atlatsa Resources,
Frontier Rare Earths, and of Energulf
Resources. Prior to founding Miniqs, Anu
was VP, Corporate Development and
Company Secretary at Katanga Mining.
Anu Dhir
Director
MANAGEMENT AND BOARD
Craig is a geologist with over 30 years of
experience in the mining business. He is
Founder, CEO and Director of Avanti
Mining. Formerly, Craig was EVP,
Exploration of Gold Fields Limited;
Founder, CEO and Chairman of the former
Metallica Resources (now New Gold), and
held a variety of strategic positions at Lac
Minerals.
Robert has more than 30 years of mining;
from international resource exploration,
development, and fundraising, to
production. Most recently, he was
Founder, and CEO of Medoro Resources,
now Gran Colombia Gold Corp. Prior to
this, he served as CFO of Pacific Stratus
Energy, CFO of Coalcorp Mining and CFO
of Bolivar Gold Corp. Currently, Robert
serves as a Director of Mandalay
Resources and Detour Gold
Craig Nelson
Director
Rob Doyle
Director
Bill Yeates
Director
Bill was one of the founding partners of
Hein & Associates LLP where he served on
the Executive Committee and was their
National Director of Auditing and
Accounting. Bill has over 40 years of
auditing experience working with public
companies specializing in extractive
industries. From 2005 to 2009, he served
on the Financial Accounting Standards
Advisory Council.