GOLDEN STAR RESOURCES LTD., 10-Q filed on 5/9/2013
Quarterly Report
Document And Entity Information
3 Months Ended
Mar. 31, 2013
May 8, 2013
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
GOLDEN STAR RESOURCES LTD 
 
Entity Central Index Key
0000903571 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
259,105,970 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Share data in Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
REVENUE
 
 
Gold revenues
$ 132,910 
$ 131,020 
Mine operating expenses
100,065 
94,284 
Operating costs from/(to) metal inventory
1,179 
(3,450)
Royalties
6,653 
6,565 
Mining related depreciation and amortization
20,141 
19,043 
Accretion of asset retirement obligations
634 
703 
Total cost of sales
128,672 
117,145 
Mine operating margin
4,238 
13,875 
Exploration expense
645 
1,264 
General and administrative expense
7,645 
6,767 
Property holding costs
3,086 
2,074 
Foreign exchange loss
528 
861 
Derivative mark-to-market loss
162 
Loss/(gain) on fair value of convertible debentures
(7,646)
892 
Gain on sale of assets
72 
22,370 
Interest expense
1,256 
2,773 
Interest and other income
(101)
(138)
(Loss)/income before income tax
(1,103)
21,590 
Income tax expense
(7,133)
(12,531)
Net loss
(8,236)
9,059 
Net income/(loss) attributable to noncontrolling interest
1,677 
54 
Net loss attributable to Golden Star shareholders
$ (6,559)
$ 9,113 
Net loss per share attributable to Golden Star shareholders
 
 
Basic and diluted (dollars per share)
$ (0.03)
$ 0.04 
Weighted average shares outstanding (millions) (shares)
259.1 
258.7 
Weighted average shares outstanding-diluted (shares)
259.1 
258.9 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/LOSS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
OTHER COMPREHENSIVE LOSS [Abstract]
 
 
Net (loss)/income
$ (8,236)
$ 9,059 
Unrealized loss on investments net of deferred taxes
(5,618)
(4,165)
Comprehensive (loss)/income
(13,854)
4,894 
Comprehensive loss attributable to noncontrolling interest
(1,677)
(54)
Comprehensive (loss)/income attributable to Golden Star shareholders
$ (12,177)
$ 4,948 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
Deferred tax assets
$ 235 
$ 235 
CURRENT ASSETS [Abstract]
 
 
Cash and cash equivalents
61,020 
78,884 
Accounts receivable
11,980 
11,896 
Inventories
92,850 
90,212 
Deposits
7,912 
8,600 
Available for sale investments
9,416 
15,034 
Prepaids and other
4,173 
2,666 
Total Current Assets
187,586 
207,527 
RESTRICTED CASH
2,025 
2,028 
PROPERTY, PLANT AND EQUIPMENT
257,097 
260,986 
INTANGIBLE ASSETS
2,632 
3,159 
MINING PROPERTIES
255,338 
252,176 
Total Assets
704,678 
725,876 
CURRENT LIABILITIES [Abstract]
 
 
Accounts payable and accrued liabilities
103,761 
101,760 
Asset retirement obligations
9,096 
9,943 
Current tax liability
14,414 
12,393 
Current debt
6,441 
6,968 
Total Current Liabilities
133,712 
131,064 
LONG TERM DEBT
101,509 
110,507 
ASSET RETIREMENT OBLIGATIONS
24,768 
24,170 
DEFERRED TAX LIABILITY
25,476 
28,650 
Total Liabilities
285,465 
294,391 
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
 
 
First preferred shares, without par value, unlimited shares authorized. No shares issued and outstanding
Common shares, without par value, unlimited shares authorized. Shares issued and outstanding: 259,105,970 at March 31, 2013; 259,015,970 at December 31, 2012
694,906 
694,652 
CONTRIBUTED SURPLUS
26,482 
25,154 
ACCUMULATED OTHER COMPREHENSIVE INCOME
(6,334)
(716)
DEFICIT
(292,161)
(285,602)
Total Golden Star Equity
422,893 
433,488 
NONCONTROLLING INTEREST
(3,680)
(2,003)
Total Equity
419,213 
431,485 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 704,678 
$ 725,876 
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
First preferred shares, no par value
   
   
First preferred shares, shares issued
First preferred shares, shares outstanding
Common shares, no par value
   
   
Common shares, shares issued
259,105,970 
259,015,970 
Common shares, shares outstanding
259,105,970 
259,015,970 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
OPERATING ACTIVITIES:
 
 
Net (loss)/income
$ (8,236)
$ 9,059 
Reconciliation of net loss to net cash provided by operating activities:
 
 
Depreciation, depletion and amortization
20,157 
19,050 
Amortization of loan acquisition cost
895 
Gain on sale of assets
(72)
(22,370)
Non-cash employee compensation
1,694 
2,579 
Deferred income tax expense
(1,153)
12,531 
Fair value of derivatives loss
162 
Fair value (gain)/loss on convertible debt
(7,646)
892 
Accretion of asset retirement obligations
634 
703 
Reclamation expenditures
(883)
(2,575)
Changes in working capital
(2,315)
(3,042)
Net cash provided by operating activities
2,180 
17,884 
INVESTING ACTIVITIES:
 
 
Expenditures on mining properties
(14,106)
(12,537)
Expenditures on property, plant and equipment
(3,553)
(12,128)
Change in accounts payable and deposits on mine equipment and material
(730)
(3,696)
Cash used for equity investments
(938)
Proceeds from sale of investments
72 
6,605 
Net cash used in investing activities
(18,317)
(22,694)
FINANCING ACTIVITIES:
 
 
Principal payments on debt
(1,879)
(2,150)
Proceeds from debt agreements and equipment financing
7,036 
Other
152 
91 
Net cash used in financing activities
(1,727)
4,977 
Decrease/(increase) in cash and cash equivalents
(17,864)
167 
Cash and cash equivalents, beginning of period
78,884 
78,884 
Cash and cash equivalents, end of period
$ 61,020 
$ 103,811 
Nature Of Operations
Nature Of Operations
NATURE OF OPERATIONS
Through our 90% owned subsidiary Golden Star (Bogoso/Prestea) Ltd (“GSBPL”) we own and operate the Bogoso/Prestea gold mining and processing operation (“Bogoso/Prestea”) located near the town of Bogoso, Ghana. Through our 90% owned subsidiary Golden Star (Wassa) Ltd (“GSWL”) we also own and operate the Wassa gold mine (“Wassa”), located approximately 35 kilometers east of Bogoso/Prestea. Wassa mines ore from pits near the Wassa plant and also processes ore mined at our Hwini-Butre (“HBB”) property located south of Wassa. We hold interests in several gold exploration projects in Ghana and other parts of West Africa, and in South America we hold and manage exploration properties in Brazil.
Basis Of Presentation
Basis of Presentation
BASIS OF PRESENTATION
Golden Star Resources Ltd (“Golden Star” or “Company”) is a Canadian federally-incorporated, international gold mining and exploration company headquartered in Toronto, Canada.
These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the interim periods presented.
These consolidated financial statements include the accounts of the Company and its subsidiaries, whether owned directly or indirectly. All inter-company balances and transactions have been eliminated. Subsidiaries are defined as entities in which the company holds a controlling interest, is the general partner or where it is subject to the majority of expected losses or gains.
The results reported in these interim consolidated financial statements are not necessarily indicative of the results that may be reported for the entire year. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2012, as filed on Form 10-K with the United States Securities and Exchange Commission (the "SEC").
Recent Accounting Pronouncements
Recent Accounting Pronouncements
RECENTLY ADOPTED STANDARDS
There are currently no new standards scheduled for adoption during 2013 that will have a material impact on Golden Star's financial reporting.
Financial Instruments
Financial Instruments
FINANCIAL INSTRUMENTS
The following tables illustrate the classification of the Company's financial instruments within the fair value hierarchy as of March 31, 2013. The three levels of the fair value hierarchy are:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3 - Inputs that are not based on observable market data.
The following table sets forth the Company's assets measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2013:
 
Financial assets measured at fair value as at
 
March 31, 2013
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
Available for sale investments
$
9,416

 
$

 
$

 
$
9,416

 
$
9,416

 
$

 
$

 
$
9,416


Available for sale investments in Level 1 are based on the quoted market price for the equity investment. It is possible that some of these investments could be sold in large blocks at a future date via a negotiated agreement and such agreements may include a discount from the quoted price.
The following table sets forth the Company's liabilities measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2013:
 
Financial liabilities measured at fair value as at
 
March 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
5% Convertible Debentures

 

 
91,628

 
91,628

 
$

 
$

 
$
91,628

 
$
91,628



The 5% convertible senior unsecured debentures ("5% Convertible Debentures") are recorded at fair value. The debt component of the 5% Convertible Debentures is valued based on discounted cash flows and the equity component is valued using a Black-Scholes model. Inputs used to determine these values were: discount rate of 8.64%, risk free interest rate of 0.77%, volatility of 40% and a remaining life of 4.17 years. The 5% Convertible Debentures $91.6 million fair value includes $1.3 million of accrued interest at March 31, 2013. See Note 10. Debt for a further discussion of the 5% Convertible Debentures.
As at March 31, 2013, an unrealized gain of $7.6 million was recorded in the Statement of Operations relating to the change in fair value of the 5% Convertible Debentures compared to loss of $0.9 million as at March 31, 2012 related to the 4% convertible senior unsecured debentures.
The following table sets forth the Company's assets measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2012:
 
Financial assets measured at fair value as at
 
December 31, 2012
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
Available for sale investments
$
15,034

 
$

 
$

 
$
15,034

 
$
15,034

 
$

 
$

 
$
15,034

The following table sets forth the Company's liabilities measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2012:
 
Financial liabilities measured at fair value as at
 
December 31, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
5% Convertible Debentures
$

 
$

 
$
99,604

 
$
99,604

 
$

 
$

 
$
99,604

 
$
99,604

INVENTORIES
Inventories
INVENTORIES
Our inventories at March 31, 2013 and December 31, 2012 include the following components:
 
As of
 
As of
 
March 31,
 
December 31,
 
2013
 
2012
Stockpiled ore
$
30,218

 
$
33,130

In-process
11,422

 
7,571

Materials and supplies
48,610

 
43,548

Finished goods
2,600

 
5,963

       Total
$
92,850

 
$
90,212


There were approximately 45,000 recoverable ounces of gold in the ore stockpiles and in-process inventories at March 31, 2013 and December 31, 2012. Finished goods at March 31, 2013 and December 31, 2012 consisted of 1,916 and 5,070 ounces, respectively, of unsold gold. Stockpile inventories are short-term surge piles expected to be processed within the next 12 months. Net realizable value adjustments of $0.8 million and $0.1 million were recorded at Bogoso in 2013 and 2012, respectively. The net realizable value adjustments during 2013 were related to refractory ore stockpiles and the 2012 net realizable adjustment is related to non-refractory plant in process inventory. Material and supply inventories of nil and $0.5 million were written off in 2013 and 2012, respectively, due to obsolescence and counts.
Available For Sale Investments
Available for Sale Investments
AVAILABLE FOR SALE INVESTMENTS
The following table presents changes in available for sale investments in the first three months of 2013 and the full year 2012:
 
As of March 31, 2013
 
As of December 31, 2012
 
TGM
 
TGM
 
Fair Value
 
Shares
 
Fair Value
 
Shares
Balance at beginning of period
$
15,034

 
24,521,101

 
$
1,416

 
2,000,000

Acquisitions

 

 
17,117

 
23,676,301

Dispositions

 

 
(805
)
 
(1,155,200
)
OCI - unrealized loss
(5,618
)
 
 
 
(2,694
)
 


Balance at end of period
$
9,416

 
24,521,101

 
$
15,034

 
24,521,101



During the first quarter of 2012, we acquired shares of True Gold Mining Inc.("TGM") (formerly known as Riverstone Resources Inc.). The acquisition was accomplished through two transactions. The first was an exercise of two million warrants at an exercise price Cdn$0.45 for cash consideration of Cdn$0.9 million. The fair value of the shares acquired was $1.3 million. The second transaction was the sale of the Company's Burkina Faso subsidiary to TGM. The sale generated $6.6 million of cash plus 21.7 million TGM shares. We recognized the shares at their fair value of $15.8 million on February 2, 2012, when the sale was finalized. It is possible that some of these shares could be sold in large blocks at a future date via a negotiated agreement and such sales may be at a discount from the quoted price. Subsequent to December 31, 2012, the quoted market price of TGM's common stock has decreased, such that for the period ended March 31, 2013 we recognized through Comprehensive Income a loss of $5.6 million related to our holdings.
Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The following table shows the breakdown of the net book value of the property plant and equipment categories at March 31, 2013 and December 31, 2012:
 
As of March 31, 2013
 
December 31, 2012
 
Cost
 
Accumulated
Depreciation
 
Net Book Value
 
Cost
 
Accumulated
Depreciation
 
Net Book Value
Bogoso/Prestea
$
192,744

 
$
(115,168
)
 
$
77,576

 
$
189,247

 
$
(112,838
)
 
$
76,409

Bogoso refractory plant
195,559

 
(68,973
)
 
126,586

 
196,066

 
(67,230
)
 
128,836

Wassa/HBB
121,360

 
(68,817
)
 
52,543

 
120,766

 
(65,463
)
 
55,303

Corporate & other
1,334

 
(942
)
 
392

 
1,363

 
(925
)
 
438

Total
$
510,997

 
$
(253,900
)
 
$
257,097

 
$
507,442

 
$
(246,456
)
 
$
260,986



There was no interest capitalized in new additions to property, plant and equipment in the periods shown above.
Mining Properties
Mining Properties
MINING PROPERTIES
The following table provides a breakdown of the net book value of mining properties at March 31, 2013 and December 31, 2012:
 
As of March 31, 2013
 
December 31, 2012
 
Cost
 
Accumulated
Amortization
 
Net Book Value
 
Cost
 
Accumulated
Amortization
 
Net Book Value
Bogoso/Prestea
$
132,922

 
$
(64,634
)
 
$
68,288

 
$
128,713

 
$
(64,972
)
 
$
63,741

Bogoso refractory plant
70,867

 
(41,814
)
 
29,053

 
70,865

 
(40,662
)
 
30,203

Mampon
16,095

 

 
16,095

 
16,095

 

 
16,095

Wassa/HBB
362,135

 
(243,297
)
 
118,838

 
352,241

 
(234,847
)
 
117,394

Other
32,183

 
(9,119
)
 
23,064

 
32,182

 
(7,439
)
 
24,743

Total
$
614,202

 
$
(358,864
)
 
$
255,338

 
$
600,096

 
$
(347,920
)
 
$
252,176



There was no interest capitalized in new additions to mining properties in the periods shown above.
Asset Retirement Obligations
Asset Retirement Obligations
ASSET RETIREMENT OBLIGATIONS
At the end of each period, Asset Retirement Obligations (“ARO”) are equal to the present value of all estimated future costs required to remediate any environmental disturbances that exist as of the end of the period, using discount rates applicable at the time of initial recognition. Included in this liability are the costs of closure, reclamation, demolition and stabilization of the mines, processing plants, infrastructure, tailings storage facilities, waste dumps and ongoing post-closure environmental monitoring and maintenance costs. While the majority of these costs will be incurred near the end of the mines' lives, it is expected that certain on-going reclamation costs will be incurred prior to mine closure. These costs are recorded against the asset retirement obligation liability as incurred. At March 31, 2013 and December 31, 2012, the total undiscounted amount of the estimated future cash needs was estimated to be $72.5 million and $73.4 million, respectively. Discount rates used to value the ARO range between 8% and 10%. The schedule of payments required to settle the March 31, 2013 ARO liability extends through 2029.
The changes in the carrying amount of the ARO during the three months ended March 31, 2013, and March 31, 2012, are as follows:
 
For the three months ended
 
March 31,
 
2013
 
2012
Beginning balance
$
34,113

 
$
33,880

Accretion expense
634

 
703

Additions and changes in estimates

 

Cost of reclamation work performed
(883
)
 
(2,575
)
Balance at the end of the period
$
33,864

 
$
32,008

 
 
 
 
Current portion
$
9,096

 
$
8,626

Long term portion
$
24,768

 
$
23,382

Debt
Debt
DEBT
The following table displays the components of our current and long term debt instruments.
 
As of
 
As of
 
March 31,
 
December 31,
 
2013
 
2012
Current debt:
 
 
 
Equipment financing credit facility
$
6,441

 
$
6,968

Total current debt
$
6,441

 
$
6,968

Long term debt:
 
 
 
Equipment financing credit facility
$
9,881

 
$
11,232

5% Convertible Debentures
91,628

 
99,275

Total long term debt
$
101,509

 
$
110,507


Schedule of payments on outstanding debt as of March 31, 2013:

Nine Months
 
 
 
 
 
 
 
 
 
 

2013
 
2014
 
2015
 
2016
 
2017
 
Maturity
Equipment financing loans
 
 
 
 
 
 
 
 
 
 
 
     Principal
$
5,085

 
$
4,732

 
$
3,798

 
$
2,208

 
$
499

 
 2013 to 2017
     Interest
1,003

 
604

 
322

 
120

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
5% Convertible Debentures
 
 
 
 
 
 
 
 
 
 
 
     Principal

 

 

 

 
77,490

 
June 1, 2017
     Interest
3,875

 
3,875

 
3,875

 
3,875

 
1,937

 
 
Total
$
9,963

 
$
9,211

 
$
7,995

 
$
6,203

 
$
79,935

 
 

EQUIPMENT FINANCING CREDIT FACILITY
GSBPL and GSWL maintain a $35.0 million equipment financing facility with Caterpillar Financial Services Corporation, with Golden Star as the guarantor of all amounts borrowed. The facility provides credit financing for new and used mining equipment. Amounts drawn under this facility are repayable over five years for new equipment and over two years for used equipment. The interest rate for each draw-down is fixed at the date of the draw-down using the US Federal Reserve Bank 2-year or 5-year swap rate or London Interbank Offered Rate (“LIBOR”) plus 2.38%. At March 31, 2013, approximately $18.7 million was available to draw down, compared to $16.8 million at December 31, 2012. The average interest rate on the outstanding loans was approximately 6.7% at March 31, 2013, up marginally from 6.6% at December 31, 2012. Each outstanding equipment loan is secured by the title of the specific equipment purchased with the loan until the loan has been repaid in full.
CONVERTIBLE DEBENTURES
The 5% Convertible Debentures are accounted for at fair value and marked to market each reporting period and the corresponding gain/loss on fair value is recorded in the Statement of Operations.
The 5% Convertible Debentures were issued on May 31, 2012, in the amount of $77.5 million, in exchange for $74.5 million of our 4% convertible senior unsecured debentures (the "4% Convertible Debentures") in privately negotiated transactions with certain holders of the 4% Convertible Debentures exempt from the registration requirements of the U.S. Securities Act of 1933, as amended.
The 5% Convertible Debentures are governed by the terms of an indenture dated May 31, 2012, by and between the Company and The Bank of New York Mellon, as Indenture Trustee.
Interest on the 5% Convertible Debentures is payable semi-annually in arrears on May 31 and November 30 of each year, beginning November 30, 2012, and continuing until maturity on June 1, 2017. The 5% Convertible Debentures are, subject to certain limitations, convertible into common shares at a conversion rate of 606.0606 common shares per $1,000 principal amount of the 5% Convertible Debentures (equal to an initial conversion price of $1.65 per share), or approximately 25% above the closing price of the Company's common shares on the NYSE MKT on May 17, 2012, the last full trading day prior to entry into the purchase agreement. The 5% Convertible Debentures are not redeemable at our option, except in the event of certain change in control transactions where 90% or more of the outstanding 5% Convertible Debentures have accepted a mandatory offer from us to purchase them.
On maturity, we may, at our option, satisfy our repayment obligation by paying the principal amount of the 5% Convertible Debentures in cash or, subject to certain limitations, by issuing that number of our common shares obtained by dividing the principal amount of the 5% Convertible Debentures outstanding by 95% of the weighted average trading price of our common shares on the NYSE MKT for the 20 consecutive trading days ending five trading days preceding the maturity date (the "Current Market Price"). If we elect to repay the principal amount of the 5% Convertible Debentures at maturity by issuing common shares, and we are limited under the terms of the indenture from issuing a number of common shares sufficient to fully repay the 5% Convertible Debentures outstanding at maturity, we are required to pay the balance owing in cash, based on the difference between the principal amount of the 5% Convertible Debentures outstanding and the value of the common shares (based on the Current Market Price) delivered in repayment of the 5% Convertible Debentures.
The 5% Convertible Debentures are direct senior unsecured indebtedness of the Company, ranking equally and ratably with all other senior unsecured indebtedness, and senior to all subordinated indebtedness of the Company. None of our subsidiaries has guaranteed the 5% Convertible Debentures, and the 5% Convertible Debentures do not limit the amount of debt that the Company or our subsidiaries may incur.
The fair value of the 5% Convertible Debentures is based on discounted cash flows for the debt component and a Black-Scholes model for the equity component. See Note 4. Financial Instruments for assumptions used in the fair value computation. The fair value of the 5% Convertible Debentures was $91.6 million and the face value was $77.5 million at March 31, 2013.
Income Taxes
Income Taxes
INCOME TAXES
The provision for income taxes includes the following components: 
 
For the three months ended
March 31,
 
2013
 
2012
Current expense:
 
 
 
Canada
$

 
$

Foreign
10,306

 

Deferred tax expense:
 
 
 
Canada

 

Foreign
(3,173
)
 
12,531

Total expense
$
7,133

 
$
12,531


The deferred tax expense is related to the change in the temporary difference between book and tax basis at GSWL. During the first quarter of 2013, GSWL paid $8.3 million cash in income taxes to the Government of Ghana. In the first quarter of 2012, Ghana implemented a new tax law that raised the statutory rate from 25% to 35%. This increase had a $9.6 million impact on the first quarter 2012 deferred tax expense relating to the temporary difference at GSWL arising from prior periods. The tax expense related to the activity of the first three months of 2012 is $2.9 million.
Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Our commitments and contingencies include the following items:
ENVIRONMENTAL BONDING IN GHANA
The Ghana Environmental Protection Agency ("EPA") requires environmental compliance bonds that provide assurance for environmental remediation at our Bogoso/Prestea and Wassa mining operations. During 2012, the EPA raised Wassa/HBB's reclamation bonding requirement to approximately $10.6 million, due to increases in on-going mining disturbances. As a result, we increased our cash deposit by $0.9 million and our existing letter of credit by $1.7 million to meet the $2.7 million bonding increase.
We have also bonded $9.0 million to cover rehabilitation and closure obligations at Bogoso/Prestea. These bonding requirements have been complied with by providing an $8.1 million letter of credit from a commercial bank and a $0.9 million cash deposit held by a Ghanaian bank on behalf of the EPA. The cash deposits are recorded as Restricted Cash on our Consolidated Balance Sheets.
In the fourth quarter of 2011, Bogoso/Prestea submitted a draft environmental management plan to the EPA that included an updated estimate of the reclamation and closure costs. This environmental management plan included a more current estimate of the reclamation and closure costs for Bogoso/Prestea and could result in a need for additional bonding.
A Ghanaian bank provides an $8.1 million of bonding to GSBPL and a $9.6 million of bonding to GSWL. These bonds are cross guaranteed between GSBPL and GSWL, and also guaranteed by Golden Star Resources Ltd.
GOVERNMENT OF GHANA'S RIGHTS TO INCREASE ITS PARTICIPATION
Under Act 703, the Government of Ghana has the right to acquire a special share in our Ghanaian subsidiaries at any time for no consideration or such consideration as the Government of Ghana and such subsidiaries might agree, and a pre-emptive right to purchase all gold and other minerals produced by such subsidiaries. A special share carries no voting rights and does not participate in dividends, profits or assets. If the Government of Ghana acquires a special share, it may require us to redeem the special share at any time for no consideration or for consideration determined by us. To date, the Government of Ghana has not sought to exercise any of these rights at our properties.

ROYALTIES
Dunkwa Properties
As part of the acquisition of the Dunkwa properties in 2003, Golden Star agreed to pay the seller a net smelter return royalty on future gold production from the Mansiso and Asikuma properties. As per the acquisition agreement, there will be no royalty due on the first 200,000 ounces produced from Mampon which is located on the Asikuma property. The amount of the royalty is based on a sliding scale which ranges from 2% of net smelter return at gold prices at or below $300 per ounce and progressively increases to 3.5% for gold prices in excess of $400 per ounce. Since this property is currently undeveloped, Golden Star is not required to pay a royalty on this property.
Government of Ghana
The Ghana Government receives a royalty equal to 5% of mineral revenues.
Hwini-Butre
As part of the agreement for the purchase of the Hwini-Butre properties, Golden Star agreed to pay B.D. Goldfields Ltd, Hwini-Butre’s former owner, an additional $1.0 million in cash if at least one million ounces of gold are produced and recovered in the first five years of production from the area covered by the Hwini-Butre prospecting license. Gold production was initiated at Hwini-Butre in May 2009. It is not possible at this time to know if future exploration work will increase Hwini-Butre’s reserves sufficiently to yield production of one million ounces prior to May 2014, and as such, no amounts have been accrued in the financial statements.
EXPLORATION AGREEMENTS
Obuom
In October 2007, we entered into an agreement with AMI Resources Inc. (“AMI”), which gives AMI the right to earn our 54% ownership position in the Obuom property in Ghana. Should AMI eventually obtain full rights to our position on the property and develop a gold mining operation at Obuom, Golden Star would receive from AMI a 2% net smelter return royalty on 54% of the property’s gold production.
LEGAL PROCEEDINGS
None.
Share Capital
Share Capital
SHARE CAPITAL
Changes in share capital during the three months ended March 31, 2013, are as follows: 
 
Shares
 
Amount
Balance at December 31, 2012
259,015,970

 
$
694,652

Common shares issued:
 
 
 
Option exercises
90,000

 
254

Balance at March 31, 2013
259,105,970

 
$
694,906



We held no treasury shares as of December 31, 2012 or at March 31, 2013.
Gain on Sale of Assets
Gain on Sale of Assets
 
For the three months ended March 31,
 
2013
 
2012
Gain on sale of Burkina Properties
$

 
$
22,385

Gain/(loss) on sale of other assets
72

 
(15
)
Total gain on sale of assets
$
72

 
$
22,370

Stock Based Compensation
Stock Based Compensation
STOCK BASED COMPENSATION
Non-cash employee compensation expense recognized in general and administrative expense in the statements of operations with respect to our non-cash employee compensation plans are as follows:
 
For the three months ended March 31,
 
2013
 
2012
Total stock compensation expense
$
1,694

 
$
2,579


STOCK OPTIONS
We have one stock option plan, the Third Amended and Restated 1997 Stock Option Plan (the “Plan”) approved by shareholders in May 2010, under which options are granted at the discretion of the Board of Directors. Options granted are non-assignable and are exercisable for a period of ten years or such other period as is stipulated in a stock option agreement between Golden Star and the optionee. Under the Plan, we may grant options to employees, consultants and directors of the Company or its subsidiaries for up to 25,000,000 shares, of which 2,856,358 were available for grant as of March 31, 2013. The exercise price of each option is not less than the closing price of Golden Star shares on the Toronto Stock Exchange on the day prior to the date of grant. Options typically vest over periods ranging from immediately to four years from the date of grant. Vesting periods are determined at the discretion of the Board of Directors.
We granted 2,693,805 and 4,537,000 options during the first three months of 2013 and 2012, respectively. Golden Star does not receive a tax deduction for the issuance of options. As a result, the Company does not recognize any income tax benefit related to the stock compensation expense.
The fair value of our option grants are estimated at the grant dates using the Black-Scholes option-pricing model. Fair values of options granted in the first three months of 2013 and 2012 were based on the assumptions noted in the following table:
 
For the three months ended March 31,
 
2013
 
2012
Expected volatility
56.11 to 68.19%
 
67.07 to 87.50%
Risk-free interest rate
1.17 to 1.62%
 
0.36 to 0.84%
Expected lives
3 to 7 years
 
4 to 7 years
Dividend yield
0%
 
0%

Expected volatilities are based on the mean reversion tendency of the volatility of Golden Star's shares. Golden Star uses historical data to estimate share option exercise and employee departure behavior and this data is used in determining input data for the Black-Scholes model. Groups of employees that have dissimilar historical behavior are considered separately for valuation purposes. The expected term of the options granted represents the period of time that the options granted are expected to be outstanding; the range given above results from certain groups of employees exhibiting different post-vesting behaviors. The risk-free rate for periods within the contractual term of the option is based on the Canadian Chartered Bank administered interest rates in effect at the time of the grant.
A summary of option activity under the Plan during the three months ended March 31, 2013:
 
Options
(‘000)
 
Weighted–
Average
Exercise
price
(Cdn$)
 
Weighted–
Average
Remaining
Contractual
Term (Years)
 
Aggregate
intrinsic  value
Cdn($000)
Outstanding as of December 31, 2012
12,337

 
2.74

 
6.2

 
541

Granted
2,694

 
1.71

 
6.2

 

Exercised
(90
)
 
1.70

 
5.9

 
18

Forfeited, canceled and expired
(751
)
 
2.85

 
5.2

 

Outstanding as of March 31, 2013
14,190

 
2.55

 
6.0

 
223

 
 
 
 
 
 
 
 
Exercisable as of March 31, 2013
9,996

 
2.81

 
5.9

 
117

Stock Bonus Plan
In December 1992, we established an Employees' Stock Bonus Plan (the “Bonus Plan”) for any full-time or part-time employee (whether or not a director) of the Company or any of our subsidiaries who has rendered meritorious services which contributed to the success of the Company or any of its subsidiaries. The Bonus Plan provides that a specifically designated committee of the Board of Directors may grant bonus common shares on terms that it might determine, within the limitations of the Bonus Plan and subject to the rules of applicable regulatory authorities. The Company did not issue shares under the Stock Bonus Plan during first quarter of 2013. The Bonus Plan, as amended, provides for the issuance of 900,000 common shares of bonus stock, of which 710,854 common shares have been issued as of March 31, 2013.
Deferred Share Units
Our Deferred Share Unit Plan (the "DSU Plan") provides for the issue of Deferred Share Units (“DSUs”), each representing the potential right to receive one Golden Star common share upon redemption. DSUs may be redeemed only upon termination of the holder's services to the Company, and may be subject to vesting provisions. The DSU Plan allows directors, at their option, to receive all or any portion of their retainer by accepting DSUs in lieu of cash.
The compensation committee may also award DSUs to executive officers and/or directors in lieu of cash compensation (other than director's retainers) of their long term performance compensation, the amount of such awards being in proportion to the officer's or director's achievement of pre-determined performance goals. The Company may, at its option, provide cash in lieu of common shares upon a holder's redemption, the cash value being established by the share price on the DSU original award date, less all applicable tax withholding.
DSUs issued during the quarter ended March 31, 2013 were immediately vested and a compensation expense of $0.2 million was recognized for these grants. As of March 31, 2013, there was nil unrecognized compensation expense related to DSUs granted under the Company's DSU plan.
A summary of the DSU activity during the three months ended March 31, 2013:
 
 
Number of Deferred Share Units
As of December 31, 2012
 
388,059

   Grants
 
112,654

   Exercises
 

As of March 31, 2013
 
500,713


Share Appreciation Rights
In February 2012, the Company adopted a Share Appreciation Rights Plan (the "SARs Plan") to provide incentive compensation based on the appreciation in value of the common shares over a specified period of time. Under the SARs plan, the Company may from time to time grant awards of Share Appreciation Rights ("SARs") to current and future directors, executive officers, employees and consultants of the Company and/or its subsidiaries. The SARs Plan is administered by the Compensation Committee, which determines from time to time who will participate in the SARs Plan, as well the terms of the grants, including the vesting provisions applicable to specific SARs grants. The vesting schedule of the SARs is determined at the discretion of the Board, but generally the SARs vest one-third on each of the first three anniversaries of the grant date. Upon exercise of a SAR, the participant will be entitled to receive an amount in respect of each SAR equal to the amount by which the fair market value of one common share as of the date of such exercise exceeds the fair market value of one common share as of the grant date of such SAR. No SARs will be settled in shares; rather, all SAR exercises will be settled solely in cash.
Since these awards are settled in cash, the Company determines the fair value of the associated expense for each award at the end of each reporting period. The Company accounts for these as liability awards and marks-to-market the fair value of the award until final settlement. The Company uses a Black-Scholes valuation model to determine the fair value of the outstanding SARs.
As of March 31, 2013, there was approximately $2.6 million of total unrecognized compensation cost related to unvested SARs. The Company recognized approximately $0.3 million of compensation expense related to these cash based awards for the three months ended March 31, 2013.
A summary of the SARs activity during the three months ended March 31, 2013:
 
 
Number of SARs ('000)
As of December 31, 2012
 
1,079

   Grants
 
1,940

   Exercises
 

   Canceled
 
(87
)
As of March 31, 2013
 
2,932

Earnings Per Common Share
Earnings Per Common Share
EARNINGS PER COMMON SHARE
The following table provides reconciliation between basic and diluted earnings per common share:
 
For the three months ended March 31,
 
2013
 
2012
Net loss attributable to Golden Star shareholders
$
(6,559
)

$
9,113

 
 



Weighted average number of shares (millions)
259.1


258.7

Dilutive securities:
 


Options


0.2

Deferred stock units

 

Convertible debentures



Weighted average number of diluted shares (millions)
259.1

 
258.9

 
 
 
 
Net loss per share attributable to Golden Star shareholders:
 
 
 
Basic
$
(0.03
)
 
$
0.04

Diluted
$
(0.03
)
 
$
0.04


Options to purchase 14.4 million and 12.5 million common shares were outstanding at March 31, 2013, and 2012, respectively, but were not included in the computation of diluted weighted average common shares because their effect would not be dilutive. DSUs representing the potential right to receive 0.5 million and zero common shares were outstanding at March 31, 2013 and 2012, respectively, but were not included in the computation of diluted weighted average common shares because their effect would not be dilutive. In addition, Golden Star had 47.0 million and 25.0 million common shares potentially outstanding at March 31, 2013 and 2012, respectively, related to the 5% Convertible Debentures and 4% Convertible Debentures, respectively, that were not dilutive.
Operations By Segment And Geographic Area
Operations by Segment and Geographic Area
OPERATIONS BY SEGMENT AND GEOGRAPHIC AREA
 
 
Africa
 
 
 
 
 
 
As of and for the three months ended March 31,
 
Bogoso/
Prestea
 
Wassa/
HBB
 
Other
 
South
America
 
Corporate
 
Total
2013
 
 
 
 
 
 
 
 
 
 
 
 
Gold revenues
 
$
57,953

 
$
74,957

 
$

 
$

 
$

 
$
132,910

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating expenses
 
64,092

 
35,973

 

 

 

 
100,065

Operating costs from/(to) metal inventory
 
58

 
1,121

 

 

 

 
1,179

Royalties
 
2,900

 
3,753

 

 

 

 
6,653

Mining related depreciation and amortization
 
8,265

 
11,876

 

 

 

 
20,141

Accretion of asset retirement obligations
 
378

 
256

 

 

 

 
634

Cost of sales
 
75,693

 
52,979

 

 

 

 
128,672

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating margin
 
(17,740
)
 
21,978

 

 

 

 
4,238

 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 

 
7,133

 

 

 

 
7,133

Net income/(loss) attributable to Golden Star
 
(18,306
)
 
12,535

 
(388
)
 
(136
)
 
(264
)
 
(6,559
)
Capital expenditures
 
7,707

 
9,952

 

 

 

 
17,659

Total assets
 
433,214

 
221,683

 
1,831

 
208

 
47,742

 
704,678

2012
 
 
 
 
 
 
 
 
 
 
 
 
Gold revenues
 
$
69,595

 
$
61,425

 
$

 
$

 
$

 
$
131,020

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating expenses
 
55,129

 
39,155

 

 

 

 
94,284

Operating costs from/(to) metal inventory
 
(551
)
 
(2,899
)
 

 

 

 
(3,450
)
Royalties
 
3,483

 
3,082

 

 

 

 
6,565

Mining related depreciation and amortization
 
8,149

 
10,894

 

 

 

 
19,043

Accretion of asset retirement obligations
 
381

 
322

 

 

 

 
703

Cost of sales
 
66,591

 
50,554

 

 

 

 
117,145

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating margin
 
3,004

 
10,871

 

 

 

 
13,875

 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 

 
12,531

 

 

 

 
12,531

Net income/(loss) attributable to Golden Star
 
5,472

 
852

 
(1,111
)
 
(122
)
 
4,022

 
9,113

Capital expenditures
 
14,957

 
9,708

 

 

 

 
24,665

Total assets
 
422,912

 
242,007

 
1,189

 
855

 
85,103

 
752,066

Supplemental Cash Flow Information
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
In the first three months of 2013, $8.3 million was paid for income taxes owed for 2012. During the first three months of 2012, Golden Star paid $0.2 million in income taxes. The Company paid $0.3 million for interest in the first three months of 2013 and $0.3 million in the first three months of 2012.
Financial Instruments (Tables)
Classification of the Company's financial instruments within the fair value hierarchy
The following table sets forth the Company's assets measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2013:
 
Financial assets measured at fair value as at
 
March 31, 2013
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
Available for sale investments
$
9,416

 
$

 
$

 
$
9,416

 
$
9,416

 
$

 
$

 
$
9,416


Available for sale investments in Level 1 are based on the quoted market price for the equity investment. It is possible that some of these investments could be sold in large blocks at a future date via a negotiated agreement and such agreements may include a discount from the quoted price.
The following table sets forth the Company's liabilities measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2013:
 
Financial liabilities measured at fair value as at
 
March 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
5% Convertible Debentures

 

 
91,628

 
91,628

 
$

 
$

 
$
91,628

 
$
91,628

The following table sets forth the Company's assets measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2012:
 
Financial assets measured at fair value as at
 
December 31, 2012
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
Available for sale investments
$
15,034

 
$

 
$

 
$
15,034

 
$
15,034

 
$

 
$

 
$
15,034

The following table sets forth the Company's liabilities measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2012:
 
Financial liabilities measured at fair value as at
 
December 31, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
5% Convertible Debentures
$

 
$

 
$
99,604

 
$
99,604

 
$

 
$

 
$
99,604

 
$
99,604

INVENTORIES (Tables)
Schedule of inventories
 
As of
 
As of
 
March 31,
 
December 31,
 
2013
 
2012
Stockpiled ore
$
30,218

 
$
33,130

In-process
11,422

 
7,571

Materials and supplies
48,610

 
43,548

Finished goods
2,600

 
5,963

       Total
$
92,850

 
$
90,212

Available For Sale Investments (Tables)
Available for Sale Investments
The following table presents changes in available for sale investments in the first three months of 2013 and the full year 2012:
 
As of March 31, 2013
 
As of December 31, 2012
 
TGM
 
TGM
 
Fair Value
 
Shares
 
Fair Value
 
Shares
Balance at beginning of period
$
15,034

 
24,521,101

 
$
1,416

 
2,000,000

Acquisitions

 

 
17,117

 
23,676,301

Dispositions

 

 
(805
)
 
(1,155,200
)
OCI - unrealized loss
(5,618
)
 
 
 
(2,694
)
 


Balance at end of period
$
9,416

 
24,521,101

 
$
15,034

 
24,521,101

Property, Plant And Equipment (Tables)
Schedule of Property, Plant and Equipment
 
As of March 31, 2013
 
December 31, 2012
 
Cost
 
Accumulated
Depreciation
 
Net Book Value
 
Cost
 
Accumulated
Depreciation
 
Net Book Value
Bogoso/Prestea
$
192,744

 
$
(115,168
)
 
$
77,576

 
$
189,247

 
$
(112,838
)
 
$
76,409

Bogoso refractory plant
195,559

 
(68,973
)
 
126,586

 
196,066

 
(67,230
)
 
128,836

Wassa/HBB
121,360

 
(68,817
)
 
52,543

 
120,766

 
(65,463
)
 
55,303

Corporate & other
1,334

 
(942
)
 
392

 
1,363

 
(925
)
 
438

Total
$
510,997

 
$
(253,900
)
 
$
257,097

 
$
507,442

 
$
(246,456
)
 
$
260,986

Mining Properties (Tables)
Schedule of Mining Properties
 
As of March 31, 2013
 
December 31, 2012
 
Cost
 
Accumulated
Amortization
 
Net Book Value
 
Cost
 
Accumulated
Amortization
 
Net Book Value
Bogoso/Prestea
$
132,922

 
$
(64,634
)
 
$
68,288

 
$
128,713

 
$
(64,972
)
 
$
63,741

Bogoso refractory plant
70,867

 
(41,814
)
 
29,053

 
70,865

 
(40,662
)
 
30,203

Mampon
16,095

 

 
16,095

 
16,095

 

 
16,095

Wassa/HBB
362,135

 
(243,297
)
 
118,838

 
352,241

 
(234,847
)
 
117,394

Other
32,183

 
(9,119
)
 
23,064

 
32,182

 
(7,439
)
 
24,743

Total
$
614,202

 
$
(358,864
)
 
$
255,338

 
$
600,096

 
$
(347,920
)
 
$
252,176

Asset Retirement Obligations (Tables)
Schedule of changes in the carrying amounts of the ARO
The changes in the carrying amount of the ARO during the three months ended March 31, 2013, and March 31, 2012, are as follows:
 
For the three months ended
 
March 31,
 
2013
 
2012
Beginning balance
$
34,113

 
$
33,880

Accretion expense
634

 
703

Additions and changes in estimates

 

Cost of reclamation work performed
(883
)
 
(2,575
)
Balance at the end of the period
$
33,864

 
$
32,008

 
 
 
 
Current portion
$
9,096

 
$
8,626

Long term portion
$
24,768

 
$
23,382

Debt (Tables)
 
As of
 
As of
 
March 31,
 
December 31,
 
2013
 
2012
Current debt:
 
 
 
Equipment financing credit facility
$
6,441

 
$
6,968

Total current debt
$
6,441

 
$
6,968

Long term debt:
 
 
 
Equipment financing credit facility
$
9,881

 
$
11,232

5% Convertible Debentures
91,628

 
99,275

Total long term debt
$
101,509

 
$
110,507

Schedule of payments on outstanding debt as of March 31, 2013:

Nine Months
 
 
 
 
 
 
 
 
 
 

2013
 
2014
 
2015
 
2016
 
2017
 
Maturity
Equipment financing loans
 
 
 
 
 
 
 
 
 
 
 
     Principal
$
5,085

 
$
4,732

 
$
3,798

 
$
2,208

 
$
499

 
 2013 to 2017
     Interest
1,003

 
604

 
322

 
120

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
5% Convertible Debentures
 
 
 
 
 
 
 
 
 
 
 
     Principal

 

 

 

 
77,490

 
June 1, 2017
     Interest
3,875

 
3,875

 
3,875

 
3,875

 
1,937

 
 
Total
$
9,963

 
$
9,211

 
$
7,995

 
$
6,203

 
$
79,935

 
 
Income Taxes (Tables)
Components of the provision for income taxes
The provision for income taxes includes the following components: 
 
For the three months ended
March 31,
 
2013
 
2012
Current expense:
 
 
 
Canada
$

 
$

Foreign
10,306

 

Deferred tax expense:
 
 
 
Canada

 

Foreign
(3,173
)
 
12,531

Total expense
$
7,133

 
$
12,531

Share Capital (Tables)
Changes in share capital
Changes in share capital during the three months ended March 31, 2013, are as follows: 
 
Shares
 
Amount
Balance at December 31, 2012
259,015,970

 
$
694,652

Common shares issued:
 
 
 
Option exercises
90,000

 
254

Balance at March 31, 2013
259,105,970

 
$
694,906

Gain on Sale of Assets (Tables)
Components of Gain on Sale of Assets
 
For the three months ended March 31,
 
2013
 
2012
Gain on sale of Burkina Properties
$

 
$
22,385

Gain/(loss) on sale of other assets
72

 
(15
)
Total gain on sale of assets
$
72

 
$
22,370

Stock Based Compensation (Tables)
Non-cash employee compensation expense recognized in general and administrative expense in the statements of operations with respect to our non-cash employee compensation plans are as follows:
 
For the three months ended March 31,
 
2013
 
2012
Total stock compensation expense
$
1,694

 
$
2,579

Fair values of options granted in the first three months of 2013 and 2012 were based on the assumptions noted in the following table:
 
For the three months ended March 31,
 
2013
 
2012
Expected volatility
56.11 to 68.19%
 
67.07 to 87.50%
Risk-free interest rate
1.17 to 1.62%
 
0.36 to 0.84%
Expected lives
3 to 7 years
 
4 to 7 years
Dividend yield
0%
 
0%
A summary of option activity under the Plan during the three months ended March 31, 2013:
 
Options
(‘000)
 
Weighted–
Average
Exercise
price
(Cdn$)
 
Weighted–
Average
Remaining
Contractual
Term (Years)
 
Aggregate
intrinsic  value
Cdn($000)
Outstanding as of December 31, 2012
12,337

 
2.74

 
6.2

 
541

Granted
2,694

 
1.71

 
6.2

 

Exercised
(90
)
 
1.70

 
5.9

 
18

Forfeited, canceled and expired
(751
)
 
2.85

 
5.2

 

Outstanding as of March 31, 2013
14,190

 
2.55

 
6.0

 
223

 
 
 
 
 
 
 
 
Exercisable as of March 31, 2013
9,996

 
2.81

 
5.9

 
117

A summary of the DSU activity during the three months ended March 31, 2013:
 
 
Number of Deferred Share Units
As of December 31, 2012
 
388,059

   Grants
 
112,654

   Exercises
 

As of March 31, 2013
 
500,713

A summary of the SARs activity during the three months ended March 31, 2013:
 
 
Number of SARs ('000)
As of December 31, 2012
 
1,079

   Grants
 
1,940

   Exercises
 

   Canceled
 
(87
)
As of March 31, 2013
 
2,932

Earnings Per Common Share (Tables)
Reconciliation between basic and diluted earnings per common share
The following table provides reconciliation between basic and diluted earnings per common share:
 
For the three months ended March 31,
 
2013
 
2012
Net loss attributable to Golden Star shareholders
$
(6,559
)

$
9,113

 
 



Weighted average number of shares (millions)
259.1


258.7

Dilutive securities:
 


Options


0.2

Deferred stock units

 

Convertible debentures



Weighted average number of diluted shares (millions)
259.1

 
258.9

 
 
 
 
Net loss per share attributable to Golden Star shareholders:
 
 
 
Basic
$
(0.03
)
 
$
0.04

Diluted
$
(0.03
)
 
$
0.04

Operations By Segment And Geographic Area (Tables)
Operations by segment and geographic area
 
 
Africa
 
 
 
 
 
 
As of and for the three months ended March 31,
 
Bogoso/
Prestea
 
Wassa/
HBB
 
Other
 
South
America
 
Corporate
 
Total
2013
 
 
 
 
 
 
 
 
 
 
 
 
Gold revenues
 
$
57,953

 
$
74,957

 
$

 
$

 
$

 
$
132,910

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating expenses
 
64,092

 
35,973

 

 

 

 
100,065

Operating costs from/(to) metal inventory
 
58

 
1,121

 

 

 

 
1,179

Royalties
 
2,900

 
3,753

 

 

 

 
6,653

Mining related depreciation and amortization
 
8,265

 
11,876

 

 

 

 
20,141

Accretion of asset retirement obligations
 
378

 
256

 

 

 

 
634

Cost of sales
 
75,693

 
52,979

 

 

 

 
128,672

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating margin
 
(17,740
)
 
21,978

 

 

 

 
4,238

 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 

 
7,133

 

 

 

 
7,133

Net income/(loss) attributable to Golden Star
 
(18,306
)
 
12,535

 
(388
)
 
(136
)
 
(264
)
 
(6,559
)
Capital expenditures
 
7,707

 
9,952

 

 

 

 
17,659

Total assets
 
433,214

 
221,683

 
1,831

 
208

 
47,742

 
704,678

2012
 
 
 
 
 
 
 
 
 
 
 
 
Gold revenues
 
$
69,595

 
$
61,425

 
$

 
$

 
$

 
$
131,020

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating expenses
 
55,129

 
39,155

 

 

 

 
94,284

Operating costs from/(to) metal inventory
 
(551
)
 
(2,899
)
 

 

 

 
(3,450
)
Royalties
 
3,483

 
3,082

 

 

 

 
6,565

Mining related depreciation and amortization
 
8,149

 
10,894

 

 

 

 
19,043

Accretion of asset retirement obligations
 
381

 
322

 

 

 

 
703

Cost of sales
 
66,591

 
50,554

 

 

 

 
117,145

 
 
 
 
 
 
 
 
 
 
 
 
 
Mine operating margin
 
3,004

 
10,871

 

 

 

 
13,875

 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 

 
12,531

 

 

 

 
12,531

Net income/(loss) attributable to Golden Star
 
5,472

 
852

 
(1,111
)
 
(122
)
 
4,022

 
9,113

Capital expenditures
 
14,957

 
9,708

 

 

 

 
24,665

Total assets
 
422,912

 
242,007

 
1,189

 
855

 
85,103

 
752,066

Supplemental Cash Flow Information (Tables)
Schedule of Changes in Working Capital
Changes in working capital for the three months are as follows:
 
 
For the three months ended March 31,
 
 
2013
 
2012
Decrease/(increase) in accounts receivable
 
$
(84
)
 
$
(1,969
)
(Increase)/decrease in inventories
 
(3,289
)
 
(2,012
)
(Increase)/decrease in deposits
 
1,237

 
(1,305
)
(Decrease)/increase in accounts payable and accrued liabilities
 
1,322

 
3,018

Other
 
(1,501
)
 
(774
)
Total Changes in working capital
 
$
(2,315
)
 
$
(3,042
)
Nature Of Operations (Details)
Mar. 31, 2013
Golden Star (Bogoso/Prestea) LTD
 
Nature of Operations [Line Items]
 
Subsidiary ownership percentage
90.00% 
Golden Star (Wassa) LTD
 
Nature of Operations [Line Items]
 
Subsidiary ownership percentage
90.00% 
Distance of Wassa mine from Bogoso/Prestea (kilometers)
35 
Financial Instruments (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Recurring
Mar. 31, 2012
Recurring
Mar. 31, 2013
Recurring
Level 1
Dec. 31, 2012
Recurring
Level 1
Mar. 31, 2013
Recurring
Level 2
Dec. 31, 2012
Recurring
Level 2
Mar. 31, 2013
Recurring
Level 3
Dec. 31, 2012
Recurring
Level 3
Mar. 31, 2013
Recurring
Total
Dec. 31, 2012
Recurring
Total
Dec. 31, 2012
4.00% Convertible Debentures
Recurring
Level 1
Dec. 31, 2012
4.00% Convertible Debentures
Recurring
Level 2
Dec. 31, 2012
4.00% Convertible Debentures
Recurring
Level 3
Dec. 31, 2012
4.00% Convertible Debentures
Recurring
Total
Mar. 31, 2013
5.00% Convertible Debentures
Recurring
Level 1
Mar. 31, 2013
5.00% Convertible Debentures
Recurring
Level 2
Mar. 31, 2013
5.00% Convertible Debentures
Recurring
Level 3
Mar. 31, 2013
5.00% Convertible Debentures
Recurring
Total
Mar. 31, 2013
Convertible Debt
4.00% Convertible Debentures
Mar. 31, 2013
Convertible Debt
5.00% Convertible Debentures
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments
 
 
 
 
$ 9,416,000 
$ 15,034,000 
$ 0 
$ 0 
$ 0 
$ 0 
$ 9,416,000 
$ 15,034,000 
 
 
 
 
 
 
 
 
 
 
Financial assets
 
 
 
 
9,416,000 
15,034,000 
9,416,000 
15,034,000 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debentures
 
 
 
 
 
 
 
 
 
 
 
 
99,604,000 
99,604,000 
91,628,000 
91,628,000 
 
 
Financial liabilities
 
 
 
 
91,628,000 
99,604,000 
91,628,000 
99,604,000 
 
 
 
 
 
 
 
 
 
 
Debt instrument interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00% 
5.00% 
Accrued interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
 
 
Discount rate
8.64% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk free interest rate
0.77% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Volatility rate
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining life
4 years 2 months 2 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) on fair value of convertible debentures
$ 7,646,000 
$ (892,000)
$ 7,600,000 
$ (900,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INVENTORIES (Details) (USD $)
3 Months Ended
Mar. 31, 2013
oz
Mar. 31, 2012
Dec. 31, 2012
oz
Inventory, Net [Abstract]
 
 
 
Stockpiled ore
$ 30,218,000 
 
$ 33,130,000 
In-process
11,422,000 
 
7,571,000 
Materials and supplies
48,610,000 
 
43,548,000 
Finished goods
2,600,000 
 
5,963,000 
Total
92,850,000 
 
90,212,000 
Recoverable ounces of gold
 
 
45,000 
Unsold ounces of gold
1,916 
 
5,070 
Net realizable value adjustments recorded at Bogoso
800,000 
100,000 
 
Material and supplies inventory written off
 
$ 500,000 
 
Available For Sale Investments (Details)
3 Months Ended 12 Months Ended 3 Months Ended 0 Months Ended
Mar. 31, 2013
USD ($)
Mar. 31, 2012
USD ($)
Dec. 31, 2012
USD ($)
Mar. 31, 2008
Riverstone Resources, Inc.
Mar. 31, 2008
Riverstone Resources, Inc.
Warrant Exercised [Member]
USD ($)
Mar. 31, 2008
Riverstone Resources, Inc.
Warrant Exercised [Member]
CAD ($)
Feb. 2, 2012
Riverstone Resources, Inc.
Sale of Business
USD ($)
Schedule of Available-for-sale Securities [Roll Forward]
 
 
 
 
 
 
 
Available-for-sale securities - beginning of period
$ 15,034,000 
$ 1,416,000 
$ 1,416,000 
 
 
 
 
Available-for-sale securities - beginning of period (shares)
24,521,101 
2,000,000 
2,000,000 
 
 
 
 
Acquisitions
 
17,117,000 
 
1,300,000 
 
15,800,000 
Acquisitions (shares)
 
23,676,301 
2,000,000 
 
 
 
Dispositions
 
(805,000)
 
 
 
 
Dispositions (shares)
 
(1,155,200)
 
 
 
 
OCI - unrealized gain/(loss)
(5,618,000)
 
(2,694,000)
 
 
 
 
Available-for-sale securities - end of period
9,416,000 
 
15,034,000 
 
 
 
 
Available-for-sale securities - end of period (shares)
24,521,101 
 
24,521,101 
 
 
 
 
Warrants exercise price (CDN$ per share)
 
 
 
 
 
$ 0.45 
 
Cash consideration for warrants exercised
 
 
 
 
 
900,000 
 
Cash generated from sale of subsidiary
 
 
 
 
 
 
6,600,000 
Shares generated from sale (shares)
 
 
 
 
 
 
21,700,000 
Loss related to investment holdings recognized through Comprehensive Income
$ 5,618,000 
$ 4,165,000 
 
 
 
 
 
Property, Plant And Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Property, Plant and Equipment, Net [Abstract]
 
 
Property, Plant and Equipment at Cost
$ 510,997 
$ 507,442 
Accumulated Depreciation
(253,900)
(246,456)
Property, Plant and Equipment Net Book Value
257,097 
260,986 
Bogoso/Prestea
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
Property, Plant and Equipment at Cost
192,744 
189,247 
Accumulated Depreciation
(115,168)
(112,838)
Property, Plant and Equipment Net Book Value
77,576 
76,409 
Wassa/HBB
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
Property, Plant and Equipment at Cost
121,360 
120,766 
Accumulated Depreciation
(68,817)
(65,463)
Property, Plant and Equipment Net Book Value
52,543 
55,303 
Corporate and Other [Member]
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
Property, Plant and Equipment at Cost
1,334 
1,363 
Accumulated Depreciation
(942)
(925)
Property, Plant and Equipment Net Book Value
392 
438 
Bogoso Refactory Plant |
Bogoso/Prestea
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
Property, Plant and Equipment at Cost
195,559 
196,066 
Accumulated Depreciation
(68,973)
(67,230)
Property, Plant and Equipment Net Book Value
$ 126,586 
$ 128,836 
Mining Properties (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Mineral Properties, Net [Abstract]
 
 
 
Mining Properties
$ 614,202 
 
$ 600,096 
Accumulated Amortization
(358,864)
 
(347,920)
Mineral Properties, Net Book
255,338 
252,176 
252,176 
Bogoso/Prestea
 
 
 
Mineral Properties, Net [Abstract]
 
 
 
Mining Properties
132,922 
 
128,713 
Accumulated Amortization
(64,634)
 
(64,972)
Mineral Properties, Net Book
68,288 
 
63,741 
Bogoso Refactory
 
 
 
Mineral Properties, Net [Abstract]
 
 
 
Mining Properties
70,867 
 
70,865 
Accumulated Amortization
(41,814)
 
(40,662)
Mineral Properties, Net Book
29,053 
 
30,203 
Mampon
 
 
 
Mineral Properties, Net [Abstract]
 
 
 
Mining Properties
16,095 
 
16,095 
Accumulated Amortization
 
Mineral Properties, Net Book
16,095 
 
16,095 
Wassa/HBB
 
 
 
Mineral Properties, Net [Abstract]
 
 
 
Mining Properties
362,135 
 
352,241 
Accumulated Amortization
(243,297)
 
(234,847)
Mineral Properties, Net Book
118,838 
 
117,394 
Other
 
 
 
Mineral Properties, Net [Abstract]
 
 
 
Mining Properties
32,183 
 
32,182 
Accumulated Amortization
(9,119)
 
(7,439)
Mineral Properties, Net Book
$ 23,064 
 
$ 24,743 
Asset Retirement Obligations - Rollforward (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Asset Retirement Obligation [Line Items]
 
 
 
Undiscounted estimate of future cash needs
$ 72,500,000 
 
$ 73,400,000 
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
 
 
 
Beginning balance
34,113,000 
33,880,000 
 
Accretion expense
634,000 
703,000 
 
Additions and changes in estimates
 
Cost of reclamation work performed
(883,000)
(2,575,000)
 
Balance at the end of the period
$ 33,864,000 
$ 32,008,000 
 
Minimum
 
 
 
Asset Retirement Obligation [Line Items]
 
 
 
ARO Valuation discount rate
8.00% 
 
 
Maximum
 
 
 
Asset Retirement Obligation [Line Items]
 
 
 
ARO Valuation discount rate
10.00% 
 
 
Asset Retirement Obligations - Current and Non-current (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Asset Retirement Obligation Disclosure [Abstract]
 
 
 
 
Asset Retirement Obligation
$ 33,864 
$ 34,113 
$ 32,008 
$ 33,880 
Current portion
9,096 
9,943 
8,626 
 
Long term portion
$ 24,768 
$ 24,170 
$ 23,382 
 
Debt - Schedule of Debt (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Current debt
$ 6,441 
$ 6,968 
Long term debt
101,509 
110,507 
Equipment financing credit facility |
Equipment financing credit facility
 
 
Debt Instrument [Line Items]
 
 
Current debt
6,441 
6,968 
Long term debt
9,881 
11,232 
5.00% Convertible Debentures |
Convertible debentures
 
 
Debt Instrument [Line Items]
 
 
Long term debt
$ 91,628 
$ 99,275 
Debt - Schedule of Payments on Outstanding Debt (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Debt Instrument [Line Items]
 
Total - 2013 (Nine Months)
$ 9,963 
Total - 2014
9,211 
Total - 2015
7,995 
Total - 2016
6,203 
Total - 2017
79,935 
Line of Credit |
Equipment financing loans
 
Debt Instrument [Line Items]
 
Principal - 2013 (Nine Months)
5,085 
Interest - 2013 (Nine Months)
1,003 
Principal - 2014
4,732 
Interest - 2014
604 
Principal - 2015
3,798 
Interest - 2015
322 
Principal - 2016
2,208 
Interest - 2016
120 
Principal - 2017
499 
Interest - 2017
5.00% Convertible Debentures |
Convertible Debt
 
Debt Instrument [Line Items]
 
Principal - 2013 (Nine Months)
Interest - 2013 (Nine Months)
3,875 
Principal - 2014
Interest - 2014
3,875 
Principal - 2015
Interest - 2015
3,875 
Principal - 2016
Interest - 2016
3,875 
Principal - 2017
77,490 
Interest - 2017
$ 1,937 
Debt (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
May 31, 2012
Line of Credit Facility [Line Items]
 
 
 
Long term debt
$ 101,509,000 
$ 110,507,000 
 
Equipment financing credit facility |
Line of Credit
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Long term debt
9,881,000 
11,232,000 
 
Equipment financing credit facility |
Line of Credit |
Caterpillar Financial Services Corporation
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Credit facility borrowing capacity
35,000,000 
 
 
Debt instrument basis spread on variable rate
2.38% 
 
 
Credit available to draw down
18,700,000 
16,800,000 
 
Average interest rate on outstanding loans
6.70% 
6.60% 
 
4.00% Convertible Debentures |
Convertible Debt
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Debt instrument interest rate
4.00% 
 
 
Debt amount exchanged with private holders
 
 
74,500,000 
5.00% Convertible Debentures |
Convertible Debt
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Debt instrument interest rate
5.00% 
 
 
Long term debt
91,628,000 
99,275,000 
 
Oustanding amount of convertible debenture
 
 
$ 77,500,000 
Conversion price per share (dollars per share)
$ 1.65 
 
 
Share issue value (percent)
95.00% 
 
 
Convertible debt conversion rate per $1000 principal
606.0606 
 
 
Convertible debt, conversion price above closing stock price (percent)
25.00% 
 
 
Minimum percentage of oustanding debentures required to have accepted mandatory offer to purchase
90.00% 
 
 
New Mining Equipment [Member] |
Equipment financing credit facility |
Line of Credit |
Caterpillar Financial Services Corporation
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Debt Instrument, Repayment Period
5 years 
 
 
Used Mining Equipment [Member] |
Equipment financing credit facility |
Line of Credit |
Caterpillar Financial Services Corporation
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Debt Instrument, Repayment Period
2 years 
 
 
Income Taxes (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Current expense:
 
 
 
Canada
$ 0 
$ 0 
 
Foreign
10,306,000 
 
Deferred tax expense:
 
 
 
Canada
 
Foreign
(3,173,000)
12,531,000 
 
Total expense
7,133,000 
12,531,000 
 
Income taxes paid
 
200,000 
 
Tax expense related to the activity of the first six monthsof 2012
 
2,900,000 
 
GHANA
 
 
 
Deferred tax expense:
 
 
 
Income taxes paid
8,300,000 
 
 
Ghana statutory tax rate
 
35.00% 
25.00% 
Impact on deferred tax expense
 
$ 9,600,000 
 
Commitments And Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Oct. 31, 2007
AMI Resources, Inc.
Mar. 31, 2013
Dunkwa Properties
oz
Mar. 31, 2013
Hwini-Butre
May 31, 2009
Hwini-Butre
Mar. 31, 2013
Government of Ghana
Dec. 31, 2003
Minimum
Dunkwa Properties
Mar. 31, 2013
Minimum
Hwini-Butre
oz
Dec. 31, 2003
Maximum
Dunkwa Properties
Mar. 31, 2013
Surety Bond
Golden Star (Bogoso/Prestea) LTD
Mar. 31, 2013
Surety Bond
Golden Star (Wassa) LTD
Mar. 31, 2013
Surety Bond
Letter of Credit
Golden Star (Bogoso/Prestea) LTD
May 1, 2012
Surety Bond
Letter of Credit
Golden Star (Bogoso/Prestea) LTD
Mar. 31, 2013
Surety Bond
Cash
Golden Star (Bogoso/Prestea) LTD
Jul. 31, 2011
Surety Bond
Cash
Golden Star (Bogoso/Prestea) LTD
May 1, 2012
Golden Star (Wassa) LTD
Bonds [Member]
Environmental Exit Cost [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase Agreement Production Threshold
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Purchase Agreement Production Threshold, Period From Start of Production
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor obligations maximum exposure
 
 
 
 
 
 
 
 
$ 9.0 
$ 10.6 
$ 8.1 
$ 8.1 
$ 0.9 
$ 1.7 
$ 9.6 
Increase in guarantee obligation maximum exposure
 
 
 
 
 
 
 
 
 
2.7 
 
 
 
 
 
Production weight not subject to royalty payment
 
200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Royalty (percentage)
2.00% 
 
 
 
5.00% 
2.00% 
 
3.50% 
 
 
 
 
 
 
 
Gold price per ounce
 
 
 
 
 
400 
 
300 
 
 
 
 
 
 
 
Additional contingent cash payment
 
 
 
$ 1.0 
 
 
 
 
 
 
 
 
 
 
 
Ownership position in Obuom property
54.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gold production percentage
54.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Capital (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
Balance at December 31, 2012 (shares)
259,105,970 
259,015,970 
259,015,970 
Balance at December 31, 2012
$ 694,906 
$ 694,652 
$ 694,652 
Option exercises (shares)
 
 
90,000 
Option exercises
 
 
254 
Balance at March 31, 2013 (shares)
259,105,970 
259,015,970 
259,105,970 
Balance at March 31, 2013
$ 694,906 
$ 694,652 
$ 694,906 
Gain on Sale of Assets (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total gain on sale of assets
$ 72 
$ 22,370 
Burkina Properties [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total gain on sale of assets
22,385 
Mobile Equipment [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total gain on sale of assets
$ 72 
$ (15)
Stock Based Compensation - Schedule of Compensation Expense Recognized and Fair Value Assumptions (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total stock compensation expense
$ 1,694 
$ 2,579 
Stock Options
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected volatility - Range minimum (percent)
56.11% 
67.07% 
Expected volatility - Range maximum (percent)
68.19% 
85.50% 
Risk-free interest rate - Range minimum (percent)
1.17% 
0.36% 
Risk free interest rate - Range maximum (percent)
1.62% 
0.84% 
Dividend yield (percent)
0.00% 
0.00% 
Stock Options |
Minimum
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected lives (years)
3 years 
4 years 
Stock Options |
Maximum
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected lives (years)
7 years 
7 years 
Stock Based Compensation - Summary of Option Activity (Details) (Third Amended and Restated 1997 Stock Option Plan, Stock Options, CAD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2011
Third Amended and Restated 1997 Stock Option Plan |
Stock Options
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
Options outstanding as of December 31, 2012 (options)
12,337,000 
 
 
Options granted (options)
2,694,000 
4,537,000 
 
Options exercised (options)
(90,000)
 
 
Options forfeited, canceled and expired (options)
(751,000)
 
 
Options outstanding as of March 31, 2013 (options)
14,190,000 
 
 
Options exercisable as of March 31, 2013
9,996,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
 
 
Options outstanding as of December 31, 2012 - Weighted average exercise price
$ 2.74 
 
 
Options granted - Weighted average exercise price
$ 1.71 
 
 
Options exercised - Weighted average exercise price
$ 1.70 
 
 
Options forfeited, canceled and expired - Weighted average exercise price
$ 2.85 
 
 
Options outstanding as of March 31, 2013 - Weighted average exercise price
$ 2.55 
 
 
Options exercisable as of March 30, 2013 - Weighted average exercise price exercisable
$ 2.81 
 
 
Share Based Compensation Arrangement By Share Based Payment Award, Options Outstanding, Weighted Average RemainingTerm, Rollforward [Roll Forward]
 
 
 
Options outstanding as of December 31, 2012 - Aggregate intrinsic value
$ 541,000 
 
 
Options granted in period - Aggregate intrinsic value
 
 
Options exercised - Aggregate intrinsic value
18,000 
 
 
Options forfeited, canceled and expired - Aggegrate intrinsic value
 
 
Options outstanding as of March 31, 2013 - Aggregate intrinsic value
223,000 
 
 
Share Based Compensation Arrangement By Share Based Payment Award, Options Outstanding, Weighted Average Remaining Contractual Term, Rollforward [Roll Forward]
 
 
 
Options outstanding as of December 31, 2012 - Weighted average remaining contractual term
6 years 
 
6 years 2 months 12 days 
Options granted - Weighted average remaining contractual term
6 years 2 months 12 days 
 
 
Options exercised - Weighted average remaining contractual term
5 years 10 months 24 days 
 
 
Options forfeited, canceled and expired - Weighted average remaining contractual term
6 years 2 months 12 days 
 
 
Options outstanding as of March 31, 2013 - Weighted average remaining contractual term
6 years 
 
6 years 2 months 12 days 
Options exercisable as of March 31, 2013 - Weighted average remaining contractual term
5 years 10 months 24 days 
 
 
Options exercisable - Aggregate intrinsic value
$ 117,000 
 
 
Stock Based Compensation - Deferred Share Units and Stock Appreciation Rights Table (Details)
3 Months Ended
Mar. 31, 2013
Deferred Share Units
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
As of December 31, 2012
388,059 
Grants
112,654 
Exercises
As of March 31, 2013
500,713 
Stock Appreciation Rights (SARs)
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
As of December 31, 2012
1,079,000 
Grants
1,940,000 
Exercises
Canceled
(87,000)
As of March 31, 2013
2,932,000 
Stock Based Compensation - Narrative (Details) (USD $)
3 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Deferred Share Units
Dec. 31, 2012
Deferred Share Units
Mar. 31, 2013
Stock Appreciation Rights (SARs)
Dec. 31, 2012
Stock Appreciation Rights (SARs)
May 31, 2010
Third Amended and Restated 1997 Stock Option Plan
Stock Options
Mar. 31, 2013
Third Amended and Restated 1997 Stock Option Plan
Stock Options
Mar. 31, 2012
Third Amended and Restated 1997 Stock Option Plan
Stock Options
Mar. 31, 2013
Third Amended and Restated 1997 Stock Option Plan
Stock Options
Maximum
Mar. 31, 2013
Third Amended and Restated 1997 Stock Option Plan
Stock Options
Minimum
Mar. 31, 2013
Stock Bonus Plan
Performance Shares
Dec. 31, 2011
Stock Bonus Plan
Performance Shares
Mar. 31, 2013
Deferred Share Units Plan
Deferred Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable period for opions granted
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
Number of option shares authorized under the Plan
 
 
 
 
 
 
 
25,000,000 
 
 
 
900,000 
 
 
Number of option shares available for grant under the Plan
 
 
 
 
 
 
 
2,856,358 
 
 
 
 
 
 
Options vesting period - Range
 
 
 
 
3 years 
 
 
 
 
3 years 
0 years 
 
 
 
Options granted (options)
 
 
 
 
 
 
 
2,694,000 
4,537,000 
 
 
 
 
 
Common shares issued in period
 
 
 
 
 
 
 
 
 
 
 
710,854 
 
Number of Golden Star common shares to be received for each DSU
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1 
Equity instruments (other than options) granted in period
 
 
112,654 
 
1,940,000 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to deferred share units
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
Total stock compensation expense
1,694,000 
2,579,000 
 
 
300,000 
 
 
 
 
 
 
 
 
200,000 
Number of equity instruments (other than options) outstanding
 
 
500,713 
388,059 
2,932,000 
1,079,000 
 
 
 
 
 
 
 
 
Total unrecognized compensation cost
 
 
 
 
$ 2,600,000 
 
 
 
 
 
 
 
 
 
Earnings Per Common Share (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Reconciliation between basic and diluted earnings per common share [Line Items]
 
 
Net loss attributable to Golden Star shareholders
$ (6,559,000)
$ 9,113,000 
Weighted average number of shares (shares)
259.1 
258.7 
Dilutive securities:
 
 
Options
0.2 
Deferred stock units
$ 0 
$ 0 
Convertible debentures
Weighted average number of diluted shares
259.1 
258.9 
Net loss per share attributable to Golden Star shareholders:
 
 
Basic
$ (0.03)
$ 0.04 
Diluted
$ (0.03)
$ 0.04 
Options
 
 
Net loss per share attributable to Golden Star shareholders:
 
 
Antidilutive securities excluded from computation of diluted weighted average common shares
14.4 
12.5 
Deferred Share Units
 
 
Net loss per share attributable to Golden Star shareholders:
 
 
Antidilutive securities excluded from computation of diluted weighted average common shares
0.5 
Convertible debentures
 
 
Net loss per share attributable to Golden Star shareholders:
 
 
Antidilutive securities excluded from computation of diluted weighted average common shares
47.0 
25.0 
Operations By Segment And Geographic Area (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Gold revenues
$ 132,910 
$ 131,020 
 
Mine operating expenses
100,065 
94,284 
 
Operating costs from/(to) metal inventory
1,179 
(3,450)
 
Royalties
6,653 
6,565 
 
Mining related depreciation and amortization
20,141 
19,043 
 
Accretion of asset retirement obligations
634 
703 
 
Total cost of sales
128,672 
117,145 
 
Mine operating margin
4,238 
13,875 
 
Income tax expense
(7,133)
(12,531)
 
Net income (loss) attributable to Golden Star
(6,559)
9,113 
 
Capital expenditure
17,659 
24,665 
 
Total assets
704,678 
752,066 
725,876 
Bogoso/Prestea
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Gold revenues
57,953 
69,595 
 
Mine operating expenses
64,092 
55,129 
 
Operating costs from/(to) metal inventory
58 
(551)
 
Royalties
2,900 
3,483 
 
Mining related depreciation and amortization
8,265 
8,149 
 
Accretion of asset retirement obligations
378 
381 
 
Total cost of sales
75,693 
66,591 
 
Mine operating margin
(17,740)
3,004 
 
Income tax expense
 
Net income (loss) attributable to Golden Star
(18,306)
5,472 
 
Capital expenditure
7,707 
14,957 
 
Total assets
433,214 
422,912 
 
Wassa/HBB
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Gold revenues
74,957 
61,425 
 
Mine operating expenses
35,973 
39,155 
 
Operating costs from/(to) metal inventory
1,121 
(2,899)
 
Royalties
3,753 
3,082 
 
Mining related depreciation and amortization
11,876 
10,894 
 
Accretion of asset retirement obligations
256 
322 
 
Total cost of sales
52,979 
50,554 
 
Mine operating margin
21,978 
10,871 
 
Income tax expense
(7,133)
(12,531)
 
Net income (loss) attributable to Golden Star
12,535 
852 
 
Capital expenditure
9,952 
9,708 
 
Total assets
221,683 
242,007 
 
Other
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Gold revenues
 
Mine operating expenses
 
Operating costs from/(to) metal inventory
 
Royalties
 
Mining related depreciation and amortization
 
Accretion of asset retirement obligations
 
Total cost of sales
 
Mine operating margin
 
Income tax expense
 
Net income (loss) attributable to Golden Star
(388)
(1,111)
 
Capital expenditure
 
Total assets
1,831 
1,189 
 
South America
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Gold revenues
 
Mine operating expenses
 
Operating costs from/(to) metal inventory
 
Royalties
 
Mining related depreciation and amortization
 
Accretion of asset retirement obligations
 
Total cost of sales
 
Mine operating margin
 
Income tax expense
 
Net income (loss) attributable to Golden Star
(136)
(122)
 
Capital expenditure
 
Total assets
208 
855 
 
Corporate [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Gold revenues
 
Mine operating expenses
 
Operating costs from/(to) metal inventory
 
Royalties
 
Mining related depreciation and amortization
 
Accretion of asset retirement obligations
 
Total cost of sales
 
Mine operating margin
 
Income tax expense
 
Net income (loss) attributable to Golden Star
(264)
4,022 
 
Capital expenditure
 
Total assets
$ 47,742 
$ 85,103 
 
Supplemental Cash Flow Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Supplemental Cash Flow Elements [Abstract]
 
 
Income taxes paid
 
$ 0.2 
Interest paid
$ 0.3 
$ 0.3 
Supplemental Cash Flow Information Schedule of Changes in Working Capital (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Supplemental Cash Flow Information [Abstract]
 
 
Decrease / (increase) in accounts receivable
$ (84)
$ (1,969)
(Increase) / decrease in inventories
(3,289)
(2,012)
(Increase) / decrease in deposits
1,237 
(1,305)
(Decrease) / increase in accounts payable and accrued liabilities
1,322 
3,018 
Other
(1,501)
(774)
Total Changes in working capital
$ (2,315)
$ (3,042)