Vancouver — Denver-based Golden Star Resources (GSC-T) is the latest victim of the historically low gold prices which continue to plague the bottom line of junior producers.
The company posted a loss of US$3.3 million in the first half of 2001. This compares with a loss of US$200,000 recorded in the first six months of 2000.
In the quarter ended June 30, Golden Star lost US$1.4 million, compared with a loss of US$200,000 during the corresponding period in 2000. Lower gold revenues are cited for the decline.
In the second quarter, Golden Star produced 24,694 oz. gold, down from the 31,626 oz. sold a year earlier. While mill throughput was essentially unchanged over the period, lower recoveries caused the shortfall. Revenues were further reduced by a decline in realized gold prices to US$265 from US$284 per oz in the first six months of 2000.
Cash flow from operations came in at US$1.5 million, compared with US$3.1 million in the first half of 2000. At June 30, Golden Star held cash and short-term investments totalling US$1.3 million and working capital of US$1.7 million, compared with US$1 million and $4.5 million, respectively, at Dec. 31, 2000.
Golden Star holds a 70% stake in the Bogoso gold mine in Ghana and a 30% equity interest in the Omai gold mine in Guyana.
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