Golden Star Resources, a mining company in Ghana, which operates a mine at Wassa has made a total of US$129.4 million in gold revenue for the first half of the year.
Arriving at this much revenue, the company made gold revenue totaling US$64.4 million in Q2 2021, a 15 per cent increase from gold sales in the previous quarter. This was at average realized gold price of $1,793. Meanwhile, the company recorded a sale cost of $63.3 million, as it added $31.9 million in cost of sales for the second quarter of 2021.
Consequently, Golden Star recorded a mine operating profit of US$51.7 million for the first half of 2021, 12.7 per cent higher than that recorded for the same period in 2020. The Company’s total cash position increased by US$6.6 million in Q2 2021 to a total of US$72.7 million, with a net debt reducing to US$31 million.
Gold production for the second quarter of 2021 totaled 37,900 ounces from Wassa, at an all-in sustaining cost of US$1,182 per ounce. Total production for the first half of 2021 was 78,000 ounces at an all-in cost of US$1,140/oz. Also, the company indicated that it is on track to deliver on its recently revised guidance of 145,000-155,000 ounces for 2021.
Commenting on the development, Andrew Wray, Chief Executive Officer of Golden Star remarked:
“Our primary objectives for H1 2021 were to continue positioning the business for future production growth, as well as to be able to address the repayment of the US$51.5 million Convertible Debentures in August 2021.
“With the increase in the cash position to US$72.7 million during the quarter and the successful refinancing of the Macquarie Credit Facility, we now have adequate liquidity to be able to cash settle the Convertible Debentures on maturity.”
Andrew Wray, CEO, Golden Star
Company’s paste fill test yields positive results
Moreover, the Company indicated that its key operational focus is the completion of a paste fill plant by the end of the year, as stipulated in its revised 2021 guidance. The paste fill test work has yielded positive results and supports the advancement of a second test stope during Q3 2021. If successful, this will lead to the restart of the planned filling schedule in Q4 2021.
“While the paste fill test work progresses, we are also continuing to make operating changes aimed at unlocking further improvements in development rates in order to improve the operational flexibility. This work enabled the decline development to reach the 495 level during the quarter. This milestone was critical in providing the operations with more flexibility.”
Andrew Wray, CEO, Golden Star
Furthermore, the company highlights that a step up in the investment in exploration this year is yielding positive results, particularly the in-mine program. In this program, resources are reallocated from regional targets to carry out additional in-fill drilling to delineate resource in targets proximal to existing and planned reserve infrastructure.
“As we go into H2 2021, the repayment of the convertible debenture represents another significant step in the restructuring and strengthening of our balance sheet while the operational focus on full commissioning of paste fill activities and consistent delivery of the increased development metres will return the operation to where we planned it to be to deliver further growth in 2022 and beyond.”
Andrew Wray, CEO, Golden Star
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