Golden Star Trims 2019 Production Guidance
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(Kitco News) - Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) has cut its output guidance for 2019 but said efforts are under way to resolve issues that hurt operations in the second quarter.
The company Wednesday reported a mine operating margin of $8.7 million in the second quarter, compared to $10.2 million a year ago. Adjusted earnings were $872,000, or a penny per share, compared to $2.4 million, or 3 cents, a year ago.
Gold production in the second quarter was 48,422 ounces, 21% lower than the same period in 2018, Golden Star said. This includes 37,356 ounces at Wassa, down 3% from a year ago, and 11,066 ounces at Prestea, down 51%. Gold revenue totaled $61.9 million, compared to $77.1 million in the same period in 2018.
Full-year production guidance was revised to a range of 190,000 to 205,000 ounces from 220,000 to 240,000 ounces previously. All-in sustaining costs were revised to a range of $1,100 to $1,200 per ounce from $875 to $955.
"The performance at both of our operations during the quarter was below our expectations for the assets and as a result we are reducing our guidance for consolidated production for the full year while increasing our forecast costs on a per ounce basis,” said Andrew Wray, chief executive officer. “I recognize how disappointing this is and I am ensuring that we address the underlying issues at both operations.
“At Prestea, the initial review has been completed and we are beginning to implement a series of short-term changes while redesigning the overall mine plan in order to return the asset to sustainable levels of profitable production. At Wassa, operational execution remained robust and the strong long-term fundamentals are unchanged. However, we need to ensure greater near-term mining flexibility to counter grade variability and are investing in accelerating both our rate of development as well as our definition drilling to achieve this by the end of this year.”
He expressed confidence the company will address the issues during the second quarter and that the “value inherent in our asset base will be realized."