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Ghana-focused gold miner Golden Star doubles net income in first quarter

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(Kitco News) - Golden Star Resources (NYSE American: GSS) (TSX: GSC) (GSE: GSR) announced that its Q1 2021 production totaled 40.1 thousand ounces from the company’s Wassa mine in Ghana, in line with Q1 2020 and Q4 2020 performance.

The all-in sustaining cost (AISC) for the period of $1,100 per ounce was slightly higher than expected as sales lagged production by 3%.

EBITDA from continuing operations amounted to $31.6m for Q1 2021, 28% higher than the $24.7m achieved in Q1 2020 as a result of the increased gold price and higher gold sales. Adjusted EBITDA totaled $27.2m, representing a 28% increase on the $21.2m achieved in Q1 2020.

Adjusted net income attributable to Golden Star shareholders was $4.4m or $0.04 basic income per share in Q1 2021 compared to $2.2m or $0.02 basic income per share in Q1 2020.

The company’s 2021 guidance remains unchanged, production of 165-175koz is expected to be delivered at an AISC of $1,000-1,075/oz.

The company said it sees a significant growth potential at Wassa by outlining a mineral reserve plan with a six-year mine life and average annual production of 177koz of gold at an AISC of $881/oz (excluding corporate costs).

Golden Star is an established gold mining company that owns and operates the Wassa underground mine in Ghana, West Africa.

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