JOHANNESBURG (miningweekly.com) – The second quarter of 2017 marked Ghana-focused Golden Star Resources’ fifth consecutive quarter of production growth, according to a trading update published Tuesday.

The New York-, Toronto- and Ghana-listed midtier miner saw a 51% year-on-year increase in gold production in the quarter to 64 176 oz. This included record quarterly production of 31 689 oz at the Prestea openpit operation, in Ghana, for the fourth consecutive quarter, as well as a 16% quarter-on-quarter increase in production of 31 288 oz at Wassa underground mine, also in Ghana, where operations are ramping up.

Moreover, Golden Star delivered first production from development ore from the high-grade Prestea underground operation.

Net income attributable to Golden Star shareholders in the second quarter of 2017 amounted to $13.9-million, or $0.04 a share, compared to a net loss of $22-million or $0.08 loss a share, in the same period of 2016.

The miner also saw an 18% year-on-year decrease in cash operating costs to $785/oz, as well as a 19% year-on-year decrease in all-in sustaining costs per ounce to $960.

“I am delighted to see our operating costs continue to decrease, as we are beginning to see the impact of our high-grade underground ore being realised,” noted Golden Star president and CEO Sam Coetzer.

He added that the company’s strategy since 2013 has been to develop multiple sources of ore to reduce Golden Star’s risk profile and to protect the company against temporary issues with any one source. 

“This quarter has underlined the importance of this strategy, as we have seen compelling outperformance at two of our sources offsetting the weaker-than-expected performance at the two others,” he said.

Golden Star reported capital expenditures of $18.3-million in the quarter under review, with $12.5-million (68%) attributable to development capital for the Prestea underground operations.

The company saw a 204% year-on-year increase in its mine operating margin in the quarter, to $13.3-million. Its consolidated cash balance as at June 30 was $25.9-million, with the company remaining fully funded to deliver its capital programme.

Golden Star maintained its full-year gold production guidance for 2017 at 255 000 oz to 280 000 oz.

“At the half-year, we are on track to achieve our consolidated 2017 full year production guidance and I look forward to updating the market on exploration results as we look towards future growth," concluded Coetzer.