DENVER, Aug. 5, 2002 (PRIMEZONE) -- Golden Star Resources Ltd. ("Golden Star" or the "Company") (TSE:GSC) (AMEX:GSS) is pleased to announce that it earned net income of $1.6 million or $0.024 per share for the second quarter of 2002, to give earnings of $3.0 million or $0.05 per share for the first six months of 2002. This compares to net losses of $(1.4) million or $(0.04) per share for the second quarter and $(3.3) million or $(0.08) per share for the first six months of 2001, respectively. Higher production, improved recoveries, lower production costs per ounce and higher gold prices all contributed to the improved results.
RESULTS
Second Quarter Six Months
2002 2001 2002 2001
Gold sales Ounces 30,419 24,695 62,064 42,506
Realized gold price $/ounce 312 268 301 265
Cash costs $/ounce 173 280 174 274
Total cash costs
(incl. royalties) $/ounce 195 288 195 282
Net Income/(Loss) $ million 1.6 3.0
(1.4) (3.3)
EPS $/share 0.024 0.05
(0.04) (0.08)
Ore processed through the Bogoso mill during the year-to-date has been mined from the Prestea surface concession, whereas production in the first six months of 2001 came from difficult to process transition ores mined from the Bogoso concession. Production and cash costs for the quarter were better than previously forecast as a result of changes to the Bogoso/Prestea mine plan arising from the identification of additional reserves at the northern end of the Prestea property as announced by the Company on June 20, 2002. Production for the quarter was unaffected by power problems in Ghana as the Company has its own power generating capacity and is able to generate 100% of its power requirements if required.
The Company's CEO and CFO have certified the Company's financial statements as required by the Sarbanes-Oxley Act of 2002 and the Securities and Exchange Commission.
OUTLOOK
Based on the Company's operating forecasts, and assuming the same realized gold price, the first six month's results are representative of estimated full-year earnings for 2002 of $0.10 per share. As a result of the aforementioned increase in reserves at the northern end of the Prestea lease and modified mine plan our production forecast for the remainder of 2002 has been revised as follows:
Q3 2002(e) Q4 2002(e)
Gold sales Ounces 30,000 42,000
Cash costs (at mine) $/ounce 190 155
Lower production and higher costs in the third quarter, relative to the original forecast, are expected to be offset by higher production and lower costs in the fourth quarter, primarily from higher grade ore in the initial mining phase at the Plant-North deposit.
Golden Star holds a 90% equity interest in the Bogoso/Prestea open-pit gold mine in Ghana, a 45% managing equity interest in the Prestea underground mine in Ghana, and is in the process of acquiring the Wassa gold project in Ghana. In addition, we have other gold exploration interests in the Guiana Shield in South America as well as in West Africa. Golden Star currently has approximately 83 million shares outstanding and is listed on the Toronto Stock Exchange under the symbol "GSC" and on The American Stock Exchange under the symbol "GSS."
The statements contained in this press release are both historical and forward-looking in nature. The forward-looking statements involve risks and uncertainties including those relating to exploration, the establishment of reserves, the recovery of any reserves, future gold production and production costs, and future permitting dates for additional sources of ore. Please refer to a discussion of these and other risk factors in Golden Star's Form 10-K and other Securities and Exchange Commission filings. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.