Golden Star Resources Ltd.’s (GSS, GSC.T) second-quarter loss narrowed slightly, as the gold producer’s operating costs jumped and volume dropped, but the selling price of gold increased.
The company said it continued to see progress from its Bogoso/Presetea mine in Ghana, where heavy rainfall had hindered production. Prior to that disruption, Golden Star–like many precious metals companies–has been reporting better profitability thanks to sharply higher prices.
Gold sales by ounce dropped 28%, while average realized price increased 26%. Cash operating costs per ounce jumped 69%.
Golden Star posted a loss of $5 million, or 2 cents a share, compared with $5.6 million, or 2.2 cents a share, a year earlier.
Analysts surveyed by Thomson Reuters expected a penny loss per share.
Gold revenue fell 8.7% to $109.8 million.
Mine operating margin as a percentage of gold sales fell to 6.6% from 13.7%.
Golden Star shares were down 0.5% at $2.06 after hours. The stock hit a six-year high in November but has since fallen 66% through the close.