Gold producer Golden Star Resources Ltd. (GSS - Snapshot Report) reported strong preliminary second- quarter 2013 production results despite the recent decline in gold prices and challenging market condition.
The quarterly preliminary figures released for the period ended Jun 30, 2013, revealed that Golden Star sold 85,090 ounces of gold at an average realized price of $1,418 per ounce. Of this, Bogoso/Prestea mine sold 34,316 ounces of gold and Wassa/HBB operations sold 50,774 ounces of gold in the quarter.
Gold sales increased 4.6% compared with the preliminary gold sales of 81,358 ounces of gold at an average realized price of $1,634 per ounce recorded in first- quarter 2013.
Golden Star sold 166,451 ounces of gold of Jul 8, 2013, and had a cash balance of $52.9 million as of Jun 30, 2013. It expects the cash flow to be sufficient to fund sustaining capital for 2013.
Golden Star is on track to meet its gold production target for 2013. The Bogoso and Wassa operations are performing well to meet the yearly target. The company is focused on the pit wall pushbacks at both the Bogoso North and Chujah pits of the Bogoso Mine.
For 2013, Golden Star expects its gold production to be within 290,000 ounces to 310,000 ounces, roughly 10% lower than its earlier guidance. Cash operating costs are anticipated to be in the range of $1,050 to $1,150 per ounce.
Golden Star, which currently retains a Zacks Rank #3 (Hold), will come up with mid-year exploration results in the near future.
Some companies in the gold mining industry worth considering are Lake Shore Gold Corp. (LSG - Snapshot Report), NovaGold Resources Inc. (NG - Snapshot Report) and Pretium Resources Inc. (PVG - Snapshot Report). All of them hold a Zacks Rank #2 (Buy).