AngloGold

In the last three months of 1999 — its first quarter as a gold producer — Golden Star Resources (GSR-X) earned US$454,000 (or 1 per share). For the year, however, the company reported a loss of US$24.4 million (76 per share), resulting from writedowns totalling US$23.9 million (74 per share) in the third quarter.

By comparison, the loss in 1998 of US$22.2 million (74 per share) was attributable to US$16.6 million (55 per share) in writedowns, primarily in the fourth quarter.

Golden Star joined the ranks of producers in late September 1999, when it acquired 70% of the Bogoso mine in Ghana. Anvil Mining of Australia owns a 20% interest, with the remainder held by the government of Ghana.

In the recent fourth quarter, the mine produced 36,074 oz. at a total cash cost of US$165 per oz. The company realized an average gold price of US$293 per oz.

Gold sales during the fourth quarter accounted for US$10.6 million of the year’s total revenue of US$11.2 million.

At Bogoso, mining of oxide reserves is nearing completion and the company is evaluating other potential oxide resources. Meanwhile, feasibility work on a sulphide project is under way.

At the end of 1999, Golden Star had cash and short-term investments of US$2.9 million, down from US$7.4 million at the end of the previous year, and working capital stood at US$6 million.