Since its first gold ingot was produced in January, Glencar Mining has extracted more than 30,000 ounces of gold from its Wassa Gold Mine in Ghana, generating revenue of $9.6 million (€9.09 million).

Announcing its interim results yesterday, the company said gold recoveries had initially been slower than expected due to start-up problems but that these had been resolved and the mine was now in full production. It expected a "very successful second half" of 1999. World gold prices have fallen over the past year, but the company said strong demand for the precious metal in the second quarter led it to believe that the market would improve although the timing of this was uncertain.

Glencar said it had sold forward a significant proportion of its gold production over the next four years at prices considerably above the current market prices. However, it remained exposed on the unhedged portion of its production.

Exploration work at two other mines in Ghana was "very encouraging", the company said. Glencar reported a loss of $1.5 million on turnover of $9.6 million for the six months to June 30th, compared with a loss of $2.2 million for the same period in 1998. Earnings before tax, interest, depreciation and amortisation were $3.4 million.