It said in a statement that its net loss for the 1997 second quarter had been $7.5 million or 25 cents per share.

The statement attributed the smaller loss primarily to a $6.1 million decrease in 1998 property write-downs and to the fact that there were no production losses at its indirectly held Sotrapmag unit, which lost half a million dollars in 1997.

The company said it also reduced general and administrative expenses.Sotrapmag, a wholly owned subsidiary of Guyanor Resources, which is in turn 71-percent-owned by Golden Star, halted alluvial gold production at its Paul Isnard mine in French Guiana last year due to high operating costs and declining world gold prices.

Golden Star operates in the Guiana shield region of South America and in several West African states.