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Golden Star Resources, Ltd. Message Board

liambert 4 posts  |  Last Activity: Mar 15, 2014 10:11 AM Member since: Jan 28, 2005
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  • Gold has increased $200 since the start of the quarter. What does this mean to GSS ? In a word - everything.

    $60,000,000 per year in additional cash flow for doing the exact same thing they would have done. At $950 costs they can drive 100-120 million in operating cash flow at these gold prices. Current market cap is all of 200 million so GSS now trading for about 2X cash flow.

    When (not if) gold gets back to 1600 they will be driving close to 200 M in cash flow.

    I believe GSS should trade at 5-7X cash flow eventually.

  • liambert by liambert Feb 21, 2014 8:30 AM Flag

    Very solid conf. call. Lots of hints and indications of much lower costs going forward. 2015 will be even lower costs than 2014. Father Brown pushback is delayed, but sounds more like they are just playing hardball with the contractor to get price concessions. If they move forward with pushback (at lower costs) it would result in more gold late this year or next than current guidance. Wassa underground can be in production in mid-2016 via decline and basically replace Father brown, but be co-located so no haulage costs. Sounds like they also have more opportunity to lower costs than guidance even suggests. New Wassa main pit costs can go down 30%, but are only factoring in about half that in guidance. New focus is not on total production anymore but on lower cost ounces. Current 2015 guidence is lower ounces than this year but at even lower cash costs. That is very hard to do with a fixed infrastructure. They are Steadily reducing Ghana workforce going forward as well....GSS has really changed in one respect - they are a much better operating company now with the new CEO than they ever were before. Go gold price....

  • liambert by liambert Feb 20, 2014 8:54 AM Flag

    Company has always said Q4 was going to be tough as Bogoso was basically running on low-grade stockpile ore while the pushbacks finished. It was. Now they are heading toward higher-grade ore with less stripping and costs will be way down for the next couple of years. So good quarters ahead for a couple of years. Q1 sounds like a transition quarter, better than Q4 but not as good as the rest of the year. Could this company be more levered to the price of gold ? They are investing minimally in the next generation of pits until they get a better picture of the gold price. It is frustrating they are still doing more P South work for EPA, I think they were hoping to get the permit sooner.

    Wassa underground looks very interesting - basically a much larger (660K so far ), closer, underground version of the father brown pit to augment the main "superpit" that has now been created at Wassa.

    Lets see, gold is up $130 since December lows, that is 39 million in extra cash to GSS in 2014 if it holds for the year. Every $100 is another 30 million to spend on the next generation of pits, developing Prestea underground and now defining and eventually developing Wassa underground. If you believe in higher gold - GSS will thrive.They now have all the projects lined up.

  • liambert liambert Feb 18, 2014 10:01 AM Flag

    EXK is the silver standard for juniors silver companies.

    GSS is an excellent bet at these prices if you think Gold will go back over 1400 - 1500 and stay there. I do.

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