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Golden Star Resources Ltd. (GSS)

NYSE American - Nasdaq Real Time Price. Currency in USD
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3.9000+0.0100 (+0.26%)
As of 05:00PM EDT. Market open.
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  • t
    thomas
    Yahoo! has been so bad lately - especially the GSS board. I like using (http://Themaxgains.tech) now instead for my daily research.
  • C
    Crass
    Are you guys still in GSS? They just got featured on the watchlist at (http://market-engross.club)
  • V
    Vladimir Spina
    "Father Brown Satellite Deposit.... The Company expects to release further drilling results in the second quarter of 2019."
    We should see some news over the next 10 days??

    The shares may not do much till the company addresses in detail the Prestea mining issues as difficult as they may be and specifies the recovery steps. An update for Q2 Prestea production profile would be a good start. As I said before, I hope that the Alimak instead of std. cut/fill mining method is not the main problem there as a lot has been invested into that approach. ABX encountered issues with that very same mining method in Indonesia as tight space working conditions requiring highly experienced miners led to all kinds of problems.

    I have been hoping for the new CEO to be more forthcoming and communicative. maybe, he wants to have all the ducks lined up before he puts the news out what the corrective steps will be? The market hates uncertainty the most.

    With gold knocking on the all important resistance of around $1350-$1375, I feel that gold will finally climb over this resistance and likely scale the 2011 peak given some time. Global Financial and geo-political situation should be more than supportive for the move.

    I still believe GSS is very undervalued at this price level and trust the Prestea issues will be resolved causing a re price of GSS rather fast.
  • P
    Peter
    Well, here is some great news. COO Daniel Owiredu just bought 28,160 shares on the open market on Friday at $4.19/share. I guess that means Prestea is doing o.k. if he's willing to risk almost $120k of his own money. I found the info on the Canadian Insider site (check under symbol GSC).
  • N
    Nicholas
    Interesting time to be a long time shareholder. I am tempted to sell some at the 52 week high having watched my portfolio realize "paper" gains like this a couple times before. However, having held as long as I have, I admit that I am "greedy" for more... La Mancha now has their guys in place, I am going to let it play out over the next 6-12 months to see what results they can bring - if the stock follows the pattern that Evolution Mining and Endeavour Mining followed (see their charts 12 months after La Mancha bought them) GSS would be 2-3X where it is today. FWIW Van Eck's GDXJ continues to sell to keep their position in GSS below 0.5% of their total fund. This has meant going from more than 4.7M shares to begin the year to just over 4M as of yesterday (4,056,268 to be exact). I will also post the updated short information once it becomes published, as I see it, another round of short covering would take place if/when the stock price closes above $5, Prestea issues become better defined / settled, and/or earnings growth materializes in a meaningful way.... as I see it, the only hope for shorts would be either a prolonged slump in gold (back under 1200) or a Prestea disaster (mine closing). Gold above 1200 means positive earnings; and the future financials will have the roll-off of the outstanding warrants as well as the reduction in royalty payments to Royal Gold to add additional positivity to our numbers. Future looks bright! GLTA
  • P
    Peter
    I found this on another bot site after doing a Google News search on GSS. Could the numbers be right? This analyst is predicting $.70/share EPS this year and $.97/share EPS in 2020! Is anyone able to get the actual report from Desjardins to confirm? If you assign a reasonable P/E to those numbers, what should the share price be?

    "Golden Star Resources Ltd. (TSE:GSC) (NYSE:GSS) – Investment analysts at Desjardins dropped their Q3 2019 earnings per share (EPS) estimates for shares of Golden Star Resources in a report issued on Tuesday, January 8th. Desjardins analyst R. Ray now expects that the company will post earnings of $0.17 per share for the quarter, down from their prior forecast of $0.19. Desjardins also issued estimates for Golden Star Resources’ Q4 2019 earnings at $0.20 EPS, FY2019 earnings at $0.70 EPS, Q2 2020 earnings at $0.25 EPS, Q3 2020 earnings at $0.23 EPS, Q4 2020 earnings at $0.25 EPS and FY2020 earnings at $0.97 EPS."
  • N
    Nicholas
    Some updated data points - short interest (as reported close 12/31/2018) increased to 3,491,700, up to 4.6% of outstanding. Days to cover decreased markedly from 12+ to 4.5 days on the back of strong volume (avg. 771K shares / day, way up from previous reporting period ending 12/14/2018).

    On the Van Eck (GDXJ) front some minor selling so far this year. As of yesterday's close (1/11/2019) share count was 4,741,520. GLTA
  • L
    Liambert
    Report was very solid. Preastea effectively broke even already. Wassa was still working through the lower grade section as expected, but they significantly increased mining rates to offset grade. Keep in mind that GSS just reported 6 cents in earnings (adjusted) with Wassa pulling out 2.8 gm/tn and Prestea pulling out 5 gm/ton. That is an amazing accomplishment. LOM grade is 4 gm/tn and 13 gm/tn respectively or 42% and 62% higher. Do nothing different, but just pull the average grade out of the mines and revenue and PROFIT would both directly increase by at least 25 million or another 20+ cents a share. Meanwhile stock trades at a PE of under 13 based on the 6 cent number x 4 quarters.

    One interesting negative - Father Brown did not make the cut yet to go to fasability study. That is interesting given all the high grade resources it has. The resources must be located too far apart to mine effectively underground. Also, somebody is building a power plant on site at Wassa for GSS which will result in lower electric costs for GSS going forward.
  • P
    Peter
    Just saw this. This is interesting given all of the issues with Prestea that were discussed on the call.

    Golden Star Resources Ltd. (TSE:GSC) (NYSE:GSS) – Stock analysts at Clarus Securities boosted their FY2020 earnings per share (EPS) estimates for Golden Star Resources in a research report issued to clients and investors on Thursday, May 2nd. Clarus Securities analyst N. Sangmuah now forecasts that the company will earn $0.98 per share for the year, up from their prior forecast of $0.95.
  • L
    Liambert
    Well now that is interesting news. Sam did a great job in some areas, and was a very earnest individual. He was a hard core miner and not a smooth CEO type which was appreciated to some extent, but also a weakness in some ways. For example, It was very hard not to like his enthusiasm, but he was also not a very good presenter. He did a great job with Wassa, but has not delivered on Prestea. I like the willingness to make a change here. I think Andrew will align more with people's expectations of a CEO having heard him on the call when La Mancha invested. While Sam was a good fit for the turn around phase of GSS over the last few years, I suspect Andrew is a better choice for the future. It didn't hurt that he had two votes from the board in his pocket (including himself) from the La Mancha investment.
  • L
    Liambert
    Based on GSSs published 2019 cost expectations, I now expect GSS to be free cash flow positive by a few million this year (2019) even after investing 31 million in Wassa expansion and exploration drilling and 22 Million in Debt reduction. They would exit 2019 owing 80M.

    Operating profit after AISC deduction should be about 64 M at 1300 gold and guidance mid-points. Expenditures outside AISC would total about 60 M including 31 M in expansion and drilling (2019 guidance press release), 9 M in financing costs (estimate), and 22 M in debt reduction (slide preso).

    64 M - 62M is 2 M in free cash flow.

    Very impressive if the can expand Wassa, pay off debt, and still be slightly free cash flow positive for 2019. It says a lot about the overall operations if they accomplish their goals for 2019 and still add to the La Mancha cash pile instead of dipping into it. That being said, I expect they will have spent a big chunk of La Mancha cash in Q4 2018 buying out workers (9 M) and paying off debt (10 M).

    2020 would be even more impressive on the operating profit after ASIC side. I have an estimate of about 87 M in operating profit after AISC for 2020 at 1300 gold as compared to 64 M for 2019 based on producing 280,000 ounces. Of course, we don't know what they will spend in expansion dollars in 2020 but hopefully it is on Father Brown.
  • P
    Peter
    Another institutional analyst estimate from a bot site. The 2018 revision suggests that the Q4 number is going to be pretty bad. I'm guessing because of the lower production and the Prestea "right-sizing" costs. Will the market focus on that or the future? Check out the EPS prediction for FY 2020.

    "Golden Star Resources Ltd. (TSE:GSC) (NYSE:GSS) – Equities researchers at Clarus Securities dropped their FY2018 earnings per share estimates for Golden Star Resources in a research report issued to clients and investors on Thursday, January 17th. Clarus Securities analyst N. Sangmuah now forecasts that the company will earn ($0.17) per share for the year, down from their prior estimate of $0.21. Clarus Securities also issued estimates for Golden Star Resources’ FY2020 earnings at $0.95 EPS."
  • L
    Liambert
    Recent Reserves and resource report put R&R at 12.6 M ounces versus 11.5 Million ounces last year. GSS now has a market cap of $157 per Reserve ounce, $60 per M&I Ounce, $33 per Resource ounce and $21 per all ounces. For the many gold companies I own, I like to compare the Reserve ounce number ($157) of a company to its operating Margin as measured on a per ounce basis. This metric removes the absolute aspect of their costs - weather a high cost or low cost producer. For GSS, the operating margin/oz at 1650 gold is $470 if you use the high range for AISC guidance.

    So in GSS's case Market cap per reserved ounce is 33% of the annual operating Margin/Oz.
  • A
    Amherstslim
    I have no problems envisioning this stock trading above 10 dollars a share in 12 months time. I think gold is on a breakout of substantial proportions and reserves growth as well as cost control could give this stock a moonshot projectory. Probably opening myself to criticism from some posters but so be it. I feel strongly on management’s capability as well as production capacity with a great land package to explore. We will see if I am right about this soon enough
  • L
    Liambert
    This is nothing that is going to move the stock in the near term, but the change in the balance sheet is amazing. At the start of 2020 they owed 88 M in accounts payable and 68 Million in rehabilitation. Now they have 39 M in accounts payable and just 18 M in rehabilitation. That is a 100 M reduction in liabilities in just 9 months. That is a $1 a share. Getting rid Prestea did wonders for the balance sheet - there was a lot of baggage there.

    Also, the class action lawsuit that saw about 5 different law firms post press releases on GSS Yahoo feed was dismissed by the plantiff. Complete waste of everybody's time. The law firms should have to pay restitution to the current shareholders for all the negative press.

    The 50 M ATM is good for a year, and is intended to be used if they find some interesting drill results around Wassa and want to start development. We shall see. It is my experience ATMs get exercised, execs usually just can't resist the money.

    Earnings of 16 cents should have sent this stock up today, but apparently the ATM news seemed to be a bigger anchor than the earnings are positive.

    Q4 is going to be massive for cash flow as they are reducing capital spend in the quarter and improving grade...and of course no Money Pit of Prestea to fund.

    Execs continue to be very transparent on calls, they are doing an exceptional job. I think they are doing a little too much financial engineering at this point for a small company with the collar hedges and the ATM, but it is hard not to give them the benefit of the doubt at this point with massive improvements in the balance sheet, the clearing of Money to pay off the convertibles next summer, and a plan to drill and develop on the Wassa property rapidly if they find more gold.

    Regarding the Collars/hedges. ~100 K ounces over the next 9 quarters which is about 25% of production at $2188 an ounce. I just can't seem to get mad about this. If these collars get exercised because gold is higher than $2188 then GSS will leave money on the table, but they will also make 120 Million in profit on 25% of their sales and have the other 75% exposed to the gold price. That is a serious amount of cash. FWIW, they left 2.5 M on the table for this quarter do to the collars the put in place previously to protect Prestea turnaround.
  • k
    kev
    I'm starting to get the feeling that we are going to be hearing about some kind of merger soon....Sam said he's leaving and holding on to his shares because he is "excited" about "the next stage of development for GSS going forward" ...for which he and the board believes Chris Wray is better suited to handle from here....so Chris gets permission / instructed to leave La Mancha....to head the next phase of development for the new bigger and better GSS....?? /..... Could we be about to hear something big about some kind of merger with....??? /....Endeavor Mining maybe...??....La Mancha also has a large stake in Endeavor, which is also located in Ghana, and is also reporting earnings May 1st with a conference call scheduled for May 2nd...."just like GSS"...hmmmm, i wonder if anything is up between these two companies...?? Why would La Mancha want to oversee two separate gold mining companies in the same geographic area when they could just as easily merge the two into one more streamlined operation...?? ....Just my thoughts and opinion of course, but it seems to make sense, consolidate, streamline, and save administrative costs and create an instant, very profitable one million ounce a year producer.... Endeavor has quite a few very profitable open pit operations....large proven reserves, and much more property to explore, this merger would catapult us into the big leagues, a one million ounce producer annually , all at under 900 AISC.....with large reserves, open pit and underground operations...excess plant mining capacity, and large areas of gold mining properties to further explore and add to reserves....and then just like that we are big and profitable new company. ....a solid future secured.... with LA Mancha as our piggy bank if needed....and of course then i am sure the majors would start drooling over this new powerhouse of a gold miner in Ghana....maybe a big takeover down the road, but in the meantime we are making big money mining the shiny stuff under 900.00 AISC, paying off the debt, buying back shares, and expanding our reserves.... maybe i am dreaming, but this could be a good fit and a great deal for us....anybody else been thinking about this possibility...?? Why would La Mancha invest in Ghana twice...?? Two different miners if they had not already researched the possibilities and synergies of the two companies combined...?? They must be merging, no hostile bids, an agreed upon merger of profitable equals, with Chris Wray at the helm....??
  • N
    Nicholas
    Full disclosure I am long, and this is a first reaction/quick read, that said I like the report. New management provides a lot of visibility on the average realized gold price with the streaming arrangement that we used to have to guess. We also see increased visibility on mined ore that demonstrate improved results. Downside is a decrease in recovery per ton. Wassa is (relatively) disappointing and Prestea is (relatively) encouraging. I remain long because I'm trusting in La Mancha's track record. Comments appreciated
  • P
    Peter
    Maybe some good news is starting to leak out. I don't know why they'd raise the target without knowing more about how things are going at Prestea.

    "Golden Star Resources (TSE:GSC) (NYSE:GSS) had its price target raised by investment analysts at National Bank Financial from C$5.00 to C$5.50 in a note issued to investors on Thursday, BayStreet.CA reports. The brokerage presently has a “sector perform” rating on the stock. National Bank Financial’s price target indicates a potential upside of 35.14% from the stock’s current price."
  • R
    Richard
    What has changed ?

    The world is full of small companies with modest-sized gold mines. They are interesting from an investor perspective, and maybe for a mid-sized gold company to consolidate, but they are not very interesting for a major gold company to purchase. Wassa is now in the early stages of being big enough to justify a 300K - 400K ounce mine with a 15+ year mine life. GSS was never on their radar before, and now they will be. That is what has changed and it should ultimately help drive the stock price.
  • A
    Amherstslim
    Golden Star has authorized the purchase of approximately 5% of its shares in the open market during the next year from time to time as the price permits. Looks like they agree with shareholders and some posters on this board. Has to be viewed as encouraging news
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