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Golden Star Resources Ltd. (GSS)

NYSE American - NYSE American Delayed Price. Currency in USD
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3.4500+0.1100 (+3.29%)
At close: 4:00PM EDT
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  • G
    Gold
    DO YOU THINK AABB Asia Broadband GOLD/ Silver Mining AND GOLD-backed Cryptocurrency Token / Wallet

    co STRATEGY OF STORING GOLD a GREAT Investment LIKE GSS....GOLD STAR Resources...??
    Bullish
  • L
    Liambert
    What is GSS worth ? Today we get an interesting look for the first time in a long time. Roxgold just got bought out for 884 Million today. Roxgold is very similar to GSS, yet inferior in almost every way. They have a mine in Burkino Faso that produces 130K ounces a year and a development project in the Ivory Coast that needs to be developed but has the potential to produce another 130K ounces a year. These mines have about 1.5 M ounces in reserve each.

    Cash costs are slightly better than GSS but these mines are in much more dangerous West African countries than Ghana. The mines themselves are also not that interesting as they are smallish with modest reserves. Lets say they are nice satellite money making mines but not company corner stone mines like Wassa with its 1.1 B NPV and 11 M ounce endowment.

    I see GSS moving steadily higher in price for a long time at current gold prices and with comparisons like this to help provide reference points.
  • W
    WILLIAMB
    Liambert, once again thank you for your seasoned, reasoned, logic. Facts and details, nice. It is inevitable, we thank God for Wassa!! God bless, Bill.
    Bullish
  • W
    Woody
    Wow, huge volume and gains! Watsup, GSS? Almost every other miner is down today.
    Bullish
  • G
    Gary GNU
    Why is this a screaming buy and all I hear is crickets here? What am I missing?
  • L
    Liambert
    They released two reports in one.

    The first is for a 6 yr mine life based on current reserves (2021 - 2026). They moved the open pit into underground reserves. This lowered grade and reduced total ounces of reserve, but increased underground ounces and serves as a excellent cash generating bridge into the second report.

    The Second is the PEA which is essentially just extending the Life of Mine 11 years (2026 - 2037) after the initial 6 years from the reserves report.. This increasing annual production to 300K ounces a year. Access is via extending the current ramps.

    Folding the two parts together is extremely well done and well planned. No huge capital outlays to build a shaft, just an extension of the ramps. The two pieces are meant to fit together and there is plenty of gold to mine while they build toward ramping up the lower mine. Very conservative numbers used in analysis including gold price and only converting 60% of resources. Lots of upside with additional exploration at Wassa like they just reported last week.

    Here are two crazy numbers for a stock with a 350 M Market Cap....
    $1.1 Billion NPV (combined)
    11 Million ounces of gold across reserves and resources.
  • D
    Don
    I follow the trades on golden star here in Canada and it seems CIBC is the only seller and buyer of this stock day after day year after year.could this be the short seller or could it be day traders..just curious because I've noticed it with other gold miners as well.
  • N
    Nicholas
    PEA is out, 98% increase in proven reserves... After tax IRR of 53% at a projected gold price of $1585 per ounce... NPV of $783M... Looks like "fill the mill" will finally be a reality by the end of the year (my guess, need to hear from management on timing).
    Bullish
  • D
    Don
    This company is now in much better shape than what it was back in 2011 when the price of its stock was much higher....if Sam was still ceo they d still be pushing the greatness of prestea.
  • R
    Rob
    IMO now that they are positive they to dangle a goal of some kind of Dividend.
  • N
    Nicholas
    I liked how the CEO closed the call, "as we go through this year with the settlement of the August 2021 debiture, we set ourselves up on a much more stable footing... As we go through the year there are going to be a number of catalysts, and that starts Monday with the PEA we're going to be putting out..."
    Bullish
  • m
    mike
    Bored to tears with this stock!! Somebody give me a reason to stay in.
  • 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
    Great to see cash up by 14% and debt down by 16%, all despite the cash burned by Prestea... Great to have that monkey off the back for 2021, if gold holds up, it's hard not to see continued improvement in the balance sheet...
  • 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
  • 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....??
  • 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.