GSS - Sector: Basic Materials---Industry: Gold & Silver

[usedcasting]

Some news and some insider buying.

uc.

Market Report -- In Play (GSS)
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    GOLDEN STAR RESOURCES LTD(GSS) Quote, Chart, News
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Golden Star resources reports on the power situation in Ghana and impact on its operating and development activities Co provided the following update on the status of its operating activities in Ghana. There has been no change to the power situation in Ghana to that reported in the co's press release of August 29, 2006, and the wholesale power supplier in Ghana, the Volta River Authority, does not expect to make any announcements on the availability of power until after Sept 30, 2006. The co is currently curtailing its power consumption to conform to the power rationing requirements of the Volta River Authority. This has been achieved by operating the Wassa processing facility on reduced capacity (8,000 tonnes per day instead of 11,000 tonnes per day), curtailing services for the Prestea Underground mine, which has slowed the rate of exploration, and operating some of the co's standby diesel generating capacity. In August 2006, the co hosted a visit by the Regional Minister, review the degree and impact of illegal mining on the Bogoso/Prestea property. In particular, the co pointed out the impact that illegal mining was having on the Bondaye shaft, a subsidiary shaft currently used as a second means of egress to the Prestea Underground. In the short to medium term, the co plans to use the Bondaye shaft for limited scale, trial underground mining and therefore impressed upon the Regional Minister the urgent need for Government to stop illegal mining in the area to (i) ensure that the integrity of the shaft was not compromised by illegal mining activities, and (ii) to enable trial underground mining to commence.

[setravis]

A favorite long term gold stock, Pulled back.......
A 50% Fib retrace,This could explode to the upside.
Charts look very interesting.
Nothing like a little fear to scare up some cheaper shares

Technicals
Most Actives
Percentage Gainer

Last Price Quote is:
-4.80%below 13-day MA
-7.11%below 50-day MA
RS Rating: 61 

Fundamentals
Key Data:
Market Cap (M): $377.73 
P/E Ratio: NA 
PEG Ratio: 4.45 
Next Earnings: 08/08/2007
Last Analyst Rating: Market Perform

Below...6 Month and 2 Year charts.......

[Michael]

A favorite long term gold stock, Pulled back.......

It is amazing how a 1 year old comment still can be valid in this volatile market 

GSS is indeed an old favorite gold stock and a gold stock which very soon will turn a sharp corner and produce profits. In fact the forecast for PE in 2009 is 8.19 that seems pretty cheap.

I used the selloff in gold yesterday to buy some GSS (and ABX). Long-term I see the world going into an inflationary period and is therefore very bullish on gold.

[Michael]

It is a brutal sell off today but it seems like some of the money is floating into gold

[jorgegr]

A favorite long term gold stock, Pulled back.......

It is amazing how a 1 year old comment still can be valid in this volatile market 

GSS is indeed an old favorite gold stock and a gold stock which very soon will turn a sharp corner and produce profits. In fact the forecast for PE in 2009 is 8.19 that seems pretty cheap.

I used the selloff in gold yesterday to buy some GSS (and ABX). Long-term I see the world going into an inflationary period and is therefore very bullish on gold.

How do you say "I'm very happy to own GSS"  in Maputo . Suppose you are still in this one
THX for suggesting it. I'm in.

[setravis]

Gold is complete in pullback.......
GSS selling at less than 10X 2009 estimates. 
Completing a "Jenifer Lopez" rounded bottom  and testing 200 day moving average.


Volume: 2,451,550
Avg Vol (3m): 2,974,050

Technicals
Most Actives
Stochastic - Bearish
Percentage Gainer

Last Price Quote is:
9.09%above 13-day MA
6.22%above 50-day MA
RS Rating: 29 

Fundamentals
Key Data:
Market Cap (M): $377.73 
P/E Ratio: NA 
PEG Ratio: 1.64 
Next Earnings: 08/05/2008
Last Analyst Rating: Hold

[Michael]

How do you say "I'm very happy to own GSS"  in Maputo . Suppose you are still in this one
THX for suggesting it. I'm in.

Well well well it seems we all celebrated a bit too early 

The 100 % increase in the electricity price in Ghana is not the news you would like to hear when you are invested in a Gold mining company in Ghana. GSS predicts that this new power rate will translate into an increase of $60 to $85 per ounce based on forecasted production. But the reaction in the market seems to be out of proportion with the actual impact of this increase.

First of all the price increase is in local currency. It might be hard to imagine there are currencies that are weaker than the Dollar (and I am not referring to the Zim Dollar here!) but the Ghanaian currency has lost 12.6% of its value against the USD during the last 3 month so the price of electricity measured in USD has fallen quite significantly and will most likely continue to fall in the future.

And then there is the other part of the equation – the gold price. The increase in electricity price caused a drop in GSS's stock price from 3.48 to 2.64. Last time GSS traded at 2.64 was in October 2006 at that time gold traded at around 600 compared to 930. That puts a 85 USD per ounce into perspective.

Now that doesn't stop some analysts to make gloomy predictions:

The news forced Blackmont Capital analyst Richard Gray to downgrade Golden Star from "hold" to "sell." He cut his price target by $1 to $2.75.

"While the company believes these power costs should be closer to the $0.14/kWh level, we believe the decision to increase the costs is a significant blow to the company's ability to survive," the analyst said in a note.

He expects cash cost to rise above US$600 per ounce, causing margins to become "dangerously slim."

"the costs is a significant blow to the company's ability to survive" – hmmm that is a bit difficult to take serious. In the first quarter of 2007 GSS production cost per ounce were 535 USD and the gold price was 650 USD giving them a margin of 115 USD. Today their margin is 330 USD after the price increase. Assuming that Mr. Richard Gray had a neutral rating one year ago you can only wonder why he is afraid of the survival of the company after the margin has increased almost 300%.

Red Back Mining which is a Canadian Mining company that also has their main operation in Ghana had a much more relaxed reaction to the rate increased. The stock fell back with 2.27% and is up on the week.

It is against my principles to double down but I am really tempted to do just that when the market opens on Monday. I think 2.64 is an absolute steal for GSS.

Finaly the charts of GSS, Gold and Red Back. Make your own conclusions!

[la-onda]

from IV board:

GSS Post Slaughter Analysis
I was certainly not expecting the type of reaction we saw in GSS for a $75 per ounce increase in costs from the Ghana power grid.  The response in the stock was grossly disproportionate to what was said in the press release and was probably short selled the maximum to blow through stops causing panic.  A 23% fall on a strong HUI gold day would only be justified if they told the market the Biox plant was shut down for a few months or serious operational problems existed at Wassa.  You can readily see the gross over-reaction in these charts:

Short Term,
http://stockcharts.com/h-sc/ui?s=GSS&p=D&yr=0&mn=6&dy=0&id=p47150644858&a=114277439&listNum=3

Medium Term,
http://stockcharts.com/h-sc/ui?s=GSS&p=W&yr=2&mn=0&dy=0&id=p56507682201&a=129098525&listNum=3

Long Term,
http://stockcharts.com/h-sc/ui?s=GSS&p=M&yr=9&mn=0&dy=0&id=p06312542115&a=130584631&listNum=3

Irregardless of what I think is a gross over-reaction, GSS will likely fall further in the next couple of days to find a new bottom.  The stock may not see $3 until there is some positive operational news from the Company.  Hopefully, there are a number of institutional investors screaming for heads to roll and GSS managment will give the market a bone in terms of Q2 production.  I do believe they will come out sometime within the next two weeks with some numbers.

I had invested in GSS back in 2003/2004 evenutally getting completely out in 2005 after management repeated failure of missing guidance.  I re-recommended it February 2007 as I had thought their operational difficulties were behind them.  Incremental improvement has been forthcoming but their poor communication skills with the market has continued to plague them.  For instance, they could have come out with a PR well before the Q1 results were posted to tell the market of the Biox problem instead of just dropping the bombshell on the market in their Q1 earnings release.

Okay, what to do now and going forward?  I continue to hold my core position so long as I believe they are genuinely working their business plan.  Golden Star is going to continue to be a poor communicator to the market until some heads roll.  Despite this fact and the devastating effect it can have on the market as illustrated yesterday, I continue to think GSS has a bright future.  I have always believed that GSS will do well inspite of their management.  Earnings and cash flow in the end, usually trump management miscues.  Of course, this is qualified if managment is crooked.  Stepping back a little, here's what I see as very powerful drivers for GSS stock to move up in the quarters to come.

   1) Biox almost working at full capacity with recoveries improving.  Recoveries are expected to continue to improve as they the ore moves from transitional to pure refractory (sulfide) ore.

   2) The new road to Benso high grade ore is on schedule.  What makes this a big plus going forward is that Wassa is a cash flow and earnings positive mine with gold grades in the 1.0 to 1.5 gram per ton range.  Benso ore grades are much higher than this at over 3.5 grams/ton.  Simply bringing in this ore and blending with the Wassa material will result in much higher gold production.  Positive cash flow will begin to hit the bottom line at the end of Q3.

   3) Enormously postive gold fundamentals and seasonal strength just around the corner.  I think the Feds have lost a huge amout of credibility and will lose their grip on gold going forward.  Since GSS is a high cost producer, each $100 move up in gold price is highly leveraged to earnings growth.

   4) Market capitalization is several times lower than their peer group.  Yes, they have had many management/guidance blunders in the past but this IMO does not justify the severe penalty the stock is trading relative to the price of gold and its peers.

Personally, I am going to treat any GSS stock price move under $2.50 as a gift from heaven and load the boat where I can.  Unfortunately, the broken technical nature of the share price will likely not result in any strong upward movement in GSS until Q2 is reported.  My feeling is if they report similar numbers to Q1, I will likely reduce my position to a tiny fraction of what it is now.  This stock is a long term hold/work in progress.  I figure it is going to take 2 - 3 positive, no excuses quarters in a row to finally flush out the large funds playing the stock from the short side and to convince investors things have changed.

[setravis]

Golden Star Reports Record Quarterly Gold Sales of 96,971 Ounces
On Wednesday May 6, 2009, 7:47 pm EDT

DENVER--(BUSINESS WIRE)--Golden Star Resources Ltd. (NYSE Amex: GSS) (TSX: GSC - News) (GSE: GSR) today announced its unaudited first quarter 2009 results which include record quarterly gold sales. All currency in this news release is expressed in U.S. dollars, unless otherwise noted. The Company will host a live webcast and conference call to discuss its quarterly results on Thursday, May 7, 2009 at 11:00 a.m. ET. To access the webcast and conference call, go to the home page of the Company's website, www.gsr.com.

Tom Mair, President and CEO, said, "Wassa turned in an excellent quarter producing over 56,000 ounces at a cash cost of less than $400 per ounce. This demonstrates the results of a full quarter of HBB high grade ore deliveries to the Wassa plant. At Bogoso we continue to see progress but power quality issues remain. We are on track to meet our 2009 guidance of 400,000 ounces at an average cash cost of $550 per ounce."

FIRST QUARTER 2009 RESULTS AND HIGHLIGHTS


•Record quarterly gold sales of 96,971 ounces for the first quarter of 2009, a 13% increase over fourth quarter 2008 and a 69% increase over the first quarter of 2008;
•Gold revenues for the quarter of $87.6 million representing an increase of 26% over fourth quarter 2008 revenues of $69.6 million and an increase of 65% over first quarter of 2008;
•Net loss of $1.1 million or $0.005 per share compared to a loss of $86.8 million for the fourth quarter of 2008;
•Operating cash flow of $11.1 million for the first quarter of 2009, or $0.047 per share;
•Operating cash flow before working capital charges of $19.8 million for the first quarter of 2009, or $0.847 per share;
•Quarter-end cash balance of $28.1 million; and
•Realized gold price for the first quarter averaged $904 per ounce compared to $808 in the fourth quarter of 2008, an increase of 12%;

[setravis]

GSS is the top performing gold mining stock today on kitco...
http://www.kitco.com/stocks/companyname_asc.html
GSS has one of the best charts of all gold miners.

Cup with Handle (Continuation) Pattern
Looking at the 1 year chart...


10-year gold trend...

[setravis]

Stocks Hitting High Notes...
When a stock hits a fresh high, it can mean that it's on its way to greatness -- or that it has run its course. Even with the risk of the latter, searching for these outperformers can reveal companies that are doing something right, much to their investors' delight.


52wk Range: 0.40 - 2.94
Volume: 7,392,208
Avg Vol (3m): 2,551,780

Technicals
Record Price High
Most Actives
Percentage Gainer

Last Price Quote is:
17.00%above 13-day MA
27.64%above 50-day MA
RS Rating: 83 

Fundamentals
Key Data:
Market Cap (M): $377.73 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 11/10/2009
Last Analyst Rating: Hold

[setravis]

Gold Stock Strategist Newsletter Launched by Self Directed Investor, Inc.
Press Release
Source: Self Directed Investor, Inc.
On Wednesday September 2, 2009, 3:09 pm EDT

LOCUST VALLEY, N.Y., Sept. 2 /PRNewswire/ -- Self Directed Investor, Inc., a financial media company, today announced the launch of a new investment publication focusing on gold mining stocks, The Gold Stock Strategist edited by Scott Nystrom, Ph.D. The Gold Stock Strategist newsletter will be a monthly newsletter that provides subscribers with detailed comparative resource information and production forecasts. Recommendations based on best available information are also provided for subscribers.

Dr. Nystrom stated, "Gold is in the middle stages of a long-run bull market. The U.S. and other industrialized nations are in the throes of an unsustainable debt bubble. Historically, gold is the major beneficiary as government planners look to artificially boost demand with inflationary fiscal and monetary policies. The outcome of this script is predictable. The price of gold will trend higher and gold producing stocks will enjoy outsized returns."

Companies covered by the Gold Stock Strategist include Agnico-Eagle, Anglogold Ashanti, Barrick Gold Corp. (NYSE: ABX, Toronto: ABX.TO), Buenaventura, Eldorado Gold, Gold Fields Ltd, Goldcorp, Harmony Gold, IAMGOLD (NYSE: IAG, Toronto: IMG.TO), Kinross Gold, Lihir Gold (Nasdaq: LIHR, Toronto: LGG.TO), Newmont Mining (NYSE: NEM, Toronto: NMC.TO), Randgold, Yamana Gold, Allied Nevada (Amex: ANV, Toronto: ANV.TO), Aurizon, Capital Gold (OTC Bulletin Board: CGLD, Toronto: CGC.TO), Castle Gold, Gammon Gold, Gold-Ore Resources (Pink Sheets: GREXF, CDNX: GOZ.V), Golden Star Resources (Amex: GSS, Toronto: GSC.TO), Great Basin Gold, Hawthorne Gold (Pink Sheets: HWTHF, CDNX: HGC.V), Jaguar Mining, Metanor Resources (Pink Sheets: MEAOF, CDNX: MTO.V), Minefinders, New Gold (Amex: NGD, Toronto: NGD.TO), Northgate, NovaGold, Osisko Mines, Richmont Mines, San Gold (Pink Sheets: SGRCF, CDNX: SGR.V), Santa Fe Gold and others.

Visitors can receive a FREE primer on gold stock investing, "Gold Stocks 101: Understanding the World of Gold Mining Stocks and Why Now is the Time to Own Them. . .," which explains the economics of gold mining stock investing and analyzes drivers in gold prices. This FREE report can be accessed at http://www.selfdirectedinvestor.com/newsletters/.

About Self Directed Investor, Inc.

Self Directed Investor is a financial media company, using audio, video and featured articles to empower investors through ideas and education at: http://www.selfdirectedinvestor.com. The mission of the Self Directed Investor is to provide original analysis, commentary, and educational material to help inform personal investment strategies. Topics covered at SelfDirectedInvestor.com include: options trading, trading equities, FOREX trading, gold mining stocks, energy markets, ETFs, the economy, income and dividend investing. Dr. Nystrom, President and Editor of the Self Directed Investor, is also a Seeking Alpha certified columnist, a frequent contributor to Forbes, member of exclusive stock picking community, Value Forum, and a writer for Market News Video.

[setravis]

How about a...
Inverted Head and Shoulders bottom on the 3 year chart.

[hectorgr]

Hey,
Been in and out of this one for some time with good profits. Latest T/A looks great .

[hectorgr]

Beware about this event:

DENVER, COLORADO--(Marketwire - 02/05/10) - Golden Star Resources Ltd. (TSX:GSC - News)(AMEX:GSS - News)(GSE: GSR) will release its fourth quarter and 2009 results after the market close on Wednesday, February 24, 2010 and has scheduled a conference call and webcast on Thursday, February 25 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time). The conference call will allow analysts the opportunity to speak with the Company's management.