Boston, MA 03/07/2014 (wallstreetpr) – Golden Star Resources Ltd. (USA) (NYSEMKT:GSS)’s stock has shown an upward movement lately. Analysts are looking for the reasons as there is substantial forward movement in either the company or the segment.
The negatives:
Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) is an international gold miner and owns two gold mines in Ghana, Africa. It also conducts gold explorations in West Africa and South America. Prices of gold have reduced dramatically in 2013 from their historic highs. Gold, once a safe haven investment during uncertain economic and political instability periods, has lost its luster. Gold sales are down and combined with lower prices, this has lead to a decline in revenues. Golden Star has not been spared, its revenues declined to $467.8 million for the full year 2013 from $550.5 million for the full year 2012. Volumes have been hit as well; the company sold 330,806 ounces of gold in 2013 as compared to 331,278 ounces in 2012. The cash operating cost increased slightly to $1,049 per ounce against $1,044 per ounce in 2012. The net loss attributable to shareholders increased to $265.9 million against $7.2 million in 2012. As a result, the company had consolidated cash balance of $65.6 million at the end of December, 2013.
The positives:
All is not lost as Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) has made some changes to its operations in 203. These will yield results in 2014 and 2015. It is planning to acquire more mines in Ghana and West Africa. Though the gold rates and demand is low, it is not expected to last. The company expects that demand will pick up from China and Japan. It has about 4.31 million ounces of proven and probable reserves of gold and it is seeking to improve on this. It is also keen to develop gold exploration projects in Brazil and other parts of South America. The recent operational improvements as well as processing operations are expected to increase synergies in its operations as the mines are roughly 35 miles from each other.
It remains to be seen if Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) is able to monetize all its efficiencies and reduce losses in 2014.
