- Golden Star Resources released its Q2 results last week, reporting quarterly gold production of ~37,900 ounces, a 15% decline from the year-ago period.
- Given the lower gold output and sales, all-in sustaining costs spiked to $1,182/oz in the period, an increase of more than 20% year-over-year.
- While the cut guidance and early challenges with paste fill are not ideal, Golden Star is now trading at 0.9x NPV (5%) on a mine plan that includes solely reserves.
- Given Golden Star's undervaluation, I would view the stock as a Speculative Buy below $2.45 from a trading standpoint.
For further details see:
Golden Star Resources: Valuation Becoming Attractive After The Drop