- Golden Star Resources is one of the worst-performing gold stocks this year, up just 2% year-to-date.
- However, the company is in the midst of a turnaround after divesting its high-cost Prestea asset, allowing Golden Star to enjoy costs below the industry average going forward.
- While single-asset Tier-3 jurisdiction miners carry higher risk, Golden Star is now sitting at just 6x forward earnings, and further weakness would make the stock interesting as a speculative bet.
- For now, I don't see enough margin of safety baked in, but I would view any dips below $3.40 as speculative buying opportunities.
For further details see:
Golden Star Resources: Valuation Improving After The Drop