- Golden Star Resources cut its FY2021 guidance this week, revising production guidance to ~150,000 ounces at all-in sustaining costs of $1,200/oz.
- This represented a more than 10% cut to guidance and a sharp increase in unit costs, with costs now expected to come in well above the industry average.
- While this is certainly a negative development, Golden Star remains very reasonably valued, trading at less than 6x FY2022 earnings estimates of $0.54.
- I continue to see Golden Star as a Speculative Buy below $2.95, however, I do believe there are better ways to play the sector.
For further details see:
Golden Star Resources: Weakness On Guidance Cut Provides Attractive Entry Point