Golden Star Resources Ltd. (NYSEMKT:GSS) (TSE:GSC) has been downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday, October 19th.

According to Zacks, “GOLDEN STAR RES is an un-hedged gold producer they own the Wassa gold project in Ghana and control a number of gold exploration properties in West Africa. The Company is well funded and has strong, operational focused management experienced in West Africa. The Company has become a producing gold company by consolidating a long-lived production base at Bogoso/Prestea in Ghana. Going forward, the Company will continue to focus on growing its gold business. “

Several other brokerages have also recently commented on GSS. BidaskClub upgraded shares of Golden Star Resources from a “sell” rating to a “hold” rating in a research report on Monday, October 16th. Beacon Securities reiterated a “buy” rating on shares of Golden Star Resources in a research report on Wednesday, October 11th. Desjardins assumed coverage on shares of Golden Star Resources in a research report on Friday, September 29th. They set a “buy” rating for the company. ValuEngine upgraded shares of Golden Star Resources from a “hold” rating to a “buy” rating in a research report on Friday, October 6th. Finally, Scotiabank set a $1.00 price target on shares of Golden Star Resources and gave the stock a “sector perform” rating in a research report on Saturday, September 23rd. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Golden Star Resources currently has a consensus rating of “Buy” and a consensus target price of $1.15.

Shares of Golden Star Resources (GSS) opened at 0.7898 on Thursday. Golden Star Resources has a one year low of $0.59 and a one year high of $1.01. The company’s market capitalization is $297.11 million. The company’s 50-day moving average is $0.76 and its 200-day moving average is $0.71.

Golden Star Resources (NYSEMKT:GSS) (TSE:GSC) last issued its quarterly earnings results on Tuesday, August 1st. The mining company reported $0.02 EPS for the quarter. The business had revenue of $77.34 million for the quarter. Equities analysts predict that Golden Star Resources will post $0.08 earnings per share for the current year.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp grew its holdings in Golden Star Resources by 18.0% during the first quarter. Bank of New York Mellon Corp now owns 125,280 shares of the mining company’s stock valued at $106,000 after purchasing an additional 19,121 shares during the period. Zacks Investment Management acquired a new position in Golden Star Resources during the second quarter valued at approximately $123,000. Sigma Planning Corp boosted its holdings in shares of Golden Star Resources by 55.9% in the second quarter. Sigma Planning Corp now owns 213,951 shares of the mining company’s stock valued at $139,000 after buying an additional 76,683 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Golden Star Resources by 26.4% in the first quarter. Goldman Sachs Group Inc. now owns 279,960 shares of the mining company’s stock valued at $237,000 after buying an additional 58,510 shares during the period. Finally, JPMorgan Chase & Co. boosted its holdings in shares of Golden Star Resources by 35,747.9% in the second quarter. JPMorgan Chase & Co. now owns 382,139 shares of the mining company’s stock valued at $248,000 after buying an additional 381,073 shares during the period.

IN JULY THIS YEAR, LOCAL GRAPHIC.COM.GH REPORTED THAT Commercial gold production at the Prestea Underground Mine (PUM) WAs set to resume in October, thAT WILL bring into reality a revival process that started in 2002 by the Ghana subsidiary of Canada-based miner, Golden Star Resources Limited.This follows the successful completion of rehabilitation works at the century-old mine that included the replacement of an 82-year old shaft and a planned first blast by close of Q3 is on course.

In what could represent the strongest assurance yet from Golden Star Resources, the company’s global Vice President, Investor Relations and Corporate Affairs, Katharine Sutton, said that “we are virtually on the verge of production.”Once production starts, the mine will be expected to produce 90,000 ounces of gold every year for an average of 5.5 years.But for the heavy rains that muddied the area and subsequently distracted the company’s calendar a bit, Ms Sutton said gold production should have resumed in June, in line with an earlier schedule issued last year.

However, with the rains subsiding and things gradually returning to normal, she said it was almost certain that the rehabilitation works would be completed soon.

The successful completion of the refurbishments, funded by a stream loan from Royal Gold of USA, paves the way for Golden Star Resources to recommence mining in the underground mine, where gold production had been taking place since the 18th century until around 2000, when it stalled.

Its revival is expected to represent a critical milestone to Golden Star, which bought the mine in 2002, and to residents of Prestea and its environs, who have long yearned for the return of underground mining.

For Golden Star Resources, it will help increase their revenue stream, dilute their costs (the PUM is a low cost mine compared to Wassa, which is high cost) and bring to finality the series of missed datelines.

For the residents, it reignites their hopes of a revitalised Prestea that can, for once, bask in the glory of a mining town.

Since the collapse of the mine in the early 2000, economic activities have virtually been subdued, with thousands of miners and adjoining service providers losing their jobs.

Although a revitalised PUM will not be able to employ as much as the old mine did, due to the increasing injection of technology into the business, it is expected that its return will serve as a catalyst to the growth for the local economy.

The mine is considered a grade asset, with mineral reserves estimated to be at 13.93 grams per ton (t/g).

Golden Star Resources Company Profile

Golden Star Resources Ltd. is a gold mining and exploration company. The Company’s segments include Wassa, Bogoso/Prestea, Other and Corporate. The Company, through its subsidiary, Golden Star (Wassa) Limited, owns and operates the Wassa open-pit gold mine, the Wassa underground mine and a carbon-in-leach (CIL) processing plant (Wassa).

Source-Dispatchtribunal.com with additional files from Newsghana.com.gh

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