Stockchase Opinions

Benj Gallander Golden Star Resources GSC-T COMMENT Jun 28, 2016

This company has some knocks against it. They had a lot of difficulties with the gold price being down. They always have trouble making money. Royal Gold made a royalty agreement and are giving them $130 million, but of course there is a whole payback with that, which will depress their earnings. He can see this going up $1.25.

$0.830

Stock price when the opinion was issued

precious metals
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DON'T BUY
Chang in management caused the last dip. Projects are located in Ghana, which doesn't have a developed infrastructure creating a lot of power interruptions. Also a lot of metallurgical problems. Would look elsewhere.
BUY
Has underperformed. Had fiscal and production issues, but the worst is behind them. Expects it will be acquired.
PAST TOP PICK
(A Top Pick March 7/07. Down 33.3%.) Issued a convertible debenture, which kneecapped the stock. He sold his holdings before this happened when it was clear they were running out of money.
PAST TOP PICK
(Top pick, March 12, 2007. Down 15%) They’ve had nothing but problems coming from their mines. Very, very cheap, new CEO, good production, great take over target. Would rather buy a stock that doesn’t disappoint.
TOP PICK
Producing about 400,000 ounces of gold in Ghana and have about $.9 billion. Trades at about 5.5X cash flow. Cheap at 16.8X PE for 2010. 46% earnings growth forecast for 2011.
TOP PICK
Gold in Ghana. Several operational problems over the last few years so has been in the doghouse. High cost producer at about $650 so are currently generating about $500 in cash flow with minimal capital spending. Ploughing this free cash flow into the ground for the first time to develop more resources.
PAST TOP PICK
(A top Pick Nov 17/09. Up 16%.) Sold his holdings for better opportunities.
PAST TOP PICK
(A Top Pick May 26/10. Down 32.81%.) Sold at $4.50 so was flat on this trade.
HOLD

(Market Call Minute) Watches it. They have challenges. Looked at shutting down high cost operations.