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Wednesday, March 31, 2010

Is Golden Star Resources (AMEX:GSS) Still Shining?

Golden Star Resources

Golden Star Resources (AMEX:GSS) has had a nice run over the last 12 months, increasing in share price from $1.17 to as high as $4.39, and settling in at about $3.80 as of this writing.

There are some good fundamentals related to Golden Star, one of the best being its organic growth strategy and putting money into increasing exploration. The company also increased its reserves in 2009 by 14 percent.

One question going forward in 2010 for Golden Star is its costs, which it has said will increase over 2009 costs, which of course affects earnings. They also have said production will probably be a little lower in 2010 than in 2009.

Taken altogether, Golden Star is still attractive, especially with the economic circumstances and policies of central banks around to world to keep the paper money printing presses running. But at the upper end of its 52-week high, it's hard to see it increasing a lot in price in 2010, although if it drops more it may be a good buying opportunity, as they're pretty well positioned to profit as things settle down more and they increase production and manage costs a little better.

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