Canaccord Adams Downgrades Golden Star Resources Ltd. (GSS) to Hold

November 10, 2009 3:05 PM EST

Canaccord Adams downgrades Golden Star Resources Ltd. (NYSE Amex: GSS) from Buy to Hold. Price target lowered from $4.20 to $3.80.

Canaccord analyst says, "Golden Star’s adjusted Q3/09 EPS of ($0.01) fell short of our estimate of
$0.01. Higher gold sales of 107,433 oz vs. our estimate of 102,000 oz were more than offset by higher total cash costs of $615/oz vs. our estimate of $556/oz. While production benefitted from higher tonnage milled at Bogoso and higher grades at Wassa, site costs per tonne remained stubbornly high at both operations despite the increased tonnages milled at Bogoso and the apparent benefit of lower negotiated power rates. Furthermore, recoveries at Bogoso showed a sequential decline to 69.4% from 72.2% in Q2/09."

"Our 2009 EPS estimate has been reduced to $0.00 from $0.02 reflecting the Q3/09 shortfall. Our 2010 estimate has declined to $0.25 from $0.32 due to higher site costs at both mines...Given the limited implied return to target, we have lowered our rating to HOLD from Buy."

To see more analyst ratings on GSS Click Here.

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the exploration and production of gold.

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