Is Golden Star a true star
The changes in the spot price of gold per ounce has had a dramatic affect on senior and on junior producers in Canada.Perhaps the senior producers have been hit harder.Junior producers have adapted a little better.They have reduced their cash costs of production and reduced their capital expenditures.Gold producers(senior and junior) have continue to drill for new ore but you can reduce the probability of finding no or uneconomic resources of new gold.Step-out drilling is made a good distance from their existing strike.The chance of success is lower than if closer to their existing vein of gold.Drilling close to an existing vein is called infill drilling and has a high chance of success.Golden Star has done less step-out and more infill drilling lately.However they did do step-out drilling just lately and found an extension of their Wassa mine which even had a higher grade than the main strike.
The competition
there are three or four other Canadian juniors that have just about the same amount of production as Golden Star.Namely,Endeavour Mining,Oceanagold and Semafo.Semafo's actual production is less but it expects to be at this level by the end of 2014.Endeavour intends to be at 400,000 to 440,000 ounces by the end of the year.Oceanagold will be in around 330,000 to 350,000 ounces but they have a new gold-silver resource in El Salvador and Oceanagold develops new properties very quickly.Golden Star also has a new property called Prestea(in Ghana) and expects to have completed their feasibility study in the second quarter.These are mostly intentions;it will depend on who can carry out their plans quickly and efficiently.However Golden Star and Endeavour have an advantage over the others as both are less than a dollar per share whole the others (including B2 Gold) are all above $2 per share.This is one benefit from a falling price of gold-all producers but especially juniors learn to find new ways to make profit.Golden Star was quite effective in 2013 but can they do a little better in 2014?
The competition
there are three or four other Canadian juniors that have just about the same amount of production as Golden Star.Namely,Endeavour Mining,Oceanagold and Semafo.Semafo's actual production is less but it expects to be at this level by the end of 2014.Endeavour intends to be at 400,000 to 440,000 ounces by the end of the year.Oceanagold will be in around 330,000 to 350,000 ounces but they have a new gold-silver resource in El Salvador and Oceanagold develops new properties very quickly.Golden Star also has a new property called Prestea(in Ghana) and expects to have completed their feasibility study in the second quarter.These are mostly intentions;it will depend on who can carry out their plans quickly and efficiently.However Golden Star and Endeavour have an advantage over the others as both are less than a dollar per share whole the others (including B2 Gold) are all above $2 per share.This is one benefit from a falling price of gold-all producers but especially juniors learn to find new ways to make profit.Golden Star was quite effective in 2013 but can they do a little better in 2014?
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