Golden Star Resources is a mid-tier, unhedged gold mining company which over its 25-year history has produced in excess of 2 million ounces of gold. The company has two operating gold mines in western Africa situated along the prolific Ashanti Gold Belt in Ghana. In 2009, production totaled nearly 410,000 ounces of gold from these two mines.

The company’s goal is to grow its business in Ghana and other selected countries such as the Ivory Coast in western Africa. This is a wise choice and not only because of the richness of the Ashanti gold fields. Western Africa is one the most stable areas in Africa and suitable for business. Ghana is one of the most stable countries, politically and economically, in all of Africa.

Golden Star Resources’ current strategy is to focus on exploration and expansion activities at the two mines – Bogoso/Prestea and Wassa/HBB. Its 2010 exploration budget has been raised to $23 million, which is more than double the budget for 2009. The company is well-funded, so it will have no problem carrying out the exploration program.

Most analysts forecast that Golden Star Resources will have double digit increases in both sales and earnings going out for at least 5 years. Estimates are that gold sales from the company will increase about 16% this year and more than 11% next year. Analysts’ earnings projections are for an increase of 143% this year and 58% next year. Earnings are expected to continue at a 5 year annual compounded growth rate of at least 10%.

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