Golden Star Resources Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Golden Star Resources (ASE: GSS) are one of the few bright spots in the market today climbing 10%.
So what: Not only is gold climbing higher today, Golden Star announced yesterday that its Pampe Deposit was reopening. The deposit was mined from 2007 to 2008 and is expected to generate 75,000 tonnes of ore per month starting in January 2012.
Now what: The mine has 191,000 ounces of proven reserves and could be a boon for Golden Star if gold prices remain high. Shares are likely getting most of their boost from the 2.8% rise in gold today as investors worry about another recession. But gold is just too expensive for this Fool to get excited and jump into a leveraged gold play. I'll sit out this bump for now.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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