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 gold miner Golden Star (ASE: GSS) fell 10% today after the company announced disappointing production from two mines.
So what: The Bogoso/Prestea Mine is now expected to produce 39,000 ounces of gold, down from a previous estimate of 43,000. Wassa Mine also will not live up to expectations, producing about 35,000 ounces versus previous guidance of 40,000 ounces.
Now what: The move looks remarkably logical from a market that can often be irrational. Guidance is down about 10% and therefore the stock is down 10%. The lower milled grade at Bogoso/Prestea is a bit of a concern, but most of the disappointment was related to equipment downtime. I don't see a great need to adjust your investment thesis today, but it might be a good time to buy if you were looking to build a position.
Interested in more info on Golden Star? Add it to your watchlist byclicking here.
At the time thisarticle 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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