Intrinsic value of Golden Star Resources - GSS

Previous Close

$0.72

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$0.72

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of GSS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -13.33
  57.10
  51.89
  47.20
  42.98
  39.18
  35.76
  32.69
  29.92
  27.43
  25.18
  23.17
  21.35
  19.71
  18.24
  16.92
  15.73
  14.65
  13.69
  12.82
  12.04
  11.33
  10.70
  10.13
  9.62
  9.16
  8.74
  8.37
  8.03
  7.73
  7.45
Revenue, $m
  221
  347
  527
  776
  1,110
  1,545
  2,097
  2,783
  3,615
  4,607
  5,767
  7,103
  8,620
  10,319
  12,202
  14,266
  16,510
  18,929
  21,521
  24,280
  27,202
  30,286
  33,526
  36,923
  40,474
  44,180
  48,041
  52,060
  56,240
  60,586
  65,102
Variable operating expenses, $m
 
  454
  690
  1,015
  1,452
  2,021
  2,743
  3,640
  4,729
  6,026
  7,544
  9,291
  11,275
  13,498
  15,960
  18,660
  21,595
  24,760
  28,149
  31,758
  35,581
  39,614
  43,852
  48,295
  52,940
  57,787
  62,838
  68,095
  73,562
  79,246
  85,153
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  263
  454
  690
  1,015
  1,452
  2,021
  2,743
  3,640
  4,729
  6,026
  7,544
  9,291
  11,275
  13,498
  15,960
  18,660
  21,595
  24,760
  28,149
  31,758
  35,581
  39,614
  43,852
  48,295
  52,940
  57,787
  62,838
  68,095
  73,562
  79,246
  85,153
Operating income, $m
  -42
  -107
  -162
  -239
  -342
  -476
  -646
  -857
  -1,114
  -1,419
  -1,776
  -2,188
  -2,655
  -3,178
  -3,758
  -4,394
  -5,085
  -5,830
  -6,628
  -7,478
  -8,378
  -9,328
  -10,326
  -11,372
  -12,466
  -13,607
  -14,797
  -16,035
  -17,322
  -18,660
  -20,051
EBITDA, $m
  -21
  -74
  -112
  -165
  -236
  -329
  -446
  -592
  -769
  -981
  -1,227
  -1,512
  -1,835
  -2,196
  -2,597
  -3,036
  -3,514
  -4,029
  -4,580
  -5,167
  -5,789
  -6,446
  -7,135
  -7,858
  -8,614
  -9,403
  -10,224
  -11,080
  -11,970
  -12,894
  -13,855
Interest expense (income), $m
  7
  6
  9
  22
  39
  62
  92
  130
  177
  234
  302
  382
  474
  579
  695
  825
  967
  1,121
  1,288
  1,466
  1,656
  1,857
  2,069
  2,292
  2,526
  2,770
  3,025
  3,291
  3,567
  3,855
  4,154
Earnings before tax, $m
  -42
  -113
  -172
  -261
  -381
  -538
  -738
  -987
  -1,291
  -1,653
  -2,079
  -2,570
  -3,129
  -3,757
  -4,454
  -5,219
  -6,052
  -6,952
  -7,916
  -8,944
  -10,034
  -11,185
  -12,395
  -13,664
  -14,992
  -16,377
  -17,822
  -19,325
  -20,889
  -22,515
  -24,205
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -40
  -113
  -172
  -261
  -381
  -538
  -738
  -987
  -1,291
  -1,653
  -2,079
  -2,570
  -3,129
  -3,757
  -4,454
  -5,219
  -6,052
  -6,952
  -7,916
  -8,944
  -10,034
  -11,185
  -12,395
  -13,664
  -14,992
  -16,377
  -17,822
  -19,325
  -20,889
  -22,515
  -24,205

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  22
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  299
  435
  661
  973
  1,391
  1,936
  2,628
  3,487
  4,531
  5,773
  7,227
  8,902
  10,802
  12,932
  15,291
  17,878
  20,689
  23,721
  26,968
  30,426
  34,088
  37,952
  42,013
  46,269
  50,719
  55,363
  60,202
  65,238
  70,477
  75,922
  81,581
Adjusted assets (=assets-cash), $m
  277
  435
  661
  973
  1,391
  1,936
  2,628
  3,487
  4,531
  5,773
  7,227
  8,902
  10,802
  12,932
  15,291
  17,878
  20,689
  23,721
  26,968
  30,426
  34,088
  37,952
  42,013
  46,269
  50,719
  55,363
  60,202
  65,238
  70,477
  75,922
  81,581
Revenue / Adjusted assets
  0.798
  0.798
  0.797
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
Average production assets, $m
  183
  287
  437
  643
  919
  1,279
  1,737
  2,304
  2,994
  3,815
  4,775
  5,882
  7,137
  8,544
  10,103
  11,813
  13,670
  15,674
  17,819
  20,104
  22,524
  25,076
  27,760
  30,572
  33,512
  36,581
  39,778
  43,106
  46,567
  50,165
  53,904
Working capital, $m
  -61
  -107
  -162
  -239
  -342
  -476
  -646
  -857
  -1,114
  -1,419
  -1,776
  -2,188
  -2,655
  -3,178
  -3,758
  -4,394
  -5,085
  -5,830
  -6,628
  -7,478
  -8,378
  -9,328
  -10,326
  -11,372
  -12,466
  -13,607
  -14,797
  -16,035
  -17,322
  -18,660
  -20,051
Total debt, $m
  115
  155
  358
  638
  1,015
  1,505
  2,128
  2,902
  3,841
  4,959
  6,268
  7,774
  9,485
  11,401
  13,525
  15,853
  18,383
  21,112
  24,034
  27,146
  30,442
  33,920
  37,575
  41,405
  45,410
  49,590
  53,945
  58,478
  63,192
  68,093
  73,186
Total liabilities, $m
  351
  392
  595
  875
  1,252
  1,742
  2,365
  3,139
  4,078
  5,196
  6,505
  8,011
  9,722
  11,638
  13,762
  16,090
  18,620
  21,349
  24,271
  27,383
  30,679
  34,157
  37,812
  41,642
  45,647
  49,827
  54,182
  58,715
  63,429
  68,330
  73,423
Total equity, $m
  -53
  44
  66
  97
  139
  194
  263
  349
  453
  577
  723
  890
  1,080
  1,293
  1,529
  1,788
  2,069
  2,372
  2,697
  3,043
  3,409
  3,795
  4,201
  4,627
  5,072
  5,536
  6,020
  6,524
  7,048
  7,592
  8,158
Total liabilities and equity, $m
  298
  436
  661
  972
  1,391
  1,936
  2,628
  3,488
  4,531
  5,773
  7,228
  8,901
  10,802
  12,931
  15,291
  17,878
  20,689
  23,721
  26,968
  30,426
  34,088
  37,952
  42,013
  46,269
  50,719
  55,363
  60,202
  65,239
  70,477
  75,922
  81,581
Debt-to-equity ratio
  -2.170
  3.550
  5.410
  6.560
  7.300
  7.780
  8.100
  8.320
  8.480
  8.590
  8.670
  8.730
  8.780
  8.820
  8.850
  8.870
  8.890
  8.900
  8.910
  8.920
  8.930
  8.940
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
Adjusted equity ratio
  -0.271
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -40
  -113
  -172
  -261
  -381
  -538
  -738
  -987
  -1,291
  -1,653
  -2,079
  -2,570
  -3,129
  -3,757
  -4,454
  -5,219
  -6,052
  -6,952
  -7,916
  -8,944
  -10,034
  -11,185
  -12,395
  -13,664
  -14,992
  -16,377
  -17,822
  -19,325
  -20,889
  -22,515
  -24,205
Depreciation, amort., depletion, $m
  21
  33
  50
  74
  106
  147
  200
  265
  344
  438
  549
  676
  820
  982
  1,161
  1,358
  1,571
  1,802
  2,048
  2,311
  2,589
  2,882
  3,191
  3,514
  3,852
  4,205
  4,572
  4,955
  5,353
  5,766
  6,196
Funds from operations, $m
  31
  -80
  -122
  -187
  -275
  -391
  -538
  -722
  -946
  -1,215
  -1,530
  -1,894
  -2,309
  -2,775
  -3,292
  -3,861
  -4,481
  -5,150
  -5,868
  -6,633
  -7,445
  -8,303
  -9,204
  -10,150
  -11,140
  -12,173
  -13,249
  -14,370
  -15,537
  -16,749
  -18,009
Change in working capital, $m
  -22
  -39
  -55
  -77
  -103
  -134
  -170
  -211
  -256
  -305
  -357
  -412
  -467
  -523
  -580
  -636
  -691
  -745
  -798
  -850
  -900
  -950
  -998
  -1,046
  -1,094
  -1,141
  -1,189
  -1,238
  -1,288
  -1,338
  -1,391
Cash from operations, $m
  53
  -41
  -66
  -110
  -172
  -257
  -368
  -511
  -690
  -909
  -1,173
  -1,483
  -1,842
  -2,251
  -2,713
  -3,225
  -3,790
  -4,405
  -5,070
  -5,784
  -6,545
  -7,353
  -8,206
  -9,104
  -10,046
  -11,031
  -12,060
  -13,133
  -14,249
  -15,411
  -16,618
Maintenance CAPEX, $m
  0
  -21
  -33
  -50
  -74
  -106
  -147
  -200
  -265
  -344
  -438
  -549
  -676
  -820
  -982
  -1,161
  -1,358
  -1,571
  -1,802
  -2,048
  -2,311
  -2,589
  -2,882
  -3,191
  -3,514
  -3,852
  -4,205
  -4,572
  -4,955
  -5,353
  -5,766
New CAPEX, $m
  -84
  -104
  -149
  -206
  -276
  -360
  -457
  -568
  -689
  -821
  -961
  -1,106
  -1,256
  -1,407
  -1,559
  -1,709
  -1,858
  -2,003
  -2,146
  -2,284
  -2,420
  -2,553
  -2,683
  -2,812
  -2,940
  -3,068
  -3,197
  -3,328
  -3,461
  -3,598
  -3,739
Cash from investing activities, $m
  -86
  -125
  -182
  -256
  -350
  -466
  -604
  -768
  -954
  -1,165
  -1,399
  -1,655
  -1,932
  -2,227
  -2,541
  -2,870
  -3,216
  -3,574
  -3,948
  -4,332
  -4,731
  -5,142
  -5,565
  -6,003
  -6,454
  -6,920
  -7,402
  -7,900
  -8,416
  -8,951
  -9,505
Free cash flow, $m
  -33
  -167
  -248
  -367
  -523
  -722
  -972
  -1,278
  -1,644
  -2,075
  -2,572
  -3,138
  -3,773
  -4,479
  -5,253
  -6,096
  -7,005
  -7,980
  -9,017
  -10,116
  -11,276
  -12,495
  -13,772
  -15,107
  -16,500
  -17,952
  -19,462
  -21,033
  -22,665
  -24,361
  -26,124
Issuance/(repayment) of debt, $m
  -26
  55
  203
  281
  376
  490
  623
  773
  939
  1,118
  1,309
  1,507
  1,710
  1,917
  2,123
  2,328
  2,530
  2,729
  2,922
  3,112
  3,296
  3,477
  3,655
  3,831
  4,005
  4,179
  4,355
  4,533
  4,715
  4,901
  5,093
Issuance/(repurchase) of shares, $m
  45
  217
  194
  292
  423
  592
  807
  1,073
  1,395
  1,778
  2,224
  2,738
  3,319
  3,970
  4,690
  5,478
  6,333
  7,255
  8,241
  9,290
  10,401
  11,571
  12,801
  14,090
  15,437
  16,842
  18,305
  19,829
  21,413
  23,060
  24,771
Cash from financing (excl. dividends), $m  
  20
  272
  397
  573
  799
  1,082
  1,430
  1,846
  2,334
  2,896
  3,533
  4,245
  5,029
  5,887
  6,813
  7,806
  8,863
  9,984
  11,163
  12,402
  13,697
  15,048
  16,456
  17,921
  19,442
  21,021
  22,660
  24,362
  26,128
  27,961
  29,864
Total cash flow (excl. dividends), $m
  -13
  104
  149
  206
  276
  360
  458
  568
  690
  821
  961
  1,107
  1,256
  1,408
  1,559
  1,710
  1,858
  2,004
  2,146
  2,285
  2,421
  2,554
  2,684
  2,813
  2,941
  3,069
  3,198
  3,329
  3,463
  3,599
  3,741
Retained Cash Flow (-), $m
  -12
  -217
  -194
  -292
  -423
  -592
  -807
  -1,073
  -1,395
  -1,778
  -2,224
  -2,738
  -3,319
  -3,970
  -4,690
  -5,478
  -6,333
  -7,255
  -8,241
  -9,290
  -10,401
  -11,571
  -12,801
  -14,090
  -15,437
  -16,842
  -18,305
  -19,829
  -21,413
  -23,060
  -24,771
Prev. year cash balance distribution, $m
 
  7
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -105
  -45
  -86
  -146
  -232
  -349
  -505
  -705
  -956
  -1,263
  -1,631
  -2,063
  -2,562
  -3,130
  -3,768
  -4,475
  -5,251
  -6,095
  -7,005
  -7,980
  -9,018
  -10,117
  -11,277
  -12,495
  -13,772
  -15,107
  -16,500
  -17,951
  -19,460
  -21,030
Discount rate, %
 
  7.20
  7.56
  7.94
  8.33
  8.75
  9.19
  9.65
  10.13
  10.64
  11.17
  11.73
  12.31
  12.93
  13.58
  14.26
  14.97
  15.72
  16.50
  17.33
  18.19
  19.10
  20.06
  21.06
  22.11
  23.22
  24.38
  25.60
  26.88
  28.22
  29.64
PV of cash for distribution, $m
 
  -98
  -39
  -68
  -106
  -152
  -206
  -265
  -326
  -385
  -438
  -482
  -512
  -527
  -527
  -510
  -480
  -439
  -390
  -336
  -282
  -229
  -181
  -139
  -103
  -74
  -52
  -35
  -23
  -14
  -9
Current shareholders' claim on cash, %
  100
  50.0
  9.1
  1.7
  0.3
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Golden Star Resources Ltd. is a gold mining and exploration company. The Company's segments include Wassa, Bogoso/Prestea, Other and Corporate. The Company, through its subsidiary, Golden Star (Wassa) Limited, owns and operates the Wassa open-pit gold mine, the Wassa underground mine and a carbon-in-leach (CIL) processing plant (Wassa). The Wassa mine is located in the southwestern region of Ghana approximately 35 kilometers northeast of the town of Tarkwa. The Company, through its subsidiary Golden Star (Bogoso/Prestea) Limited, owns and operates the Bogoso gold mining and processing operations (Bogoso), the Prestea open-pit mining operations and the Prestea underground development project. The Prestea Underground is located 16 kilometers south of the existing Bogoso processing plant. The Company holds interests in various gold exploration projects in Ghana and other parts of West Africa, and in South America the Company holds and manages exploration properties in Brazil.

FINANCIAL RATIOS  of  Golden Star Resources (GSS)

Valuation Ratios
P/E Ratio -6
Price to Sales 1.1
Price to Book -4.6
Price to Tangible Book
Price to Cash Flow 4.6
Price to Free Cash Flow -7.8
Growth Rates
Sales Growth Rate -13.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 47.4%
Cap. Spend. - 3 Yr. Gr. Rate -4%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity -188.7%
Total Debt to Equity -217%
Interest Coverage -5
Management Effectiveness
Return On Assets -12.3%
Ret/ On Assets - 3 Yr. Avg. -20.3%
Return On Total Capital -72.1%
Ret/ On T. Cap. - 3 Yr. Avg. -71.7%
Return On Equity 67.8%
Return On Equity - 3 Yr. Avg. 26.8%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 13.1%
Gross Margin - 3 Yr. Avg. 0.5%
EBITDA Margin -6.3%
EBITDA Margin - 3 Yr. Avg. -12.2%
Operating Margin -19%
Oper. Margin - 3 Yr. Avg. -25.2%
Pre-Tax Margin -19%
Pre-Tax Margin - 3 Yr. Avg. -25%
Net Profit Margin -18.1%
Net Profit Margin - 3 Yr. Avg. -22.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0.4%
Payout Ratio 0%

GSS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GSS stock intrinsic value calculation we used $221 million for the last fiscal year's total revenue generated by Golden Star Resources. The default revenue input number comes from 2016 income statement of Golden Star Resources. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our GSS stock valuation model: a) initial revenue growth rate of 57.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.2%, whose default value for GSS is calculated based on our internal credit rating of Golden Star Resources, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Golden Star Resources.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of GSS stock the variable cost ratio is equal to 130.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for GSS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.1% for Golden Star Resources.

Corporate tax rate of 27% is the nominal tax rate for Golden Star Resources. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the GSS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for GSS are equal to 82.8%.

Life of production assets of 8.7 years is the average useful life of capital assets used in Golden Star Resources operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for GSS is equal to -30.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-53 million for Golden Star Resources - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 506.18 million for Golden Star Resources is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Golden Star Resources at the current share price and the inputted number of shares is $0.4 billion.

RELATED COMPANIES Price Int.Val. Rating
RGLD Royal Gold 83.45 8.70  str.sell

COMPANY NEWS

▶ Top 4 Gold Penny Stocks as of February 2018   [Feb-23-18 06:00AM  Investopedia]
▶ Golden Star Announces its 2018 Exploration Strategy   [Feb-22-18 06:55AM  CNW Group]
▶ Golden Star Resources Ltd. to Host Earnings Call   [Feb-21-18 07:50AM  ACCESSWIRE]
▶ Golden Star meets 4Q profit forecasts   [05:02AM  Associated Press]
▶ Golden Star hosts an analyst and investor site visit   [Nov-10-17 07:02AM  PR Newswire]
▶ New Strong Buy Stocks for November 3rd   [Nov-03-17 08:01AM  Zacks]
▶ Golden Star posts 3Q profit   [05:48AM  Associated Press]
▶ Golden Star Reports Third Quarter 2017 Results   [Nov-01-17 04:35PM  PR Newswire]
▶ Top Ranked Value Stocks to Buy for October 17th   [Oct-17-17 10:07AM  Zacks]
▶ Golden Star Third Quarter 2017 Results Conference Call   [Oct-03-17 06:55AM  PR Newswire]
▶ Why Gold Remains Coveted for the Long Term   [Sep-22-17 02:07PM  Zacks]
▶ Gold Mining Stock Outlook - Sept. 2017   [Sep-21-17 04:36PM  Zacks]
▶ 5 Breakout Stocks Offering Astounding Returns   [Sep-08-17 09:20AM  Zacks]
▶ Golden Star posts 2Q profit   [Aug-01-17 11:48PM  Associated Press]
▶ Gold Mining Stock Outlook - May 2017   [May-25-17 04:54PM  Zacks]
▶ Golden Star posts 1Q profit   [May-04-17 05:02AM  Associated Press]
▶ Golden Star Reports First Quarter 2017 Results   [May-03-17 04:35PM  CNW Group]
▶ Golden Star Announces a Project Update   [Apr-03-17 06:55AM  PR Newswire]
▶ Golden Star Enters into Financing Facility   [Mar-30-17 06:55AM  PR Newswire]
▶ Golden Star Announces its Exploration Strategy for 2017   [Mar-23-17 06:55AM  PR Newswire]
Financial statements of GSS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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