Golden Star Resources Ltd.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Golden Star Resources Ltd. (“Golden Star” or the “Company”) (NYSE: GSS) securities during the period from February 20, 2019 through July 30, 2019 (the “Class Period”). Investors have until June 1, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Golden Star failed to disclose that: (i) the Company had insufficient geological and geotechnical data in its Prestea mine; (ii) the Company had experienced deficiencies in its operating practices and mining methods including inaccurate long hole drilling and blasting in its Prestea mine; (iii) the Company did not have the mining flexibility and more measured resources to ensure higher reserve grade; (iv) the Company had experienced increased tonnage at much lower grade where it had to supplement some of the production with oxide material; and (v) the Company had excessive dilution which drove lower mining rates at the Prestea mine.
On July 31, 2019, Golden Star dramatically cut its production guidance and increased its cash operating costs. Specifically, the consolidated production was revised to as low as 190,000 ounces from as high as 240,000 ounces. Likewise, consolidated cash operating costs were increased dramatically to as high as $850 per ounce from as low as $620 per ounce. A review of the Prestea underground mine “identified a range of issues affecting performance at Prestea that negatively affected performance and drove lower mining rates as well as excessive dilution.”
On this news, Golden Star’s stock price fell $0.75 per share, or 17.4%, to close at $3.55 on July 31, 2019.
If you acquired Golden Star securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.