Golden Star Resources (GSS) update #12

Our patience with our underperforming gold mining spec play, Golden Star Resources (GSS) is palpably closer to paying off in the wake of Friday’s announcement by management that “the long awaited Ghana grid power cost reduction is being implemented.” Electricity rates will be lowered from 14.5 cents per kWh to approximately 8 cents and this rate will be retroactive to 1 Jan 09. This is an interim rate which will be in effect until a final power rate formula is implemented.

“Based on the new power rate, Golden Star’s reported overall cash cost of production for the first quarter of 2009 would have been reduced approximately $56 per ounce to $515 per ounce. Assuming this rate will not change during the year, we expect an overall reduction in cash operating costs of $60 per ounce and $20 per ounce for Bogoso and Wassa, respectively, resulting in an expected $40 per ounce company-wide reduction in 2009 cash operating costs,” according to the press release (click on this link and then select “Golden Star Reports Significantly Lower Power Costs in Ghana”).

Previous GSS-related posts:

• BUY Golden Star Resources (GSS)—Ghanian gold (19 Jul 07)
• Golden Star Resources (GSS) update #1—2Q07 results (8 Aug 07)
• Buy Golden Star Resources (GSS)—yep, again! (24 Aug 07)
• Golden Star Resources (GSS) update #2—unexpected debentures sale (24 Oct 07)
• Golden Star Resources (GSS) update #3—3Q07 results (7 Nov 07)
• Golden Star Resources (GSS) update #4—new CEO (20 Dec 07)
• Golden Star Resources (GSS) update #5—record production…is BIOX® finally working? (17 Jan 08)
• Golden Star Resources (GSS) update #6—4Q07 results (28 Feb 08)
• Golden Star Resources (GSS) update #7—1Q08 results (6 May 08)
• Golden Star Resources (GSS) update #8—2Q08 results (9 Aug 08)
• Golden Star Resources (GSS) update #9—3Q08 results (4 Nov 08)
• Golden Star Resources (GSS) update #10—4Q08 results (25 Feb 09)
• Golden Star Resources (GSS) update #11—1Q09 results (6 May 09)

Vertex (VRTX) update #27

Yet another seven million shares of dilution for our biotech spec play Vertex (VRTX) with the promising hepatitis C drug, telaprevir, in Phase 3 trials. They are issuing the shares to bondholders in exchange for $143.5 million worth of 4.75% Convertible Senior Subordinated Notes due 2013. The deal improves the company’s balance sheet and cash position.

Vertex now have about 180 million shares outstanding, which is about 2.6 million shares fewer than we had projected by the end of 2009 in our latest valuations projections spreadsheet (which is a good thing, presuming no more shares are issued by year-end).

Previous VRTX-related posts:

• BUY Vertex Pharmaceuticals (VRTX)—Hepatitis C Play (17 Apr 07)
• Vertex (VRTX) update—PROVE 1 trial news and 2Q07 results (25 Jul 07)
• Vertex (VRTX) update #2—down 13% on good boceprevir (SGP) results (18 Oct 07)
• Vertex (VRTX) update #3—3Q07 results (30 Oct 07)
• Vertex (VRTX) update #4—concerns about telaprevir Phase 3 trial delay and competition (5 Nov 07)
• Vertex (VRTX) update #5—still no word on start of telaprevir Phase 3 trial (9 Jan 08)
• Vertex (VRTX) update #6—down 10% on apparent FDA preference for 48-week Phase 3 (23 Jan 08)
• Vertex (VRTX) update #7—4Q07 results (11 Feb 08)
• Vertex (VRTX) update #8—Seven million shares sold to raise cash (19 Feb 08)
• Vertex (VRTX) update #9—up 8% on good Phase 2 results for cystic fibrosis drug (27 Mar 08)
• Vertex (VRTX) update #10—up 28% on excellent Phase 2 results for telaprevir (31 Mar 08)
• Vertex (VRTX) update #11—more good telaprevir Phase 2 data and 1Q08 results (27 Apr 08)
• Vertex (VRTX) update #12—up 13% on Cowens upgrade; still more good telaprevir Phase 2 data (9 Jun 08)
• Vertex (VRTX) update #13—down 5% on unattractive FDA Phase 3 parameter preferences (24 Jun 08)
• Vertex (VRTX) update #14—2Q08 results (1 Aug 08)
• Vertex (VRTX) update #15—telaprevir Phase 3 trial for SOC-resistant patients launched (19 Aug 08)
• Vertex (VRTX) update #16—nine million shares sold to raise cash (22 Sep 08)
• Vertex (VRTX) update #17—up 16% on Phase 2 results showing 2x daily telaprevir works (24 Sep 08)
• Vertex (VRTX) update #18—final Phase 2a trial results on VX-770 (CF)…on to Phase 3! (20 Oct 08)
• Vertex (VRTX) update #19—3Q08 results (27 Oct 08)
• Vertex (VRTX) update #20—up 5% on fresh telaprevir Phase 2 results (3 Nov 08)
• Vertex (VRTX) update #21—down 11% on concerns about Obama’s drug reimbursement policies (21 Nov 08)
• Vertex (VRTX) update #22—Vertex founder Joshua Boger to retire (5 Feb 09)
• Vertex (VRTX) update #23—4Q08 results (9 Feb 09)
• Vertex (VRTX) update #24—ten million shares sold to raise cash (18 Feb 09)
• Vertex (VRTX) update #25—Vertex to acquire ViroChem Pharma for ten million shares (3 Mar 09)
• Vertex (VRTX) update #26—1Q09 results (16 Apr 09)