UPDATE: Canaccord Genuity Downgrades Golden Star Resources Ltd. to Sell, Lowers PT Following Lower Price Forecasts

In a report published Wednesday, Canaccord Genuity analyst Rahul Paul downgraded the rating on

from Hold to Sell, and lowered the price target from $1.00 to $0.20. In the report, Canaccord Genuity noted, “We are lowering our recommendation on Golden Star Resources to SELL from Hold, and our 12-month target price to US$0.20 from US$1.00 following our revised commodity price forecasts and sector outlook. Over the next 12 months, we expect challenging capital market conditions to persist, and only a modest improvement in gold and silver prices. Under our revised gold price forecasts, we expect that the Bogoso/Pretea operation will likely not be viable. We continue to see value in the Wassa operation at our revised gold price forecasts. However, we believe that sustaining profitability over the next few years will likely require significant near term capital investments. We believe prevailing market conditions may force the company to drastically cut capital spending over the next 12-months, which in our view, could impact future profitability. Given current levels of debt, we see more downside potential to the shares under our revised gold price forecasts. As such, we are downgrading Golden Star Resources to SELL from Hold.” Golden Star Resources Ltd. closed on Tuesday at $0.51.