Goff Corp. And Golden Star Resources: 2 Gold Miners Oozing Potential

is a U.S.-based public company. Its wholly owned subsidiary, Golden Glory Resources S.A. is engaged in gold exploration with a view to developing highly prospective gold projects. The company is assessing multiple projects for their potential as gold and silver prospects. Colombia is currently one of the leading gold mining areas in the world producing over 55,509 kilograms of gold (2011), primarily from the region where Goff's subsidiary Golden Glory Resources holds leases.

Goff has been aggressively moving to expand its assets by actually carrying out acquisitions and putting language such as the following in its press releases:

“...management is currently evaluating other gold properties in the Caldas region that are under consideration as acquisition targets.”

That language was at the end of a press release the company released on Friday, announcing that its wholly owned subsidiary Golden Glory Resources Inc. preliminary production results for its Bogoso/Prestea and Wassa/HBB operations for the three month period ended March 31, 2013. In the first quarter of 2013 the company sold a total of 81,358 ounces ("oz") of gold ("Au") at an average realized price of $1,634 per ounce. The production level was a positive development and lifted shares higher by 9%. Sam Coetzer, President and CEO, commented:

"The first quarter production of 81,358 ounces of gold is a very positive accomplishment despite the extended planned maintenance shutdown of the SAG mill at the Bogoso sulfide plant during the quarter which deferred some of our first quarter production into the second quarter. We are on track to meet our production guidance estimate for the year."

Analysts have a price target of about $2 on the shares, which is more than 40% higher than the range at which shares have been trading. Analysts aren’t the only ones suggesting the shares are undervalued.

The most basic valuation multiple is telling a similar story. GSS is trading at a forward P/E multiple of 5. Yes, you read that correctly, that is 5. Gold giant Newmont Mining (NEM) is at a forward P/E multiple of 8 and that is without the growth opportunities and potential a small gold miner like GSS has to offer.

I want to conclude by saying that both Goff and Golden Star are gold miners. Both Goff and Golden Star have an international focus, specifically targeting developing markets. Last but not least, both Goff and Golden Star are undervalued by analysts. The previous points, plus the fact that gold prices are going to continue to move higher as long as the US Fed continues printing money, make both companies--in my opinion--a buy.