Serabi Gold Share Discussion Threads

[sleveen] 15/2/2016 09:09

Looks like the rally in gold stocks and gold is over for the time being.


Gold stocks getting hammered eg SHG.

SRB not fairing much better.

[sleveen] 12/2/2016 18:01

Absolutely Boffster.

SHG style rerate due soon!

[boffster] 12/2/2016 15:36

Assuming 37,000 oz this year and an AISC of $850/oz, its simple maths to work out what sort of an annual profit we're looking at, and in my opinion, leaves us significantly undervalued. Things should be very exciting once Sao Chico is up to speed, and even more so if the gold rally continues.

[rajaster] 12/2/2016 11:19

sp has finally broken out again.. looking positive now.. should see 4p again fairly quickly.

[rajaster] 11/2/2016 13:16

1240.. and junior producers like aaz flying

[rajaster] 11/2/2016 09:26

golds flying now: 1220. should start to see reratings.

[sleveen] 11/2/2016 07:31

Inded, and with much of the capex spent (for the equipment) in 2014 & 2015, there will be less capex required in the current year, thus releasing free cash to pay down the debt. (Obviously this excludes any sustaining/explo' capex)

[cotton4] 11/2/2016 07:01

At current selling prices and using an AISC $894, we should make approx $11m, which should be more than enough to clear the debt. It will be interesting to see what the AISC with Sao Chico will be.

[sleveen] 08/2/2016 15:07

Looks like producers out performing explorers atm.

SRB should catch up with the POG edging up today.

[tightfist] 03/2/2016 16:52

Sleveen,

A nice thought. I want to see some fresh SRB numbers - and I think the market will want to see more quantified/costed progress at Sao Chico and on Sprott debt-reduction before a major re-rating.

I just hope I am wrong! tightfist

[sleveen] 03/2/2016 15:34

Gold on the up today.

I'm definitely expecting SRB to do a SHG soon.

[sleveen] 01/2/2016 15:14

Looks like the Gekko ILR is a smart piece of kit:

[rajaster] 01/2/2016 14:49

sleveen, i hope so.. The gold monthly chart is still looking to be showing the bear trend however the weekly and daily have been more positive. we need gold to really head back to 1400+ for most gold stocks to rerate. i've held the likes of aaz and sgh also in the past along with like of cey. if the market recovers theres going to be fireworks.

[sleveen] 01/2/2016 13:24

raj

It will, I followed SHG for 18 mths and it is now recovering following operational improvements.

SRB is currently making operational improvements, which will improve the financials and hence earn SRB a rerate towards 5-6p in the short term. IMHO.

[rajaster] 01/2/2016 12:44

price is half what i paid for some of my shares.. i wish i had some money to buy now, need this to recover.

[sleveen] 01/2/2016 11:12

tighfist

all the trades were buys this morning.

Mine was the 50k @3p

[sleveen] 01/2/2016 11:11

Agreed.

Sprott look as though they think the POG is on the rise, which it has been recently.

With the gold call, they stand to make easy money assuming POG continues to rise.

[tightfist] 01/2/2016 10:51

As I understand it, through the Call Option, Sprott have the right, but not the obligation, to purchase up to 2,500 Oz of Gold from Serabi at $1,125 at any time up to June 2017. If exercised, they will be paid in cash by Serabi for the difference between the (higher) PoG spot price at the time and $1,125. For example, if Sprott choose to exercise if/when PoG is at $1,225, they would receive $250,000.

It looks like a sweetener to get Sprott to grant the loan extension, which costs Serabi nothing unless the PoG rises - and Serabi would still receive an elevated PoG on the remaining 92% of planned production. A sort of Win-Win outcome.

Extending the Sprott loan gives more funding flexibility for the remainder of 2016, AND avoids the significant shareholder dilution if the Fratelli loan is extensively drawn-down.

Biggest concern with me is that Hodgson possibly has his eyes on yet more local acquisitions - need to be watchful how that cash is deployed.


Cheers, tightfist

[cotton4] 01/2/2016 10:14

2500 ounces

[rajaster] 01/2/2016 10:12

I misunderstood what a call option is, its is sprott making an obligation but not a commitment to buy upt 25000 ounces of gold valued at $2,812,500, thats not hedging the price dropping but the opposite which is positive imho. I still think the $4 million should have been repaid as interest rate is still 10%.

[rajaster] 01/2/2016 09:48

i dont understand this:

"The Company has granted to Sprott a call option over 2,500 ounces of gold at a strike price of US$1,125 per ounce. Sprott has the right to exercise its call option, subject to a minimum of 500 ounces, at any time up to 30 June 2017. The call option if exercised will be settled in cash."

if sprott loan was renegotiated.. we should have just paid the loan of using the fratelli loan.. why give them a call option. is that collateral incase gold drops?

[tightfist] 01/2/2016 09:35

Hi Sleveen,

Yes, the market likes it albeit in small volume - however, trading maybe isn't quite the way it seems. I tried topping-up at 8:01 and around 8:25 and both time was quoted an Offer of 3.241p for 35k, which I didn't take. Meanwhile, two trades went through at 2.999p and 3.00p, so I guess there is a Buyer accumulating in the wings and that all the declared trades so far today are Sells.

Cheers, tightfist

[sleveen] 01/2/2016 08:55

Hi tightfist

Yes , the operational efficiency looks like the financial tightrope should be safely crossed.

The market seems to like the update...which is good.

[tightfist] 01/2/2016 08:22

Hi Sleveen,

Generating sufficient early-days cash from Pallito to fund Sao Chico start-up was always a big ask; we could see that in the numbers. They are now developing their approach with some agile moves along the way, particularly acquiring the two ball mills, presumably at distress prices. Eliminating the surface stockpiles through the 3rd mill should be self-financing in 2016, I guess.

The deferral of paying-down the Sprott loan doesn't concern me - the recent agreement with Fratelli gave Hodgson some extra negotiating leverage!


Cheers, tightfist

[sleveen] 01/2/2016 08:09

It's the financials that really matter with SRB.

Operations are going as expected more or less.


The extension of the Sprott loan combined with the recent convertible loan suggests to me some financial pressure.