Serabi Gold Share Discussion Threads

[rajaster] 07/1/2014 09:11

need to get the share issue out the way.

[ohbytheway] 06/1/2014 12:24

Paying over now.

[rame4] 03/1/2014 21:32

Nope wrong again. In the words of Chesney Hawkes...


Anyway,

Fingers analysis is very encouraging for a quick short sharp burst in the coming days. I wonder if he has any digits in this pie.

[loverat] 03/1/2014 21:18

Blimey - out of 555 posts, I think Stockologist has made about 500 of them. All under various different IDs of course. Since the thread was created the share price has collapsed from 11p to 5p. Let's hope he disappears and maybe the share price might recover.

[rame4] 03/1/2014 15:35

Good buying so far today.

[ohbytheway] 03/1/2014 09:45

Sao Chico - A current resource that SRB cannot talk about with grades well over 100g/t.

Palito currently have a stock pile 27,000 tonnes @ 10 g/t!

Exceptional gold mining.

[loverat] 03/1/2014 08:23

Smart money coming in here I think. Prospect of some news soon so may see a steady build up of interest. Happy New Year all.

[ohbytheway] 03/1/2014 00:36

A very exciting time developing for SRB. With the production RNS this month followed by
presentations volume is likely to increase and a breakout is imminent - one that will be sustained rather than just a two/three day jump.



"such a breakaway could occur at any time"

[rodrod1] 02/1/2014 08:23

I have bought in here . . . . . now waiting to find out if I am smart or not!

[ohbytheway] 31/12/2013 10:30

Smart investors buying in.

[stockologist] 23/12/2013 11:04

Can't complain too much about dilution at this stage when it is instigated and funded by our Billionaire backers to accelerate the implementation of the roll up strategy. Now with the gold price weak is the time to convert ultimately depreciating 'asset' of cash into gold/gold shares whilst the market is mispricing them.

[ohbytheway] 23/12/2013 10:41

A mixed bag, but there's gold in it. Everything set up for a very prosperous 2014.

[sammy_smith] 23/12/2013 09:15

WATCH: Serabi Gold (SRB) - Initial Plant Testing at Palito

Click the link below to watch this video

[el1te] 23/12/2013 07:18

Fratelli's stake rise to 57% post subscription if I'm reading it correctly. May as well just take us over!

Could actually be a good chance of that happeneing if the share price doesn't improve in the medium term.

Actually looking at the deal, it's not a bad one at all. It will have been arranged when the share price was hovering between 5p and 5.5p by the looks of it, so the placing discount was small ! The terms of the loan are not as good

Plant Commissioned (3rd RNS this morning)

[giant steps] 23/12/2013 07:09

Funding required @ 5p and warrants @ 6p

RNS 23rd December 2013

[ohbytheway] 19/12/2013 12:38

I'd expect a commissioning/production update tomorrow.

[giant steps] 18/12/2013 21:31

Gold takes a fall as US tapering starts,
only the fittest goldies may survive the
next few years imo. (no advice intended)

[treacle32] 18/12/2013 17:35

THINK EVERYONE HAS SUSSED OUT WHAT IS GOING ON HERE WITH MULTIPLE COSTUMES. ONCE BITTEN, TWICE SHY!!!

[rajaster] 18/12/2013 16:04

looks like theres alot of selling today, usual games and still no commissioning RNS, come on SRB get it moving.

[stockonomist] 18/12/2013 12:02

What there is another thread ?

[ohbytheway] 18/12/2013 11:58

Missed this one - good comprehensive write-up and confirmation to what Mike Hodgson was saying that production to start in early January...




Serabi Gold Is Now Just A Whisker Away From Re-Starting Gold Production At Palito

By Alastair Ford

"This is the key moment in everything", says Serabi Gold's Clive Line. "And everything seems to be going according to plan."

Serabi is in the final stages of commissioning at the Palito gold project in Brazil, and should be in production some time during the first quarter of 2014.

"We've had the ball mill already running", says Clive. "The primary crusher's running. The manufacturers of the gravity concentrator have been up at site running it through its paces."

And, in the background, development mining has already quietly got underway on four levels, including at 84 metres, where the next production should occur. Encouragingly, at 30 grams per tonne over one metre, grades are coming in better than expected.

That's all to the good, and Clive sounds understandably upbeat as he talks Minesite through all the ramifications, notwithstanding that he's had a busy week at Mines & Money or that the next few weeks will allow for no slackening of the pace.

"It's there", he says. "It's ready. We set out to do this at the beginning of January when we raised the money. I'd like to think that we've delivered."

The company raised £2.7 million at the start of 2012 with a view to completing a preliminary economic assessment of Palito by mid-year. That was duly delivered, and the company then raised a further £16.2 million, primarily from a cornerstone South American investor, promising to have Palito up and running towards the end of this year.

It was an aggressive timetable, but not totally outlandish, as Palito is a former mine and Serabi is the former operator. There is plenty of in-house expertise regarding the geology of this orebody and how to mine and process it.

Still, Clive is keen not to run before he can walk. "We'll start it up. There'll be a steady ramp up in the first quarter before we get to full-blooded production", he says. "Only when we start it up in anger will we truly know if it works."

Last time round, the company tried to mine too much, too quickly, and when it ran into trouble with the mine plan found that the world was in an unforgiving mood as the global financial crisis raged.

Mining was abandoned in favour of exploration, and some big new targets in the neighbourhood were identified, much to the gratification of another major shareholder Eldorado, which is seeking synergies with a neighbouring project.

But Clive and fellow director Mike Hodgson could see which way the wind was blowing, and as the gold price ran up, they put together a plan for a smaller, more sustainable operation at Palito, designed to produce around 24,400 ounces over an initial eight year mine life at a grade of 8.98 grams per tonne.

Admittedly, the gold price assumptions used in the PEA now look a little punchy, but the margins on offer still look healthy enough for all that. The study showed that cash costs were likely to come in at around US$740 an ounce, and that all-in costs, including sustaining capital would ring in at around US$900 an ounce.

So, although no-one's enjoying the ongoing weakening of the gold price, in Serabi's case there's still plenty of room for manoeuvre, and the plan to create a company with sustainable cash flow over several years is now becoming a reality.

The significance of that ought not to be underestimated. Notwithstanding Eldorado's keenness to crack on with local exploration, there seems little doubt that in the current market, and with no prospect of cashflow, Serabi would be dead in the water.

However promising the exploration looks, it's several years away from development, and the likelihood of Serabi having survived in the intervening period without resorting to some form of value-destructive equity finance facility – as so many others have done – seems minimal.

Yes, the falling gold price raises questions for a producer, but not half as many as it does for an explorer.

"We're at a difficult phase at the moment", says Clive, referring to the pressures of the gold price.

"The sooner we can get revenue in through the door, the better it is. That said, we have to be extremely mindful of adding to the cost base. We're trying to balance it to make sure that we deliver on time, but we don't want a bloated operation on day one."

He reckons that Palito should be working at around 50 per cent of capacity during January, and that by the second quarter the operation should be running at nameplate capacity.

Thereafter, the prospect of further help on costs looms in the shape of the Sao Chico project, which was came into the company in May 2013 with the acquisition of Canadian company Kenai Resources.

Sao Chico is designed to be a Palito satellite, and although the flow sheet is slightly different in regards to the deployment of the CIP plant, it should provide welcome additional revenue once the relevant permits are in place.

So all-in-all the stars seem to be aligning nicely for Serabi. A higher gold price would be welcome, but isn't essential.

And while we all go off for a Christmas break in a week or two, expect the Serabi team to be working flat out ahead of an official announcement detailing first gold production in early January.





(soon to appear on Loverats thread)