Serabi Gold Share Discussion Threads

[sleveen] 30/10/2015 08:46

bsg

that thought had occurred to me to.

If internal cash generation isn't enough then a placing might be the approach chosen.

[bsg] 30/10/2015 08:44

Debt a pretty bad idea at the moment. Paper is the only way IMO.

[tightfist] 29/10/2015 17:27

Yes, sleveen, an excellent question. When we see the Q3 numbers we will have a view. When I last looked I thought it was exceedingly tight to pay-off Sprott with internal cash generation, but the recent emphasis on cash economies makes me think that remains the aim. Alternatively, some austerity may be required to get a placing away and/or keep Fratelli happy.

Would it be such a bad thing to have Sprott as an ongoing significant investor?; for me it lends credence to Serabi as an investible proposition. But there is no mention of the loan being convertible in the 29/09/2014 announcement.

If Hodgson is serious about the M&A activity we are going to need some more firepower? I don't fancy all-paper deals anywhere near this share price ....


Cheers, tightfist

[sleveen] 29/10/2015 13:23

On the other hand, I am very heartened to have confirmed in the 21st Oct video (3:10 mins)that debt will be retired in early 2016, almost as a throw-away comment

I think the question is by what means, hopefully internal cash generation.

[tightfist] 29/10/2015 11:35

Hi sleveen,

I am a little surprised by the fall as well; maybe it is just impatience?

The complexity/poor visibility of the Sao Chico veins is a dampener, and the resulting deferral of the Sao Chico resource statement is disappointing.

On the other hand, I am very heartened to have confirmed in the 21st Oct video (3:10 mins)that debt will be retired in early 2016, almost as a throw-away comment. Obviously cash management is currently focussing Hodgson's mind and actions, which is reasurring. And Sao Chico predominantly "development drives" ore at 7.4g/t isn't shabby.

Other aspects are that once the 3rd Ball mill has cleared the stockpiles, it can be deployed on more productive/high-grade duties. In the video (3:30 plus) with emphasis on good cash flow, there is drilling-out of discoveries, and "pedal to the metal" on M&A.

In summary, Hodgson seems to value personal/company credibility. It would be inconsistent if his progressive posture was going to undermined by weak figures from Clive Line during November.

[sleveen] 29/10/2015 11:01

Are the financials going to tell a different story.

I am surprised at today's fall.

[cotton4] 29/10/2015 08:31

And the financials to look forward to, probably next week. Good margins, strong cash flow.

[sleveen] 29/10/2015 08:19

Looks like operations are improving particularly with the 3rd ball mill due in 2016.

[themadstork] 29/10/2015 07:33

Figures look pretty good to me!

[sleveen] 28/10/2015 13:35

Looks like the market disagrees.

Desperately awaiting figures.

[themadstork] 27/10/2015 16:55

Agreed. I have taken 250k today. Looking forward to next week.

[alex hawk] 27/10/2015 12:03

Took a position here - market is clearly missing a trick production increase and share price dropping to 3.25p buy!

Not sure how more obvious CEO can make it results due in 2 weeks was quoted "best".

Absolute no brainer on the floor, production increasing and on course for 35k production this year - $40m revenue not bad

[rajaster] 23/10/2015 16:08

Drop again..the market knows what we dont

[rajaster] 22/10/2015 12:14

Cotton, do you mean depreciation of the real?, depends on how much cash on hand they keep but surely it must do?, we are being supplied the AISC by SRB so using those figures, mike was saying AISC is likely closer to $900. We will know more once they release the figures.

[cotton4] 22/10/2015 11:13

According to Mike, this has been their best quarter. Does that mean production wise or financially. If production has increased, that can't be bad given the lower yields from Sao Chico. If financially, then that is also an achievement given that gold prices have been lowest this quarter than previous quarters. I believe it may be financially given the depreciation in the Real. Just have to wait for the financials and "let the figures do the talking".

Raj: Does aisc not include depreciation and as such not a cash cost?

[rajaster] 22/10/2015 10:55

doubt theres that much cash generated.. if the profit is aprox $200-$250 per ounce estimating gold price of $1150 if AISC's are $900-950. then at 35000 ounces the profit is only $7 million to $8.75 million hardly mouth watering but should cover costs, need to ideally see them covering debt which we have delayed.

[sleveen] 21/10/2015 17:08

figures showing cash generation and lots of it.

5000m of drilling is expensive.

[rajaster] 21/10/2015 15:12

hardly any movement.. not sure what it will take to move this up above 6p again?

[bsg] 21/10/2015 09:43

To think this was 4p before a 10:1 consolidation, now we're back under 4p. Not great.

[sleveen] 21/10/2015 08:59

Looks like a fund raising is in the offing to me:

We also feel, with gold prices being volatile and all
gold juniors facing considerable economic headwinds, that the Company
should be minimizing discretionary costs and an independent technical
report falls into that category.

[tightfist] 21/10/2015 08:53

Hi Cotton,

Thanks for your immediate overview. Need to listen to the webcast and interpret - not really what I was looking for at Sao Chico. It does sound to be a very tricky resource to mine effectively?

Cheers, tightfist

[rajaster] 21/10/2015 08:36

Cotton4 i've not seen the webcast yet.. but really hope the figures are worth it.. been holding here nearly 2 years now.

[cotton4] 21/10/2015 08:24

Negatives:
Delay in determining Sao Chico resource.
Debt repayment delayed until early 2016.
More capital expenditure.
Lower yields

Positives.
Best quarter yet and generating cash flow
Exceptional grades.
M&A oportunities

From the webcast, I particularly like "let the figures do the talking", due in next 2 weeks.