Serabi Gold Share Discussion Threads

[tightfist] 07/3/2017 09:04

Good....seems that Buyers will now pay 5p or 5.2p, hopefully the start of increasing awareness/confidence? Or just that results are probably only three weeks away?I thought the latest Corporate presentation was rather good, clear vision of the organic opportunities - and thankfully seemed to down-play the M&A aspirations we heard of last year.Cheers, tightfist

[bigdazzler] 06/3/2017 16:32

Still 3/4 of a million shares so far in batches of 1/4 million is very positive.

[kinloch] 06/3/2017 15:33

Seems our buyer will pay 4.8 hence the holding back of the price.

[bigdazzler] 06/3/2017 11:23

Yes I'm liking the look of Srb as well.

Certainly long term aiming for a run back up towards the July 16 high of almost 7p

[kinloch] 06/3/2017 11:17

Some big buys coming in is the message getting through.

[loganair] 03/3/2017 08:31

The U.S. Mint has sold 27,500 ounces of gold in various denominations of American Eagle gold coins, its lowest sales record since December 2015, when the Mint sold 500 ounces of bullion. Gold coin sales fell 67% compared to sales seen in February 2016, according to the latest sales data from the U.S. Mint.

Surging gold prices since the start of the year created significant weakness in the physical market, with bullion coin demand falling to its lowest levels in 14 months.

Comex April gold futures settled February at $1,253.90 an ounce, up 9% since the start of the year. Going forward, higher gold prices, growing market uncertainty and higher market volatility will continue to weigh on demand.

Phillip Streible, senior market analyst at RJO Futures, said to Kitco that he is not surprised that coin sales were weak last month. He added that expectations that the Fed will raise interest rates three times this year could continue to keep bullion demand muted.

“It is a lot of money to put up for a one-ounce coin. As interest rates rise, investors might be thinking that it is more attractive to that money and invest it in a yield-baring asset,” Streible added.

Simona Gambarini, commodity economist at Capital Economics, said that weak bullion demand is not just a North American phenomenon as higher prices and market regulation take their toll on demand in India and China.

“In India, we expect the effects of demonetization and efforts to increase transparency in the gold market to curtail demand. For China, a slowdown in economic growth and a change in consumer preferences away from gold will likely weigh on consumption of the yellow metal,” she said in a recent report.

She added that in current market conditions, investors are probably looking for more liquid assets than gold coins.

“In times of high volatility and market uncertainty, I think investors will turn more to gold exchange-traded products as they are more flexible than bullion,” she said.

Weak bullion demand is one of the reasons, Capital Economics remains bearish on gold, expecting prices to fall to $1,050 an ounce this year.

[bsg] 03/3/2017 08:26

I can see gold slowly drifting down, a couple of rate rises in USA will see to that. Plus AISC of 950-975 isn't great.

[cotton4] 03/3/2017 07:37

Would tend to agree kinloch but still feel there are short term head winds.
The pog is not helping nor is the strength of the real v dollar. I am dissappointed that they are not quite debt free given that we now in March which indicates they may be having short term cash flow problems. I will wait and see on this one meantime.

[kinloch] 02/3/2017 20:13

Excellent presentation given in the last few days well worth reading as regards future plans.

[cotton4] 22/2/2017 13:37

Always possible. However too many unknowns for now.
Outcome of drilling. Strenghtening Real. Are we debt free or do we need the cash.

[kinloch] 22/2/2017 13:32

Is there a placing coming.

[kinloch] 09/2/2017 19:44

Our friends are at it again to-day with a big sell at days end are we ever going to see an end to these amounts and do we have any idea who the seller is the share price will not recover until we see an end of this supply.

[hraj] 08/2/2017 15:32

nice find rame

[rame4] 08/2/2017 15:12

hxxps://www.ig.com/uk/market-insight-videos?CHID=9&SM=TW&REF=IGTV&bctid=5315453050001&bclid=3671160850001

[hraj] 08/2/2017 09:32

hi tightfist, the real is trading higher than it should be and economists and the brazilian gov are looking to implement measures to weaken the real:




should be trading somewhere in the region of 5.45 vs the dollar rather than 4 vs the dollar right now.

although i admit this doesn't mean a whole lot to me.. trading gold for direct dollars or gold for real and then dollars??.. how does it work?.

[tightfist] 07/2/2017 15:23

This is slow motion compared with most Gold miners at present; SRB always seems that way. I guess it's PoG action that has stirred it a little today.The Results are still about seven weeks away, and there is ongoing uncertainty about expansion plans and acquisitions? Also the Real continues to gain strength, up about 5% compared with the average in H2 - not helpful at all. The AISC always feels a little disappointing, although they generally hit their forecasts.Cheers, tightfist

[hraj] 07/2/2017 12:41

slowly slowly.. charts looks a little bit better again.. if 5p can be broken i expect 6p pretty quickly.

[sleveen] 26/1/2017 16:24

Agree multifactorial valuation measures that combine to derive a MC.

Add to that stamp duty is payable too!

[hraj] 26/1/2017 10:32

hi sleveen yes i have £28 million can be seen as a little high vs some peers.. but not long ago a company like this would be worth somewhere in the region of £100 million.. there multiple avenues to look at the valuations.. e.g. net debt.. AISCs.. actual profits,size of resources, and assets..i think with serabi the market has valued this quite fairly.. if they can confirm debt repayment then i can expect £40 million mc, that would be around 7p again if my maths is correct.

abit frustrated by the lack of brr this time.. the board have been quite and i wonder why and what their planning. they did say they wish to pay down debts by year end .. there hasn't been any confirmation..

ps note the debt of both aaz and sgh , but potentially much bigger projects and debts will be paid down fast if they maintain their low AISCs ie aaz is only $700, so much better profits.. their debts something like £28 million. i forget all the details as im not invested.

[sleveen] 26/1/2017 10:14

hraj,

Have you compared the market cap of SRB with other small produces say SHG AAZ?

Potentially SRB could be over valued in comparison unless they can get production above 70k oz/year.
hence the failure to get to the anticipated 6p.

IMHO.

[hraj] 26/1/2017 08:55

Hi tightfist, yes i am look pre restructuring.. the crazy prices this has seen since 2008-2017, although its been 2.5-7p in the last 3 years..welldone to the lucky gits who bought at 2.5s.
I don't fully understand your reverse takeover comment.. if frattelli lower their stake then why reverse takeover when in affect frattelli were just investors like you and i but bigger.

[tightfist] 25/1/2017 16:22

Cotton,Yes, Hodgson has strongly indicated that they want to achieve scale (at 100k Oz?). It was also indicated recently that Fratelli were willing to reduce to 30% as part of an acquisition so we may anticipate a large placing, or even a reverse take-over?My mention of dividends was just to put it out there; I am getting a little jaded with nearly all (except HOC, PAF) my junior miners generating increasing cash and laying-down debt whilst not having a progressive dividend policy, it doesn't help the share price at all.Hraj,I am away from home on vacation but my recollection is that the re-financing with Fratelli was at 7p? Are you looking at share price data before the company was restructured?Cheers, tightfist

[hraj] 24/1/2017 15:38

the trouble with acquisitions is that again they will be trying to grow synthetically rather than organically and smartly.. probably raising cash or diluting.. this company has raised countless millions in the past with out bearing fruit..the share price is 1/20th of where it used to be considering the consolidation also.

what we need is mike hodgson and co to allow cash to accumulate and then acquire if needed. i know they were looking to become a regional player. if they aquired a licence freely from the gov rather than purchase another org ..then it may be more beneficial and then grow organically through exploration/delineation of the licence area and jorc it.
palito it self was never a large gold resource.. with low indicated and inferred resources, and sao chico has never been measured from what i've read(please correct me if i'm wrong). low mine life also with 10 years output.

[cotton4] 24/1/2017 15:29

No still think that a dividend may be some time away. They are looking for scale, which may come from current holdings and if the current drill program is dissappointing (which I doubt) they may be looking towards an acquisition.IMO

[tightfist] 24/1/2017 15:17

Cotton,I think momentum may improve when we see cash accumulating on the balance sheet. A maiden dividend would help too - have you seen any tentative approach to a dividend policy?Cheers, tightfist