Serabi Gold Share Discussion Threads

[tightfist] 15/5/2018 17:05

I see that they are proposing a 20:1 consolidation at the 14th June AGM. Looks good to me, part of growing up to respectability.Will look deeper into AISC comments; if it's like another miner I am invested in, it depends on policy - immediate expensing or capitalising/depreciation of exploration costs.Cheers, tightfist

[ppvn] 15/5/2018 15:01

Agree with regard to the AISC numbers, Serabi seem to have a lot of strings attached to their Sprott "deals" that effectively pass through a lot of profit which is a shame for the moment.

Also noted an interesting comment regarding the Coringa acquisition and further funding requirements, but final payment not due until around 2020 and with at least that much as cash in hand currently, well let's see what the next few quarters hold.

Will be good to see some reports of drill program at some stage. Hugely upped the investment in exploration (I.e. from zero) so will be nice to get some fruits back.

[loganair] 15/5/2018 09:02

What I didn't like about this report is how the AISC production of Gold increased from $1,043 to $1,166 per oz.

Serabi are one of the more expensive Gold miners and desperately need to get the AISC figure down below $1,000 per oz.

I am mainly invested in Highland Gold Mining (HGM) whose AISC is around $650 per oz.

[tightfist] 15/5/2018 08:57

This morning's Q1 numbers are interesting BUT it's the sentiment underlying Mike's Comments that is most notable to me - full of confidence and IMO multiple potential game changers in motion. One for a patient LTH.Good also to see interest and liquidity in dealing this morning; let's see if that is sustained - rather early days for that to turnaround?Cheers, tightfist

[ih_671431] 15/5/2018 07:59

Here’s the link to Serabi Gold’s (SRB) numbers to take a look at

[ppvn] 01/5/2018 11:48

Hi Tightfist, I'm still here and still hopeful for the future of Serabi. If they can get Coringa up and running in the not too distant, as you say should get a bit more interesting. Not sure it's pessimism with regard to this share; the low liquidity just makes it relatively boring then it goes haywire for a day or two now and then. Think PoG will be under pressure for a couple of months but then we could see a more sustained rise, all helpful seeing as we are now, I suppose, a developing mine! Still reeling from the amortization figures personally but that's just accounting; doesn't change the fact SRB seem to be doing ok. Time needed here but still see decent possibility to make out very well on this one.

[tightfist] 27/4/2018 21:48

There is now a brrmedia MH interview that expands on the Q1 report and short-term activities:



As Mike says the company is now properly capitalised for the current programmes and they don't have to keep a constant eye on the PoG or the strength of the Reis. IMHO the Q1 report is quite promising but the pessimists will rule for a while yet - there's a reference to prospective 2018 news flow at the end which may liven things up a bit?

Cheers, tightfist

[loganair] 25/4/2018 18:47

From the first quarter review:

"During the year we expect to generate steady positive news flow from a successful exploration campaign from Palito and Sao Chico as well as progress at Coringa, as we pursue our ambition to establish ourselves as a significant gold producer in Brazil with a target of an annualised production rate of 100,000 ounces within the next two years."

[tightfist] 29/3/2018 13:17

PPVN,A few thoughts. Firstly, PI's are explicitly EXCLUDED from the placing - see top of Appendix 1. There will IMO be no further debt in the short term but I suspect that the third and final payment for Coringa and equipping it for production is going to require further debt - just maybe the ore-sorting is going to accelerate production sufficiently at Sao Chico and Pallito in 2019 to IMO avoid further placings - but I haven't attempted a cashflow.Hopefully the intent "..... to widen its shareholder base through the introduction of a broad range of investors who are supportive of the Company's plans and ambitions." is going to significantly improve market liquidity which is usually pretty dire.This looks quite promising IMHO a few years out; as ever shareholder patience is required - even the Chairman acknowledges that!Cheers, tightfist

[ppvn] 29/3/2018 12:25

Thanks tightfist, appreciate the comments. I agree your maths and with around 1.15bn shares in issue the 255mm shares in float will be about 22%, the second offering prospectus seems to preclude private investors from taking part, unless I've misread. So it'll be interesting to see who takes part in it I personally think. It's not a terrible price which makes me wonder who could be buying at that level, the $15mm placement recently announced prevents Serabi from placing shares below 3.6p and I can't personally believe that private individuals would subscribe to take what is in essence our entire float again in investment. Very strange indeed. Anyway I'm still fairly comfortable holding here and I'm intrigued as to where we will end up. In any case, being a 100k oz/pa producer should see our value go up, at least there won't be any significant debt to repay!

[tightfist] 29/3/2018 11:49

PPVN,The new Greenstone shares are due to be listed around 12th April, I think SRB will then have issued 997m shares. This morning's news will take that to a minimum 1,154m shares, less PH expenses?I am guessing that Greenstone (and Fratelli?) will maintain their % positions at an aggregate 68%. That being the case it would leave 89m min. shares (or 8%) for other participants in today's book build placing.They seem to want to maintain ongoing listings (AIM & TSX) otherwise it would have been taken private by Fratelli before Greenstone came on-board? IMO there has been plenty of apparent opportunity and time? It has now become clearer how they are going to track towards 100kOz shown in their BMO in February 2017, there is little mention of ore-sorting possibilities this morning? They are rather late and IMO it's not "organic". They need to find another $12m at the latest in 21 months time.I too was a bit shocked by the depreciation in the results; need to take a deeper look now that the second placing news has been digested! There is a new corporate presentation on the company website but no brr update yet.Cheers, tightfist

[ppvn] 29/3/2018 10:11

Yes well called again Sleveen, have to say very prescient. I'm a little confused though I must say. With only 255mm shares in free float, that represents just over £9mm of shares held by investors other than Fratelli and Greenstone. To raise a further $8mm at 3.6p would suggest to me that there is another institution prepared to stump up the cash; I can't see Peel Hunt selling it successfully any other way (unless anyone else can correct me?). That will leave, post second placing, around 22% of shares in PI hands (non-institutional); does anyone else think this company may be setting up to go private? Or sold off in some other iteration? With the illiquid shares, (in my opinion) undervalued asset, it seems logical to me at least. Would be interested to hear others thoughts on this. As an aside, was shocked to see amortization and depreciation charges increase yet again! I find it laughable that that justification for this was the fx variations (there has been relatively little this year) and larger mining fleet - $10.5mm for the full year?? Think a few underground dump trucks depreciating that much on the balance sheet is incredible!

[gregpeck7] 29/3/2018 08:22

Fully funded at prevailing price impressive.

[sleveen] 29/3/2018 07:42

sleveen
16 Feb '18 - 17:36 - 1505 of 1545 Edit
A bank loan at reasonable interest rate now that ongoing cash generation has been demonstrated, rather than a Wonga/Sprott loan, for most of the payment.

I still think a placing will be required for a proportion(20%)of the loan though.

...and today:

--Intention to raise gross proceeds of a minimum of US$8.0 million through the issue of new ordinary shares in the Company (the "Placing Shares") at a price of 3.6 pence per Placing Share (the "Placing Price")

-- The Placing Price represents a discount of 12.2 per cent. to the closing
mid price of 4.1 pence per share on 28 March 2018 and a discount of 0.55
per cent. to the closing mid price of 3.62 pence per share on 22 March 2018 being the business day prior to the Greenstone Subscription


and repayment of the Sprott loan.

[gregpeck7] 26/3/2018 10:46

Results on Thursday. Expect they will be very good and inspire more interest. I'm sure our new investors know already how things are going..

[bozzy_s] 23/3/2018 20:48

Congrats SRB management and shareholders. Large fundraise at the prevailing market price is a cracking, and rare, result.

[rampair] 23/3/2018 10:59

I will only urge people to look at North River Resources. Delisted. They got in to a deal with Greenstone . Enjoy your day and I wish Serabi every success , particularly to long term shareholders. DYOR.

R. No advice intended.

[cascudi] 23/3/2018 10:06

Fantastic. It was about time for this to fly. with China and Us issue I see gold a good investment. Hope for 12p soon at least.

[gregpeck7] 23/3/2018 09:47

Looks like That 250k buy earlier really cleared them out... really caught everyone out this news. Clearly big money does want in here.

[fillipe] 23/3/2018 09:45

Excellent to see both the bid and ask starting with a "5", for a change.

Also seeing the highest ask well up - now showing at 6p.

f

[gregpeck7] 23/3/2018 09:42

Outstanding rns. Well worth the wait here.. glad I loaded up last month. Thanks Lalria for the tip!

[ppvn] 23/3/2018 09:13

I'm still looking forward to FY2017 results. I assume those will be next thursday

[fillipe] 23/3/2018 08:57

4.71p paid, as I type.

f

[rajaster] 23/3/2018 08:47

Pis would mean too much work and more expensive. Iis add a touch of experience too.

[loganair] 23/3/2018 08:02

Good sign they managed to get the share sale away at the current share price. I just wish Serabi would offer shares to us PI's instead of just the Institutions.