Serabi Gold Share Discussion Threads

[ppvn] 20/9/2018 20:06

Hi bomber13,

Agree wholeheartedly with the above and is the reason I have a not insubstantial holding here. You are however selling them short - cash at end of June was $21m (I assume you meant £14m rather than $14m?).

Unfortunately the recent-ish consolidation seems to have killed off what little liquidity there was, but I'm not personally too concerned since it allowed me to top up at 54p and 53.75p which I was very pleased with.

Today's announcement has been positive as many have before, hopefully the days of passing all their p&l through to Sprott with options on production have now passed. AISC has risen somewhat in recent quarters, but with the ore sorter coming along toward the tail end of the year this will hopefully help.

I'm expecting q3 to not be stunning in terms of profitability (If profitable at all), but from thereon I'm expecting the co to begin delivering in more meaningful way - I.e. shareprice positive.

Important for those considering this co to be aware of the tiny float and woeful liquidity - but as you say - over a couple of years timeframe I'm hoping for a very healthy return on my investment.

[bomber13] 20/9/2018 14:07

The new presentation put out today for the big gold conference in Colorado is pretty similar to the one put out in June , but for a couple of interesting points .

Firstly , they appear to have upgraded Coringa's annual targeted contribution to a range of 30/-oz to 40/-oz , which now implies they could beat their 100/-oz total annualised target by 2020 , which is currently split 40/-oz present Palito complex , 30/-oz organic growth in the Palito complex , and 30/-oz Coringa . Secondly , they show , in much greater graphic detail than before , the potential resource growth around Coringa and the Palito complex with the use of IP and magnetic illustrations .

All in all , confidence would appear to be building hugely at Serabi .

Following on from the US$24.5m of placings done in April with Greenstone Private Equity and investors at 72p per share , there are 59m shares in issue for a market cap of £32m or US$42m at a shareprice of 55p . Net cash at end June was US$14m , so the EV is US$28m or £21m , which compares with end June net assets of US$74.5m . Total resources of 900/-oz , which we know to be a hugely conservative figure , gives an EV/oz value of only US$31 per oz .

If we are now at the lows of gold and gold shares , and Serabi can deliver a near tripling of current production within 2 years , then we could be in for a very exciting ride in the shareprice ?

[ppvn] 31/8/2018 11:07

It is rather encouraging and good to see aerial survey results are expected in Sept. They do seem to be upping their game somewhat and with $21m in the bank as of end of June, the current market cap does seem on the low side (understatement)!

Due to my recent top ups I have a rather outsized position here. With the illiquidity of this stock I could stand to make a rather pretty paper penny fairly quickly, but selling out will possibly be a problem in time (I have been here for a couple of years with my principal holding and intend to hold for at least another couple). Struggling to think what the end game for serabi will be - I guess liquidity needs to improve significantly but with only 35% or so being free float this may be tricky. Alternatively I suppose large dividends in time could encourage holders, or what I consider the most likely possibility down the road is being acquired or taken private. Few more hurdles to pass before then though.

Either way still exciting times here and things definitely starting to look better than ever.

[hraj] 31/8/2018 10:50

It's over 2 meters though, remember Solomon gold grades over similar lengths sent it soaring on hype. The actual gold per metre at depth will not be the same. They probably hit the payload.

[csmwssk12hu] 31/8/2018 09:55

That is a lot of gold most of the time your lucky if you get 10g per tonne, has potential to be very profitable

[hraj] 31/8/2018 09:16

we have seen srb fall to 2.5p before and it broke up towards 6.5p.. that would be 48p vs 130p, so potentially double.

[cascudi] 31/8/2018 07:08

29.82 grammes per tonne ("g/t") gold
wow that is a lot of gold

[ppvn] 30/8/2018 15:39

Think gold begins it's climb from here. Seems to be resisting a break to the downside so last couple of months pressure should ease. Think a surprisingly good rally on the cards for the tail end of the year, if not now, by mid-late Sept.

[ppvn] 24/8/2018 09:34

GM Tightfist,

Having rechecked, the reference to 2019 I got for the ore sorter was from the statement made in Jan this year - Mike mentioned that due to the lead time it wouldn't make any real impact until "late 2018 at best". Reference was last made to this purchase in the q2 results in July - "as reported last quarter, after successful test work in 2017, the company has purchased an ore sorter...". Not sure if that means the $1.2m has already been paid up or if that's due on delivery. Either way think it is still going ahead.

Interestingly, as Mike continues to reiterate, gold priced in BRL is currently 4,900. All time high has been 5,148 which hit in July briefly. Fortunate i suppose that pricing is currently so favourable whilst our AISC seems to have spiked somewhat.

[ppvn] 23/8/2018 22:04

Hi Tightfist,

I thought personally speaking that mike has sounded rather optimistic about near term results from their aerial survey that was conducted, and whilst he has been less vocal with regard to their ore sorter he did reiterate that it was on order and expected to be up and running early 2019. I'll find the reference tomorrow.

We actually have a lot more than just fratelli on board; the $9m placement has found it's way into institutional hands also. There were previous ii's on board too, anker etc.

Either way, I'm really rather excited about the next year or two here. I had a reasonable holding that I topped up on Tues (yes, 54p was a buy rather than the reported sell!), and couldn't resist a few more today.

Look forward to getting back up. I think there is a bit more impetus from management to engage with shareholders here too, and from comments mike has made it would appear management would prefer the shareprice to reflect a little more favourably also.

Have a good evening

[tightfist] 23/8/2018 21:04

Hi PPVN,I threw the rule book out of the window a while back but I am still waiting for the market to respond, and it appears considerably more patience is required yet! With an illiquid stock.....I am particularly hopeful of the Ore-Sorter. It does seem to offer a lot of (effectively grade) short-term upside on Pallito ore for modest capex but Mike Hodgson seems to be keeping fairly quiet about it for the time being?The potential upsides from the drilling programmes and Coringa are further away but substantial. At least we now have significant conviction from an ii other than Fratelli; I find that reassuring on the down-days.Cheers, tightfist

[ppvn] 23/8/2018 16:56

Thrown the rule book out the window and bought more here. Feel that gold is due a turn to the upside and with survey results, x-ray sorter, organic growth as well as being well under the (not so) recent placing price this represents extremely good value at this level.

With such slim volume having been traded and a drop of around 40% since the end of May this could turn very quickly. Here's hoping anyway!

[ppvn] 21/8/2018 10:44

I have bought a few more here. Whilst the metals complex more broadly speaking is under pressure the drop post consolidation now seems well overdone. Happy to watch the progress now.

[csmwssk12hu] 20/8/2018 10:33

Excellent news

[laptop15] 27/7/2018 20:10

A year or share price i bought at 3p and sold at 5p....so we are talking new consolidation rate buying at 60p and selling at 100p. Bought some this week at 55p....the has raise a good deal of cash at 72p.So with about $20 million cash And lots of exploration ongoing it really does seem to be in the best position in years.On target to produce 40,000 oz thus year, nearly 10,000 oz per quarter.So with a lot of news flow expected in August it seems to be a very good risk reward investment.

[laptop15] 25/7/2018 12:30

Took at few today at 55p....think The bottom is in here with exploration news due early this quarter could do well as share price pushes back to placing price of 72p. Big discount currently

[laptop15] 24/7/2018 14:50

Any news due here guys?

[danieldanj] 23/7/2018 08:30

Serabi Gold (SRB) Numbers Out Just Now

[cascudi] 23/7/2018 07:06

management maintains its initial production
guidance and expects that gold production for 2018 will exceed that of
2017 and be up to 40,000 ounces.

[hraj] 11/7/2018 09:42

dropping under 3p, not sure why, but probably to do with the share consolidation and lack of trades even after the consolidation. the old share price 2.5p was support.. so could recover from that point.

[laptop15] 10/7/2018 15:54

Fake wall = Sp looking solid and all of a sudden the mms drop it, like today

[laptop15] 05/7/2018 13:34

999 mm code = fake wall

[fz13] 22/6/2018 16:03

Doesn't seem to be much buying going on...but the story is strong, what are the headwinds driving this down? GP? Currency, operational risks or just thin market?I'm long, but as they say the market can stay irrational longer than you can stay solvent

[laptop15] 22/6/2018 09:23

Can't buy live quotes, any know what buy price is??