Serabi Gold Share Discussion Threads

[borisjohnsonshair] 11/8/2019 16:55

wow so cash exceeds debt and it's printing money! If they want this to turbo over £1 they should give a dividend.

[ppvn] 11/8/2019 16:42

Only debt currently is the Sprott loan with about $3.7m and then the option over around c.6,500 oz @ $1,320 that's held as derivative on the balance sheet. Expires in December.

[borisjohnsonshair] 11/8/2019 16:37

If they are clearing $450 an ounce they'll make US$1.5M a month. With £12M in the bank surely they'll be debt free in 2020.

[borisjohnsonshair] 11/8/2019 16:35

What's the debt?

[ppvn] 11/8/2019 14:51

It actually struck me when you mentioned that they said to work it out yourself which I briefly did.

I'd previously been of the view that their best AISC achievable would be around $900-950 when the ore sorter is fully operational but that's not correct. Because of the move in the Real they should actually be reflecting below $900 already. In Q1 the POG was around 4,900, now it is nearly 20% more favourable. So with no additional efficiencies they should be seeing their AISC nearly that much lower. Q2 numbers won't reflect it I guess, but it's certainly exciting going forward.

[littlepuppi7] 11/8/2019 14:32

Thanks ppvn. Really think we will finally get moving this week. 60p is a stupid price for what is on offer here and we all know , once this starts moving it can live very quickly. Pea coming and results on Wednesday. Would not want to be out.

[ppvn] 10/8/2019 18:52

Their Q1 results had an AISC of $1,021 but they did produce slightly more gold than Q2 which to me at least implies that Q2 numbers the AISC should be below $1,050 but above $1,000 unless the scrubber contributed a load of gold and the grade of ore through the mill was a lot lower.

That being said, the gold price in BRL averaged around 4,900 for Q1, and Q2 averaged around 5,150 - so their costs should have been down nearly 5% for q2. So they may have cracked the $1,000/oz mark depending on just when they sold their gold.

Will find out soon enough - of course if gold and BRL stay where they are or dare I whisper even improve - well costs for Q3 should be down around 10%+.

10k oz per quarter and $500 / oz profit is of course $5m per quarter. But then management costs, tax, etc etc needs to come off. But things are going to look increasingly good on the cash front.

[littlepuppi7] 10/8/2019 16:56

I think it's consolidating now Logan before another large 40 to 80 dollar live. The mood music is clearly easing, cuts and central banks pumping their sugar into economies around the world. China also joining in is a game changer. Hopefully 1500 will become the new floor. I have asked srb for some projected monthly fcf numbers assuming a 1500 dollar price but they have said I would need to work that out for myself. Results weds which will also have some bright forward looking statements. I think we could crack through 70 again this week.

[loganair] 10/8/2019 14:36

Gold (measured in dollar terms) had a stellar week (which I suspect will please a lot of readers). There are a fair few reasons for this but one is that in a world of negative nominal interest rates (ie, where you have to pay to lend money, or to store fiat currency with a risk-free government), then gold carries no opportunity cost, and may in fact offer you more chance of preserving your capital (bearing in mind that gold is very volatile on a day-to-day basis).

[littlepuppi7] 09/8/2019 23:39

Not sure what I missed... yes I did 2 trades to secure a better average price for the top up that was all... broker wanted more for 40,000 but said to split it and I would get a slightly better avg...

[borisjohnsonshair] 09/8/2019 21:27

PPVN - yeah half way to that point but I won't get there! I don't ever anywhere. My apology was aimed at Littlepuppy.

[ppvn] 09/8/2019 21:12

Ha, I'm afraid it wasn't my purchase but I was just watching the proceedings unfold!

Thought you were done buying here BoJo! You'll be sending out an RNS soon if you're not careful!

[borisjohnsonshair] 09/8/2019 19:56

Wahay......I do apologise. You deserved the better price.

[ppvn] 09/8/2019 18:52

Lol. Two there now.

[borisjohnsonshair] 09/8/2019 17:16

Ummmmm, suspect.

[borisjohnsonshair] 09/8/2019 16:05

Ummmmm bit of coincidence

[littlepuppi7] 09/8/2019 16:03

Bought 10,000 and another 30,000. 2 trades.

[borisjohnsonshair] 09/8/2019 16:00

Yours......really

[littlepuppi7] 09/8/2019 15:59

My 30,000 buy not showing. Online limits just plunged. 1 mm at 62...

[littlepuppi7] 09/8/2019 15:57

Results out Wednesday next week I think.. they should be looking very positive.

[littlepuppi7] 09/8/2019 15:31

Added a few more. This price cannot last much longer. Thanks for the cash Burford.

[tightfist] 09/8/2019 14:45

I thought the Sprott option would gain your attention/ire! Just reinforces how quickly PoG is accelerating.....

[tightfist] 09/8/2019 14:03

Hi PPVN,In their location they are vulnerable to plant unreliability issues which IIRC have accounted for their past shortfalls. There may be limited scope in the short term to get away from that (although scale at three locations will help in due course?).Assuming equipment availability IMHO I can foresee them exceeding the PH revenue forecast of $60.2m (eg 43kOz @ $1,400FY average - looks like about $1,340 average spot price YTD; next Wednesday will shine more light on that (but let's not forget the negative impact of the Sprott option.....).Next Wednesday we will hopefully hear more confirmation of the Scrubber and, importantly, the Ore Sorter to initially be processing Palito ore in x-ray mode. My guess is that the best we can anticipate this FY is an extra 2kOz - happy to be proven wrong!Cheers, tightfist