Serabi Gold Share Discussion Threads

[tightfist] 23/12/2019 18:07

No Cotton, my response was to bsg who asserted that the shares were being walked-down to support a potential placing to "mates". IMO I wanted to swiftly counter that view..I totally agree that MH comes across as sincere in his frequent webcasts and I was not left in any doubt when I got to meet him. I first encountered CL whilst he was gathering intelligence at another gathering. MH occasionally has been on the wrong side of delivering but he drives himself and his team to achieve - very much in keeping with my ethos in business.

[kennyp52] 23/12/2019 17:57

Debt is money owed .. to think of it as anything different is dangerous . The final payment has yet to be made but would use up the whole of their cash resource . So it seems they might need to pay it with ..... you guessed it .... debt . Regardless of the real value of this company the market will not like this at all and I am going to delay my re-entry into this share until it pans out over the next few weeks . Good luck everyone .

[cotton4] 23/12/2019 17:44

Tightfist

I don't know if the question is pointed at me but no I have never met him or CL. I have been in SRB for years except last year when they forecast no increase in production. MH , from his webcasts, comes across as genuine. Over the years he has delivered but not in the timescales predicted and I see no change in that going forward but that is not a concern for me. I tend to agree with Boris in that the real value will start to come out over the next couple of years.

[tightfist] 23/12/2019 17:12

Have you ever met MH or CL? I have more than once; IMO they are not your average AIM charlatans.

[tightfist] 23/12/2019 17:08

Very good point regarding bringing the Ore Sorter on-line during Q1. That could well become a potential game-changer during these negotiations and deciding on the way ahead.

[bsg] 23/12/2019 17:08

Looks like there is a placing on they way, they probably don't need it but want to give their mates a few cheap shares in the belief of increasing liquidity. At what price? 50p is my guess.

[cotton4] 23/12/2019 16:43

Our current debt/liabilities amounts to $19m of which we have $14m in the bank. Net $5m. We have generated $4.5m for 9 months which includes months when the pog was lower. I would expect to have generated $6m for the year. If the ore sorter generates anyway near the benefits expected, then we would be debt free during next year. So the ore sorter is crucial. Coringa could be delayed until we have built up a cash reserve.
An increase in reserves from our ''Christmas Tree'' might be enough to attract a bigger player. So in the meantime we have bought time to fine tune the ore sorter and increase reserves.

[tightfist] 23/12/2019 16:39

Hi, with all the possibilities and probabilities that lie ahead I would genuinely be eager to hear a Sell rationale. In my view they just need a little time (which they bought today for ca $370k) whilst they negotiate the options: (1) Debt (Sprott were heading the queue), (2) Equity (maybe Equinox, or another Canadian) or (3) Slow-down and Organically cash fund the Coringa M&E..Personally, playing the longer game, I would prefer option 1 or 3; option 2 if it was alongside bringing in a partner/major to enable drilling of Cinderella and the Anomalies within the next two years..IMO today was a great opportunity to add - which I did twice. tightfist

[alangrifbang] 23/12/2019 16:20

Having been a buy for some time I rang my broker in London and have been told to sell , this has been a shock as it has turned so quickly ,haven’t done it yet I will review the situation tomorrow ,

[borisjohnsonshair] 23/12/2019 15:52

From LSE....SRB requires approx $40m to satisfy all of its debt, Coringa payment, and CAPEX for Coringa.They will have $15m in the bank at end of year. They then have all the earning potential for 2020, in order to bolster their coffers, which will include the new ore sorter, which should help push production healthily above the 40-41,000 tons expected this year.With gold prices holding firm in the high $1,400 range, the company should be able to drive minimum another $8m in capex from ongoing production.So they are down to $17m and that figure assumes the $6m in debt needs to be paid off, when to date it has merely been pushed to a later date.My view is they will extend it again and/or raise further funds from Sprint or another. If they can pin $6-8m against Palito at much lower gold prices, then they can at least equal it for Coringa.So for me $12m of that remaining $17m is heading for debt. At least. That leaves circa $5m to find.To play safe I will increase this to $7m. That's £5.4m perhaps required in new shares. So circa 13-14% dilution.If they need to dilute by that amount to secure a path to 80,000 is production, in this sort of gold price climate, then I welcome that with open arms.The figures do not point to a big raise being necessary, which means it is certainly not a strong sell.

[borisjohnsonshair] 23/12/2019 14:47

Has the muppet got any analysis or just more unsubstantiated nonsense?

[borisjohnsonshair] 23/12/2019 14:42

AISC dropping to 900, so they'll clear 100,000 x 550 a year - US$55M. Buy and hold for 12-24 months. Bloody easy street

[borisjohnsonshair] 23/12/2019 14:38

They have US$13M in the bank. Coringa is estimated to cost US$25M to develop to production - US$5M of which is contingent.With the ore sorter functioning they should produce 45,000 in 2020. If they clear 400 / ounce they'll generate US$18M cash.Who cares if they dilute 25% and raise the money to finish the purchase. They'll probably borrow however either way they'll produce 100,000 ounces when Coringa finished. Dilution or servicing debt, your money invested today will be triple.

[edjge2] 23/12/2019 14:24

boris & trader365 you are both in danger of the filter. I agree with jeanesey but not her sell.

[edjge2] 23/12/2019 14:16

so coming back to 60, scared of a placing?
Imminent gold blast may save it?

[jeanesy] 23/12/2019 13:06

Can you please stop you two. I was attracted to this company and then you two started.I have sold out but will still watch and wait for news. As for reading your posts .. no thanks !

[trader365] 23/12/2019 11:48

Why buy more at these prices? As soon as you buy you'll lose 8%, the time to buy for the long term was June 2018, 40p in the next 6 months

[trader365] 23/12/2019 11:29

Spread is over 8% now