Serabi Gold Share Discussion Threads

[borisjohnsonshair] 06/1/2020 09:17

Yes I considered this the guidance for 2020 Palita with ore sorter from Q1, so you'd expect 75% of the increase if it's adding from Q2. Splitting hairs - is expect 43,000-44,500. Nice to see origin guidance despite slower commissioning.

[loganair] 06/1/2020 09:07

With the ore sorter being tested during this first quarter, we expect the first quarter's gold production to be at similar levels to 2019, with the enhanced production impact being realised from the second quarter onwards. With this in mind, we anticipate 2020 production guidance of 45,000-46,000 ounces. ????

[borisjohnsonshair] 06/1/2020 09:01

It's just the start. Some people prefer to hold until derisked some or all. Who dares wins. If you want to be cautious wait for details of the finance. Very hard to buy as max 16% in retail hands and some of that in large chunks not on the market. It'll gap to 120p when finance announced.

[edjge2] 06/1/2020 08:57

Boris, ah well missed a good adding chance at approx 63p. Your assessment of this correct and looks like a future flyer so will look for pullbacks.

[borisjohnsonshair] 06/1/2020 08:54

Ongoing costs associated with operation, hence AISC should remain consistent. It improves with ore sorter and Coringa sharing costs, hence economy of scale. Reduction of 1000 to 900 predicted.

[kennyp52] 06/1/2020 08:52

Excellent Boris . So purely an addition with no perceived extra infrastructure ?

[borisjohnsonshair] 06/1/2020 08:47

No, it's a continuation, giving existing FCF extra longevity and stability as Coringa is developed. Then we have secured additional time with parallel output of over 100,000. This will generate obscene cash as AISC drops and POG rises.

[kennyp52] 06/1/2020 08:39

Good looking drill results . How do they turn it into production .. will they need new finance ?

[borisjohnsonshair] 06/1/2020 08:32

That's a good point. They'd keep the cash if the finance wasn't secured as they don't want to defer again. All good.

[tightfist] 06/1/2020 08:30

Great results and outlook. .Interesting to see that they are continuing at pace on SC exploration activities (ie spend) although the overall funding resolution could be outstanding for another 12 weeks. IMO this smacks of BoD confidence!

[borisjohnsonshair] 06/1/2020 08:14

You heard it here first my friend!!!

[ironstorm] 06/1/2020 08:13

“The anomalies are spectacular”

Good day for this news methinks.

I think prospects here are turning spectacular. 🚀

[ironstorm] 06/1/2020 08:13

“The anomalies are spectacular”

Good day for this news methinks.

I think prospects here are turning spectacular. 🚀

[borisjohnsonshair] 06/1/2020 07:48

Yes, this is easy but that wouldn't reach its fair value by some way. I was concerned (only due to lack of update not based on anything tangible) about LOM, which in turn would scare backers for the finance for Coringa. The FCF is proven to service the required funds, so on top of existing production Coringa is a given. 2020 is another nice year of production and the development of Coringa. 2021 is off to the races!!!!!

[ilostthelot] 06/1/2020 07:44

Bonanza grades there this could really see the share price explode higher today +30% maybe?!

[borisjohnsonshair] 06/1/2020 07:43

Agreed. This company has great production, which generates cash plus likely great LOM and also MASSIVE exploration potential. Could easily be a US$1B takeover in 5 years without dilution. Do the math!!!

[catsick] 06/1/2020 07:40

Some spectacular grades there on the deeper drills, looks like decent LOM extension and also higher grades deeper can lead to increased production and lower costs ...

[borisjohnsonshair] 06/1/2020 07:31

Interesting the Peel Hunt update after hours. Webcast at opening bell!

[borisjohnsonshair] 06/1/2020 07:20

Gents. Great news. Guidance for 2019 pretty much confirmed and also an increase for 2020. LOM increased confirmed and with no end in sight. This is waaaaaaaaay under priced and we are in very safe hands with Mike & Clive. Fair pricing will be met at some point. POG also very much on our side, although not for good reasons - WWIII

[qs99] 05/1/2020 15:26

Thanks and with pog higher and likely to stay high imo then should help with financing talks DYOr

[bomber13] 05/1/2020 14:50

According to a poster on the LSE board , Peel Hunt , Serabi's broker , reiterated their " buy " recommendation and a 157p target on Friday .

No surprises there , but this is very reassuring nevertheless given the element of doubt that has crept into the share price since the 23rd December 2019 announcement deferring the final tranche of the Coringa payment for 3 months until the full finance package has been arranged to take the mine into production .

Following last week's move , the gold price in Brazilian Reals is now only a smidgeon short of its all-time high of R6400 per oz set at the end of August 2019 , and this compares to an average of around R6150 per oz for Q4 2019 . Providing the ore sorter is going to do what is said on the tin , which would mean a potential uplift to output of between 10% and 20% , Serabi's Q1 2020 promises to be a cracker .

We will know soon enough about full year 2019 production ( mid-January ? ) , and , in the Q3 results in November , Serabi confirmed guidance of 40/- to 41/- oz for 2019 after 29878oz of production for the first 9 months at AISC US$1078 . The company also held out the prospect of AISC falling nearer to US$950 with Coringa up and running , and even lower with the ore sorter working in conjunction with organic growth at Palito and Sao Chico . I would doubt that we will get guidance on 2020 production until the full year results in March when more will be known about the ore sorter's performance .

Meeting/beating Q4 production guidance plus positive remarks about ore sorter , exploration , Coringa and the finance package will go a long way to restoring the norm in the share price , which would otherwise be well on its way towards Peel Hunt's 157p target right now .

[borisjohnsonshair] 05/1/2020 10:26

I agree with your first point totally. Differ on your second. I'd prefer to hold a stock I feel is under valued until it reaches my valuation. Taking the ups and downs. When I believe it's reached its value and it gives a dividend I'll hold the profit - free stock. If no dividends I'll sell out. Value is a moving target of course so targets rise and fall.

[mick1909] 05/1/2020 09:03

No concerns for srb just wise to spread your funds also wise to cash in now and then as nothing goes up in a straight line

[borisjohnsonshair] 05/1/2020 08:07

Of course. Any specific concerns re SRB or just a wise diversification message?

[mick1909] 05/1/2020 07:58

It bodes well for a lot of miners best to have funds across multiple miners just in case there are any unforeseen events in certain shares