Serabi Gold Share Discussion Threads

[turvart] 22/2/2020 03:00

Nice chart! I like the look of it!

[loganair] 21/2/2020 23:31

The price of gold closed this evening up 1.53% at 7,214BRLs and in USD up 1.67% at $1,643 compared to yesterdays closing price.

[sherry35] 21/2/2020 23:04

All - What was the total cost of the commissioned ore sorter at Palito?

enjoy your weekend folks. Mine just started.

[alangriffbang] 21/2/2020 17:54

Very good article ,I don’t know whether you are aware of his but in today’s times business section there is an article on gold shares which lands up with them saying avoid ,of course people read this and are put off buying ,

[loganair] 21/2/2020 16:59

MoneyWeek - Gold is at its highest level in years – here’s how to invest:

Gold's rise at a time when the dollar is unnervingly strong isn't unheard of – but it is curious. John Stepek explains what's going on, and what it means for investors.


Gold is rising against a strong US dollar:

Gold is now at its highest level in seven years, trading at above $1,600 an ounce. This is happening at a time when the US dollar is also unnervingly strong. This is not unheard of. It’s perfectly feasible for gold and the dollar to go up at the same time.

However, it’s not something investors have been used to seeing recently, so it’s seen as odd. So what’s going on? And how can you get yourself some gold

Gold is the only currency in the world without a central bank behind it:

Gold’s rise at a time of US dollar strength, indicates two main things. Firstly, it suggests that, despite surging stockmarkets, investors are rattled. Gold is seen as a “safe haven”. Just to be clear, that does not mean that gold is “safe” – the price still goes up and down and you can lose money fast. It means that investors as a group see it as somewhere to put your money when the world is looking like a risky place.

Other “safe havens” include the US dollar (going up) and US government debt, or Treasuries (also going up – ie, yields are going down). The Japanese yen is usually deemed a safe haven but it’s weakening right now because it’s very tied to China, which is the current epicentre of economic concern.

Secondly, the apparent conundrum of gold rising even when the dollar is rising is less surprising when you look at its performance against every other currency in the world. In lots of major currencies, gold is now at or near all-time highs, including the Australian and Canadian dollars, and our own British pound.

The simplest way to think about this is probably to view gold as another currency. It’s a currency – unlike all the paper currencies – that can’t be printed. And it’s a currency – that unlike all the paper currencies – doesn’t rely on the integrity of any institution for its ongoing value or, in extremis, continued existence.

And when you look at it like that, the rise – even against the strong dollar – makes sense. Pretty much every central bank in the world is currently biased towards lowering interest rates or printing money. Therefore it’s no surprise that every currency in the world is falling against the one that isn’t backed by a central bank.

That doesn’t look like changing any time soon. So if you want to get exposure to gold, how do you go about it?

Betting on rising gold prices:

We’ve always said you should have some gold in your portfolio, through thick and thin. That’s because it’s a good diversifier – it won’t always move in the same direction as equities or bonds.

The question now is, if you want to bet on gold because you think it’s going to continue higher (rather than simply owning it as part of your permanent asset allocation), then how do you play it?

You can buy physical gold, of course. There are lots of ways to do so. You can buy bullion or coins and store them securely, whether in a safe or with one of the bullion companies who’ll store it for you. Or you can invest via an exchange-traded fund which will give you exposure to the gold price (opt for one that’s backed by physical gold).

Another option – and one which is both riskier but also might have more potential for decent returns from here – is to look at gold mining stocks. Gold miners proved to be generally terrible investments during the last gold boom.

They were badly run, and as a result, you’d have made as much money by simply owning gold on the way up, and you’d have lost far, far less during gold’s post-2011 bear market than you did by owning the miners.

This has left a pall of investor revulsion and suspicion hanging over the sector that even now does not appear to be fully lifted. Gold is an investment that attracts a fair bit of derision at the best of times. And in the aftermath of the gold bust, gold miners were roundly condemned as one of the most stupid investments of all time.

If there’s one thing that people hate even more than losing money, it’s being made to feel stupid. Hence the revulsion around the sector.

That of course, leaves psychological room for the miners to play “catch-up̶1; with the gold price. That might happen in earnest later this year – as Eoin Treacy of FullerTreacyMoney points out, “gold miners are among a small number of sectors almost guaranteed to have earnings beats over coming quarters.”

If you do decide to invest in gold miners, bear in mind that they are risky, even by the standards of equities. This is not the same as investing in gold. Do not consider this as part of your gold asset allocation – think of it as part of your equity asset allocation.

Unless you have the knowledge to do so (in which case you probably don’t need me to be telling you all this) I would suggest you opt for an ETF or a fund investing in gold miners. That way you diversify your risk. Yes, you won’t find any six-month 10-baggers that way, but at the same time, nor will you be landed with any 1-day straight-to-zero shots.

[borisjohnsonshair] 21/2/2020 16:31

94p in Canada

[sherry35] 21/2/2020 15:17

tightfist - I took a quick first pass on the PDAC presentation and got inspired by the increased capacity in the Palito mill attributed to the ore sorter. Further inspired in your Coringa "part"-funded comment in post 5370, I'm wondering if MH is contemplating using a ore sorter at Coringa and then shipping the concentrated output (of said ore sorter) to the Palito mill for gold recovery. Given the high elimination of waste from the ore sorter, haulage costs should be lower running a full mill.

If SRB starts sorting both Palito and SC ore, there is going to be large increase in excess capacity in the Palito mill. We'll know more by the end of the quarter when the ore sorting test results for all three mines becomes available.

[cotton4] 21/2/2020 14:49

If you take a look at September accounts and substitute the $1351 average gold price with $1600 this gives an extra $8m of revenue. Ignoring the positive movement in the Real for their costs this equates to £6m or £8m per annum. All a bit crude but that uplift in profits is as yet not reflected in the share price

[cotton4] 21/2/2020 14:31

Can't help but feel that they are looking to be bought out.

[tightfist] 21/2/2020 14:16

No details as yet, but I have noted the word "part"-funded a couple of times in the past few months. .My current understanding is that they will only have a line-of-sight after the 26th to making the final $12m payment to Equinox, paying-off the Sprott loan and PART funding the Coringa M&E Capex and mine development - whilst simultaneously continuing with a moderately extensive Palito/SC drilling campaigns..They seem to have chosen to incur these expenses in parallel, so it seems they maybe have twinkles-in-their-eye?? Maybe it's cashflow from PoG prospects, maybe something else!!.Cheers, tightfist

[tiger60] 21/2/2020 13:58

But remember the presentation pointed out extra funding required at the end of 2020 for infatructure etc. The amount and terms are a grey area. Anyone with more details on this?

[borisjohnsonshair] 21/2/2020 13:49

The financing for Coringa is done, subject to the vote

[morethanme] 21/2/2020 13:19

This higher gold price will definitely improve the terms of financing deal for Coringa and the extra cash flow will of course help to. The very bullish gold price movement will also promote more interest in the miners, which we need to see Serabi valued properly by the market.

Exciting times for Serabi Gold.

[borisjohnsonshair] 21/2/2020 11:57

Very bizarre that this gem doesn't rocket!! I'd be happy with between 120-150p at the mo. Nothing lessMakes sense. Oh well.

[loganair] 21/2/2020 10:01

Another all time closing high yesterday for the price of gold at 7,105BRLs per oz.

Currently 7,185BRLs & $1,635 per oz.

[tightfist] 21/2/2020 09:12

Smiling twice-over now! I suppose with ultrailliquid stocks and certain trade report systems you can trigger changes with miniscule trades and try and play on herd mentality..Incidentally, I held until recently just one Toronto stock, Carube, where impatience took me out. The great news is that I am now registered to hold Canadian stocks, so I can play with.......SBI!.Cheers, tightfistPS: This morning's read is to dissect the SRB PDAC presentation

[sherry35] 21/2/2020 06:15

tightfist - I'm afraid I can't dismiss this topic any longer. I know you'll be upset with what I'm about to discuss. But it's time to clear the air. It's regarding your trading behaviour on the TSX. I noticed you traded 2 SBI shares on February 19. What would possess you to sell 2 shares given the loss after the trade commission. Were you trying to hit some stop losses? P.S. - laugh now!!!!

Sherry

[sherry35] 21/2/2020 06:08

They say three times the charm in breaking through resistance. Based on the daily trading pattern of SBI on the TSX, it was the forth attempt that broke through $1.50 CDN resistance level on 23,700 shares. I attribute the low volume to extremely tight float - at least on this side of the pond.

[tiger60] 20/2/2020 16:42

and the exchange rate RRL to USd

[loganair] 20/2/2020 16:34

Level to watch - $1685 February 2013 high.