Serabi Gold Share Discussion Threads

[loganair] 01/4/2020 14:14

Although Russia will not be adding to its gold reserves in the near future, analysts are not expecting the central bank to start selling its gold anytime soon.

Gold accounts for over 20% of Russian international reserves, which is a high level historically and compared with other central banks. “The central bank probably doesn’t want to increase gold’s share in reserves” said Tatiana Evdokimova, an analyst at Nordea Bank in Moscow.

Ease tightness in global gold markets - This would have a manifold benefit by helping enable increased ownership of physical precious metals around the world, and potentially supporting the case for more de-dollarization. It would also reduce the huge premiums that are being paid for physical gold.

Even though there’s literally thousands of tons of gold bars sitting in vaults around the world, it’s been hard to get metal when and where it’s needed, and so premiums for physical bullion is extreme to say the least.

Given the huge physical premiums in precious metals it would make sense to enable producers to sell into global markets at a sizable profit - “The central bank is now signaling to gold sellers that they should redirect their supplies externally,” said Dmitry Dolgin, ING Bank’s chief economist in Russia. “Global demand seems to be high.”

[borisjohnsonshair] 01/4/2020 10:36

The Con Loan had approx 20% dilution. That was ok. I'd consider total cost of up to 35% dilution ok at today's MCAP OK but anymore it's not worth it. Our exploration field has massive potential but granted won't generate output in the same timeframe.

[tightfist] 01/4/2020 10:35

Because Greenstone with the CLN deal are either being (1) Prudent, or (2) Opportunistic..You choose.....

[cotton4] 01/4/2020 10:21

In a word - Coringa

[borisjohnsonshair] 01/4/2020 10:11

Yes - a simple plan and operation fundamentally, so why have they got backed into such a screwed up financial corner!!!

[loganair] 01/4/2020 10:03

Serabi are still on course to make $6mln to $8mln profit for 2020 and unlike many companies at the moment they still have a continuous revenue and profit stream.

[tightfist] 01/4/2020 09:59

IMO it seems to give 3 months breathing space (with ongoing Equinox/Beatty willingness) for a negotiated cash/debt/interest/equity/CLN solution. A useful counter to the Greenstone impasse?.I see the operating situation and cashflow situation as complementary, although IMO I would expect they will want to retain cash and see what scope they can negotiate to slow-down instalments to Sprott..Wait and see, DYOR tightfist

[borisjohnsonshair] 01/4/2020 09:40

Looks good but with probable mine temporary closure for 2-6 weeks a solution for longer than 3 months is required.

[tightfist] 01/4/2020 09:05

I found this little gem buried within the Equinox (TSX:EQX) news release on 27th March:."Standby Loan.Further to the Equinox Gold news releases dated August 2, 2018 and December 30, 2019, the standby loan arrangement between Equinox Gold and its Chairman, Ross Beaty, has been amended and restated to extend the term from March 31, 2020 to June 30, 2020"..The context of the Standby Loan is covered in post #5875. NIAI but it appears that the pressure to stump-up the $12m Final Consideration is in the process of being staved-off again. What the transaction becomes is anyone's guess..Please DYOR, tightfist

[tightfist] 01/4/2020 08:40

More alternatives...... I know nothing about Equinox and would Greenstone need to start their DD from the get-go? .I am even less excited about the prospect of "....leadership changes". Sounds like Babies and Bath Water to me! tightfist

[tightfist] 01/4/2020 07:41

By the looks of it we will have to be patient for a while longer..I see an usually large 50k deal went through at 49p just before yesterday's close, and reported after hours - I wonder what the story is behind that? A Buy worked during the afternoon rise?

[sherry35] 01/4/2020 06:53

tightfist - I think a more prudent move for Greenstone is to invest in Equinox and allow Beaty to take a equity position in SRB/SBI. This de-risks Greenstone, and allows it to take part in a future buyout of SRB/SBI by Equinox. Beaty inherently receives the same benefit.

If Beaty takes the full equity financing, I hope he joins the board and makes some leadership changes. Cash is king so you've stated.

... Sherry in the colonies.

[sherry35] 01/4/2020 06:29

Here is an opinion on share buy backs. I suspect the multi-month divergence beween the SP500 and EPS will CONVERGE. Rapidly!

[sherry35] 31/3/2020 21:14

SBI.TSX closed up today on moderate volume.


upload image service

[trader365] 31/3/2020 13:34

100koz in 2050!

[tightfist] 31/3/2020 13:32

Hi, I was referring to the Feb ball mill failure - now resolved. .There is clearly a vulnerability of labour or consumables shortages over the coming months - or even government-induced shutdown..I was hoping this vulnerability/impact would be confined to Q2 but Q2+Q3 is now more likely, based on unfolding European events? I suppose we could estimate minimum quarterly production for cash break-even - but you don't need a calculator to see the appeal of equity/CLN (even if it entails some dilution) as opposed to debt-funding...... And deferring the retirement of the existing Sprott loan..Cheers, tightfist

[borisjohnsonshair] 31/3/2020 13:20

Future - 100,000 ounces / year.

[tiger60] 31/3/2020 13:15

I am thinking the impact on production will not be restricted to the Ball Mill failure. We were advised future production would be detrimentally impacted by labour restrictions. But if we knew the future we would all be millionaires - good luck

[tightfist] 31/3/2020 12:34

Interesting a different take on risk and optimistic MH? .Maybe I am basking in "confirmation bias" but that they could have a production shortfall (Ball Mill failure) of maybe 1,200 Oz in February but be confident they could recover that either indicates they are hopeless optimists, or that the "terrific OS performance" is indeed terrific! and out-performing expectations..Financing resolution/holding position RNS eagerly awaited, tightfist

[tiger60] 31/3/2020 12:20

You are a braver man than me to invest that sum without waiting for the financing details. Waiting patiently - agree on gold price in general but not sure of production rates here for this year or the next. Good Luck

[tightfist] 31/3/2020 11:52

Well played with SRB; your long term Gold perspective is similar to mine.

[mick1909] 31/3/2020 11:34

I did buy back in June but sold out around the 80p mark a decent profit the covid 19 virus panicked me and took all my money out of everything slowly reinvesting and see this as a long term as gold is ultimately heading one way with the fact how much money is being printed is obscene but is needed because of peoples lively hoods are at stake

[tightfist] 31/3/2020 11:14

Welcome, not seen you around for a while?IMO a great day for topping-up, especially IF price-setting for a Private Placing is in the air........

[mick1909] 31/3/2020 10:58

Settled 36362 @ 51p it may drop down but see this as a long term investment 2-3 years

[mick1909] 31/3/2020 10:42

I've just put an order in for £18644.45 let's see what share price I get as I usually get stung for best price