Serabi Gold Share Discussion Threads

[sherry35] 15/5/2020 21:43

tightfist - I also noticed the high ASIC value from the stated:

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Financial highlights:

Cash cost for the quarter of $996 (U.S.) per ounce;
All-in sustaining cost for the quarter of $1,257 (U.S.) per ounce
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

I'm wondering about the following:

1) increase costs due to commissioning the ore sorter. Was the onsite engineering from the vendor factored into Q1 2020?
2) repair costs to the mill
3) increase in in-direct costs such as rent, insurance etc.
4) Sprott loan repayment
5) increase in exploration activities

I'm wondering about the closure of the HQ office permanently or moving it to Brazil after the COVID19 dust settles. Evidently the exchange on the US currency is in favour of Brazil. Perhaps SRB can share office space and infrastructure with other explorers. COVID19 is going to change mgmt mindset and the need for office space going forward.

Obviously you and Cotton have picked up on something. Some of the financials weigh drain my brain power. I look forward to reviewing your "sums" investigational findings.

[tightfist] 15/5/2020 20:25

Hi Cotton,.I'll do some sums tomorrow and try to understand what drivers account for the latest AISC - they have adversely impacted on both the numerator and the nominator! I noted the comment on contractors being brought in to advance the underground development - that won't have helped. I guess they need additional ore sources to feed the capacity liberated by the Ore Sorter? And they need to replace the tailings source by about year-end?.There's a lot to like about Serabi - but not their current AISC trajectory. Versus USD the currency looks to have weakened by about (18)% Q1 vs Q1 which could have delivered (15)% reduction in USD costs? It takes some doing to translate that into +23%.......Cheers, tightfist

[golden prospect] 15/5/2020 18:22

Serabi gold investors will probably feast on share price dips, wealth transfer in progress

[trader365] 15/5/2020 17:42

Thank you for your eloquent opinion. My chart seems to disagree with your 120p target by yesterday.

May I suggest you trade what is actually happening rather than what you would like to happen? You'll find it far more profitable.

[sherry35] 15/5/2020 17:00

tightfist - My feeble minded impression of 2019 financial and gold sold from inventory commentary, by Clive, is a confession or airing of dirty laundry. Looking at the former, these "unique" (one off instance) statements are publicly made to address concerns brought forth by a major. Majors perform broad-brush due diligence including the review of financial records for the past 3 to 5 years. They don't want to be contractually involved in a junior while a lawsuit bares down on both of them. Evidently us retail investors missed this slide of hand in selling Au from inventory to bump up numbers.

On aside, what is the operational inventory level or reserve of saleable Au for SRB on a quarterly basis?

MH mentioned in his last video majors on the property. These majors are doing their due diligence. Also, SRB's new director is heavy weight at this level.

Get ready for another ""synchronized"" open choke blast of pumper and basher posts to bury the intelligent posts.

Edit: To add, I suggest you buy on increments on any pull back. The next pull back could be a grease the wheels of some shakers and rockers. The so called "Johnny come late to the party" investors with influence.

[trader365] 15/5/2020 16:35

The smart money sold at the double top resistance in the nineties again. My chart says it has further to fall, wait before buying back. MACD, RSI and ADX have all entered negative territory.

The covid risk isn't going away anytime soon, and costs will go even higher if the mine closes.

[cinoib] 15/5/2020 15:16

backinblack, just a tad but not much I could do, had to pay for the farm and house first.

[cotton4] 15/5/2020 15:15

Hi Tightfist

I also can't get my head around the AISC. In part may be from stock in previous qtr -
FIFO basis. May be in part to playing around with the ore sorter and of course the ball mill repairs. The cost of external contractors also appears to have been included
in AISC.

[borisjohnsonshair] 15/5/2020 14:38

There was Mech failure, hence drop in output and associated additional costs. It's not complicated how it had such a substantial impact on costs! Proven to be one off and fixed hence high output in March & April. Don't get your knickers in a twist when there's higher costs associated with Covid measures.

[tightfist] 15/5/2020 14:33

Hi Cotton,.Good to see you again, we met at the 26/02 GM. .Add to your list the unexpected blip in AISC; not got my head totally around that yet - I would have guessed the BRL weakness would have totally offset the adverse moves due to the February 1/3 mill capacity? failure..Take care, tightfist

[borisjohnsonshair] 15/5/2020 14:26

For sure. The long term potential will holds its price but fluctuations inevitable. Any selling and buying causes big swings as so few shares not firmly held.

[cotton4] 15/5/2020 14:22

Reaction to uncertainties:
CV
Future funding
River and Mercantile selling shares

[pi0110] 15/5/2020 12:37

First quarter a little disappointing in part due to mill problems. Investors backward looking today hence the price reaction.

In a week or two first quarter results will be forgotten except for the "3,674 ounces of gold produced in March 2020, the highest monthly level since the operation opened".

Going forward with higher production levels, cheaper fuel and Labour cost and an extra circa $100 / oz, AISC will fall. All contributing to a much greater profit.

I've just topped up at 80.9p to take advantage of current pessimism.

[backinblack80] 15/5/2020 11:50

Cinoib, sounds very miffed he didn't get in on the 'last drop' ....

[borisjohnsonshair] 15/5/2020 11:44

The market is where the patient take money from the impatient.

[borisjohnsonshair] 15/5/2020 11:43

So you value SRB at US$32M - LOL. Palito worth more, Coringa worth more, their HUGE exploration field worth more and they have US$12M cash to boot. Good grief.

[tiger60] 15/5/2020 11:31

The all in costs were a reflection of lower production, but yes it was high. The aim is to get it below 1,000.

Thanks for the update on the equity reserve adjustment being based on long term asset reduction.

[cinoib] 15/5/2020 11:22

At first glance it's clear what rffrct the virus has had, so at this moment in time I will sit on the sidelines a bit before buying more as it is only worth on these resuldts about 45-50p. Yes I missed the last drop as was fully invested as was a perfect oppotunity, but other things were more important. So will wait and watch. All in costs still seem steep to me as I have other goldies on far lower all in costs.

[king suarez] 15/5/2020 09:54

It looks like the company has written down the value of the non-current assets (plant & equipment and exploration spend) - presumably paid for in local currency and re-translated into USD, which has reduced the $USD value of the expenditure. No real significance imo.

[kennyp52] 15/5/2020 09:42

Doesn’t the weakness in the BRL create a positive for the company as they pay wages in the currency ?

[tiger60] 15/5/2020 09:23

Does anyone have more detail on the change in shareholder equity over the quarter of -15M? This is described as a foreign currency adjustment but would like to know more

[borisjohnsonshair] 15/5/2020 09:21

Agreed but same the world over, 2020 a year to tick over and mitigate losses. License approval is coming up and major milestone.

[tightfist] 15/5/2020 09:11

Yes, the headline numbers are not impressive and the commentary reads like a Perfect Storm with some tough 2019 comparatives, extra costs, lower revenue and with the accelerating weakness of the BRL not yet fully reflected..The Notes make interesting reading and provide a useful summary; I guess we are now going to have to be patient for a couple of quarters until they have worked their way through the CV operational measures and the cash/debt/final consideration/CLN aspects. I am patient for 2021 onwards but it's not obvious to me in the intervening period what further news would enable an share price breakout? I may be tempted with a small top-up if we dip down to 80p again.. Cheers, tightfist