Serabi Gold Share Discussion Threads

[king suarez] 07/7/2020 14:46

Did you come to tell us of your share sale in hopes we would sell SRB shares and buy into GRL?

Don't personally see GRL as having any better upside than SRB.

[yorkie14] 07/7/2020 14:07

Just ditched these and put them in GRL. I will be back here when it hits 30p.
Good luck everyone.

[borisjohnsonshair] 07/7/2020 11:37

License news in Q2??? Where is it? Covid delays I guess but it sounded like MH was confident in his Crux interview.

[tightfist] 07/7/2020 11:19

Yes, eerily quiet here!.Q2 results last year were on 22nd July. As I commented the other day, IMO we need some new interest/money to enter to lift this higher. SRB stalwarts are probably maxed-out; at least I know I am - SRB constitutes 37% of my goldies..A couple of investing friends are only at 2% SRB in their portfolios - are they wise or wimps?!.Cheers, tightfist

[tiger60] 07/7/2020 10:49

Very quiet here. Everybody looking at other goldies? I suppose we are only a week away from an update

[tightfist] 03/7/2020 08:06

PS: My like-about-it comment referred to the issue of the CLN's not about SRB!

[tightfist] 03/7/2020 08:04

Hi PPVN,.Thanks for your thoughts - liquidity has improved markedly since last June (note the volume chart!) but I too don't foresee Greenstone selling in the market, but ultimately looking for a trade sale (exit during formation of a farm-in JV?) in the super-long term..I agree that, whilst none of us can be CERTAIN, there are several ingredients that will likely take-off and launch the share onto more people's radar, with fresh money then entering. The share price is very much consolidating at this level - patience still required!.Cheers, tightfist

[ppvn] 02/7/2020 22:49

Plenty to like about it imo tightfist.

And re. The CLNs; I'm not convinced it'll be the worst thing in the world if they are converted. I doubt they will be sold by Greenstone (rather i think they'll just increase their %age ownership) - so will it be a drag on the share price? I'm not sure.

There is very limited float here as it is - so if and when the licence for Coringa, exploration success(?), potential farm in with a major, covid die-back, gold price etc all fall into place I still think there will be fireworks in a good way here. But then what do I know...!

[tightfist] 02/7/2020 21:28

Hi PPVN, Sherry,.Thanks for the link to Greenstone, SRB maxed-out on what was agreed; maybe they want to get ahead of the game with monthly issues to give themselves/SRB more cash/flexibility/security whilst the COVID threat remains and gold production remains suppressed. (I think there are also benefits whilst the pound stays high vs the USD)?)..I am very hopeful SRB will not issue CLN's up to the $10.5m limit, which matches the Equinox final payment. The H1 results in a few weeks time will provide more insight into organic cash generation - current and future. Over the next two years this needs to finance the Coringa M&E capex, plus exploration. And maybe part of the Equinox payment. And I suppose there is the possibility of renewed debt, but secured on what?.I am assuming Greenstone will Convert to shares within the next 13 months, all the time the CLN's remain in-the-money, or close. On the face of it, this is not going to do the share price any good - unless some compelling news arises and all is forgotten..I suppose one needs to "Find something you like about it!" tightfist

[trader536] 02/7/2020 20:37

You can estimate and throw around all the figures in the world, the only figure that makes shareholders a profit is the share price, which is the same as it was in August 2019 when gold was 1450.

[ppvn] 02/7/2020 19:29

Doubt it Sherry! The timings of the drawdowns seem to me to coincide with the payments to equinox - so my guess would be there is a further $10.5mm remaining for the Coringa acquisition...

[sherry35] 02/7/2020 18:37

My take on the announcement is SRB/SBI has drawn down "US$1,500,000 (equivalent to C$2,052,300, using the closing exchange rate of US$1:C$1.3682 on June 29, 2020 published on the Bank of Canada website) [of] convertible loan notes issued by the Company (the “Convertible Loan Notes”).

I suspected the additional cash maybe needed to cover expenses incurred with the major courtship. MMA.VN did a private placement during the negotiations phase with Rio Tinto.

Will SRB payback the $1.5M US loan with cash?

[ppvn] 02/7/2020 17:41

Hi Tighfist, apologies got a little caught up. Saw the announcement here:

[tightfist] 02/7/2020 14:42

Thanks PPVN, I hadn't caught up with that - BTW, where did you see it? Tbh I was hoping that the new chairman was going to call a halt...... Maybe the MH 16/06 cash projection included some CLN funds? ?Cheers, tightfist

[ppvn] 02/7/2020 12:50

The first tranche of CLNs were issued on 30th June, tightfist! $1.6mm worth from what I remember

[tightfist] 02/7/2020 11:07

Hi tiger, BJH,.My May 2021 date was a real worst-worst-case scenario; if PoG continues its rise and/or production increases, the date to clear the Coringa $12m payment with organic cash would be a lot sooner. MH is on-record that the excavating of the portal at Coringa (to grab a sample of ore!) will not start until its 100% theirs..Regarding reporting "disconnects" I find that the added nuances of interviews on the same day as RNS's are really quite useful. (eg. regarding the February mill breakdown they were hoping to over-produce in the last 6 weeks of Q1 and get back to guidance - a typical MH team try-harder approach - then COVID struck.....)..I have plenty at-stake here and follow SRB carefully, not that I find it all worry-some. I will continue to promote a half-full organic cash possibility and see what feedback we get. Maybe they will need to raise $10m but would they now be able secure better terms than surrounded the February CLN's?! We don't know yet if any CLN's have actually been issued, or that the security package has been transferred from Sprott.......Cheers, tightfist

[golden prospect] 02/7/2020 10:51

From January 2020 - Ore sorter in action

[tiger60] 02/7/2020 10:31

Thanks for the feedback. There has been in the past a disconnect to what is said and what is officially represented in a RNS. I will await the official figures. Remember they failed to report the mill breakdown when it happened - surely a material event. Anyway all the best.

[borisjohnsonshair] 02/7/2020 10:07

Great stuff. I wonder if they could develop Coringa before it's fully paid off, I doubt it. False economy to delay til Mid 2021. If they blow their cash on the full repayment after a few months the draw down, they'll be skint but debt free, CL free and full owners of Coringa. Could they drip feed the development of Coringa and exploration with free cash flow. I suspect not. It's US$20m plus unlikely US$5m contingency. Either way - to complete the acquisition or for development I think they need US$10M.

[tightfist] 02/7/2020 09:50

Hi tiger,.You were speculating about the cash situation - suggest you take a look back at the 16/06 CRUX interview; at 12:30 mins MH says they were $3m cash ahead of forecast at end Q1 - and suggests they will be $2-3m ahead of budget at end Q2 even after paying-off the Sprott loan..Paying $1m per month to Equinox would be "very affordable" according to MH at current production of 7,5-8kOz per quarter - and he is hopeful to improve on that gold production by Q4. (If one assumes realised PoG at $1,700, IMO is this a round-about way of suggesting a current Cash Cost of less than $1,300? whilst utilising a camp headcount of 250 employees, including the cost of some ongoing underground drilling)..IMO thus suggests they could (if the travel restriction were to continue) finish payments to Equinox by end May 2021 latest, only using organic cash generation whilst retaining their $6m cash balance..Then they would need to progressively fund the $20m ($25m with contingency) for Coringa M&E capex. MH stresses at 13:00 that they wish to minimise debt and dilution. One wonders if a slightly slower approach to Coringa start-up would be fundable from organic cash?.BTW I suspect it would help the share price considerably if the prospect of a multitude of CLN's exercisable at 76p could be minimised..All the best, tightfist

[borisjohnsonshair] 02/7/2020 09:09

It's not included in ASIC

[tiger60] 02/7/2020 08:57

Debt repayment is not an exceptional item

[borisjohnsonshair] 02/7/2020 08:49

You can except exceptional items such as debt repayment. So the figure you quote included significant exceptional items plus the plant failure associated costs.