Serabi Gold Share Discussion Threads

[tiger60] 04/11/2020 13:00

Annoying fell with gold this morning but didn't follow it up.

[borisjohnsonshair] 04/11/2020 12:34

As if anyone thinks you have a bleeding clue about charts or that they are relevant here - you utter tit. Price dropped because output dropped and people sold. Moron.

[trader536] 04/11/2020 12:17

Chart is still negative. SRB will encounter strong resistance "again" at 94p, it's gonna be years before this rises. 2020 full year figs due in January will disappoint cos of missed production targets, this dog aint going anywhere soon....

[sherry35] 03/11/2020 14:58

I like the bounce but the US election has me spooked. Perhaps the residual effects of Halloween.

[tiger60] 03/11/2020 14:53

Nice to see a bounce and gold over $1900 again

[kennyp52] 03/11/2020 08:00

SHG were indicating cash generation , settlement of a very bad hedge in the near future then wham ... dilution and the share 25% off and mired . So you can never rule out dilution when there is serious Capex on the horizon . Extending LOM keeps the salaries rolling and “gentle production“ achieves this . Bit cynical I know but we have a company being headed by a CEO based in his front living room by the sounds of it ? Production production production ... all problems solved.

[borisjohnsonshair] 03/11/2020 07:28

Sherry - STB have the means to generate adequate cash to explore for the mega find, which is highly likely to exist. They can do without dilution or digging too deep into the huge cash they'll generate after Coringa up and running. MH said they'll start digging as early as mid 2021!!! The exit strategy is a US$1B find. It's gunna happen.

[sherry35] 02/11/2020 15:22

Oh yes. The insinuation's exit strategies are based on the wealth in the ground. Our ability to attract investors and leverage favorable financing terms is based on the wealth in the ground i.e. LOM. The current picture last year attracted the repugnant CLS. Drill the permits because we'll need favourable investing to complete a third plant independent of the extraction approach i.e. underground vs pit.

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Au game is in motion. What's the plan?

[sherry35] 02/11/2020 15:15

tiger60 - Best statement I've read today -> "SRB needs to be in the game now". Is the executive team in the game? Perhaps MH and CL need to take turns staying in Brazil with overlapping visits.

the BOD of directors has a fiduciary duty to the share holders. The Greenstone director needs to be replaced with a mining leader with political rapport in Brazil and with major miners. We have dead heads on the BOD and a executive team running a unique game.

AGM is coming soon but I'm hoping for a power play given the wealth in the ground upside. The wealth in the ground keeps me investing with my hopes becoming reality. You need to ask these questions -> What's the exit strategy for the 2 big institutions? Buy-out by a major? Dividends? Hostile takeover and privatization?

There is one thing I know about investment institutions is they aren't charity organizations. So, what's the bang for their investors' dollars.

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Au game is in motion. What's the plan?

[tiger60] 02/11/2020 10:43

I was going to put together a list by year of ounces produced followed by the forward statement by MH as to his expectation for the following year in terms of level of production to see whether the reputation of over promising and under delivering is ingrained or unjustly awarded.

I will be honest I am here short term to take advantage of the inevitable rise in gold but it won't last forever and I was rather hoping that increased production both real and predicted would couple with the gold price increasing giving me substantial returns on what is a very illiquid stock. Unfortunately that has not been the case. I was wrong (so far).

The annoying thing is I looked at other goldies - producers and explorers - and plumped for this one as best value. I could of got into GGP at low single figures and even then thought it was stretched but how I regret it.

The gold run has a while to run but SRB needs to be in the game now. Coringa 'go live' is a fair way away. If they can firm up the resources and get any hint that open pit mining can be utilised on the new tenements than we will see wholesale change. Thats where the value is created and interest from third parties.

[cotton4] 02/11/2020 10:25

Tiger - How many ounces were they producing then and at what pog

[borisjohnsonshair] 02/11/2020 09:51

He doesn't know your mum

[trader536] 02/11/2020 09:29

I wonder how MH will dress the pig for Christmas

[cotton4] 02/11/2020 08:13

There are always plans - short term or long term - Short term keep staff safe, keep the operation ticking over and generate cash. Long term aim for production of 100k ozs. Plans change depending on current circumstances, in our case Covid.

[kennyp52] 02/11/2020 08:05

We do need a plan ... maybe that will be the next RNS ?

[sherry35] 02/11/2020 00:16

My concern is the consumer demand as we head into 4Q20 and 1Q21. I've already posted an article on the 19% drop for the quarter ended. As we begin the Christmas effect and India/China seasonal demand, lets hope these quarters experience a smaller drop from last year. It's the old supple demand thingy in play.

I agree the mining operations need to return to 10K starting 1Q21 to defend for any head winds in consumer Au demand, and of course create cash flow for exploration. As always, ounces go up, ASIC goes down, profit margins increase. I hope that ore sorter is running at full capacity starting Jan 1st 2021.

What's the plan?

[borisjohnsonshair] 01/11/2020 21:39

No it's based on Coringa at 38k

[borisjohnsonshair] 01/11/2020 15:06

Golden handcuffs can't be knocked but my point is the "staff" (no disrespect intended) are not to be knocked for not spending their salaries on buying their employer. It's a massive positive when Directors buy as they should know the strength of the business. So much so however, look at CEY.

[tightfist] 01/11/2020 13:59

Having considerable "skin in the game" (SITG, which I define as holding significant SHARES, ideally bought with your own money and preferably bought in the open market) is often IMO a good leading indicator of fundamental values; very much one of my first criteria when filtering companies. In the case of Serabi, I only increased my holding substantially after watching lots of videos and then attending the 2019 AGM and appreciating the personalities of MH, CL and Mel Williams (then chairman) - rather than their modest SITG..As is always the case in investing, IMO it's a balance of probabilities and one's own judgement. When the share price is wobbling one can get irrationally agitated about all sorts of aspects, including lack of SITG..What's your thoughts? tightfist

[borisjohnsonshair] 01/11/2020 13:38

Not sure where this animosity comes from about skin in the game. Share holders are owners, CEO, COO & CFO are staff. They get paid to do a job. It's nice if they wish to buy stock but they aren't obliged. MH doing a good job and paid accordingly. He has options, which is a performance related bonus - an incentive. This is in his & owners interest. Expectations that they have to put their home on the line is rubbish.

[tightfist] 01/11/2020 09:19

Hi Cotton, I agree comprehensively with all your points - and there is one more significant one. Last February we were assured the CLS agreement was the most attractive source of funds (and three posters attended in-person and voted for it) but, as soon as it became clear there was likely a non-dilutive way forward, further CLS issues were promptly deferred and then renegotiated to become a back-stop..If you ever get to meet MH I anticipate your positive perception would be reinforced. You met CL in February which hopefully afforded you a taste of their executive culture..Cheers, tightfist

[cotton4] 31/10/2020 22:04

When the share price of a share falls like SRB's has, it is easy to blame management and I for one feel that, in this case, it is unfounded. Like companies around the world, SRB have had to deal with Covid19 and the uncertainties that brings. However if we step back for a moment and consider what has been achieved, I feel that the management have done well. They have kept the operation open, although at lower levels of production. They have reduced debt and have and are still making money at a level where imo this is not reflected in the share price But over and above that they have looked after their employees, and we are now in a position where staffing is coming back to normal. The feedback from the local meeting early in the year with regard to the Coringa licence was all positive and that reflects the trust the locals have in the current management. Going forward we will probably need that trust again in the future.
Like others on here I am frustrated with the speed of developments but that is probably down to optimism on the part of MH which unfortunately has not been achieved in his timescales but missed due to circumstances outwith his control. Not his fault Covid19, not his fault the speed with which the licence came through.
I have never met MH but to me he comes across as genuine.
Historically SRB have been constrained with production limitations not mining limitations. With staff now coming back on site, they can now increase the amount of veins they mine and get back to more normal levels of production. Financially I expect that qtr3 has been similar to qtr2 from a cash point of view, with lower production compensated with higher pog. I expect qtr4 to be similar with any reduction in the pog compensated by higher production. This would result in SRB best year financially. 2021 should be even better, Covid permitting.