Serabi Gold Share Discussion Threads

[borisjohnsonshair] 17/11/2020 10:00

They are exploring again so major update due any day. Massive discovery on the cards.

[tiger60] 17/11/2020 09:58

The problem here now is there is little in the short term at company level to look forward to. We know expenditure will be higher in qtr 4 as stated in the latest update and production circa 8,000 with something slightly better expected for Qtr 1 2021.

It is only the gold price that will drive this short term. Good to see Goldman Sachs retained their $2300 target for 2021. Although many experts see a few weeks stagnation (trading in a narrow range) before breaking upwards in the new year.

I would rather the company help itself.

[ianpuddifoot] 17/11/2020 06:32

Trader probably me as hold both Greatland Gold & Eurassia Mining,

[frogkid] 17/11/2020 06:15

Oh Kenny , OK thanks, not sure where that went then !

[backinblack80] 17/11/2020 01:30

BIG yawn, SRB. Get drilling ffs. You promoted the massive potential...now you need to prove it. It's clear that very few truly know about SRB...the BOD need to address this! Get promoting and stop being so uber careful about Covid....

[kennyp52] 16/11/2020 21:43

Me ? No pm my end Frog

[frogkid] 16/11/2020 19:15

@kenny, pm'd youRegardsFrog

[davidosh] 16/11/2020 19:10

On another note it’s very interesting that Gold and SRB are attracting the likes of Mello; a change of direction for them, and well connected to folks with deep pockets! Ie Potential new money...... (tightfist)


To be honest we simply listen to our investor network and take note of feedback given.
We knew that a number of investors had holdings in gold stocks and a large number of investors are using gold as a hedge or part of their portfolio. We were asked to go deeper into sectors and an event like this seems to fit the demands fairly well. It is a first attempt so we may not get it perfect but will certainly do our best.

It seems to be very popular so far and we will cover a wide range of gold investment options.

[trader536] 16/11/2020 18:39

SRB is a vehicle to transfer cash to directors pockets. Watch and see.

[trader536] 16/11/2020 18:15

Look at these ADVFN posts from 13 years ago. Sound familiar? Compare the market cap and the statements by investors, the stagnant market cap, and the increases in directors drawings .......


Ed 123 - 26 Jul 2007 - 14:59:58 - 753 of 3749 Serabi Mining - Gold from Brazil Now - SRB
The second quarter results have been released. It reads very well. Output for the third quarter will be increased and the company is aiming for a big step up in 2008 (to 60,000 to 70,000 ounces).

In 2007 output may be around 40,000 ounces at a cost of about $250 per ounce. This gives about £8 million of operating profit. Current market cap. is about £67 million fully diluted. Also, there will be loads more exploration (holding 273,000 hectares of land).
SP should be higher, imho, but overlooked by the market.

Ed 123 - 07 Sep 2007 - 13:23:08 - 767 of 3749 Serabi Mining - Gold from Brazil Now - SRB
I added to my holding today. Seymour Pierce reiterated buy on 29 August 2007 - states it's on its way to becoming a mid-tier gold producer.
SRB should produce about 40,000 ounces this year and its costs should be about US$225 per ounce. Operating profit could be in the region of £8 million in 2007. Current market cap. is only about £41 million. It has a good resource, over 700,000 ounces at about 9g/t. It also has rights to explore a large area adjacent to its current production.
Institutions paid 43p per share in July 2007 in a placing to provide funds for increasing both production and exploration. The gold price appears to be on a strong run but SRB looks neglected at its current price.

polaris - 11 Apr 2007 - 16:04:47 - 589 of 3749 Serabi Mining - Gold from Brazil Now - SRB
We cant be more than 5-6 weeks away from the trading update for Q1..and maybe some more details on the exploration. That will give a good feel to how 2007 will go.
The extra ball mill commissioned at the back end of last year should lead to an increase in milling throughput by 25%. With the work towards automated mining i would expect the head grades to fall a little during H1 2007 but this will be more than matched by the increased throughput. Q1 should yield around 13k Oz Au equivalent with average price in the 620-640$ range and possibly higher as they have small %ages of copper and silver in the refined ore and they have also seen good price increases over the last 6-9 months. I would hope that total cash costs (including admin etc - ie not mining costs which i expect to be less than $250) can be kept around the $300 per Au Oz equiv for the year and so my estimate for cash generation through the year is $17-18m. That is more than enough to fund resource drilling, expand and update mining equipment and to buy new prospects.
Current share price gives a market cap around £50m. With the prospects for increased resources with the drilling program, this still looks pretty cheap.

regards,

Paul

Stockologist - 08 Oct 2013 - 11:20:01 - 260 of 6139 Serabi Gold 2013 re-opening Palito goldmine and potential regional consolidator - SRB
They could make the current Market Cap every year in cashflow soon i.e. prospect of getting almost your entire investment in this as an annual dividend !

[trader536] 16/11/2020 18:11

ianpuddifoot - yes I'm very real. The only no brainer is brainless Boris who been singing the same tune for over a year. Full value will never be realised here due to the geographical risk and historical huge payments to directors for under performance and failure to deliver year after year.

You may want to compare my 2 PM picks to Boris and Kenny the clowns picks in the list below and ask yourself whos the smartest investor out of the three of us???

[tightfist] 16/11/2020 14:43

Hi tiger; like you I rather like the current status whereby organic cash generation can steadily fund the balance of funds due to Equinox. In the 24th April RNS there was a 6 week period after International Travel restrictions are lifted (into both Brazil and within Para), after which final settlement is required. The Q3 cash balance plus steady cash generation looks to have that debt covered IMO; in the unlikely event they run into a tight spot in Jan - March I guess they could always subscribe for a few CLN's.......Once that obligation is fulfilled there is the ongoing need to retain a healthy cash balance whilst financing the Coringa M&E and progressing exploration, something that Sherry mentioned the other day. Has anyone attempted a cashflow analysis?.On another note it's very interesting that Gold and SRB are attracting the likes of Mello; a change of direction for them, and well connected to folks with deep pockets! Ie Potential new money.......Cheers, tightfist

[davidosh] 16/11/2020 14:12

Just to let you all know that Mike Hodgson and Clive Line will be presenting for Serabi Gold at our MelloTuesday 'Investing in Gold' webinar next week. Serabi will be one of four companies taking part and the presentation plus Q&A will be 30 minutes. The event runs from 6pm to 9.30pm and there are some highly respected fund managers, investors and analysts taking part in panel sessions and providing presentations.

We will look at Gold as an asset and how to invest in it covering everything from buying gold coins and bars through to stakes in gold producers paying regular dividends. We will also cover ETFs, gold indexes, gold exploration & mining companies and investment funds and feature a number of presentations



If you would like to attend then use this code for a discounted ticket MTGOLD and the price will be reduced by 66%. All our Mello annual pass holders are able to attend as a bonus event and we expect to have over 400 on this webinar but if you have questions then the presenters always agree to provide answers the next day on our website if they remained unanswered on the evening.

[golden prospect] 16/11/2020 12:26

Feels like the last update has kicked the ball into long grass with a slower road to recovery, so Serabi will need some positive news to give share price traction again.

[tiger60] 16/11/2020 09:09

If the travel restrictions are lifted do we have to pay the whole outstanding balance to Equinox? The current payment method is far more preferable

[tiger60] 16/11/2020 09:09

If the travel restrictions are lifted do we have to pay the whole outstanding balance to Equinox? The current payment method is far more preferable

[cotton4] 16/11/2020 08:58

I agree its a bit simplistic but when you have such large movements in non cash items it can spook people. But the cash on the balance sheet has allowed us to meet our commitments and start drilling again. The point being is that he didn't understand accounts nor did he want to. All he wanted to know was the company making money.

[imastu pidgitaswell] 16/11/2020 08:52

Bit simplistic (capex, timing of supplier payments, loans, debtors all impact a snapshot of cash reported...) but basic point is a good one.

In time like this, cash on the balance sheet matters.

[imastu pidgitaswell] 16/11/2020 08:46

It's not depreciation as the accounting term goes, i.e. the writing off over its useful life - they are just currency translation differences.

If you have a fixed asset recorded at, say 1 million Brazilian reals and the exchange rate at (say) 30.06.19 was 0.2 and at 30.06.20 it was 0.15, that means you would record (and keep) the cost in local currency, reals, but when producing your accounts in Dollars, the translation of those same assets into US Dollars at 30.06.19 would be $200,000, but at 30.06.20, would be $150,000. That difference of $50,000 is what is recorded as the translation loss you see, below the line.

Nothing has changed, the asset is still there, recorded in local currency, it is just its theoretical value in US Dollars that has changed. It would work the same if the currency appreciated rather than depreciated - maybe those terms 'appreciate' and 'depreciate' in relation to the currency are a bit confusing. Rise and fall would be simpler...

Anyway, it's not an issue.

[kennyp52] 15/11/2020 22:46

These are unaudited accounts 🤷‍a94;️ but points made well and I fully understand what you post . The write down of capital assets - so they are in local currency in the books of the company and therefore have to be translated in $ every year as well as being depreciated . It’s a significant amount but as you quite rightly confirm ... non cash . I could understand if substantial investments were being held in foreign currencies ... but not capital assets - some of these new GAAP and IAS reporting standards are causing completely different reporting to prior years and causing more confusion than clear and transparent accounts . Is what it is.

[imastu pidgitaswell] 15/11/2020 20:59

kenny - non-issues.

The first one is an accounting requirement, the effect of translating the local currency assets into US Dollars, which is the reporting currency. The assets, which are the fixed assets, debtors etc, are denominated in the local currency (and should be) and it is a non-cash accounting entry - it does not and should impact the income statement, and has no effect on the cashflows of the business - hence why it is recorded 'below the line' All very standard.

The second one is a standard going concern note - all companies are required to be able to continue in their current mode for a period of 12 months from the date of signature of the accounts. It is not a qualification to the accounts, which would be included in the external audit report. All that note is doing is stating a theoretical possibility that, in the event of not having enough production (i.e. self-funding) and then also not being able to raise any funds, there would be a going concern problem. This is known, and if you think about it, applies to any business - if there are is no income and no additional external funding, there is a problem. In the current environment in particular, auditors insist on such going concern paragraphs - I'm seeing quite a few of them in really boring stable companies. It's all very theoretical. There are many other non-productive PM miners out there who will have to include much harsher wordings than that.

[tiger60] 15/11/2020 20:41

It is rare for a set of accounts to be qualified but in these times a reference to COVID may become standard. In addition, the accounts were released before vaccine news.

I think the exchange rate rules come under IAS 21

But the sentiment about moving things on is shared.