Serabi Gold Share Discussion Threads

[borisjohnsonshair] 08/1/2021 08:09

Hiya - welcome back, I hope you had a wonderful break. Nice to have your input and opinion. Not sure about the "what's the plan" all the time - they have a plan but perhaps not exactly what you wanna hear.

[sherry35] 07/1/2021 23:29

PPVN - What is your WAG for 2021 profit based on your two favorite ASICs? 30M US? Use 50K Au ounces for 2021 production.

tightfist - Any idea on the farm-in cost to SRB to drill the AA permit? AA will want good dollar but I suspect it's still under drilled. Google satellite shows pit/artisanal mining.

[concept2d] 07/1/2021 23:28

Welcome back Sherry35.
I agree with you....let's have a major discovery, and soon!

[sherry35] 07/1/2021 23:20

BJH - I'm back. It's all about drilling. That's the plan because the rest is painful to watch on Crux videos.

Bet you're excited I'm back. ;)

[sherry35] 07/1/2021 23:19

Which brings up a big question regarding the SRB and AA permits. Which permits has the bigger percentage of the Au reserve? Both companies are asking that question. Time to drill.

Perhaps a farm-in is launched by SRB in drilling the middle AA permit.

After the last Coringa purchase has been made (~$5M US), I hope the plant build moves at a slow pace so as put more funding into drilling the wealth in the ground. Not buying the Coringa operational date.


DRILL THE PERMITS!!! Don't give a damn about the Coringa mill.

[sherry35] 07/1/2021 23:12

There is a high probability that the farm-in could be with either Anglo-American or Eldorado Gold. The former being the permit owner of the property separating SD and SC as per Chart 5. This answers my question upon reading SD acquisition PR a few weeks back.

The latter comes into the play with second suitor in Kenai Resources acquisition. The rest is history.

Just a wildcard. A Au major looking to take out EG and SRB. SRB being a better deal when looking in Brazil.
______________________________
What's the plan? (given its absence in the Dec 2020 investor presentation)

[morethanme] 07/1/2021 12:15

@tightfist I really like this summary.

"I am still unsure the market knows how to value a wide-ranging goldie - is it a production company, a mine developer or an explorer - actually all three, which reduces the risk substantially IMHO."

This was always the draw to me for Serabi, the fact that it has a consistent record of generating ounces and cashflow, whilst offering huge potential upside by increasing production, both organically and through developing Coringa. And if that wasn't enough there is excellent exploration potential for the company. All of these components together offer a much more attractive risk to reward proposition than some of the other miners.

It will be interesting to see how much mining financing terms have improved with an improving gold outlook and how much easier it will be to get Coringa financed in the future.

[ppvn] 07/1/2021 11:57

You could well be right tightfist. I've copied the below from a transcript with Mike regarding the topic. I had assumed that the large anomalies were the two that I'd mentioned on pg. 17 however it could be that they are already drilling to see what they have in the areas you mention...

Matthew Gordon: Okay. So what I'm hearing is that you're very excited. I can hear that and you know how you're going to tackle it. I guess, people, you know, shareholders and people are looking at you afresh are going to be like, well, is this going to distract you from the work that you're going to do at Coringa?

Mike Hodgson: I've been asked that a few times from investors in the past, and obviously, I suppose it is a nice problem to have. We've got such good organic growth upside in our backyard. Look, Coringa is very advanced, established, as you, as you quite rightly say; it is a Palito lookalike and it is going to do very nicely. Thank you.

I think what these results show us is how important organic growth is as well. You know, we can actually add ounces in our own backyard very cheaply. We can actually find satellite deposits which are all sort of built, dovetailed into our sort of plant expansion plans, whether they be at Palito or Sao Chico. So it is important to realise that potential in and around our 2 producing areas to see where are we going to do a plant expansion, which obviously we need to do at some point in time. And  this is what it is about.

I suppose I would like to add though that, you know, when you see something so big on the geochemical anomalies and the geophysical anomalies like this, we are mining high-grade veins at Palito, at Sao Chico and we will be at Coringa. But the scale of these anomalies, the size of them is, and the rock types they're in, do look very similar to what the Anglo Americans of the world were looking at in Matagroso state in the South. And you know, not that we're going to jump into bed with Anglo American or RTZ or any major, we've had several visits at site about these guys, wanting to come and look at what we've got. They're very excited about it also; about the potential.

You know, these big magnetic anomalies are indicative of magnetic altered granites, which are usually hosts for bulk, porphyry type mineralisation. And so, we're pretty excited about that we might have something, some real scale in our own backyard. So, you know, all we can do now is work our way through the process, prove the mineability.

Link:

[tightfist] 07/1/2021 11:09

Hi PPVN,.Thanks. IIRC there was an intention stated in Spring 2020 to update the SC resources later in that year but I may be mistaken..... I too was struck by the pace/enthusiasm to get drilling at Toucano but I had linked that activity to the Majors inferences. The SC Resources update I had assumed was going to be more local to the existing SC location, guided by that they seemed eager in Q3 to resume underground drilling, possibly using their own people more safely?.I wasn't previously aware of any specific potential partnering area - if they hit good and shallow grades at Toucano/Raimundo (when combined with all the historic artisanal activity) I anticipate it may shift the focus of any (pure speculation) ongoing Majors discussions. MH has made it clear that Coringa is their number 1 priority in 2021. Do we desire a Major to bring serious resources to the party and whilst PoG is in vogue - or would slow-and-steady be preferable for VLTH?.Lastly, I will always remember ex-Chairman Mel Williams saying "the best place to find a gold mine is - next to a gold mine"..Cheers, tightfist

[borisjohnsonshair] 07/1/2021 09:10

Can never knock profit. Well done but let's hope it was a bad move - he he.

[imastu pidgitaswell] 07/1/2021 09:07

Yes, probably sold the 5000 too soon - but it was showing a decent profit, and PM prices were falling, which tends to mean these collapse, and just thought it wise to take some off the table. Volatile markets.

Strength today suggests the bedwetters (like me) are declining. Good going forward for the remaining holders (like me...)

[borisjohnsonshair] 07/1/2021 08:27

Anything under 100-200p is super bargain

[borisjohnsonshair] 07/1/2021 08:27

Got funds to top up but can't. £750.....so illiquid

[ppvn] 06/1/2021 21:08

Hiya tightfist!

Yes, it was that Sao Domingos bullet in the presentation that got me thinking - why would they immediately go and drill the tenement they just acquired unless they were going for a large increase in the Sao Chico resource? We know they were drilling there to get a resource upgrade (which I think could be forthcoming soon?), then if they can prove up some resource at Sao Domingos also it will surely justify a second plant there. Agreed quite possibly not before q3, but we were waiting for that ore sorter for a looong time before it arrived! So perhaps at least some commitment to expand might be intimated! If they could get a resource estimate for Sao Domingos it would really be excellent; but I'm not sure what the difference between RC drilling and channel sampling is in terms of being able to get an estimation - I.e. how many drills would be required vs. bulk sampling.

With regard to a possible deal with a major, my understanding was that it was the area in white edged with red on pg. 17 right in the middle of their tenement (and the highlight above where Sao Chico is situated) that was the possible area of involvement. I could be wrong there but thats what I understood to be the case.

[borisjohnsonshair] 06/1/2021 18:52

But early I believe. At least only 25%

[imastu pidgitaswell] 06/1/2021 17:57

If it helps, I chucked 5,000 over the side today for 99p and change - had kind of forgotten about this share.

Still holding 15,000.

[tightfist] 06/1/2021 17:55

Hi PPVN,.Thanks for your comments. I am still unsure the market knows how to value a wide-ranging goldie - is it a production company, a mine developer or an explorer - actually all three, which reduces the risk substantially IMHO..Slide 16 of the latest 23 December presentation reports that three holes had already been drilled at São Domingos; cutting four veins and results are awaited - an RNS soon I hope! Or maybe they are bundling-up the results?.I suspect you are going to have to be patient to see a plant installed at/near Sao Chico. In due course I agree - but MH will want to see lot more results from the drill bit before a when-and-where commitment. And then there could be the issue of how that facility would fit with a major's involvement?.Onwards and IMO upwards, tightfist

[ppvn] 06/1/2021 16:41

Glad its not just me when I can't get a quote to buy. Does seem slightly perverse sometimes when you can't buy but they don't shift up the ask. Odd!

[tiger60] 06/1/2021 16:35

There were no buy quotes on Barclays all afternoon over 500 shares. A pity gold decided to dive

[borisjohnsonshair] 06/1/2021 16:29

Normally leads to a breakdown up or down. Chart clearly shows up

[cotton4] 06/1/2021 16:22

Thats the tightest spread I've seen in SRB - (99.7 to sell 99.99 to buy) in all the years I have been here.

[borisjohnsonshair] 06/1/2021 15:08

The production is a means to an end to see Coringa get into production. We will get there unless it significantly drops. Once that is on line if Palito can maintain 30,000 the total FCF will be massive and justify a 200-400% rise. Major finds in the mean time will add - could be huge increases or add similar ones, which are worth 100p each min

[tiger60] 06/1/2021 15:01

Well the presentation that came out just a few days before year end indicated yearly production of 33,000 so I would be very disappointed if it was not in the 8,200 - 8,300 range as all the information was available at the point of the presentation being published barring a couple of days.

We will get the qtr 4 prod figures soon and the financial details behind them a few weeks later. But remember the financials will have no comparison to the prior quarter. Qtr4 has the extra month 'bonus' costs, lower gold price and crucially only one bullion sale (2 scheduled for Qtr 1 2021) but that is all in the public domain. It is all about 2021