Serabi Gold Share Discussion Threads

[sherry35] 13/4/2019 02:09

Hi PPVN

Thank you for the coordinates. I remember a conversation with former KAI CEO Greg Stark about his flying over the area. He told me about the multitude artisanal mines visible from the air. I can certainly see what he is talking about with the zoomed in satellite view in Google maps. With the clearing of the trees, do you think SBI will do a bulk sample given large open area.


Here are the coordinates for the center of the Palito mill complex. I believe the mine ramp and portal are just north west of the coordinate. Drilling pads could be marked by minor dirt roads and bare spots in the dense jungle. Use the slide 15 from the investor presentation to locate the drill areas and jungle roads. You may have to zoom to see some the roads peaking through the foliage.

-6.320944, -55.789303

[ppvn] 12/4/2019 10:02

Hi Sherry,

Coordinates I have of the cindarella is -6.433111, -55.930539. You'll need to change Google maps to satellite as there isn't much there - Sao Chico is just to the North West (labelled "Seu Lulu") and Palito is about 10km North East up the trans garimpiero highway.

At those coordinates, on their presentation the forest has been cleared. You can see the artisanal mines to both the south and east of the coordinates in the drainage channels.

[sherry35] 12/4/2019 02:19

PPVN - I was wondering if you could post the Google map link or provide some starting coordinates. This would be greatly appreciated.

[ppvn] 11/4/2019 13:01

I've been re-reading the March PDAC conference to refamiliarise myself with what's going on. Noticed that on Page 16 the aerial photograph showing Sao Chico varies quite significantly to the image on Google maps. For those that might be interested, there seems to be a large area overlying the cindarella shear that has been cleared of forest (about 3km x 1km) so something is going on. It's the bit of land just below the yellow shaded mine concession to the top right of the box entitled "highway".

Wonder if soil geochemistry will come out anytime soon.

[ppvn] 08/4/2019 13:36

Despite the jobs beat on Friday, dollar still unable to make any headway, and gold reflecting accordingly.

Been (proportionally) a lot more buying than selling here; glad to see that supply will be tight for q1 results. Production numbers fairly soon and financials should follow in May.

[loganair] 06/4/2019 15:21

Gold (measured in dollar terms) ambled along in a very tight range. This environment is tricky for gold. No one is convinced yet that inflation is going to take off. But nor does it look as though real interest rates (interest rates after inflation) are going to keep rising. That leaves gold in a bit of a limbo.

[ppvn] 05/4/2019 00:39

Let's just see what the dollar does tomorrow with the jobs report.

Could be a reason to shift away from US equity and that'll get the yellow stuff moving.

Hopefully.

[loganair] 04/4/2019 20:48

One of the world’s leading precious metals consultancies expects the global consumption of gold to reach 4,370 tons in 2019. Consumption of the precious metal for jewelry is forecast to rise by three percent to 2,351 tons, boosted by increases of seven percent in India and three percent in China. The world’s two biggest gold consumers will reportedly offset lower demand in the Middle East.

Global gold supply is projected to see a modest increase of one percent to 4,707 tons in 2019. Growing production of the precious metal in West Africa, Canada and Russia will be reportedly offset by lower production volumes in South Africa, China and Indonesia.

Gold purchases by central banks, which saw enormous growth of 75 percent last year, will drop nine percent to 600 tons in 2019, while physical investment demand will remain mostly unchanged at 1,082 tons.

When it comes to prices, the current year will reportedly be less challenging for gold compared to 2018. The price of a gold ounce will reportedly see a three percent year-on-year increase to around $1,310 on average.

[ppvn] 04/4/2019 19:04

From tomorrow I'm hoping gold resumes its climb; should be a bit more long lasting this time.

[bomber13] 04/4/2019 17:13

Much agreed PPVN , they need to knuckle down , deliver Coringa on time and budget , prove the efficacy of the ore sorter , wow us with Cinderella , pay a not insubstantial cheque for US$12m by December , and achieve a share price above 72p , the level of the last fund-raising a year ago . I am all for the ambition to be a mid-tier gold producer , but all in good time .

[ppvn] 04/4/2019 16:58

If it's a 7km shear that could be rather interesting. Must say that the talk of other opportunities doesn't fill me with confidence; what with coringa, scaling up sao chico, cindarella and the other anomalies they have plenty on their plate already. Unless its additional license blocks or something, I'm not terribly convinced by those comments!

[sherry35] 04/4/2019 14:58

He mentioned run off from the shear, and sampling in these run off areas is complete. He plugged looking at other opportunities at the end of the Webcast.

[ppvn] 04/4/2019 12:43

New interview (2nd april) on serabi's homepage. Interesting to hear Cindarella now described as a shear.

[ppvn] 03/4/2019 07:28

Hi Sherry,

All coringa expenses should fall under capex as they build out the mine there as opposed to aisc for palito and sao chico.

Aisc should only include the things like the tailings pond modifications they made last year since that is related to sustaining their existing production. The drill expenses they have to increase their resource at palito and sao chico should also come under aisc but not at cindarella and other locations if I understand correctly.

[sherry35] 02/4/2019 21:46

PPVN - I'm wondering if SBI will incur additional mill construction costs in switching from a tailings pond to a incorporated "filtration and dry stacking of mine tailings" at Coringa. Will the tailings pond construction expense offset the cost of the filtration and dry stacking equipment?

Also, I'm wondering about the impact on the commissioning date for the Coringa mill should SBI need to purchase additional equipment for the filtration and dry stacking.

[ppvn] 02/4/2019 10:59

Had a look at last years q1 results - seems production numbers should come out around the end of April and cash numbers in mid-May.

Spread you could drive a bus through at the moment!

[sherry35] 30/3/2019 14:41

PPVN - I agree with your statements. The 1Q19 financials should be a good indicator of SBI's progress. The ore sorter, as mentioned in the PR, should have a significant impact on cost and increase mill capacity.

A lot of gold miners last year had mysterious production problems in the second half of 2018 year. Some of them took a beating on their share price

I found this particular PR very informative and uplifting. Proving a 2 million plus resource by year end will increase SBI's book value. Toss in three producing mines in 2020, this should reflect well in the share price

[sherry35] 30/3/2019 14:25

The below two publicly stated objectives are of interest in proving up a "global gold resource of more than two million ounces". To "accelerate" one "drilling program at Palito" and "commence a similar drill" campaign at Sao Chico, would this imply concurrently operating two or more drills at both concessions?

+++ Sourced from PR +++

·Continue, and accelerate, the current drilling program at Palito to test the strike extension of ore-bodies beyond the current resource limits.
·Commence a similar drill and surface geophysics campaign at Sao Chico to test the five kilometre trend that hosts the Sao Chico deposit as well as multiple historic artisanal mines along its length.

[ppvn] 29/3/2019 10:11

Agreed Loganair - they are making steps to address the issue and I'm of the view that the scrubber should have got them to the $1k / oz. Unfortunately that didn't go online until Jan so it'll only be reflected in the q1 numbers this year. Next quarter results will be critical.

[loganair] 29/3/2019 10:04

Serabi directors said they would get the AISC down to $1,000 per ounce, then when every thing is in place to reduce further to $950, instead the AISC has increased slightly.

[ppvn] 29/3/2019 09:55

Agree, bomber.

They need first to get production to 100k oz and get costs down to $950 max. The scrubber that went online in Jan won't have impacted costs until q1 2019 and the extra expense of tailings dam work etc I assume kept costs disappointingly high.

There have been a lot more buys than sells today which is reassuring, but they can't keep relying on their shareholders for support if they don't start delivering. As is mentioned, q1 numbers should be a step change - production of >10k oz, sales of >12k oz, and the impact of the scrubber on costs will finally be reflected. I added modestly this morning on the strength of q1 as well as the fact they are already analysing the cindarella zone.

[loganair] 29/3/2019 09:37

The first thing that worries me is how the AISC of production has increased slightly instead of going down as was promised last year it would.

[bomber13] 29/3/2019 09:29

Disappointing that we have had two consecutive quarters of delayed gold sales , and , although purely a timing factor , this somewhat dampens the consistent success Serabi has had with mine development rates , production , and , of course , exploration . Q1 2019 should clearly be an excellent quarter , however , providing all production is sold .

Comments from the CEO and Chairman are also reassuringly good . First time I have heard them speak of a greater than 2m oz resource , and that the ore sorter's potential effect on production being " significant " . Also first time I have heard them talk of M & A opportunities away from their designated region of Brazil .

I would far rather they proved themselves as a 100/- oz producer first , to be honest .

[ironstorm] 29/3/2019 08:19

Looking forward Q1 numbers should be much improved. The current cash position healthy. Hopefully sufficient for the next Coringa payment. Lining up well.

I had hoped this would come together this year at some point - one of my 3 main goldies. No reason to change my mind.

RNS might cause some price weakness I may add further.

[tightfist] 29/3/2019 08:11

Agreed! More reading required, but the contrast between the down-beat opening figures and the positive and informative sentiments of the Chairman (and CEO) sections is stark. Lots of things to like, especially a little more clarity about the timing of the ore sorter......