Serabi Gold Share Discussion Threads

[honestjim2] 03/7/2019 16:01

Great for gold!

[tightfist] 03/7/2019 15:32

I think the rapid progress here was the simultaneous ending of the "perfect storm" with Anker overhang, AGM positive outlook, macro-world uncertainty, general interest in gold, publicity over China & Russia holdings, trickle down from the mega-cap miners, etc.IMHO SRB is likely to be worth multiples of the current price in a few years' time, tightfist

[ppvn] 03/7/2019 13:38

Hello again tightfist,

Re. the catalyst for the move, I guess it's just a matter of investors becoming less hostile to gold shares in general. When gold jumped a bit it drove the price action here to my mind? So I guess people were casting an eye over serabi then because of the share price move we saw some "fast money" coming aboard then disappearing too. It's been a good ride here recently so I guess a break is warranted but that being said it wouldn't surprise me if we jumped again on seemingly very little.

The Coringa PEA is likely to be further good news, at the end of the day I suppose a share is worth what people are prepared to pay. Give it time, wait for cindarella and the 100k oz and see what is paid then...

[tightfist] 03/7/2019 13:23

As an investor with a belief in the prospects for PoG I don't much like the prospects of Hedging/Options either, I guess it depends on what alternatives CL negotiates later in the year...... and how palatable they each are!I support the notion of 100p fair value now, but I am not sure what the trigger is to get there? Maybe it's just patience (= wider awareness) but I am also thinking of potential New-News. If the Coringa PEA is an ultra-high IRR and/or lower than expected capex that would qualify? as would tangible progress on licensing?Wait and see! tightfist

[ppvn] 03/7/2019 13:09

Hey tightfist,

Re. the hedging, they already granted options over 6.5k oz to Sprott at $1320 - those don't expire until december this year from memory. So their derivative cost will be increasing - so not sure that hedging would be a good idea for them at this point in time.

Re the coringa PEA, I personally don't think that is built into the price at this point? The institutional raise last year at 72p was for Coringa under the existing Anfield PEA, for exploration of the tenement (which has been wildly successful to my eye?), as well as working capital which as per Mike's interview in Jan is "far higher" than they expected. And yet we are still below the price at which institutions bought in at.

My thoughts are that none of the above is reflected in the price at this point - which is why I view an share price of around a pound as fair value at this point, with confirmed exploration results as well as improvement to the PEA as additional upside. Oh, and of course the POG going from $1250 to where we are today.

The market may disagree with me for now, but then it has for a while...

[tightfist] 03/7/2019 12:55

Yes, a super track record on which to build; although the Coringa PEA may already be in the price, a resource increase may not? As you know, IMO the Coringa mine costs are the substantial unknown, and I expect them to also leave some cash headroom within the funding package to pursue some more drilling on their better prospects. Or would they be better placed to leave them as "hope value" for the time being?.With the proven reliability of existing production and the upwards move on PoG I just wonder if we might see a move towards short-term partial hedging to underwrite some of the prospective costs? .Just a thought, tightfist

[gregpeck7] 03/7/2019 12:54

Well it looks like only 5000 shares left at 64p so not much patience before another tick up. Grabbed a few more here again this am. Accumulating where I can.

[ppvn] 03/7/2019 12:22

Patient?!

I've been here years and frankly I'm glad I have been, assuming POG and serabi performance both do what I think they will. The share has been ignored for all but about a month and so I've been buying and buying and then buying some more. And I'm finally in a bit of profit here!

There is much more to come. People frequently come on here banging on about AAZ (don't know why that is really but whatever?) but look at serabi's share price this time last year. Or the year before. Hasn't even begun to move imo and there looks to be a lot of very decent news in the pipe. Finally!

[gregpeck7] 03/7/2019 11:07

I cannot wait for the Coringa PEA, cannot see it being anything other than very exciting, it is due this month... SRB as far as I am concerned is worth 100p now.. We just have to be patient in getting there....

[ppvn] 03/7/2019 09:35

Imo this hits 100p when the updated Coringa PEA hits.

They have a track record of bringing mines in the area into production at reasonable cost and the steady state of Palito gives a lot of credibility to their plan for Coringa.

Granted they have the final payment and mine start up costs to wear, but even with that the co. has to have north of £50m market cap written all over it.

Anyway we shall see! Think there will be a nice move here today.

[gregpeck7] 03/7/2019 09:05

I guess what could be a game changer is ii's pivoting to gold, which has been underweight for years. If a new ii wades in this hits 100p imo.

[tightfist] 03/7/2019 08:41

Hi, as a generalisation small miners seem to be about 5x geared to the PoG; the higher AISC miners should logically be the highest geared. Hopefully upwards......Over and above PoG, surely the key aspect of SRB is that we have in the last few years seen lots of ASPIRATIONAL talk about 100kOz pa but until recently it was IMO not totally credible or fundable. IMO this has been transformed in a short period of time, and as the icing on top we have substantial additional prospectively..That, coupled with release of a few shares by two ii's and we finally have some liquidity.Surely SRB is too small/illiquid to attract further ii purchases? Personally IMO I prefer to see some increased float for PI trading..Cheers, tightfist

[gregpeck7] 03/7/2019 08:40

Nice quote and some gold commentary

Gold is being driven largely by the assumption of peak U.S. dollar and expectations of the Federal Reserve rate cuts.

“The foundation for higher gold prices has rarely been stronger. Five years of consolidation, with elevated risk of downside in a dollar that's near multi-decade highs coincident with similar upside potential in stock-market volatility, supports gold prices. Additional backing comes from anticipated Fed easing,” McGlone explained.

[gregpeck7] 03/7/2019 08:14

Sherry, I think the reason SRB did not historically follow the gold price, was because whilst SRB has been slowly developing and maturing the gold price has really been in a very tight range and only now is it breaking out. So I guess it is a relatively new phenomena... What we know is that a reasonably higher gold price, even 1400 plus is transformational for SRB, personally I think we will go over 1500 which would be outstanding for us but I wont get ahead of myself.

[74tom] 02/7/2019 23:11

Gold closed at $1418, I expect this to return to the mid 60’s minimum tomorrow

[gregpeck7] 02/7/2019 19:24

I rate this guy and he poses a good question. Personally I see the value of money declining rather than gold increasing but the end result is the same...Is the price of gold increasing - or the price of money declining? Central banks breaking records in #gold inventories, US/China trade deal no end in sight, FED lowering rates in 2 weeks, Iran powder keg waiting to ? + short/long credit cycle both coming to an end. You decide..

[sherry35] 02/7/2019 18:18

SRB has never traded with the price of gold. So, I for one would like to see SRB's share price follow the price of gold as gold moves north over the next 2 to 3 years.

[sherry35] 02/7/2019 18:17

Yesterday's Au spot price drop was predicted by Eric Sprott on June 27, 2019.

[loganair] 02/7/2019 17:25

What I'm pleased to see is how the price of gold is in percentage terms up by about the same amount in different currencies including the US$.

[gregpeck7] 02/7/2019 16:53

Yes it was very quick. I see 1500 gold coming sooner than a lot think, there should then potentially be some consolidation. 1500 usd gold would be transformational for our good friend serabi as well :-)

[ppvn] 02/7/2019 16:43

Ha, was wondering how long that would take.

Well fingers crossed it can make the $1,400 stick after its consolidation move; then the real question becomes where will its next leg up reach?

[gregpeck7] 02/7/2019 16:37

Gold totally flying , through 1400. Top up tomorrow?!

[gregpeck7] 02/7/2019 15:51

Gold price starting to motor.. getting close to 1400 again..

[gregpeck7] 02/7/2019 14:06

Yep seen numerous sources that suggest he seems to be pivoting towards Europe.. sees them as an easier target now...