Serabi Gold Share Discussion Threads

[borisjohnsonshair] 21/10/2019 09:50

Ha - good point

[tightfist] 21/10/2019 09:42

Post #4321 "The markets are a place where the impatient pass their money to the patient." Not yet a Mr Market opportunity.....

[borisjohnsonshair] 21/10/2019 09:01

Stupid movement.

[loganair] 20/10/2019 10:38

The gold price has shot up over the last year and as a result, investors are excited about the precious metal again. According to new data from the World Gold Council, global gold-backed exchange-traded funds (ETFs) hit record assets under management in September.

Can the gold price keep rising? Some City analysts certainly believe it can. Here’s a look at some recent gold price forecasts.

Could gold hit $2,000?

Citigroup Senior Commodities Strategist Aakash Doshi is one analyst that is bullish on the yellow metal. He thinks gold could hit $2,000 an ounce “at some point in the next year or two” – a rise of around 34% from the current price.

Doshi recently said that positive drivers for the gold price include lower-for-longer nominal and real interest rates, escalating global recession risks exacerbated by US-China trade tensions, heightened geopolitical rifts, rich equity and credit market valuations, and strong central bank and investor buying activity.

Interestingly, Doshi is not the only analyst to forecast a price of $2,000 or more for gold:

Company.......................Price target

Bank of America/Merrill Lynch....$2,300
TD Securities....................$2,000
Citigroup........................$2,000
Independent Strategy.............$2,000

Clearly, a number of analysts believe that there is considerable upside to the price of gold.

[tightfist] 18/10/2019 15:02

At the AGM MH was very complementary about the Sprott relationship and that Sprott were standing poised for the next conversation - not that they should be a foregone conclusion. The point I was making is that IMO SRB will need a flexible arrangement, without excessive cost......

[tightfist] 18/10/2019 14:56

On the face of it a walk in the park? But there always likely to be some wild cards in narrow vein mining.....

[cpap man] 18/10/2019 12:58

Full ask now @ both SRB & KAV for that c500k so the next ones must be higher?

[ppvn] 18/10/2019 12:57

Hi tightfist,

I think with these small mining operators that flexibility is kind of built in. A good example of it is the $12mm loan Ross Beaty gave for the final Coringa payment to Anfield (and subsequently to Equinox). So he's presumably pretty confident in the ability of Serabi to pay up, and happy to risk quite a bit of skin in the game!

For all my naysaying about Sprott, whilst they have certainly made their pound of flesh out of serabi they do seem to have been pretty flexible with them too. So think that the final deal should indeed prove ok.

[borisjohnsonshair] 18/10/2019 12:49

What unknowns. It's a carbon copy. They've made all the mistakes already.

[tightfist] 18/10/2019 12:40

I guess the market will react in early 2020 when the structuring of the loans is due to be revealed - which will assume on the spend side a Coringa spend trajectory, exploration of the Anomalies - whilst on the raising side the cash balance, Ore Sorter coming on-stream, PoG, tailings remaining, (participation of a major in exploration?), etc.My hunch is they will need a very flexible facility - there are a lot of "known unknowns"?Cheers, tightfist

[ppvn] 18/10/2019 10:19

...and in my impatience I clicked post twice hence the dupe. D'oh!

[ppvn] 18/10/2019 10:18

Lol!

"The markets are a place where the impatient pass their money to the patient."

Looking over the figs for q3 production, the financials should show about $15mm revenue I'm guessing. They had a bit of inventory left at the end of q2 in concentrate so depending on how much they carry over to q4 could be slightly more or slightly less.

Either way should be another couple of million to sling on their cash pile. Market will reflect in time - patience!

[borisjohnsonshair] 16/10/2019 07:01

The markets are a place where the impatient pass their money to the patient. Good luck and take a look back in 24 months. See if you made the right decision.

[sherry35] 15/10/2019 22:57

Absolutely riveting volume on the TSX today. Yuge 100 share order. My patience is running out on the recession declaration and POG heading above $2000 US oz.

[darwar] 15/10/2019 19:01

Better ride here than on my other interest,AAZ

[borisjohnsonshair] 15/10/2019 12:20

WTF, odd, very odd.

[borisjohnsonshair] 15/10/2019 09:13

Yep I agree with you (but not your terms :-))

[bomber13] 15/10/2019 09:01

Either word will do Boris , my point is that the market is valuing Serabi as a 40/- oz producer , nothing more , so neither Coringa nor any exploration success is in the share price in my opinion .

[borisjohnsonshair] 15/10/2019 06:36

You mean count not discount?

[bomber13] 14/10/2019 21:23

Hi there Tightfist ,

in my humble opinion the exploration potential is in for minus zero as the market has yet to discount the Coringa upside . After all , the Coringa NPV at US$1450 with 20% costs contingency , and with no regard for ore sorter viability or mineable widths , is more than the current market cap !

With regard to your question , I would say that , currently , Serabi has its handsful expediting the ore sorter at the Palito complex , paying for and building Coringa , and fulfilling near mine exploration . Indeed , our CEO has thankfully put on hold all M&A until the above is executed .

Therefore , should a " major " come along , and offer to investigate that huge 15km - 20km East West magnetic anomaly between Sao Chico and Palito that you can see on the map , why would you not talk to them about it ? It is probably big enough to interest a " major " , and probably too big for Serabi to investigate itself ?

No matter what happens , tis all gris to the mill .

[tightfist] 14/10/2019 20:19

Thanks Bomber, it's not the leverage of PoG possibilities that attract me to SRB (there are plenty of others) it's the company specifics. I was already well aware of your para 2 (particularly the density of artisanal miners 2km downstream) but thanks for your para 3 and a great reminder of previous drillings RNS'd around SC.The value currently being afforded to exploration potential is minimal, so there is an awful lot to play for, especially when, with patience, in could become organically funded too. However, in your view do they realistically need a major coming in to up the resources and stakes?Cheers, tightfist

[bomber13] 14/10/2019 19:45

In my view , the most exciting new news today is the announcement of a further step-out drilling campaign East and West of the Sao Chico mine to further evaluate the strike extensions announced in September 2018 , and with a subsequent exploration drilling campaign to test the geophysical anomalies near mine site , three targets to the East and one , the highly prospective 4 km/8 km Cinderella shear zone , to the West .

These targets have already been substantially derisked by a comprehensive induced polarisation programme , an all-embracing aero-magnetic survey , and the evidence of significant artisanal mining activity in drainage areas downstream of these tenements . Cinderella , for example , has a 8km magnetic and electromagnetic high dovetailing with a 4km chargeability high from IP .

It is worth revisiting the 20th September , 2018 RNS on Sao Chico because you will see there that step-out drilling had found grades up to around 3/4 of an oz per tonne at mineable widths 500 metres West of the Sao Chico mine , and in their underground drilling 100 metres below current mine workings they had found nearly 3oz per tonne at a width of 1.5 metres . Subsequent to this RNS , the results of the in-depth aeromagnetic survey confirmed and rubber-stamped all this prospectivity .

So , what you have in Serabi is not only a company growing gold production from 40/- oz to 100/- oz within 2 years at a blended AISC of no more than US$900 , but also a company with the organic exploration upside of a mid-tier gold producer .

[millwallfan] 14/10/2019 19:19

Some knowledgeable analysts are suggesting the current bull run has a long way to go over the next few years. One has even mooted up to $3,000. Yes there will Undoubtedly be the usual peaks and troughs along the way but hopefully we over time see higher highs and higher lows. Just imagine IF our production did get to 80k ozs in 2 years time and AISC sub $900 and PoG over $2,000 ............. I think all current holders would think we were in dreamland. Add a sensible P/E for producing miners of 8-10 and..... I won’t even dare to do a share price projection for fear of getting over excited and feinting.
Any views to bring me back down to Earth very welcome.