Serabi Gold Share Discussion Threads

[borisjohnsonshair] 08/1/2020 00:26

I believe it's a little small and early. When 100,000 in production, maybe.

[trader365] 08/1/2020 00:00

If WW3 kicks off a gold mine is no good to anyone

"Iran has begun an attack on the United States with missiles fired at an American base in western Iraq, Iranian official news media said early Wednesday"

[backinblack80] 07/1/2020 23:46

This must be a major takeover target at current share price ..just saying...

[borisjohnsonshair] 07/1/2020 22:57

Yep. Dive in now and you'll end up with a holding 50-100% higher than after funding announcement. After funding to production I predict a slow rise of another 100%. As Coringa starts production I expect a price of £2-3 excluding any good news regarding exploration farm-in and or success.

[borisjohnsonshair] 07/1/2020 22:54

Exactly - the big derisk milestone is funding. Let's face it, it's not hard with the 2019 results and 2020 forecast.

[trader365] 07/1/2020 22:21

I sold 80% of my position at 90p so still holding 20%. A 100% gain in 3 months isn't to be sniffed at, especially when the spread is 10%.

There's a horrible gap in the chart after yesterday, so I'd say there'll be a drop on funding news to fill the gap. If I don't get my entry price I'll simply buy higher after another pullback, nothing goes up in a strait line, but plenty go down in a strait line. That's especially true for illiquid stocks such as this one.

[tightfist] 07/1/2020 22:08

People who made a conscious decision not to enter during the last week of December are playing an edgy game - not being fully loaded at this juncture isn't part of my plan - but no one KNOWS!

[king suarez] 07/1/2020 18:27

What if you don't get your entry price and it goes on to multi-bag?

[borisjohnsonshair] 07/1/2020 15:42

This can be US$0.5B business and much more with success with the wider exploration sites they hold.

[borisjohnsonshair] 07/1/2020 15:34

What's planned isn't complicated. New mine very similar to the one in production. Production set to rise to 100,000 year. AISC 900, assuming ore sorter on new & old. Old mine LOM greatly extended yesterday and new mine min 9 years but highly likely to be much much longer. Plus MASSES of exploration targets to tackle with partners or alone with the masses of cash that will flow in 2021 onwards. 100,000 x 600 (assuming POG 1,500) = 150% of current MCAP FCF per year!!!!! Get in there.

[edjge2] 07/1/2020 15:03

watching this one, looks promising long term

[trader365] 07/1/2020 13:24

The spread has dropped from 10% to 3% which will obviously encourage more traders and create volatility

[borisjohnsonshair] 07/1/2020 12:12

It's liquidity. Don't worry. Weak sell. When the funding news arrives it'll be 10-140 in three days. If you miss that, you kick yourself.

[bsg] 07/1/2020 12:06

Never seems to hold onto a gain. Lets the traders gain every time, it seems.

[trader365] 07/1/2020 01:40

What happens to SRB if price of gold drops back to $1200 or below? Reasonable question.

[sherry35] 06/1/2020 22:29

People should take note that the drill program costs will be spread over 2 quarters or 6 months. Most of the costs will be addressed with the on going Au production (revenue) and, hopefully, higher POG. I applaud the extensive drill program to determine the wealth in the ground and LOM.

There was no mention of drilling on the Cinderella zone. Anybody have information on this activity? Farm in?

[bomber13] 06/1/2020 14:46

I feel sure someone will put me right on drilling costs , but 18/- metres of diamond drilling and 6/- metres of RC drilling ( cheaper and faster ) sounds to me like a US$2m -US$3m programme , so fairly material , and one you would not take on board lightly unless you were both confident of your cash and the end result .

I am also hoping Loganair is conservative in his assumption . 20% more ounces for the same amount of plant throughput I am hoping will add up to more than a 5% drop in AISC ?

[borisjohnsonshair] 06/1/2020 14:32

Oh well - money well spent shoring up LOM

[loganair] 06/1/2020 14:09

I think the Ore Sorter will reduce the AISC by around $50 per ounce which would leave Serabi's AISC on about $1,025 per ounce.

[tightfist] 06/1/2020 14:05

As usual, Bomber13 makes a good status summary. Yes, the estimated cost of the H1 drilling programmes would be interesting..I did note the other day that Balance Sheet cash "only" increased by $1m in Q3 and suggested drilling cost as an explanation. Very approximately, $3m went elsewhere - Exploration and Coringa pre-costs come to mind......... tightfist

[borisjohnsonshair] 06/1/2020 13:54

Agree with everything you've said. One question - you mention "huge" expense? This isn't cheap but so we know how much. This expenditure has been ongoing yet they've reported cash of US$13m remaining.

[bomber13] 06/1/2020 13:35

Herewith is my take on today's announcement for what it is worth -

1) Serabi has announced significant early results from an 18/- metre step-out and underground drilling programme around the Sao Chico mine . With one fifth of the programme completed , Serabi has confirmed a resource extension East , West , and at depth over mineable widths and at good grades . Ultimately , this should herald a significant life extension for the mine .

2) Serabi has commenced a " very exciting " 6/- metre exploration drilling programme 2 km to the West of Sao Chico to test 3 significant geophysical anomalies that show greater chargeabilty and magnetic signatures than the Sao Chico mine itself . Although Serabi has not yet mentioned any plans to drill the equally exciting 4 km Cinderella anomaly to the South-East of Sao Chico , one hopes news of this will follow shortly .

3) The fact that Serabi is incurring huge expenditure on 24/- metres of drilling programmes , having just deferred payment of the final US$12m tranche of the Coringa purchase for 3 months , does not suggest a problem either with cash or the ability to finance the new Coringa mine .

4) Serabi has confirmed that it will meet guidance of 40/- to 41/- oz of gold production in 2019 . Furthermore , it has given production guidance of 45/- to 46/- oz for 2020 after allowing for full operation of the ore sorter from the start of Q2 onwards . To my mind this shows a strong measure of confidence in the ore sorter's efficacy , which should enable AISC to fall well below US$1000 per oz in 2020 .

To my mind today's announcement gives hard evidence of the massive organic growth potential that exists within Serabi , and this is just the start of it .