Serabi Gold Share Discussion Threads

[loganair] 28/1/2020 15:13

Looking at other mining companies it seems to me Serabi's latest loan at 13% above Libor plus $300,000 arrangement fee was rather on the high side consider Serabi are now highly profitable with their profits increasing due to an increasing price of gold and increasing gold production.

[tiger60] 28/1/2020 15:02

Thanks for the answers but you can't just factor in the dilution (as a negative) and then come to a new target. The monies from the dilution should be earning enhancing. In other words, the funds are there for working capital purposes and to progress the companies' strategy.

Dilution is often seen as a dirty word and leaves PIs floundering but in this case - yes the fees and interest margin is high (plus commitment fees etc) - but the conversion pricing seems OK.

The amendment to the target price should be a combination of the dilution plus the earning enhancement of the received funds. As to how that is calculated is another question - use r squared against a dependent index for mining....

[borisjohnsonshair] 28/1/2020 12:13

Same page. Cheers

[borisjohnsonshair] 28/1/2020 12:13

We all hope the loan is taken in shares ie price above 76p in 16 months. If so and assuming no major shift in US / £ exchange rate, this is essentially a dilution. Hence 157 to 140. 157 x 0.83 is actually 136p.

[king suarez] 28/1/2020 12:09

Imagine Peel Hunt have kept the same market cap target and just lowered the share price based on more potential shares in issue following debt conversion.

[bsg] 28/1/2020 12:04

t60 my guess, FWIW, is the debt situation has changed.

[tiger60] 28/1/2020 11:56

The broker note from Peel Hunt reiterates a buy rating and target of 140p yesterday but the target has reduced from 157 at the start of January (and before that 187).

Has anyone accessed those notes and can explain the lowering of the target over a matter of weeks?

As with all broker notes they are taken with a pinch of salt but would be interested to know.

[borisjohnsonshair] 28/1/2020 06:49

I mean CheckRisk!!! Oops.

[kennyp52] 27/1/2020 21:48

Paleje ... the City will make hay out of this . Anything that takes a market down creates transactions . The city makes money form transactions . Simples . In theory this should cause a stampede to safe haven but will it ? Probably not ...but it should at this POG and rising .

[paleje] 27/1/2020 21:01

From City wire this morning, it seems those who shuffle big money around think corona virus could have a serious impact on global economy and its already impacting on banks, airlines, miners etc:-

"A note out from risk consultants at CheckRisk (which works with pension funds) nicely sums up the potential ‘challenges217; in the weeks ahead:

Disruption to the Chinese economy generated from the travel restrictions now in place. Wuhan in a major distribution hub.
The impact to insurance companies cannot yet be estimated, however, patient costs, and high mortality rates will have an impact if the virus continues to spread. The insurance sector for the most part remains weak as a result of over a decade of low or negative interest rate yields.
Market closures: it is possible in the case of a spread of the disease to major markets such as the USA, UK, Europe and Japan, that financial markets will be forced to close.
Estimates of the cost of Sars (the last pandemic) to the global economy range between $35bn to $45bn. At present the coronavirus looks more virulent and thus dangerous than Sars.
The impact to the global economy could range up to a full 1% on gross domestic product, and more if the coronavirus is as serious as it appears to be.
Expect the Chinese stock market to react first, however, we would not be surprised to see traders begin to mark stocks lower in the coming days."

Gold, on the other hand...

[trader365] 27/1/2020 16:32

kenny the clown - re 78p; if you look back to post 4973 you'll see I'm up 83% on what I've got left here, and that's after selling 80% of my holding at 90p and banking over £70k in profit. How much profit do you have on your 800 quids worth at 80p?

[kennyp52] 27/1/2020 16:10

trader365 ... any comment on SRB reaching 78p ?

Coronavirus no impact on world markets ... really ?? Tell that to Bloomberg hahahaha . Clown

[loganair] 27/1/2020 15:11

The price of gold blasted through the 6,600BRLs level this morning to a record high and is now approaching the 6,700BRLs per oz while in USD is $1,581.

Just another reminder that nearly 85% of Serabi's costs are in local BRLs.

Over the past 6 months the price of gold has risen nearly 25% in local BRLs and over the same period is up 11% in USD terms.

[loganair] 27/1/2020 09:18

Yet another all time high in the price of gold in local BRLs, breaching 6,600BRLs per oz for the first time.

In percentage terms the price of gold has risen by approximately the same amount in USD as in BRLs which bodes well for the price of gold.

[tiger60] 27/1/2020 08:31

Price - not a great entry point

[le0nard] 27/1/2020 08:10

eh??? If those are your 3 criteria how can you not want AAZ?

tiger60
24 Jan '20 - 18:39 - 5011 of 5017
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I look for companies with limited shares in issue, little debt and profits.

I don’t like AAU. AAZ looks better but not tempted. Nothing other than this at the moment but looking at the Canadian and Australian exchanges now - will let you know