Serabi Gold Share Discussion Threads

[borisjohnsonshair] 10/8/2020 07:21

I'm pretty sure it's not priced and not certain. Look at the NAV - it doesn't include the resource in the PEA. The acquisition isn't even legally completed. I've no idea if the decision making process but on the basis approval is required, it must be possible to reject.

[kennyp52] 07/8/2020 23:04

Boris ... I presume if the license was certain then an element would already be priced in ? Or is this far too logical for an AIM company ? If the license was delayed or not granted then where does that leave the share price ? All hypothetical of course . I think what I am asking is the value of the license in your opinion ?

[borisjohnsonshair] 07/8/2020 17:22

Steady as she goes. Printing $$ and license any day. Brazil Covid flat so due to rapidity drop hopefully.

[borisjohnsonshair] 07/8/2020 17:16

Maybe his balls

[kennyp52] 07/8/2020 15:57

Only predictable rapid drop is trader536’s bank balance going lower than his IQ 😂

[borisjohnsonshair] 07/8/2020 13:43

Interesting - link gone

[tiger60] 07/8/2020 13:34

You hedge. There are existing mechanisms to allow such a structure - it is not that uncommon

Example earlier in the year: (maybe a bit too early in hindsight)

[.Resolut mining forward sold 30,000 back in Feb

Resolute Mining Limited (ASX:RSG) has taken advantage of strength in the gold price to extend its US dollar dominated gold hedge position for the first half of 2021 - forward selling 30,000 ounces of gold at an average price of US$1,590 per ounce.

Managing director and CEO John Welborn said Resolute continued to successfully maximise operating cash flows through responsible hedging strategies.

He said: “Incremental expansion of our US dollar hedging position at levels which are significantly above our budgeted gold price, protects and supports Resolute’s near-term cash flows.

“Resolute̵7;s hedging program has strong support from our syndicate banks as our modest hedge book protects the Company’s balance sheet and supports our goldlinked revenues.

“With long mine lives and large gold inventories, Resolute remains strongly leveraged to future upside in the gold price.”

The hedging secures price certainty for a portion of the US dollar revenues generated from Resolute’s African gold mines, the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.

Forward gold sales program
The sale will involve scheduled monthly deliveries of 5,000 ounces between January 2021 and June 2021.

[borisjohnsonshair] 07/8/2020 13:32

No it wouldn't - what if production had to stop? They'd have to honor the future contracts by buying gold. If combined with a rising price, they'd be out of business.

[tiger60] 07/8/2020 13:17

Consider if SRB were to forward sell their gold production from today for a year, locking into a price of $2,050. Lets say AISC is $1050 which is reasonable. That is a clear $1,000 an oz Gross Profit.

At a production rate of 40,000 oz that is $40m or £30.5m gross profit.

I would be tempted but still think Gold is going higher. If these levels are maintained over a calendar year this is going to rerate at pace.

There is a clear disconnect between near term projections and the share price If you look at what is happening to ALTN and GGP etc this is so far behind the trend it is almost offensive but no point complaining all I can do is keep adding on the down days and say 'I told you' so upon the inevitable rerate...well thats the plan! Good Luck

[borisjohnsonshair] 07/8/2020 12:54

Happy days

[borisjohnsonshair] 07/8/2020 12:33

Rising with buys. Confidence in Brazil passing its worst will accelerate the rise in SRB. License Zoom soon hopefully.

[trader536] 07/8/2020 12:27

In fact it looks the opposite to me, a rapid rise is imminent

[borisjohnsonshair] 07/8/2020 12:23

A bit of life

[trader536] 07/8/2020 12:21

Virus cases in Brazil up over 30% in the last 5 weeks alone, not good for SRB, where will it all end?

[bsg] 07/8/2020 09:43

Stubborn blighter is SRB.

[borisjohnsonshair] 07/8/2020 09:34

Stubborn - not budging however I feel it in my bones, not TA, that she's gunna blow.

[borisjohnsonshair] 07/8/2020 09:33

Yes - move over to the other thread Fella

[bsg] 07/8/2020 09:31

Stubborn blighter is SRB.

[borisjohnsonshair] 07/8/2020 08:46

Covid curve flattened in Brazil. Due to high rates of infection it's predicted a fast drop from here. They've weathered a nasty storm but great it's nearly over.

[tightfist] 07/8/2020 08:45

We also need to remember around this share price is called a RESISTANCE level.... for Charts watchers!