Serabi Gold Share Discussion Threads

[ppvn] 30/9/2020 12:57

Not sure its necessarily complaining more incredulity at the price.

I've been buying here still; if the Q3 production and financials are both out in mid Oct I'd expect the share price to be propelled to the £1.50 mark, and thats at a backward looking valuation. I'm certainly backing my views with hard cash anyway.

[borisjohnsonshair] 30/9/2020 11:02

I'm sharing my wisdom for the benefit of others. Many only see value in hindsight.

[tiger60] 30/9/2020 10:47

Some more some less but all need to be factored into an investment decision.

But I don't understand the constant complaining it is undervalued. It is market driven, supply and demand and if you think it does not represent true value then buy. And if at some point enough people agree it is undervalued it will rise.

[cotton4] 30/9/2020 10:42

And all these risks pertain to any gold mine, not just SRB.

[borisjohnsonshair] 30/9/2020 10:41

Aware of those but Brazil isn't Africa. All things considered this is wrong

[tiger60] 30/9/2020 10:28

Do you really want to know - Operational Risk, Geographical Risk, Single point of failure, Political Risk, Gold Price fluctuations, Credit Risk, Environmental Risk, unpredictable nature and cost of narrow vein mining etc.

We are one piece of news from major issues.

I like you think we are undervalued per current situation however not to the same degree. However, if you think this is so undervalued and destined to hit £10 then stop complaining and buy, buy, buy.

We need to firm up resources and get back to exploration as the shift in value is in enticing in a major partner. Coringa is a long way from production (2 years?) and will need financing.

All good but lets not pretend it is risk free and a dead cert

[ppvn] 30/9/2020 10:20

No, think you're right bojo and in a couple of years we should be sitting very pretty here.

[borisjohnsonshair] 30/9/2020 10:14

The art of making money is spotting value and waiting. Lots of people spot but lose patience. This still remains odd - license in place, funds in place in cash or with small dilution so no risk, except Covid but that's just a delay risk. Plus exploration potential. What have I missed as this seems too good to be true and you know what they say then....

[borisjohnsonshair] 30/9/2020 09:44

That'll do it. I'm around 800p but be closer to £20 if you are correct. Excluding exploration success!!!

[ppvn] 30/9/2020 09:40

I'm of the view that the POG will be closer to $3k by the time Coringa comes online.

Won't share my numbers as I'll be laughed at!

[cotton4] 30/9/2020 09:10

Retired actually but 50000 ounces at $1750 comes out at 2.70. SRB has never as far as i am aware been valued on future earnings.

[tiger60] 30/9/2020 09:05

Sales 100,000 POG 2,000 You work for the house broker?

[cotton4] 30/9/2020 09:02

PE 10 AISC 1200 (probably too high ).Current exchange rate in play. Lots of moving factors. But I value qtr2 at about 60p a share which is 2.40 annualised at current production levels. Expect current qtr to be better and if back to full production qtr4
with the ore sorter back up and running an even better qtr.
Have you done the maths, Boris, for comparison?

[borisjohnsonshair] 30/9/2020 08:48

AISC and PE?

[cotton4] 30/9/2020 08:10

Done the/my maths. Sales 100,000 and pog $2000 share price 8.82 pounds excl exploration.

[borisjohnsonshair] 30/9/2020 07:33

I believe criticism of the management related to delays is wrong. Covid has delayed things but the management has been masterful. Time lost but we are financially and strategically much stronger and further progressed. Where we'd be by 2022 pre Covid is not as good as where we will be by mid 2022 now. We are in fantastic shape - pumping cash, licensed you double output with Coringa, acquisition and mine development possibly 100% from cash flow plus exploration fund looking MASSIVE. This will be a US$1B business in a few years without any or much dilution !! Do the maths!! 500p to 1000p!!!

[ppvn] 30/9/2020 07:20

I would imagine the plan to monetise coringa has been set back by the reluctance (appropriate imo) of the bod to utilise the convertibles that they have in place. Until the final payment of Coringa has been made in full I'd think throwing a load of cash into its development has been held back somewhat.

Personally I'd prefer they did it this way; if they can pay it off and develop out of cashflow from Palito/Sao Chico it'll result in far less dilution. Until about 6 months ago that option probably wasn't available to them since the final payment with Equinox hadn't been renegotiated...

And tightfist, yes it would be interesting to know how the workforce are being paid, though I'm sure as a (hopefully) good corporate they are taking care of their workers!

And re. the valuation i think you've hit the nail on the head. Easy to have dismissed Serabi as a 40k high cost producer which is where we are still very much valued i think. But I don't personally believe that represents the reality any longer...

[sherry35] 30/9/2020 01:44

BiB80 - Awe...the plan to monetize Coringa. Long over due in its disclosure and the deliverables will come in late. My prediction is July 2022 will be first shipment of Au concentrate. I suspect us investors will want to know about the secretive farm-in by a major.

You can't blame everything on C19 with respect to failed to deliver on time.

[backinblack80] 29/9/2020 23:06

tightfist, I reckon very few are aware of SRB..tbh
The exploration potential should be exploited...this is primarily what attracted me.
Whilst I applaud the Covid measures documented. I hope they are now back to near full capacity. In the meantime, I look forward to hearing about how and when they are going to monetise Coringa

[tightfist] 29/9/2020 22:17

Hi PPVN,.To be clear, I am thinking about the 35% of the workforce NOT on-site and how the wage cost of those miners is being borne. I am not expecting a clear answer!.I believe that Serabi is primarily valued by the market as a producer; one wonders whether the exploration potential gets overlaid? Logically yes, but is the market that smart? Or do companies get conveniently pigeonholed?.Cheers, tightfist

[ppvn] 29/9/2020 16:28

Don't know but I suspect the 500k options awards has lit a fire under their backsides...

[borisjohnsonshair] 29/9/2020 15:41

Any gut feel about the timeframe to get resource estimates. They've suggested huge but no ball-Park