Serabi Gold Share Discussion Threads

[sherry35] 20/11/2020 14:43

Where is the @#$% chairman in all of this? I'm referring to:

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Nicolas Banados

Non-Executive Chairman

Nicolas is Managing Director of Private Equity and attorney-in-fact at Megeve Investments, a non-discretionary portfolio of Fratelli Investments. Formerly, he held the position of VP and Portfolio Manager at Megeve Investments, and research analyst at Consorcio Life Insurance in Chile. He has more than 14 years of experience investing in Latin America and serves as Director for several companies including two private mining companies in Chile, Haldeman Mining Company and Minera Las Cenizas,, and Colgener, a power company in Colombia.

Nicolas has an MBA from The Wharton School at the University of Pennsylvania and also received a Master degree in Financial Economics from Universidad Católica de Chile.
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Evidently Fratelli doesn't want to invest more money in the SRB Why? Poor mgmt? Uneconomical Au resources in ground? Plod along business plan?

Nicolas Banados has a fiduciary duty to the company, and the share holders, to make sure this company is positioned for success. This company's worth (buyout exit) is primarily based on the Au ounces in the ground. The operating mills are secondary, and are dependent on ... drum roll... ounces in the ground.

WAKE UP MR. CHAIRMAN. We need stronger leadership at the helm or we all face major dilution at the hands of vulture capitalists.

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What's the plan?

[sherry35] 20/11/2020 14:31

PPVN - I think you are missing a very important question. MH stated his number one priority is getting Coringa operational.

What is the plan to getting the mine commissioned?

It has been my observation that companies pursuing private investment groups, like Mello, are hard up for money. SRB story isn't very compelling given the low number of P&I ounces in the ground due to MH's plod along mgmt style. I've been posting on this board for the last 3 years "drill the permits".

You think the Greenstone CLS terms were repugnant, wait to you see the pound of flesh these private investors want. I coin them "Vulture Capitalist" investors. See next post ...

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What's the plan?

[ppvn] 20/11/2020 12:51

The things I'm most interested in is the exploration timetable, as well as the references to "farm in interest from majors". Appreciate they have had a couple of companies on site before Covid struck, but it would be good to get some meat on that particular bone.

Realistically here the aisc is going to remain high(ish), I.e. above $1k / oz until Coringa comes on-line and then management cost synergies should drive it down further to nearer $850/900. So thats a couple of years off realistically.

In the meantime, it would be great to hear the timetable on their exploration but thats difficult to nail down i guess. If they could prove up a couple of million oz then we have a real prospect on our hands - but for that we'll need a pit type deposit so fingers crossed.

In summary I suppose my questions would be 1) are talks still ongoing with more than one party with regard to a possible farm-in for the major trend line running across their tenement and 2) what is their goal in terms of ounces proved up for their deposits across their tenements in the next year?

[swanvesta] 20/11/2020 11:29

With POG almost $400 up on this time last year this share price is insane! Management haven't fluffed up that bad.

[golden prospect] 20/11/2020 11:25

T60, the management had to walk the fine line of safety to staff vs closure, so compromises were made. On balance they have come through a very challenging 2020.

[tiger60] 20/11/2020 11:18

How much of keeping the 'show on the road' was due to MH/CL or the gold price? There are discussions to be had both ways but lets agree current valuation is cheap

[cotton4] 20/11/2020 11:16

There would have been a lot more gnashing of teeth on these boards if the mine had to close down for an extended period.

[golden prospect] 20/11/2020 11:03

Which ever way you cut it MH/CL kept the show on the road, eliminated debt pressures and Serabi continues to build a cash cushion with plenty of options going forward.

[tiger60] 20/11/2020 10:52

But the failure of the Mill in Feb was material. It therefore warranted a notification to investors. It is not for management to decide to keep it quiet and then hope to catch up. Anyway old news now. Let's look forward.

[tightfist] 20/11/2020 10:37

Hi PPVN,.I largely agree - the only material doubt I have is the (in hindsight) over-optimistic guidance of likely (with caveats) pace of recovery from COVID production impact painted on 14th August..I can accept the February Mill shortfall - they internally set themselves the task of recovering that shortfall by end H1 - a can-do attitude that I applaud. And deceleration of exploration drilling was driven by risk-management of contractors..In the circumstances (apart from the above) I think MH/CL have done a pretty admirable job this year on behalf of shareholders. I sense that they are now a little bruised and reigning-in their 2021 commitments?.I see Mello are inviting questions of Serabi for next Tuesday evening - a good opportunity in front of a forensic audience..Over to you! Cheers, tightfist

[ppvn] 20/11/2020 09:33

Hi Tiger, Sherry, (et.al.),

I'd personally be curious as to what could have been managed better tbh? Accelerating drilling etc would have required more cash so would have increased dilution which the bod seem set against now, particuarly since they have been awarded share options (which I'm personally supportive of). The options are exercisable at 85p as per the announcement on 28th May of this year so at this price are worthless. I'd say that's a great incentive for them to light a fire under the share price as best they can - as tightfist has said these things can take time and in the current environment whilst I share the frustration at the price I can't say that any other management could have done a better job for shareholders?

[tiger60] 20/11/2020 08:37

But equally there is a level of mismanagement. The failure to notify us of the Mill failure in February (which even they state was a major contributor to a lower qtr production), the share options with no visible exercise price or tied to performance and the drip feeding of bad news. In mid August it was announced Qtr4 we would be back on track. Later we were told it would impact Qtr 4 and then it would take 6 months to catch up on deferred development work and 'full' production will be seen from Qtr2 onwards.

That said I still hold and hope but I can see a reason for its current predicament. But hopefully it is all out there in the public domain so lets believe 80p holds and we bounce up. Gold price will save this and launch it back over 3 figures when it rebounds at the end of the year/Jan.

[tightfist] 20/11/2020 08:20

Hi Sherry, thanks for your thoughts. I believe it's been clear for a while that SRB management want to increase liquidity in U.K. trading; ie to to on-board a growing band of retail PI's. I don't comprehend for a host of reasons why they would want to further dilute through equity placings with the two existing ii's?.If they eventually want to do a farm-in deal with a major then they surely would want attractive resources to take to the negotiation to deliver a decent deal? They are continuing to generate exploration cash and have re-started and are accelerating surface drilling around Sao Chico. Surely patience is the key. Or when they evaluate more results from exploration they may decide that slower and organic growth would be preferable?.The fundamentals/outlookof several miners are currently IMO in bargain territory. That is the current state of the London market, again IMHO. So I welcome the execs approach to putting the SRB/ SBI name out there towards the top of the retail pack..As ever DYOR! tightfist

[borisjohnsonshair] 20/11/2020 08:19

January sales early.

[trader536] 20/11/2020 06:25

Kenny the clown - In this business the money is made from the share price rises not by who produces what you silly little cretin. That’s why you are a loser. Woof woof 😂😂😂

[sherry35] 19/11/2020 22:29

kennyp52 - Your statement "away from the mining operation" supports my opinion on MH's mgmt off SRB.

This Mello investment event tells me that MH is bottom feeding again from investors that want a bargain given the pullback in Au. Why not go back to the two primary investors? Fear of being voted out?

No mention of farm-in? MH is good salesman with name dropping - BUT NO @#$% CONTRACT HAS MATERIALIZED.

I predict the share price will be pushed down to 70p for a financing. MH and CL need to be replaced.

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What's the plan?

[sherry35] 19/11/2020 22:24

All - Here is a TA view on gold.

[kennyp52] 19/11/2020 21:43

When will production be ramped up and if Covid is around for years is there a plan to get to full production even if the disease is still prevalent . Does MH think he can be effective and earn his salary away from the mining operation ?

[davidosh] 19/11/2020 16:53

If you are not attending then do any of you have questions that you would like the analysts and directors of all the companies to answer on Tuesday evening?

The full line up is here

[sherry35] 19/11/2020 16:48

tightfist - Thank you for sharing the Seeking alpha article. Most of the trend analysis lines up with my past observations. The only criticisms on the article are: 1) a missing overlay chart with POG matched against U.S.'s monetary base or Fed's Balance Sheet charts. This should be easily achievable with today' data analytical tools 2) no mention of the drop in Au demand as sited in a article I posted.

Still, strong arguments in the POG moving north to "likely" $2500 US oz.

[bsg] 19/11/2020 14:40

Surprised it's down at 80p again.