Serabi Gold Share Discussion Threads

[borisjohnsonshair] 03/4/2021 14:41

2020 appeared too good to be true but some issues coming to the surface. It's a storm in a teacup so chill. It's a great opportunity to buy more and I'll consider if lower than 60p. It's an opportunity of a life time considering where we will be in 2023. I wonder if MH is temped. Easy money.

[plat hunter] 03/4/2021 13:28

Suspension means the potential to never ever, be able to sell or buy at fair value or in a timely manner.Regardless of underlying fundamentals, it's a huge risk for an investor to take when there's other gold companies who can operate prudently, with liquidity.Interesting story none the less and one way or another, the next few weeks will be riveting for sure.

[golden prospect] 03/4/2021 09:37

t60, please be the voice of doom for balance of opinions.

$20.5m in the bank
5 drill rigs on the go for 2021
Palito production profile for 2021 33,000 and 36,000, but may surpass

MCAP $70m (£51m) at 67p
Only key debt to pay is Equinox $3.6m to complete Coringa acquisition.
Recall equinox spent c$65m on this project = $37m.

Say $70m less cash = $49.5m
$49.5m less ($37m - $3.6m) = $16.1m (implied value of Palito!)

Well cashed and plenty of intrinsic value

More than happy to see a share price suspension on both sides of the pond.

[tiger60] 02/4/2021 22:44

Normally I am the voice of doom! Still upset by alleged leaks for placement and the latest news but we have $20m in the bank and a valid business plan going forward but maybe not under the same management.

Miton must be loving this....

As to a brave man to hold until June well there is really no choice now. Rather hoping the majority of those in the know have dumped and left us with only margin calls to close.

[kennyp52] 02/4/2021 20:55

Mickey Mouse AIM company run for the directors .. we are all gambling mugs

[plat hunter] 02/4/2021 20:49

Boris, it's not the value of the sum which dictates an AIM suspension. It's the auditors.SRB aren't even in control of this mess, if the auditors don't sign off by 20th June then they're off AIM too.

[plat hunter] 02/4/2021 20:45

'Red herring' I agree Boris for 80k I don't understand why the auditors couldn't pull it together in time to save suspension from TSX.Not getting a listing suspended is much more important than several cash transactions over Christmas. Something much more serious could be afoot.Be a brave man who holds until June imo

[tightfist] 02/4/2021 18:35

The $80k should readily become a one-off. TBH I am more concerned about the $970k revenue mismatch on Gold assay, which is potentially a recurring issue. It would be very interesting to see the quarterly plus/minus data on gold shipment to judge how exceptional $970k is. For me, the accuracy of the Palito lab (grade, recovery, ore sorter recovery, sales) is fundamental to the investment proposition..Cheers, tightfist

[golden prospect] 02/4/2021 17:45

BJH, it demonstrates that audit control catches down to the smaller sums. Perhaps this matter will be resolved over the weekend, in time for an update Tuesday. Small noise.

[borisjohnsonshair] 02/4/2021 15:57

It's the fact they are selling rubble not gold more interesting than 80k being lost

[borisjohnsonshair] 02/4/2021 15:15

On exploration- where are the effing updates??? Monthly, last one the 22nd Jan?? Someone stolen the updates as well??

[plat hunter] 02/4/2021 15:01

"During the course of audit work in Brazil, the UK executive management of the Company became aware on 16 March 2021 that certain cash withdrawals amounting to approximately US$80,000 during the first quarter of 2020 lacked documentary support and this has required further local audit work which is ongoing and is having an impact on timing of the publication of the Accounts."This is a shocker, someone has sticky fingers and the auditors won't sign off. Best case scenario... They put it down to fraud, someone gets sacked, the auditors then sign off with massive questions over Risk management.Worst case scenario, auditors don't sign off and by end of June and it's off London too

[cotton4] 02/4/2021 08:54

Some of these items are not costs in the sense they affect the P/L account. They are primarily balance sheet items. The balance sheet will be better after the liabilities have been cleared.
The problem imo on Tuesday will be those who have leveraged positions and the potential for margin calls and forced sales. This should be short term but it will set up a buying opportunity for others who still believe in the company.
We have $20.5m in the bank less the equinox payment of $3.6m = $16.9m for part payment of Coringa and further exploration, if I have read the rns correctly. This is a sound financial footing going forward with pog +$1700 and the real still weak.

[golden prospect] 02/4/2021 08:33

Some key figures.

"Cash totalled US$8.1 million at the end of December 2020 (including the initial outstanding proceeds from a December gold sale of US$1.5 million)"




The Equinox debt at 31 Dec 2020 was approx. US$6.6m including accrued interest




In the latest RNS THU 01 2021 :


Current cash balances amount to US$20.5 million

Key exceptional items* in Q1 = $6.53m

* Repay Equinox 3 x $1m = $3m (amount o/s $3.6m)
* Settle Greenstone CLN = $2.53m
* Guess Exploration = $1m

Adjust $20.5m less $16.4m funding = $5.1m

Sum $5.1m + $6.53m = $11.63m (exc funding)

$11.63m - $8.1m = $3.53m SURPLUS CASH

[ * changed "costs" to read "items" ]

[cotton4] 02/4/2021 08:29

At the time of the qtr3 unaudited results I had reservations regarding sales ounces.
I keep a spreadsheet which includes production and sales:

Qtr1 - Produced 9020 ounces - sold 8456 ounces - net (564)
Qtr2 - 8504 9570 1066
Qtr3 - 7224 8475 1251

I didn't comment at the time presuming this was a reduction in stocks. We await the company's explanation but it does raise questions of sales in qtr4 and qtr1 2021.

As for the $80,000, the company either knew that such cash withdrawals were being made and for what reason. Otherwise it points to potential fraud and obviously needs to be investigated further but not imo a material amount. However it is surprising that an explanation hasn't been forthcoming within 2 weeks+.

It would appear that bad news is deliberately being held back from shareholders, like the breakdown last year and management needs to explain the lack of transparancy. MH and CL are both highly paid with generous options so they need to come clean with investors.

As for the company, the fundamentals are still sound, on the face of it but the market doesn't like uncertainty so not expecting any positive on Tuesday. They do have time to resolve and explain these issues before then. 2 weeks of further audit work since the middle of March should have shed more light on these issues.

[tightfist] 02/4/2021 08:02

ITPW, "....nothing has gone missing....."...... I sincerely hope you are eventually proven absolutely correct.... tightfist

[backinblack80] 02/4/2021 00:11

Yep. Let's hope the market doesn't punish us...

[tiger60] 01/4/2021 21:55

Disagree. But neither of us decide. The market does

[tightfist] 01/4/2021 20:55

It does make one sceptical about the line of accountability, internal audit and insistence from the U.K. to Brasil. Doubtless exacerbated by the COVID era..One wonders how the $80k anomaly was not detected a lot earlier. The Palito lab significant inaccuracy is concerning and the issue also seems delayed; are they both under the direct accountability of the Brasilian COO (RNS 20.09.2018) or do they reported directly to the U.K.? I have been at the U.K./Brasil interface myself in the past......In isolation these are not massive issues - but beg some serious questions about how the U.K. keeps (and will tighten controls on) Brasil on the SRB/SBI quoted company straight and narrow. No matter what action is now taken one suspects it will take many months before SRB is now forgiven by the market?.I trust there are no indications of either issue before the placing on 1st March...... .A gravely disappointed tightfist

[golden prospect] 01/4/2021 19:59

t60, you need to find some perspective.

At the 6 month interval sales were $29.46m

At the 9 month interval sales were $45.4m

A $1m adjustment is small on the grand scale, less than 2%

2020 was a tricky year, they kept things going, perhaps some small oversights / adjustments
Given the travel restrictions, a good outcome on balance.

It's all about the going forward.

[cotton4] 01/4/2021 19:40

The shares should be suspended on LSE until the accounts are lodged and a full explanation is ready for shareholders. CL's position is questionable. A simple bank reconciliation would show any cash withdrawals and he should have been aware who and for what reason these withdrawals were being made. MH also needs to explain to shareholders why the lab got things so wrong and both need to inform the market what steps are being taken to ensure that controls are robust going forward.