Serabi Gold Share Discussion Threads

[golden prospect] 02/2/2022 13:25

In the meantime we may be less than 2 months before Serabi is awarded the installation licence at Coringa.

[tightfist] 02/2/2022 13:22

Hi, yes, most people including myself understood the OS would give rise to reduced cost and incremental gold production; naturally that assumes that incremental ore would be available to do so. As we now know, Covid struck soon afterwards, RoM was reduced and is now progressively being improved, albeit that in Q4 Sao Chico ore then encountered a reduced grade..IMO if the ore sorter had already been calibrated as effective in processing Sao Chico ore possibly the outcome could have been improved although this would have required more RoM and we are told that underground mechanical equipment is currently still on a very long lead time. Otherwise I anticipate that the 2022 guidance figure would have been higher - more dark shadows of Covid!.So, in summary, it's all still to play for but patience is required! As ever, DYOR. tightfist

[loganair] 02/2/2022 12:39

Wasn't the new ore-sorter supposed to increase gold production by 5,000oz...bring Serabi up to 45koz/46koz per year gold production.

[tightfist] 02/2/2022 11:09

Yes, Sherry the ore-sorting video (around two years ago?) is a must-see to gain an appreciation of the technology. I believe it originated to support the Emerald mining industry?.The originally intent was to raise the mill head grade, and also reduce processing costs, initially on Palito ore due to its optical contrast features. The more challenging Sao Chico ore sorting trial was put on hold at the time; now we understand it has moved further forward, and required that further samples have been sent to Poland for optimisation work at the supplier..In the meantime there have been other changes that may IMHO impact on its use. The reduction in mine ore flow during Covid undoubtedly reduced the demand for ore sorting; now we understand that their are also potential benefits to be had in reducing tailings, especially at Coringa. One could speculate that increasing ore sorting to increase the head grade of Sao Chico ore offers the prospects of increased gold production in a processing capacity constrained operation. DYOR..IIRC some while ago someone posted that they had been advised that ore sorting had actually been in use throughout, albeit I speculate that the drivers and amount of use have been changing? Cheers, tightfist

[sherry35] 01/2/2022 22:13

tightfist - The ore sorter will definitely enhance the feed grade into the mill. The ore sorter video is must watch to understand the visually understand the difference between payload and waste. MND is considering a ore sorter for their Bjorkdal operation in Sweden. However, I believe MND's initial planned application is processing 1M tons (or more) of tailings. The goal is to get the head grade up to ~1 g/t.

What is the number of operational months for the ore sorter at Palito?

[sherry35] 31/1/2022 14:28

kenneyp52 - It was just an example of some alternatives small company's are considering. I'm sure there are lots of qualified firms out there that will do it for less. So, yes Deloitte may not be the right choice but even if a accounting firm costs 20% more that CFO entire annual loaded labour rate (salary, bonuses, O&E insurance, office space, legal fees), consider it $1.3M US insurance policy.

In the end, SRB team aired our repugnant dirty laundry for the lenders and acquirers to see. Very fitting timing when we need money to complete Coringa. Feels like Greenstone all over again. Evidently someone is doing a very thorough due diligence.

[kennyp52] 31/1/2022 11:18

Outsource to a big 5 accountancy firm ? Are you for real ? They are the most incompetent of all of the options . How come on the annual audits these cash drawings from the bank account were not questioned / picked up ? I’d rather hear we are suing the auditors for their incompetence … and sacking Clive Line . How was it picked up ? Was some due diligence going on ? Who knows .. but I know the auditors got paid for not picking it up in the first place then employed to do the work to quantify the value …. it’s a carve up of the company funds by all and sundry with no competent leadership from the top imho .

[golden prospect] 31/1/2022 10:46

Project acquired for $115m

[golden prospect] 31/1/2022 10:45

S35, recall the closing 10 seconds




MH thinks x5 or x6 what G Mining have !

[golden prospect] 31/1/2022 10:37

Thanks s35 for your numerous posts.

Re #4776 i will go with Option 2 "Acquisition by a miner" *

Not less than 125p, although potentially worth much more.




* Having G Mining park up next door bodes well !

[imastu pidgitaswell] 31/1/2022 07:37

That, unfortunately, is not realistic. The money has gone, and is not available...

Anyway, $212k a year, or around £150k a year basic, plus a (not very variable) bonus is not big money, despite what some of us might think.

Outsourcing to a commercial provider such as Deloitte, would in practice mean having a secondment from one of their senior bods. Something like $3,000 a day - excluding VAT or equivalent. So you don't get much in terms of time for the same money.

And if you did, you need someone who knows the detail and does the technical stuff - CL might have the title CFO, but he's more likely to be a small-scale chief-accountant type, preparing financial statements. Hire a proper CFO, and not only will you have to pay substantially more than CL gets, you will then need someone else to do the grunt work - so two people. More overhead.

Solutions? Increasingly thinking a better funded takeover. I've always hated small cap stocks, but the plethora of disasters that seemingly hit all small scale PM miners is worse still - they just don't have the operational or financial resilience to manage issues as they occur, plus the quoted company overheads are increasingly expensive. Scale does matter, it seems to me.

[sherry35] 31/1/2022 01:09

Golden Prospect - Thank you for completing the finishing touches on 4784 post. Confirms that the BOD is [hopefully] getting wise by replacing cash bonuses with performance incentive awards. Should of happened 5 years ago.

[sherry35] 31/1/2022 00:53

kenneyp52 - Perhaps the BOD should out sourcing the CFO position with a CFO CONTRACT. They could use the accounting firm that found the 5 years of mis-appropriated funds (~$1.3M US) to be the CFO. Clearly, for reporting purposes, the company has to have the books audited by external accounting firm. So, just sign them on for one year at half the CFO annual salary and bonuses (currently $300K US). I table a similar idea of phasing out the CFO position a few months back but got a acorn on the back of the head from a forum member.




By the way, BOD has the right to fire and hire any officer they want. If the CEO doesn't agree, he can be replaced as well. I'm sure the BOD can find a experienced executive with Latin America mining background to take over a mine with a 4M Au Eq. oz. reserve potential.

[sherry35] 30/1/2022 18:06

Here is measurement number 4.

4) promotion video from one of the directors who is employed by one of the institutional investment firms invested in SRB/SBI.

[sherry35] 30/1/2022 17:58

Does the summation of annual cash bonuses add up to the misappropriated funds? Maybe the 5 years of bonuses should be handed back????

[sherry35] 30/1/2022 17:48

I researched the bonuses yesterday waiting for the appropriate time to post. Thank you kennyp52 for opening the door.

Here is some factual information sourced from the executive approved filings and the Dec 8th 2021 RNS/PR. The below does not include the executive pension.

2016 Salary & Bonuses ($US)
=====================
Michael Hodgson 243,560 — — 135,466
Clive Line 222,612 — — 94,826

2017 Salary & Bonuses ($US)
=====================
Michael Hodgson 221,073 — — 135,466
Clive Line 198,254 — — 94,826

2018 Salary & Bonuses ($US)
=====================
Michael Hodgson 236,874 — — 133,280
Clive Line 229,623 — — 93,296

2019 Salary & Bonuses ($US)
=====================
Michael Hodgson 234,618 — — 93,589
Clive Line 209,869 — — 59,585

2020 Salary & Bonuses ($US, bonus shares converted to $US)
=====================
Michael Hodgson 236,556 — — 118,278
Clive Line 211,602 — — 105,801

2021 Salary & Bonuses ($US)
=====================
- use the 2020 numbers until annual financials are released in April'ish
- from the December 8th 2021 RNS
"A total of 622,900 Conditional Share Awards have been granted by the Board, as recommended by the Remuneration Committee, to directors of the Company as follows:
Director Award Year Percentage of Salary
Number of Conditional
Shares awarded
Michael Hodgson 2020 50% 162,500 2021 50% 193,000
Clive Line 2020 50% 128,600 2021 50% 138,000"

I will say this - maybe the BOD (3 from investment institutions) are wondering about the investments having awarded conditional share awards instead of cash.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
The performance is engraved in the filings, presentations, Webcasts and RNSs.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

[golden prospect] 30/1/2022 09:50

It feels like the post #4784 is part of a continual mischief making campaign, painting just one side of the story.

"
While the intention of the Board is that awards under the 2020 Plan should be made annually, as a result of the exceptional circumstances in 2020, no awards under the 2020 Plan were made during 2020 following its approval by shareholders. The Board is therefore combining in this award the annual awards for 2020 and the annual awards for 2021.

The awards are subject to a three-year performance period during which time certain performance criteria stipulated by the Board must be attained. The performance criteria and minimum thresholds to be achieved can be summarised as follows:

 40% of the award is subject to Total Shareholder Return, (where TSR must be 1.2 times or more the BMO Junior Gold Index)

 30% of the award is subject to Return on Capital Employed (where ROCE premium over Weighted Average Cost of Capital must be 1.2 times or more), and

 30% of the award is subject to Return on Sales (where ROS must exceed average annual budget by 10 per cent or more)
"

[sherry35] 29/1/2022 19:07

The executive team filed SEDI insider reports on Dec 7th 2021 for the awarded bonuses. The bonuses were tagged "Rights Conditional Share Award". There are similar filings for Bowie and Howlin as well. Strike price on the rights granted is approx. $0.72 US (~$0.90 CDN).

Now there is some visible skin in the game. GOOD!!

[sherry35] 29/1/2022 16:19

Everyone in this forum is extremely >> confident << in the upside potential of a economical major gold reserve on SRB's permitted areas. It's supported by the drill results and cash flow from operations. And in my conversations with Stark, Larkin and Kunz. Which by the way responded to all my inquiries by phone call.

It's the "lack of confidence" in the execution. If I was able to download the forum posts, from both forums, into Python, the analysis would point to the execution. We never seem to talk negatively about the grades which are presented to us in NI reports, PRs and Webcasts.

I'm here to make money. If gold runs again with next FED induced bear market, will Coringa be producing 40K Au eq. oz and we have a reserve calculation of 4M Au eq. oz in time to cash out at peak POG. This would require considerable planning and execution.

[sherry35] 29/1/2022 15:58

GP - As posted by TF, there is a "lack of confidence" in the executive team to deliver even if we ignore C19 Grand Canyon bump. It's been going on for years noting 4781 plus posts in this forum.

So here are my next two measurables for measuring the market's and BOD's confidence in the executive team.

2) The executive team signs with major lender on good terms or the 3 current invested institutions increase their positions. Doesn't have to be all three.

3) The institutions vote in the executive team, for another year, at the next AGM which is coming soon.

The BOD already failed my test on handing out 2021 bonuses. I can't wait to read the investor sentiment posts in this forum.


P.S. - Did the executive team file their insider trading reports for receiving the Dec 9th 2021 bonuses in the form of SRB shares? They would have to file in two jurisdictions.

[golden prospect] 29/1/2022 10:39

There have been some excellent posts in the last 24 hours reflecting the useful balance of thread contributors.

In addition, it is worth mentioning that the overall cash position ending 2021 was greater than management expected as grades improved plus with currency benefits.

Plenty of posters see the enormous potential but perhaps disagree on how and who should be behind this monumental journey.