Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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This RNS is much more than just a 3 year renewal of the existing trial mining license……major news is that it allows for the deployment of crusher / ore sorting facilities at Coringa.
This will allow them to significantly enhance the gold grade in the ore before they truck it up to the Palito processing plant.
Referring to their previous ore sorter testing results per 22nd June 2022 RNS where they achieved circa 20 gram/Ton.
https://www.lse.co.uk/rns/coringa-development-update-d5fho6ohq936ui1.html
So if they are allowed to transport 50,000 Tons per year and they have got the grade up at circa 20 g/T before the transportation then the contained gold will be: 50,000 x 20 / 31 = 32,258 ounces.
Allowing for a 80% recovery rate during the ore processing at the Palito Plant then you are looking at circa 25,000 ounces per year generated from Coringa Ore.
WOW !!!
Hi, had 1m shares, sold 500k to derisk and used them to buy here. Final 500k at Shanta will be used to vote against that abomination of a deal. But I had to derisk.
Hi boubou are you still in Shanta?
Great news. Should shut a certain person up now! ATB
Market Reaction?
Hopefully back into the 50s but WTFDIK!
Total Ore mined from Coringa in 2023 was 42,780 tonnes, so under new temp licence we have a possible uplift of 17% available to ramp up in Ore throughput. Great news all round.
50s here we come!!
Great news, 3 years licence, pending full IL and also have permission to start installing the heavy plant in preparation of full start up of operations.
60k Oz pro rata sometime in 2025 IMO.
He should be bullish. As per the Q4 2023 Production RNS, they are moving into the higher grade ore body at the G3 North area, as per the details below, this should be double the Au ore grade, if you shift the same ore, spend the same operational CAPEX on a volume for volume basis, we could double production when into the G3 North ore body when comparing the grades.
Q1 2024 should be instantly better, I expect the operational sweet spot to be Q2/Q3 2024 as is the case with previous operational years and results.
From Q4 2023 Production RNS of 29 January 2024:
‘Total ore mined from the Palito Complex during the quarter was 35,497 tonnes at 4.78 g/t compared to 35,219 tonnes at 6.81 g/t of gold for the third quarter of 2023. Palito grades for the year averaged 6.12 g/t gold. Most of the ore is being generated from the Ipe and Mogno veins, but development of the G3 North area is well underway, and this sector will be a significant ore source over the next two years.’
From the Palito Mining Complex NI 43-101 Technical Report on the Company Website, dated 20 November 2023:
https://serabigold.wpenginepowered.com/wp-content/uploads/2023/11/NI-43-101_Palito-Complex_20231120FINAL.pdf
Page 109 – Table 14-17: Mineral Resource Statements Per Vein (Measured + Indicated) – Palito Mine:
Vein G3:
Tonnage (t): 194,314. Au (g/t): 10.35. Au (Oz): 64,688.
Page 110 – Table 14-18: Mineral Resource Statements per Vein (Inferred) – Palito Mine:
Vein G3:
Tonnage (t): 343,936. Au (g/t): 8.03. Au (Oz): 88,812.
Extract from RNS April 2023
The Company provided a full update regarding activities and the status of the Coringa project on 22 March 2023. As noted in that update Brazilian law provides for automatic extension of the trial mining licence or Guia de Utilização (“GUIA”) and the GUIA Operating Licence (“LOG”) if a formal renewal has not been issued at the date of their initial expiry and provided that renewal applications have been submitted prior to the expiry date. The automatic extension period for the GUIA, which is limited to 12 months from the expiry date, currently runs until 8 February 2024
Great interview which shows what we have to look forward to. Many buying and few selling ,and no wonder with so much to look forward to.
Also confirmation that the poster on here that kept referring to the end of Jan as the end of the trial licence is talking bollo***. Mike states clearly that they can continue to mine as they have been without the LI but they expect the full licence in Q2 of this year which will allow for full mining and a ramp up to over 60000 ounces a year in 2025.
Https://www.brrmedia.co.uk/broadcasts-embed/65b796436371e5b884f614fa/?popup=true
Excellent interview with lots to look forward. I liked this '40000 ounces can be achieved with no additional manpower, no additional personnel arriving on-site.'
I believe the reason for the negative market reaction is that profitability has flatlined these past two quarters, even with gold at $1900. That's the problem of a small miner with large(ish) overheads. However if we could just replicate H1 and achieve around $60m revenue and $10m net profit over the course of a full year then this really ought to be worth double current price.
Kenny, instead of comparing quarter on quarter why not compare year on year for a truer reflection?
Serabi started the year with $7.2m cash and $7m debt and finished the year with $11.6m cash and $6.6m debt. During the year extensive drilling was done and the at least €630k was spent on the Ore sorter yet net cash still increased almost $5m - very solid.
Now for 2024 we're looking at between 5000 and 8000 ounce production increase, so $10m to $16m increase in revenue at $2000/oz, much of which will go straight to the bottom line.
And then we're at 2025 when we will likely be looking at 60000+ ounces that's been funded internally from cash resources. Still think Serabi would be trading anywhere close to $36m against a healthy gold backdrop?
Worst case scenario for this company is Coringa license does not come through. We are left with Palito and two ore sorters. Production at 30,000 oz pa. Gold slumps to $1700. Company is still worth around 20p per share.
Best case Coringa license comes through, second ore sorter adds 50% production or more at Coringa, gold stays steady at $2000+. Vale exploration uncovers something commercially viable. Share value then is £3ish.
Downside is 33%, Upside is 1000%. That seems a reasonable investment proposition.
The s.p. may be down on results that were not as good as hoped,but,as pointed out by another poster this is historically to be expected,and then we get a very good 6 months to follow. Over reaction with cash balance protection and much anticipation of good news,in my opinion.
It is a small company and cash fluctuates. Wildly so in small companies. It does not mean they are badly run. It is just the nature of being small. Year end bonuses and the purchase of the new ore sorter are big numbers. You can't avoid cash going down. The immediate shrieking on these boards always for CEOs to be fired is absolutely bizarre. As far as I can tell this little mine has been quite conservatively run with a long term view.
Where are you now me old mucker? Presumably run away having pumped and dumped!
Just as well I've got to recognise types like you and generally do the opposite to what you preach...
I was expecting 10% Up not Down!
Surprised yet in the past 10 years I have formed the opinion that fundamentals count for zip.
I sometimes think we have coco the clown running this outfit . No license yet , failing on production , burning cash in Q4 ..
Cash balances at the end of December 2023 were $11.6 million which includes $0.6 million of funds held for the Vale Exploration Alliance. This compares with a cash balance of $15.3 million as at 30 September 2023
I agree with the sentiment IF THEY GET IT RIGHT blah blah .. but can they be trusted to ever get it right ? It looks more like a nice comfortable retirement package imho for the deadly duo . This might never realise its potential until we get changes at the top … all imho.
Q3 to Q4 in 2021 and 2022 saw the same drop off in ore milled and gold produced, same goes for cash held on books, 2023 was no different. This is due to various factors. Assuming 2024 mirrors the previous 3 years, then we will see a material jump in Q1 results on ore milled, gold produced and cash held on books, looks like quite a lot of 'inventory' went unsold, so I'm guessing they book that as a loss for the FY 2023 Year and sell it early in Q1 2024.
Chunky 38-40k guidance for 2024??? 9-10k per quarter for 2024, assuming wet season variables, they must expect a big Q1/Q2 2024?
Obvious slant towards Toronto with a new investor relations manager, given LSE liquidity and valuations, this is smart.
I'll add over the course of 2024, as the risk vs reward here is astronomical should they get it right at the same time sentiment comes back to this resources space.
It's mining, caveat emptor.
Third of mcap covered by cash - so sp looks too low to me.
Lots of cash.
A 60% increase in cash in hand to £11.5m! Not to be sniffed at. ATB