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"Value is value" - true, and the buyers of SHG got a company worth at least 20p a share for less than 15p. What is 5p times the millions of shares? They took millions of pounds of our money.
"this is in the middle of a big rerate" - SHG was due for a rerate after the new mine came into production. The share price failed to reflect the true value of that, so the buyers got it on the cheap - which was, of course why they wanted it.
"the longer this share price goes up the bigger the price needed for a buyout would have to be" - I hope it does go up, but until it does, SRB could be taken as SHG was, and Amara and TSG. Yes, we should get more than today's price, but buyers want to pay less than the real value. UK fund managers under-value gold miners. Look at what happened to Kirkland Lake Gold when it was listed in London - no interest, day after day, week after week of no trades. The volume was so low that it de-listed from London and just stuck to its Toronto listing.
After that, the share price went up by 50 times - and the London fund managers couldn't see the value T0ssers.
Also,it must be pointed out that this is in the middle of a big rerate and the longer this share price goes up the bigger the price needed for a buyout would have to be.
I was in SHG and the price although not good was a big improvement on the beaten down SHG share price at the time,so I sold for a very quick and healthy profit. Investors at this depressed price could get a big return so nothing to worry about. Value is value and this is value.As ViciousHippo rightly points out the absurdity of this valuation is astounding and must surely be eventually picked up by investors looking for an absolutely undervalued proposition.
ViciousHippo - " If you bought the whole business for £44m" - yes, it would be a bargain, and that's what the buyers of SHG thought. Like all the PIs in SHG, I felt robbed by the takeover. I live in fear of it happening with SRB.
60 000 ounces / year - first stage for serabi next two years . Brazilian Real down 7 % in April / Us Dollar . Ore sorter in Q4 . Great future !
Being in this share since 2013 I feel we are worth something like 90p to £1.30 / share.
Anyone thinking different and explanation of why you feel that way.
One things for sure we are looking solid.
An interview with Mike Hodgson, CEO by Crux Investor can be accessed using the following link –
https://youtu.be/8ez5vVY2Fz0
An interview with Mike Hodgson, CEO by BRR Media can be accessed using the following link - https://www.brrmedia.co.uk/broadcasts-embed/661d1cd8591bc168ede76734/serabi-gold/?popup=true
ViciousHippo. Spot on with your last post. It is very unusual,especially considering the big cash in bank.
My calculations suggest profit with gold at $2300 to be £23m per year. Market cap is £44m = 2 years of profit. If you bought the whole business for £44m, invested nothing more and just run it off based on the existing licenses alone, you could most likely get something north of £70m of profits over 3-4 years. That's £25m straight in your pocket close to guaranteed for doing nothing. That is a very unusual situation.
A gradual rise will do for me,but a big rise must be due,on fundamentals of cash in bank,cash generation,rising gold price and increasing production,surely.
This share has already had a good rerate this year. IMO maybe 70p was a jump too far. Consolidation needed.
Gold price just about to break the $2400 level this morning. All increases hitting the bottom line. Looking good for a big rerate from here.
Thanks Hippo. Time will tell but Serabi seems to be in the sweet spot at the moment.
£1850 for 2023. I cannot remember where that came from, I think it is in one of their statements. Or I made a conservative guess.
ViciousHippo. What gold price did you use for valuation?
@MrBond - My calculations came up with £9.3m, so very similar to you
The ore sorter at Coringa will significantly increase processing capacity and reduce transportation costs. If gold continues to go up to the target of $2700 by the end of the year mentioned by GS, 2025 should be a stonking year. When the full Coringa license finally comes through, this discount on the stock will disappear. We'll see how it all turns out, but great to see a little miner like this flourish.
Anyone got a view on Net Profit for the year to be announced? I've got an idea it's going to be about £9 million.
At 1 min into that interview - last year getting 5,000 per oz, this year getting 12,000 (Brazilian Real). He says the rise all goes to the bottom line.
Great progress being made and with a lot more progress to come makes this cash rich company a stonking good investment at this market cap and increasing gold price. I would be very surprised if anybody could come up with any company with better value credentials on any market.
I think SRB is getting closer to 'fair value' now but fact remains at such a gold price they're going to be producing ebitda not too far off the current mcap with those funds being put straight to use towards the next production level of 60k ounces.
Still room for 100% upside from 60p in 2024.
Solid interim update, might get some support on that. As I said last week, this needed news and that will probably be good enough for the time being.
What d´you think this is worth Pedro Simply Wall St says £7 a share about?
Production figures up, good grades and mine improvements on schedule.
Bushytailed. I will talk to you in 6 months when this will be worth much more,after the price of gold is shown in the massive profits the company is making..cash generation is good now,but, just see what happens with increased production and rising gold price....