George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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So a mine that isn't producing, isn't built and isn't even funded is the backbone of your DCF calculations 🤣🤣🤣
Stand back everyone, Hippo is going to show us all how it's done 🤡
I never said the share is worth £2. What I said is that my DCF calculation showed £2 based on current production. However we must discount the £2 as the Coringa license is for 3 years, and there is always a possibility it will not be renewed after that time. Against that however is that the gold price keeps racing ahead.
The DCF calculation assumed the following;
2023 33k oz @$1850 with mining cost of $1253 and overheads of $650k
2024 38koz @$2150 with mining cost of $1328 and overheads of $680k
2025 43koz @2300 with mining cost of £1408 and overheads of $716k
2026 50koz@2400 with mining cost of $1492 and overheads of $752k
Terminal value calculated FCF at a discount rate of 12% and multiplier of 6X.
You have seen it in the share price 300% in 6 months!
We now have an absolutely transformational gold price of $2398 and going higher...It must surely be seen in the s.p. very soon....gold fever will transfer from physical gold to the mining sector eventually.
Why 55p? You're dropping values without explanation again... I think 55p is possible but doubt it. This has the same chance to end the week at 68p and I expect you to un mute me at that level too and start having reasonable conversations. This was me trying to start that grown-up discussion you were asking for but I'm muted now so... 🤷🏼♂️
See you at 55p Gonzo, filtered now for the time being
33,000oz production is not worth £3.3 per share 👍
With that in mind is 40,000oz production worth £2 per share?
Discuss... 🫵 use calculators and show your workings as we need to get to the bottom of this value issue without resorting to childish behaviour or mindless exaggeration.
I'm still waiting for you to put your argument down in realistic numbers instead of reacting to the justified negativity to your random number generator mumbling rounded to the nearest quarter! Show me the math!
I don't need to read it again... Your comment imprinted instantly because it was so bad... You're in line with the £6 brigade when it had just breached 40p. Noone is going to use billion in an argument either way on this share yet some how you dropped a quarter of one using your divide by 4 resolution calculator to inform people on this chat that someone's valuation was crazy. Why would you do that? I wake up when people start swinging big unrealistic things at small realistic things. At £3.3 you are correct in your statement but £2 is high end realistic and £1.50 probably on the nose according to calculators capable of 1p resolution. You basically had a right to lay £2's worth of argument but decided to use more weight(£3.3) and bigger words(billion). You're just noise where a whisper is needed.
Why don't you stop crying as soon you see something you don't like, read my post again and then try to be an adult by discussing or contradicting something that I actually said?
Bushy... Please use a calculator and show your working out... 👍
As of the end of 2023 SRB had a net cash position of $5m after considerable investment that year, around 2500 oz stockpiled ready to be sold ($5.5m at current prices) and at an average price so far for 2024 heading towards $2150/oz are set to post ebitda of ~$30m. Low capex route to 60k oz by the end of 2025 and long term plans for 100k-200k operation.
What value do you think SRB should be, then?
Argh I note I've found the clown club.
We'll see ladies
£2 is justified,but,my target for this year is £1.50,as some leeway has to be given,and I would rather be realistic regarding valuation.
Bushy. Your 3 recent posts here all suggest you are short.
55p? Doubt it. 60p has been the floor after 71p last week with the sp bouncing back.
Over priced? Based on what? 75 million shares x 62p is £46 million Mkt Cap. Generating $800 x 40k oz = approx $32 million free cash flow this year.
Worth a quarter billion? 75 million shares x £2 is £150 million. Your maths are about as washed up as your analysis!
Bushy why argue over someone's £2 estimate using £3.3!?
It's not 33k ounces, guidance for 2024 is 38k-40k and the target is greater than 60k in eighteen or months from now (full year 2026).
Lol good luck if you think 33k ounces is worth a circa quarter billion.
My DCF calculation with current production and gold price says £2, so I dont understand the statement that SRB is overpriced.
They need to start adding some serious Coringa advancement updates. Even with gold at this level this is overpriced on current production.
Debt, placing or use the pog uplift to pay as you build. Without any kind of serious news,no one knows whether they're going to build cash accurals, get diluted or expect a higher EV ratio. So not at all unreasonable to expect people to start taking their 200% gains off of the table.
Overall Average:
80% BUY
Say these guys https://www.barchart.com/stocks/quotes/SRB.LN/opinion
It will be interesting to see the increase in gold price dropping straight to the bottom line...
10,000k oz? That's quite a lot.
Buyers returning after the over done sell off of the past 2 days on the Vale news which is peripheral to Serabi's main business of gold production . With hindsight it might be seen as a good thing to have the news out of the way ahead of Q1 production results which should be very encouraging (10,000k oz?) and getting the year off to a good start with much improved cash flow and confidence in the ramp up in production this year/next year.
Results were 19th last year so not long