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Q1 production results last year were 19/4. This time around we are expecting to do better with gold production incl a higher contribution from Coringa where more development has taken place over the past year.
Cash was $11.6 million at EoY (net cash $5 million) and should benefit from the higher gold price but there was a $5 million bank loan due for repayment in February so the cash figure may be similar unless a replacement loan was taken out during the quarter. This year the company should be throwing off decent cash with gold $2200 plus.
HIGHLIGHTS
First quarter gold production totalled 8,005 ounces, a 13% improvement on the corresponding quarter in 2022.
Plant feed grades were the highest since the third quarter of 2021, benefitting in part from higher grade ore from Coringa.
The Coringa mine development continued to progress well with the high grade portion of the ore being transported to Palito and contributing over 2,200 ounces towards the first quarter total.
Cash held at 31 March 2023 was US$13.2 million.
My expectations from here if we can maintain $2200 - $2500 is £1.35 plus here. £1.60 - £2 possible.
Exciting times as the gold price gets ever higher. I cannot wait for some results. Every increase goes straight to the bottom line,so should be impressive and make a mockery of this market cap.
Ok thanks for reply.Doesnt seem like a good time to hedge
Last year a quarter of the production was hedged but that contract was ending in Feb/March so if there has been a year extension it would be above $2000/oz this time around.
I'm not sure we'll see hedging this year with how strong the balance sheet is.
Is there much hedging on the production?
Gold on the brink of going through $2300 now. Amazing.
Still valued at just over half the price of 2 years ago. With all the progress and gold price.
A quid is only an MCAP of £75m or so, a long way to go. First up they need to deliver a good Q1. If they do its off to the races.
Whilst we have seen a very handsome return over the one year timeframe here is £51m mcap really that much for a virtually debt free miner heading to 60k, organically funded within two years and with long term plans of 100k-200k ounces?
Touched $2,274.58 a while ago so everything is looking goooooood
I'm going to wager 80p this week!
70p plus this week? Gold going the right way......🤞
They continued falling after my buys to 23.5p by November 2022.
After retracing to a peak 38.5p 23rd January 2023 , still below my buys .
By 18 August 2023 they fell once more to 21.5p a new low.
Hope for other AIM shares still well down maybe .
Sliced at 67p target was 65p
The third buy 49p on 20/4/22.
The forth and last buy 40p on 4/5/22
Still have the first two buys 4/3/21 buy 72p . 6/4/21 buy 63p
The second buy now ahead .
Could be closer to £1 than 50p well before the Q1 results at this rate.
Serabi sp consolidating above 60p with momentum being maintained and firm support from the improving company outlook and gold price now $2197.
The 3 year chart shows a 'W' formation with the trend reversal well established with current prices last seen 2.3 years ago in December 2021.
Look for confirmation in Q1/24 production results due in about 4 weeks time.
It all really depends on the nextvset of quarterly results out in the next few weeks for Q1, but I see a case that at this point, we will be closer to £1 at that stage, than 50p IMHO.
Annual guidance of 38-40k Oz. That would mean Q1 results of 9.5-10k Oz pro rata. If they are well into tye planned G3 Veins, who knows. Anything into 5 figures with AISCs that follow trend, is obviously extremely bullish. Being AIM, same goes the other way if it disappoints.
Macro wise, Au is only getting warmed up IMHO.
Repeating a previous post now gold has broken through $2100/oz:
SRBs five year high of 119p came in late 2020 so worth looking at AISC margin for 2020 and 2021.
2020 - $353 , 31200 ounces production
2021 - $347, 33850 ounces production
Now assuming $2100 ave gold price for this year and $1475 AISC we get:
2024 - $625, 39000 ounces
That's a huge step up from the figures posted in 2020/2021 when SRB share price was at its highs and would generate more than double the EBITDA.
And fast forward eighteen months and the target is more than 60000 ounces at sub $1400 aisc, possibly a doubling again in ebitda.
*At $2400/oz ave in eighteen months, something that's not unrealistic now, we could be looking at more ebitda than today's mcap and a debt-free self funded path to 100k oz pa - potential upside here is significant.
LOL. overvalued relative to the dumpster fire with 150m debt and a fallout with their principal mining contractor.
It's priced low because it's a dog. No doubt the asset is good, but its in Guinea which has a track record of poor delivery
Serabi had a net cash position of $5m at the end of the year, a figure that will only be rising. Genuine question, when do you expect HUM to be net cash positive?
This is far, far lower risk than HUM and still SRB have a route to 100ktpa and potential significant upside from their partnership with Vale.
HUM down 12.5% so far today after adverse RNS statements.
Debt levels & management id say.
Wow you can buy into Hum for the same mcap as here and they are doing 100koz per year ramping up to 200koz once immediate issues are sorted. Absolute gift atm. This one looks very over valued in comparison.