George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Yes, the State hydro power supply is coming to Palito which will replace diesel for power generation which is Serabi's second highest cost after labour. Then the electric supply will be going in to Coringa. This will reduce AISC for the company by a significant amount. AISC of $1400 is expected giving a $600 margin per oz with gold at $2000.
Road from Coringa to Palito has been recently paved which makes trucking of ore to Palito quicker and a lot easier.
Palito production of 30k oz can go on for however long! 400k oz resource 20 years ago. That has been mined and now the resource is 500k oz which is the most it has ever been.
Coringa is similar. It could be a 1 million oz resource with grades 10 to 12 gm/ton. Production could be up to 70k oz pa to get production to 100k oz organically but that would require capex that is not available currently.
Ore sorter for Coringa is on the water from Poland heading to Brazil.
This is great to see, Matt is notorious for actually challenging managers but in this case there wasn’t much to challenge, besides asking how they were going to take things to the next level, something that isn’t relevant til the valuation here has at least caught up with the fundamentals.
Some very interesting and positive nuggets in this video, especially the potential for $100 to come off the AISC thanks to the addition of the power line at Palito - add that to the record high bullion price and we will start seeing margins significantly improving.
https://m.youtube.com/watch?v=0D0gsCrcObA&feature=youtu.be
Based on a simple DCF, if gold got to $2500, the shares price should be around £3.
Might sound extraordinary, but gold miners have these kind of explosions. Let's see what happens, but all good for now, assuming nothing goes wrong at the mine...
Based on technicals, current move for gold might be heading for $2500. Fingers crossed. SRB profits would double in that case. Share price should rocket.
Another top up prior to Gold bullion record high posted today.
My estimates of profit for the next 3 years (which is the duration of the temporary Coringa license) is £70m (not $!). So that alone should push the share price up another 50% as a minimum. Even that would be a bargain as it ignores the current cash balance and on-going value of Palito. If anything positive happens, such as the permanent Coringa license finally coming through, the SP should be double that (as a minimum).
Gold has an inverse/negative correlation with interest rates... the fact that POG is at all time highs even before the FED starts cutting shows just how attractive gold is becoming in what is a very uncertain geopolitical backdrop - the sky's the limit once the cutting starts, I wouldn't rule out $2500/oz later in 2024.
What's interesting is that the gold price is breaking out. From a pure return perspective there is no incentive to hold gold with stock markets on an endless tear upwards, bonds giving a reasonable yield, and inflation on a generally downward trajectory. For gold to go up sharply in that sort of environment is unusual. So something must be bubbling below the surface.
Sp 58p so we are back to the prices of 2 years ago. Massive buying interest with few sellers so with gold breaking above $2100 and moving higher the sp gains are likely to continue until fair value is reached.
Mkt Cap: £44 million for production of 40k oz this year and 60k oz next with net cash and funds to pay for expansion. Serabi is set fair to start to fulfil its potential The Vale JV funding copper/gold exploration is the icing on top!
UP 133%
And gold just hits $2100 how high can it go?
Like its on a roll, similar to many of the smaller gold shares such as MTL
@8:25am. The 5 year high is only an MCAP of £90m or so and should be taken out if the yearly production plan is delivered. The G3 Vein they will be digging going forward has grades in excess of 10g/t, and shouldcdeliver great production / AISCs.
I will hold for 150p. A realistic target this year.This has to be the cheapest goldie on the market.Cash will be flooding in,with huge uplift in gold produced coming shortly.150p should be reality this year
Up 76% over 1 years.
Trend is your friend.
I did say 60 pence was next stop. Not far away now.
This high gold price goes straight to the bottom line. Bigger profits expected...
100p a share here sooner than most are thinking .Gold heading to $2300 by summer.
I suspect we are entering never before seen margins territory for Serabi now. What with that fact, the recent three year extension of the trial mining license, the positive findings from recent exploration at Palito as well as potential news due from Matilda/Vale partnership I'd be keeping my eye on that five year high of 119p now.
Gold ready to hit $2100!!!
Has there been any trading on this market yet? SRBIF?
So you think I should dump the rest of shanta in here?
I'll hazard a guess and say ww won't be this price in the day the Q1 results are released. Which is a shame, I'd like the new tax year to roll round before another top up.
Worth remembering that for all the positives SRB has going for it (net cash, low capex to double production, Vale partnership etc) the one noose around its neck is its relatively high AISC - movements in POG immediately impact the bottom line to a greater degree than its peers.
Heading towards $2050/oz is therefore a big deal.
Also worth highlighting that production was almost 2500 ounces greater than sales this year meaning there's at least that much gold bullion waiting to be sold above $2000/oz = $5m more cash in the bank.
To be able to double production without any threat of a cash raise whatsoever is as strong a position as you could ask for.