The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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"If management were planning a buyout they would not have interviews with financial journalistic promoting the company would they?" - I believe that Eric Zurin, the boss of SHG did hold interviews, so you are wrong.
My comments are not intended to imply anything about the management of SRB, nor about the integrity of Eric Zurin. He might well have believed that the offer price was fair, after all "fair" is a matter of opinion.
The Shanta acquirers were very clever to get the ball rolling through 2023 and pouncing in December before the really big moves in gold were seen and looking back you can start to see that Eric took his foot off the gas from about the summer onwards, presumedly because he was incentivised to keep attention off Shanta.
If the same had been attempted at Serabi then i'm sure they'd have got a sale away at around 60p but now the gold bull run is well and truly happening by the time something similar is worked the Serabi share price will probably already be close to a pound and a premium on that would be needed - whatever happens SHs will gain by holding at these levels.
Pedro I have been invested here since early 2013 and never out.
Obviously i have brought and sold some at times but im massively invested here and elsewhere .
Having fingers in many pies is a good thing and i sleep incredibly well at night.
In my time investing i have seen so much and as i stated before and im fully behind it and say again when it comes to money ZERO loyalty.
The cash in bank and rising production allied with a rampant gold price,must be more reassurance for you to sleep at night,surely?
SilverSlippy. If you feel like that it must be difficult to sleep at night whatever share you hold. Management here actively supporting the share price by actions in the business and in the media.What more reassurance can you get? Totally the opposite of SHG,would you not say?
I'd like to agree but when it comes to money there is zero loyalty.
If management were planning a buyout they would not have interviews with financial journalistic promoting the company would they?…SHG did the opposite they played down everything to share holders,so SRB are playing a straight game and management should be applauded,in my opinion.SRB definitely not the shysters at SHG!
"I sold for a very quick and healthy profit" - very nice for you, but I was in it for years. I stuck by it waiting for the good times to arrive. Then just as all the years of building a great company was about to pay off and the shareholders should have got their just rewards, it was snatched away, so your post carries a lesson Pedro - don't show loyalty, when you see a decent gain, grab the money and run and look for your next investment.
"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.
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.
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.