Saracen(SAR)

Discussion in 'Stocks & Derivatives' started by Silverthorn, Dec 9, 2011.

  1. Silverthorn

    Silverthorn Well-Known Member

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    Saracen just doesn't want to quit. Up a cent at the moment. Had a notice the other day that an aussie investment company bought up 5% over the last few months and another today with encouraging drill results at Elliot`s Lode.

    Got away its capital raising and moved strongly higher.
     
  2. Silverthorn

    Silverthorn Well-Known Member

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    Sprott eased his position again post the peak in the price late last year, he did the same last year. Seems to have mostly sold around the 85 cent mark. With a bit of luck we might push up to that mark again today.
     
  3. Silverthorn

    Silverthorn Well-Known Member

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    SAR had a good day today. Sold a small parcel just in case faber is right. Might buy some Ramelius if they have some good news on their production figures. If not will get a little physical.
     
  4. Black_Sun

    Black_Sun New Member

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    Sprott's also selling down RMS.
     
  5. Silverthorn

    Silverthorn Well-Known Member

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    Haven't noticed any recent ones? The only change I remember is due to the share offer.
     
  6. Black_Sun

    Black_Sun New Member

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    My mistake. I looked at http://www.asx.com.au/asxpdf/20111213/pdf/4237b88m29vhq4.pdf yesterday after seeing huge selling, and looked at the decrease in "voting power". Didn't examine it much further. Thought they were selling down. However although the voting power is down, they have more votes. Major selling today also.

    Brought my first parcel of RMS on 10-Jan and got another 1000 today at 0.985.

    Company looks good, and with Sprott being a shareholder this was also a positive, so was slightly surprised to think that they were selling down.

    Any ideas as to what's being going on yesterday & today with major share sales?
     
  7. Silverthorn

    Silverthorn Well-Known Member

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    Nothing that's not already out their. I'll wait till the quarterly comes out and see what it looks like before getting some more. I think one of their recent reports was a bit more positive about their production so hopefully it will hit a floor somewhere soon
     
  8. finicky

    finicky Well-Known Member Silver Stacker

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    About RMS

    There's a Dec quarterly update issued Jan 10.
    http://stocknessmonster.com/news-item?S=RMS&E=ASX&N=186544

    You don't have to wait for the Dec Qtrly Report - there won't be any pleasant surprises. The Dec Qtr was significantly cashflow negative. Only 5,493 ozs produced from Wattle Dam, and proceeds from that missed covering operational and other costs from W.D and the commissioning Mt Magnet mine by a large amount.

    How do you know?
    By looking at September Qtrly you'll see that cash and gold treasury was $90 million.
    On Nov 7 company announced a placement @ 1.15/share raising $40m
    On Dec 9 company admitted a poor take-up of the Share Purchase Plan @ 1.15. Shareholders only subscribed 8,179,246 shares, raising $9.4m

    So by Dec Qtr update, if company had remained just cash neutral, should have had cash equivalent position of:
    Sept Qtrly cash + placement + SPP.
    That would be:
    $90m + $40m + $9.4m = roughly $139m

    Instead you find they announce, in Dec Qtr update, a cash equivalent position of only $110m
    That means that they were:
    $139m - $110m = $29m cashflow negative in the December Quarter

    Bought first shares in RMS in Feb 2009. Added 8 times since. Avge about 75c/share. Not too keen on management lately. I feel they pulled a bit of a swifty with that last capital raising. I believe there was heavy selling anticipating the placement.

    And the chart's nothing to buy yet imo. Volume rising last couple of days and closing price ending near daily low. They say production will be better in March Qtr, but to put any store in that you have to believe RMS management.
     
  9. Silverthorn

    Silverthorn Well-Known Member

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    I was more interested in seeing what more they say about the outlook for production going forward.

    edit

    add more
     
  10. SilverSanchez

    SilverSanchez Active Member

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    Thanx for that insight Finicky - i was looking at RMS as a potential undervalued but was worried about their future growth. You have helped me devide that my capital might be better spent elsewhere.

    My current model for long term holds is-
    Grade - above average grade >1.5 - 2g/t AuEq (only accepting Ag and/or Cu as Equivolent component)
    Gross - amount of resource ounces >1m AuEq
    Growth - capacity to increase production and mine life
    Greensfields - exploration upside and
    Gonads - do they have the balls to pull it off (excuse the unintended pun)
     
  11. Agauholic

    Agauholic New Member

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    Depends if you intend to hold. The alternative is to do what CGT did, and dilute after tank the price... this a greater dilution effect...royally screwing holders.

    IMO RMS aint moving upwards till Magnet is in production. As to current production when a primary crush mill at the production facility (wattle dam) fails, there aint much a managament can do except order for it to be fixed.

    Traded and now hold over a similar period of time as Finicky, agree there is more potential short term downside, but i'd be a buyer at Fini's avg.

    Well RMS fits the criteria when their 2nd plant (Magnet) is switched on.
     
  12. Silverthorn

    Silverthorn Well-Known Member

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    SAR has had a couple of nice announcements on drill results the last two days but hasn't been enough to arrest the slide. I put in a lowball bid to buy back my parcel. Might move it up if gold doesn't slide any further.
     
  13. Silverthorn

    Silverthorn Well-Known Member

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    Got too cute. Missed getting my order filled by half a cent and now its rallying.
     
  14. SilverSanchez

    SilverSanchez Active Member

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    *points and laughs* - ha hah! :)

    Yeah happens to me too - you might get another chance

    P NoS Price
    1st 1,000 @0.575
    2nd 45,588 @0.575
    3rd 22,000 @0.575
    4th 14,500 @0.575

    Im assuming one of these is yours :)
     
  15. Silverthorn

    Silverthorn Well-Known Member

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    Small parcel is the clue. P
     
  16. SilverSanchez

    SilverSanchez Active Member

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    :)

    When i was buying TRY I got 2 SHARES filled before close!

    Next day opened higher... by 12c!
    by the time i got my sh*t together - i had a decision
    I could sit with 2 shares @ 4.21 - or I could buy the rest of my parcel @ 4.51

    I broke my rule reached up and grabbed it - turns out it wasnt a terrible descision because my original order would have expired by now causing my brokerage to be 230% of the value of my 2 shares :)
     
  17. Silverthorn

    Silverthorn Well-Known Member

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    Yeah, I remember that. It was a very good looking chart. I was tempted to buy some as a trade based off the chart.
     
  18. Silverthorn

    Silverthorn Well-Known Member

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    SAR took a big hit today, down over 5%. My order got filled. Hopefully they will find a floor here somewhere.
     
  19. Silverthorn

    Silverthorn Well-Known Member

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    Bounced a bit today against the general trend. Run out of sellers?
     
  20. Silverthorn

    Silverthorn Well-Known Member

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    Seems to have bottomed out and turned up. Seems to be a few stocks have either turned back up or are trying to bottom at the moment.
     

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