SAR - Saracen Mineral Holdings

[hchahim]

we have a share offer today = dilution but this might not be too much of a negative, a lot depends on whether or not gold continues to climb - SAR are seeking to expand aggressively and their timing might be quite good - but again depends on the POG

 

[springhill]

we have a share offer today = dilution but this might not be too much of a negative, a lot depends on whether or not gold continues to climb - SAR are seeking to expand aggressively and their timing might be quite good - but again depends on the POG

Hi hchahim, I note that was your first post.

Welcome to the forum!

Could you provide the details for the share offer, maybe a link to the announcement if possible?

Happy posting mate

 

[Melthar]

Long story short. 2 for 11 at 31c with the option to oversubscribe.

http://stocknessmonster.com/news-item?S=SAR&E=ASX&N=668698
(thanks Piggybank for making me aware of this site)

 

[rnr]

Another day like today & the ATH for this stock will be taken out!

 

[rnr]

Another day like today & the ATH for this stock will be taken out!

The move came within a few days and now looks set to break higher again!

 

[barney]

Solid Company ….

Record Gold Production last Quarter of almost 89,000 ounces with expectation to increase over time.

Hedge book well placed at $1743 per ounce. Low AISC

I just wonder if the recent steep rise might keep a lid on the SP for a while given they are already a $2 Billion dollar Company and the POG is still sorting out which way it wants to head?

 

[Ann]

Bligh’s board endorses Saracen Minerals’ $38.2m takeover play

Saracen Mineral Holdings (ASX: SAR) has made a takeover play for gold explorer Bligh Resources (ASX: BGH), with Bligh’s board and largest shareholder Zeta Resources (ASX: ZER) endorsing the takeover which values the company at a 97% premium.


The rational behind the offer is to amalgamate Bligh’s Bundarra gold project with Saracen’s Thunderbox operations which are only 30km away.


Bligh’s Bundarra project has a JORC resource of 9.67 million tonnes at 2.1 grams per tonne gold for 660,000 ounces of contained gold and has a clear path to production.


The project is adjacent to a sealed highway and comprises five mining leases and six prospecting licences.


To-date, five gold deposits have been firmed up across the project and include Celtic North, Celtic South, Wonder West, Wonder North and Bluebush. More...

 

[Trav.]

SAR looking good with good quarterly figures and chart is trending very nicely

https://www.asx.com.au/asxpdf/20190722/pdf/446rydmfz2rc0c.pdf

 

[Trav.]

SAR back on the watchlist.

After recent weakness is it turning around with the gold price having a couple of nice days

 

[tinhat]

The price came down to meet the capital raising @ $2.95. I bought some SAR @ $3, but missed the record date for the share purchase plan.

 

[barney]

SAR back on the watchlist.

That Volume should mean something as you say Trav, and definitely worthy of the watchlist

My chart mumblings attached mainly for my own future reference to see if I'm reading it correctly

The 27th Nov looks more like Selling until proven otherwise and I'm expecting a bit more pushing and shoving given there was no immediate follow through after the Volume on the 27th.

The $2.98-$2.99 area currently looks an obvious low risk area if it revisits that level, depending on Volume etc …. interesting to see what eventuates

 

[Trav.]

Same as PRU.... I was busy playing with a new (now redundant) system and it's parameters missed SAR on my scans...obviously not a good system then was it !!

But on a positive note I am back in with SAR as I think that NST is over valued ( looks like I am the only who thinks that )

Initial entry at $3.88 then another at $3.98

 

[Trav.]

Some good figures announced today, that should please the market and my bank account

 

[barney]

should please the market and my bank account

Been a fantastic turn around since last December ….. Always nice to snag a winner T

 

[Trav.]

Nice little presentation released by SAR yesterday for those that would like to see the highlights of the company

https://www.saracen.com.au/files/56...ion_-_Theres_nothing_like_Australian_Gold.pdf

I have found the last few days SP movement very interesting and I am unable to decipher any logic here if there is any so I wonder what the other ASF members think ?

4 x red bars showing good opening prices but unable to sustain movement for each day - Weak Closes
$4.30 touched twice so looking at some psychological resistance to this value
Volume has been ok

Anyone have some thoughts ??

 

[barney]

Anyone have some thoughts ??

Possibly just normal profit taking around previous highs after the nice run up as there would be plenty of punters in the green?? Its kind of a double top area, plus a 50% increase from the swing lows in Dec, so could be a natural resistance area by default??

If it ranges above $4 still looks ok … Above $4.20 looks strong. Lets hope it's the latter

 

[Trav.]

@barney thanks mate. Sound likely but just getting a little toey and looking at closing my trade. I will wait and see how it goes over the next day or so.

 

[Trav.]

Decided to lock in my profits after all.

as my signature says Rabbit hunting is the way to go.

I still hold PRU so the gold exposure is still there.

 

[rederob]

I like to see what upside exposure gold producers have, and SAR's is pretty average.
At 31 December 2019, Saracen had gold hedging in place covering 538koz ounces at an average price of A$1,997/oz.
At 30 January the hedge book was increased to 565koz at A$2,027/oz.
These ounces are to be delivered over the period from January 2020 to November 2022 (inclusive). This reflects Saracen’s guided hedging approach of approximately one third of production hedged over a three-year period.
As far as I am concerned, adding to your hedge book in a bull market is pretty dumb unless you are being offered a price substantially above prevailing spot with first deliveries at least 6 months out.
The prudent thing to do is sell as much as possible as early as possible and pick up the extra A$500/oz sooner rather than later when POG is likely to be much higher again.
On the positive side, SAR's AISC is a tad over $1000/oz which is an excellent margin on annual production in excess of 500koz.
Going forward there is little doubt that SAR's next half result will be better still, but they seriously need to rethink their hedging strategy in a bull market. Unless of course it happens to be a condition of their loan arrangements.

 

[Dona Ferentes]

one that got away

SAR's retail component of its entitlement offer fell well short of its target, raising less than half the amount. The company had been hoping for $95 million however they only received applications for entitlements totalling $37.37 million, a shortfall of $57.34 million.

Investors had been entitled to one new share for every 5.75 existing Saracen shares, for an offer price of $2.95 per share.

The offer (to buy a 50% share of the Superpit) was close to recent lows; took the downturn in its stride and back near year highs for the 12 months. Record production and Gold near highs