Serabi Gold PLC (LSE: SRB)     

Serabi Gold PLC (LSE: SRB) is an FTSE AIM All-Share index-listed mining company based out of London, which is engaged in the production and exploration of gold in the Brazilian region. The Company holds 100% interest in the Palito Mining Complex and has interests in the Coringa Gold Project located in the northern Brazil-based Tapajos region. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Investment Rationale – Sell at GBX 34.80

• Resistance near Current levels: SRB’s stock price crossed the Resistance (R2) stated in the previous report on 04 October 2023, and might witness some sell-off from the current levels. Considering the market conditions and the price action, it is prudent to exit the stock, as the prices might pull back from these levels.
• Decline in Q2 FY23 Revenue: The Company’s revenue went down by around 6.71% from USD 18.32 million during Q2 FY22 to USD 17.09 million during Q2 FY23.
• Macroeconomic Uncertainties: The market sentiments can remain weak in the short-term due to high inflation, subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart  

Conclusion

Based on the notional gains, macroeconomic challenges, and price action stance, a "SELL" recommendation on Serabi Gold PLC (LSE: SRB) has been given at the current market price of GBX 34.80 (as of 12 October 2023, 10:20 AM GMT+1).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 12 October 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

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