Ann: March 2021 Quarterly Activities & Cashflow Reports, page-8

@MTJD @tinstuff11 @Ellroy all excellent posts .

SER certainly has a plephora of projects, with an impressive potential for the creation of massive value from these current market cap levels ($10m, EV $7.5m). I was disapponted by the Quarterly Activities Report not just on the absence of project details but also on the seeming lack of passion in the report - I felt it read like a diplomatic cable. Quarterly reports are not just a legal requirement to keep shareholders abreast with the company's current operations and finanical status, but represent a valuable tool for the marketing of the company to potential investors, JV partners and other stakeholders. If some projects did not have activity during the quarter,I think, even a basic couple line summary of each project along with the obligatory "no activity during the quarter" would present a much improved picture of the company.

For a micro-cap listed mineral exploration company ($10m), SER has a rather diverse range of projects and investments spread across six states (NT, QLD, NSW, VIC, SA and WA) and Canada. Many here have argued that the market has failed to properly recognise the value of many of these assets, a view I agreed with. While the cash in bank ($2.5m) is very healthy for such a low market cap company, the early stage of exploration of many of our projects and SERs 100% ownership will necessitate a high cash burn rate to progress these projects.
Along with the limited human resources common to all junior explorers, makes project prioritization a key management focus for the creation of shareholder value. I would like to see SER divest a number of, what I consider to be, non-core assets and focus on the potential "company maker" projects without the distraction of projects that I think are prohibitively too expensive for SER to fund or lack the potential for significant commercial scale and/or assets that the market has appeared to have insufficiently valued into SERs shareprice. A project/tenenment rationalistion exercise will not just simplify SERs business operations and dealings with relevant stakeholders (eg Native Title, landowners, state govt depts) and reduce tenement holding costs but also enable potential generation of cash for funding core projects in the future, rather than a dilutive cr.

Certainly there is an element of FOMO when divesting what appears to be highly prospective projects or as@Ellroy pointed out letting some other larger companies take the exploration lead in greenfield areas to attain valuable modelling data, but I think we need to operate realistically as a micro-cap explorer and focus on those projects/leads with the most compelling risk-reward, bearing in mind, our financial limitations.

FWIW, I would prefer to see the company focus on 3 projects, which I think offer the most attractive risk/reward/maturity potential. In my preferred order of funding:

- East Tennant Copper-Gold Project (100% SER)
- Canobie Copper-Gold Project (100% SER)
- Lachlan Fold-Cobar Basin (2) Projects (100% SER)
As well as maintaining the Gawler Cration Myall Creek FMG JV (SER 100% dropping to 20% on FMG meeting its drilling commitments)

So that leaves a rather formidable list of projects available for an orderly divestment or farm-out if the price is right:

- Ambergate (WA, 100%) 569kt HMS
- Listed investments - RML (asx) 2.5m shares and Vox (tsv) 58k shares
- Unlisted investments - Ionic Industries (circa 7%, maybe a pre-IPO sale if we are going to get locked into an escrow on asx listing)
- Gawler Craton JV with Caldera Analytics (SER 80%)
- Gawler Craton Billa Kalina (SER 100%)
- Far East Yilgarn (EL Application 100%)

While I see the potential for the Gawler Craton projects, particulalrly the technology value of the Caldera Analytics JV, unfortunately I just think it will take deeper pockets than what SER has to progress this portfolio of projects, bearing in mind the current focus on East Tennant and Canobie.

With such a low EV,imo, the potential for considerable shareprice appreciation on any kind of favourable drill results on SERs East Tennant tenements or any of the nearolgy players which further derisks the prospectivity of our tenements can not be underestimated.