High River Gold Mines Ltd HRIVF

Very strong value

[goldpig]

HRG's market cap is a mere $65 million, little more than the $56 million it just raised.
This is an excellent example of what forced selling has done.

Now, that selling is quickly abating, and value buyers are once again entering the equity markets, with gold as the main sector of interest.

With 300,000 oz of production ,HRG is entering the mid-tier of gold producers which are the most likely ones to be to be taken out.

Earlier valuations in 2008 , based on discounted cash flow analyses , placed the fair market cap at $1.2 billion or about $6000 per produced oz.
Gold prices are about the same, and energy prices have collapsed, so cash costs should remain at or below $430 per oz.
Yet, HRG trades at less than $250 per produced oz of gold , with excellent assets to boot.

The Committee that has the responsibility for strategic review of assets will report next week and could be the stimulus that  will unleash the rapid re-valuation of the market cap, from current pitiable levels.

To be able to buy a 300,000 oz producer at these penny levels is a unique opportunity indeed..