Big struggle is what they just dealt with..I completely agree with your comparison. There may be bumps along the road, but the BIG issue was very clear. Financial backing, which we got, first in terms of the cash to solve immediate problems and then the fact that, as you point out, it was certainly not done in without dd. Those who do not see this are simply ignoring the obvious. As for the seperations, I am sure part of the deal. It IS standard for all executives, and is a fact of life. I am not going to waste my time moaning about it, while there is money to be made here NOW. You will be VERY hard pressed folks to find a gold play with money just invested, trading at a cap anywhere near this low, with these assets, and production infrastructure BUILT ALREADY. Let me know where they are please! On top of this, it is backed by folks with huge funds and aggressive background who are moving into the gold business. ANYONE who thinks that suddenly (within years IMO) this dissapears because of some issue is missing the whole point, that is what has changed. In between there are factors of course, which will dictate just how well one does here. Production, costs, expansion of resourse base, price of gold, price of silver, exchange rates (Ruble is crumbling at the moment) and of course market sentiment in this sector. Also, how this company envisions the future structure etc.
BUT, HRG is not going away, is not going broke. That is the lowest of the concerns.IMO
When you invest in THIS sector, the concerns are ALWAYS there, and now mostly it is about survival and ability to actually get producing gold with many of these plays, as against the senior producing entities. HRG is a producer, with the big issues having been addressed, and NOW with the managment and running of the operations the focus. I repeat: you can't find a situation with this amount already invested, moving towards 300,000 ounce + production for anywhere near this cap. The gold price, well that is what we are playing this game for in the first place. Few, I would think, would even be here if they did not see a better than even chance that gold moves up over next while, and so if this is correct, it is difficult to imagine HRG not moving up as well.
The nonsense posts about HRG going broke, or some variant on this theme, are from my point of view ridiculous at this point. They were a significant concern just a short time ago. I think as it becomes more apparent that HRG is focused on a growth path, with good managment, all the factors which normally drive investment into gold issues will make it apparent to the analysts that this is incredibly cheap. The money of course (the big money percentage wise) is to be made in seeing this early. IMO That is why I said that I thought this was an exception to the rule regarding averaging down, which I did along with some small number of others it appears. I understand the risks, there are ALWAYS risks, but really this is a case where you accumulate some, ignore the BS and realize, there is a great chance that HRG regains respectability and more, in which case, believe it or not, it could trade back to old highs. It will take time, but so what. If we get this, and the price of gold rockets, HRG rockets along with it. Do not discount a run into gold shares, as memory is short folks in these markets. VERY SHORT. Any big run into the golds (which I think is VERY possible over next year or two) and HRG could be PERFECTLY positioned. No guarantee, but where will you get this opportunity for pennies? It is not moose pasteur, it is the REAL thing. Think clearly, about your risk tolerance, do your dd, but be objective. Four operating mines, 300,000+ ounces, for how much is it??????? Buy it will you can and just hold it for a year.IMO