GREY:HRIVF - Post by User
Post by
cjsellon Mar 30, 2009 10:16am
![](https://assets.stockhouse.com/kentico-cms/0342-00/images/Sprite.svg#id_Post_Views_Icon)
432 Views
Post# 15881188
FACTS
FACTSHRG has unitl June to meet the TSX requirements, still a ways off and probably before the AGM (I would hope).
It was interesting to see their "cash" position, we can see that HRG IS CASH POSITIVE 23 million! Plus it looks like gold has found a floor above $900 oz. HRG can generate enough cash to cover most of its obligations going forward, expecially if they can liquidate the ROYAL financing.
If HRG can produce 25,000 oz per month and selling at $1,100 (CDN) at $600 free cash (500 cash cost) that gives 15 million per month in free cash flow. If you want to be conservative take $500 free cash flow and you still get 12.5 million in free cash flow. More than enough when you couple the 23 million in cash on hand.
The BOD is now down to Mr Crow, all others are Russian and/or Severstal picks, so not much help there.
Yes I agree Severstal wants the whole thing, and are trying to keep the price down.
CJ