GREY:HRIVF - Post by User
Comment by
bart_dcon May 24, 2010 7:31am
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Post# 17125963
RE: Russian gold unit Severstal eyes flotation
RE: Russian gold unit Severstal eyes flotationI received a mail from a friend (co-investor) who sent me the news link.
This is good news.
Let's make an estimate from that PR to put a very conservative value on HRG.
Severstahl wants to receive 1 billion pounds when it floats it's unit.
1 billion pounds equals about 1.5 billion CAD
Let's assume that Severstahl wants to keep control and only floats 49% of the entire gold entity.
This means that the value of the gold unit would be somewhere around 3 billion CAD.
If High River is only 40% (instead of a more realistically 50%) of the total value of the gold entity than
this would value High River at 1.2 billion CAD or 1.50 CAD/share.
Would you agree with this calculation?
Any feedback is appreciated!
Best regards,
Bart