NORDGOLD raids HRG cash, and did not need a gun.HMMM Nordgold sucks cash out from HRG, yet when I look at NORDGOLD'S audited and unaudited financials I do not see any notes regarding loans from HRG. Seems a bit odd does it not. But what the heck, NORDGOLD is fair and transparent.....NOT! So what would NORDGOLF do with $160M? Perhaps Accounting 101 in Russia allows debt to HRG to be classified as AP. Look at NOTE:10 375 million is for Sberbank , no mention of HRG debt anywhere in Note #10, but does say that HRG is pledged as debt colateral. Sounds familiar....
A 2004 article in Forbes magazine alleged that he had taken ownership of Severstal by ousting his former boss and had used the company's steel profits to buy shares originally intended for its staff.
Mr Mordashov denied the allegations in the same article, saying: "We never seized anything. We never twisted anyone's arm. We never used state organs or corruption."
Liabilities and shareholders' equity
Current liabilities Mar, 31,2012 Dec 31, 2011 (audited)
Short-term debt finance see Note 10 59,350 316,328
Accounts payable 160,888 172,697
Income tax payable 16,596 18,238
Provisions 24,743 24,538
Total current liabilities 261,577 531,801
Non-current liabilities
Long-term debt finance 373,291 84,062
Provisions 65,206 61,283
Deferred tax liabilities 201,310 201,034
Other non-current liabilities 12,352 13,474
Total non-current liabilities 652,159 359,853
Total liabilities 913,736 891,654
10. Debt finance
Short-term debt financing was as follows:
March 31, 2012
(unaudited) December Mar, 31,2012 Dec 31, 2011 (audited)
Notes and bonds issued 59,250 58,812
Loans - 0 232,910
Accrued interest 7 24,606
Bank overdrafts 93 -
Total 59,350 316,328
Long-term debt financing was as follows:
March 31, 2012
(unaudited) March 31, 2012 Dec 31, 2011
Bank and other credit organizations financing 375,065 -
Loans - 73,889
Accrued interest 108 10,173
Unamortized balance of transaction costs (1,882) -
Total 373,291 84,062
In March 2012, the Company received US$ 375 million loan facility from Sberbank denominated in Russian roubles maturing in 2015 with a grace period of 21 months and quarterly repayments thereafter. The loan bears an interest at a variable rate of 3-month Mosprime + 3.8% per annum payable on quarterly basis. The loan is secured by pledge of Group’s ownership in High River Gold
I found the article and may shed some light on answering his critics and ethics....https://www.telegraph.co.uk/finance/newsbysector/industry/5177227/Reluctant-oligarch-shows-his-steely-side.html
"It was a Soviet enterprise," he said, "but when privatisation started in 1993, we created a company and started to buy shares. No one really knew what shares were in Russia at the time. Eventually I became the owner of 82pc of the company."
A clutch of acquisitions followed, along with diversifications into telecoms, banking and the automotive industry but, like other businessmen who have become wealthy in the new Russia, Mr Mordashov has attracted critics. A 2004 article in Forbes magazine alleged that he had taken ownership of Severstal by ousting his former boss and had used the company's steel profits to buy shares originally intended for its staff.
Mr Mordashov denied the allegations in the same article, saying: "We never seized anything. We never twisted anyone's arm. We never used state organs or corruption."
When I asked how he accumulated such a large stake so quickly, he said: "It was cheap. The company had a market value of $60m in the mid-1990s. The economics of it were very simple.
"You have to remember that Russia was very unstable and turbulent, and secondly it was a loss-making company.