High River Gold Mines Ltd HRIVF

FTSE

[SergeBrunet]

Even though it might be great for the HRG shares to be listed and transacted in London, I wonder why it was important to do so when, in all likelyhood, Severstal will transfer their HRG shares to a new vehicle for an IPO.  Are there laxer rules in London regarding the treatment of minority shareholders?  Would it mean that they intend to sell their HRG shares on the London stock exchange in the future, without combining their other gold assets? hmmm...

Another point, if the price does not appreciate rapidly, Severstal might be tempted to do a buy-out at around 1.20 (50% premium), much lower than the estimated company value, which was a price that institutions in the past felt was appropriate for them...

SB

[Alex_27]

I understand that despite the fact that major FTSE index is related to London Stock Exchange, that particular Gold Mines index includes gold producers from around the world and not really related to LSE. By the way, does anyone know the index composition? Could you post the list here? thanks

[MightyWingman]

As of Mar.31/10 https://www.ftse.com/Indices/FTSE_Gold_Mines_Index_Series/Downloads/FTSE_Gold_Mines_Index_Series_Factsheet.pdf

[discern]

Here is the indexIndex Rank Companies Country Net Mkt Cap (USDm) Index weight (%)1 Barrick Gold     CAN                                             37,752            

[bart_dc]

Serge,the shares of HRG won't be listed in London at all.It is the stake Severstal holds in HRG (the 68.8% of outstanding shares) that will all be put together in one entity, Severstal Gold. It is this entity that is currently 100% owned by Severstahl, that will be brought to the market in London.Severstal will most likely float up to 49% of the Severstal Gold entity to keep control over the

[SergeBrunet]

Hi Bart,It was not clear to me that:' High River was also informed about its inclusion in FTSE Gold Mines Index effective after the close of business on Friday, 18 June 2010, i.e. on Monday, 21 June 2010. meant Severstal Gold N.V.  If that is the case, Severstal Gold N.V. has to be publicly held to be part of that Index

[bart_dc]

Serge,if you look at posts earlier today, you can see the composition of the FTSE Gold Index, it also includes South African and Australian companies.They don't have to be traded in London.The "FTSE" part is not linked to London, it's just an index and HRG will be part of it.But it has nothing to do with Severstal nor with a listing of HRG in London.Best regards,Bart

[SergeBrunet]

Ok.  Now I understand.Thanks!