Zinky has confirmed 2 key elements for me; 1) the other parts of Nordgolf (Crew, Celtic etc are underperforming) 2) HRG will have higher production than prior year, based on his pubic disclosures. HRG is the company that is paying to keep the lights on at NORDGOLF. He stated 2 objectives
- Increase in liquidity, who is he fooling? Who/why would want to own NORDGOLD? Poor performance, no disclosure, questionable ethics, poor execution, ZERO confidence that NORDGOLD treats all shareholders equally.
-Operational issues, 1 recommended WD40 in an earlier post.
RECOMMENDATION: I WANT CASH $3/SHARE FOR OPENERS, I DO NOT WANT NORDGOLD SHARES, UNDER PERFORMING, AND MIGHT BE DE-LISTED BECAUSE NOONE WANTS THEM.
NORDGOLD/SEVERSTAL ARE PREDATORS AND DO NOT BUILD SHAREHOLDER VALUE, RATHER, THEY DESTROY SHAREHOLDER VALUE. I CHALLENGE NORDGOLD OR SEVERSTAL TO DEMONSTRATE WHERE THEY HAVE CREATED A SYNERGY FOR THEIR MINORITY SHAREHOLDERS ONE IOTA!!!
BTW his "Business System" is just more "BS".
CJ
REUTERS SUMMIT-Nordgold wants to grow and get stronger before LSE premium listing
???????, 25 ???????? 2012 20:19 MSD Tuesday, September 25, 2012 20:19 MSD
Andrey Kuzmin and Clara Ferreira-Marques
MOSCOW (Reuters) - Gold Nordgold wants to increase the liquidity of the shares and to convince investors of operating efficiency, before thinking about a premium listing in London, told Reuters the former Director General of the "daughters" Severstal Nikolai Zelensky.
Attract investors to their shares Nordgold plans including by consolidating the Canadian gold miner High River Gold Mines, in which it already owns three quarters, and the remaining 25 percent are in the free floating market (free float). The intention to make an offer Nordgold announced in mid-July.
We have already received requests for a little more than 7 percent of the shares of High River. We believe that the offer is very attractive to shareholders, as evidenced by the fact that many large funds previously supported," - said the summit Zelensky Reuters on Tuesday.
39-year-old senior manager added that the impending deal may increase the free float Nordgold itself to a level of 23 percent, if the minority shareholders of High River agreed to exchange their shares for GDRs first.
This development in the long term Nordgold easier way to get a premium listing on the London Stock Exchange, which will allow access to a wider range of investors, said Zelensky.
"Getting into a premium listing in London today for us is less critical than the two other objectives. This increase share liquidity and settlement operational challenges," - he added.
Ready for rain
Nordgold, controlled by Russian billionaire Alexei Mordashov, hopes to significantly improve operating results in the third quarter of this year compared with the same period in 2011, including the expense of readiness for the rainy season in West Africa, where nearly half the gold production company.
"The rainy season in Africa have affected much less this year than last. We have carefully studied the effects of season on the production and pre-prepared" - said Zelensky.. Zelensky confirmed production forecast for 2012 at 720.000-770.000 ounces of precious metal, and said that in the future, the company hopes to show production growth. In the summer the company was forced to reduce production from the projected range 800.000-850.000 ounces due to a number of "bottlenecks" of production in the first half.
M&A
Activity in mergers and acquisitions of Nordgold hardly expect in the near future, as the stock is undervalued due to use equity is not the best time, said Zelensky.
"We are constantly looking at the market, but now we are very undervalued and therefore to use equity to increase - not a very good option for us now. When we convince investors stable rate to increase production and improve liquidity, it can lead to an overestimation of the value of our shares upwards. "
The company wants to follow the example of the former parent of Severstal and what it calls a "business system", which essentially boils down to a tight control over costs.
"The first half was difficult enough for us, even when compared with the first half of last year - admitted Zelensky. - This was a signal that you need a more systematic approach to controlling costs. Now this was not practical and systematic, as our profitability was one of the highest in emerging markets. But in the first half of the margin has deteriorated, falling even more than our competitors. "Following the first half of 2012, the yield of the company in terms of earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 22.8 percent, down from 41.9 percent in the first half of last year.