High River Gold Mines Ltd HRIVF

RE: RE: RE: RE: RE: Severstal would be nuts to pla

[Power1]

I like your thoughts Older, but do you not think given the timing and capital needs that the troops would have rallied to support and strengthen the price with a view of going to market?.  There has been significant s/p manipulation IMO over the past while.  Severstals intentions??? Go short before accumulation???? Hmmm I wonder why that was done....interesting impact on the S/P.  

CIBC and ITG? Buy high sell low???? Mirror order amounts and timing between both.  Accumulating enough stock to ensure they could fill up the asks...

Regardless, as you suggest, no one knows what the plan is.  We do however know funds are needed,  It is also highly probable with severstal backing that debt restructure is a formality subject to negotitation of terms (caveat is cashflow to service debt).  THe million dollar questions are,

1. how do we get to positive cashflow and how many dollars are needed to service  expenditures and debt beyond current cashflow.
2. where does this capital come from
3. Is it severstals intention to take a greater % of ownership through capital injection

One thing that peaks my interest is what will the market reaction be.   If further dilution occurs, does the market react negatively or positively.   The old half full half empty scenario.  A solid plan with sufficient capital regardless of dilution could send this market cap back up to $150 million.  How many shares will be outstanding? 750 million? That puts this around .20

maybe if the stars line up.  Mill issues get fixed, PLG shares are tendered, RGI agrees to partial pay down with balance of proceeds to operations we emerge with minimal dilution and enough capital to keep the wheels mving into higher gold price and lower operating costs.   I was reading an article that suggested low oil prices reduce production costs by 25%.  This combined with the RUB could be favorable.   It will be interesting to see HRG's guidance in this regard