Value of PrognozWhether these folks want Prognoz or not, whether they think the road and other costs will be too high, is all a question of reserves, cost per ounce and then those development costs. But one simple thing can be said: if you have 50% or 100% of 400 million ounces, and the potential exists for a huge expansion on these, there is value. If costs were two BILLION say to get this up and operating, then that is for the sake of it $5 per ounce, correct? Now at 10 or 12 dollars per ounce, depending on operating costs still seems possible, BUT, what if silver runs up and holds at over $20. One would be hard pressed to not see huge value and development potential.
I have always seen this, and question why anyone holding this potential multi billion dollar property, does not, as was proposed previously, spin it off to a group who would move forward on it, over time. Obviously may not be a great time now, but things can change in a hurry. In any case, 50% of this at almost any amount you want to assign is a nice asset for HRG. Letting it go cheap, in my opinion, would be VERY foolish and short sighted. But if so, they should spin it out and retain a net per ounce or some such. IMO At $1 per ounce of silver: they now have $200 million in value. Pick your price per ounce. .25, .50 more? NO matter, it is significant. Price of silver moves up, and it certainly is not going down in value. Noticed price of silver since they did the deal????