VALUE ASSERTS IN MORE THAN ONE WAY....Short story: those who say value is not asserting. I disagree. Price action now: as stated for some time. Higher over time with volatility, of course. Just like gold. BUT MUCH HIGHER.IMO
Some who have been here for a few months, if not longer, might recall how so many folks have gone on an emotional roller coaster ride. We have had the bashers, pumpers, dumpers, chicken littles with the sky is falling, takeovers, makeovers, buy outs, this is going to happen, its a done deal, they care, they don't care, and on and on.
I have said, AND continue to say: its worth at least $1.20 per share.IMO RIGHT NOW -AND THIS VALUE PROPOSITION WILL CONTINUE TO ASSERT.IMO So when it does this or that over the next while, I will continue to stay focused, and stick to this game plan, UNLESS something substantial and FACT BASED changes from where things are at. AND, those things are NOT a pull back in gold price, as expected. Just look at LONG TERM chart of gold for REAL picture, and not the noise, the TV now wanna be gold bugs or much else. Just look at the money supply, the situation in the world, supply of gold, and potential huge and increasing demand. The rest is NOISE.IMO
As far as HRG: The valuations, the debts, the nagging problems, they need to be put in perspective with what is going on, in ANY risk/reward money invested decision.
It is NOT that complicated here. Shares out. Yes fairly large. BUT this is NOT moose pasteur, which many here seem to mix up. It also is not, the tomorrow they will have a producer, story.
What you have here is EXACTLY what you want if gold run continues.IMO Production: it now is quite sure, almost certain, of INCREASING as well over next years. They produce NOW and the increases appear to be starting ALMOST IMMEDIATELY, but even if there are any nagging delays, they are ONLY that, short term issues, BECAUSE they are all RESOLVABLE issues at facilities up and operating. Not dreams about getting approvals, meeting certification or other issues typical of situations where only the reserves are discussed. We are talking about producing mines here.
So forget ANY comparisons with dream mines YEARS away, claiming whatever in reserves. Forget $25 value per ounce in a market with 900 PLUS gold, or even 800+gold, at this juncture, with costs going DOWN, not up.IMO
So why higher??? First the VALUE. The debt load versus the cost to get this sort of operation up and running! GET a LIFE folks, you could NOT produce this for anywhere near the current cap and the debt. IF so show me where???? Not the hypothetical, the real. Where real, value is higher.IMO
You can't suddenly bring on 100's of thousands of ounces of UNHEDGED production. IF so show me where at this price? Not something years away. So value per ounce is SUBSTANTIALLY worth more and WILL ASSERT along with increasing cash flow. And if gold goes higher, the reflection can be very fast, and very sharply upwards.
Then consider, they are not going to stand still, they can increase reserves, do other deals etc. This is not some flighty penny stock promoter at the helm, it is a MULTI BILLION DOLLAR corporation, with the STATED goal of wanting to be in and expand their gold division. These are FACTS, not dream land promotional BS, like we read continually from many Canadian mining juniors. IMO
When I have said value will assert. It can happen in MANY ways. One way, for example, is that owners or control groups, review the situation and see even more value than they thought. Not less. This then changes THEIR game plans. Could that be the case here. MAYBE, as I have also said, they are NOT immune to leverage, and taking advantage of evolving situations. Do you think if they saw steel demand rising, for example, they might not change their plans??? So when gold and silver appear to be heading higher, and for quite some time, with the trend FIRM and UP, they do not consider carefully what they have and the opportunities, versus what else they operate???? They do not, like everyone else say, hmmm maybe we should get more aggressive here, BECAUSE this is where it appears to be at, and we WANT to be there for the ride? No we will part with this for a loss, of what we paid about, what was it, THREE months ago, and sell it or close it down, even though gold is up, silver is up and costs can be brought down. Ya sure. And those who put such forward. Well I will be the first to say I was wrong if that were to happen. But I doubt it. Don't you?????
So value here should, can, and odds are, will assert over time. IT ALMOST ALWAYS DOES when there is REAL VALUE!!! Trouble is with many, they are so used to buying stuff with NO VALUE, and listening to absolute hype nonsense they do not know the difference.IMO. The trick is to have a perspective, sit back and look at the situation and make your call. You can be WRONG, but you can also NEVER make great returns unless you think, and make decisions based on a rational plan. Those who have traded of late for a penny or two. Great, good. But those who are sitting, having accumulated over time, you can sell if you like. But I am going for the ride, EXPECTING FAR MORE. That is my decision, and will not get shaken out, win or lose. I said before, it was changing, and it is.
Let see how it unfolds. Good luck.