High River Gold Mines Ltd HRIVF

Another strategic move

[Power1]

Well....I've managed to stay away from this but am still on the investor communication list.  Interesting move by Severstal. 

Let's see how this plays out.  Here's my thoughts:

1.    Severstal took the debt for secured positioning
2.    Royal gold will be settled by DGC shares so no interest in African operations
3.    Buryatzoloto financing is non-recourse(from what I recall).  Given the debt load and age of mine they may let this one go to creditors or give up the shares.  The operation likely will have sufficient cashflow to debt service though so this one is a variable
4.    They will take out the Berezitovy debt and keep the mine
5.    Prognoz j.v was moved to HRG so they get to keep that.

Shareholders - ?????

I still could be wrong but I havn't seen one move that supports long term sustainability of HRG.