Use verifiable data (outcome? total ROBBERY, IMO)Even after elimination of the remaining $106.5M US ($122M US less $15.5M May/June payment) HRG debt with the HUGE value we have in Current Assets and Strategic Investments (see Analysis below), with the $.22 takeover offer they are saying that HRG (including Severstal’s 57% position) is only worth $127M US (NET).
SERIOUSLY the numbers are CLEARLY showing that they view (through this offer) 280,000 - 300,000 ounces of annual production (DEBT FREE, after offsetting the debt) by HRG ($955 US gold price) to be worth only $127M US (see Analysis below).
Through this offer, they are saying the value of all of these HRG properties is only worth $127M US combined:
*Irokinda – profitable producing gold mine
*Zun-Holda – profitable producing gold mine
*Berezitovy - profitable producing gold mine
*Taparko - profitable producing gold mine
*Bissa – potential for significant production
*Prognoz – significant 43-101 resource with high exploration potential
What planet are they from?
Look at the value of producers with similar production ounces and cash cost per ounce in Q1’09, as HRG:
* Eldorado Gold - 61,429 ounces, $3.8 Cdn Billion mkt cap, $296 US cash op cost per oz
* Semafo Inc. - 58,100 ounces, $503M Mkt cap, $460
* Gammon Gold - 55,480 ounces, $1.2 Billion Mkt cap, $430
* New Gold Inc. - 54,938 ounces, $639M Mkt cap, $513
* Alamos Gold – 46,000 ounces, $1.0 Billion Mkt cap, $306
* Aurizon Mines - 38,966 ounces, $774M Mkt cap, $379
* Jaguar Mining - 32,868 ounces, $694M Mkt cap, $409
Analysis:
Current Assets less Payables = $39,000,000 US Strategic Investments (Detour, PLG, etc.) + $90,000,000 US Value of Inventory, Accounts Receivable and Other Current Assets - $20,000,000 US Payables = $109,500,000 US
Remaining Debt = $122,000,000 US - $15,500,000 US May/June (NOW PAID) = $106,500,000 US
Difference of Current Assets vs Total obligations = $3,000,000 US Surplus
Severstal’s offer = 649,213,040 o/s shares (including Severstal’s new shares) $.22 Cdn per share offer = $142,800,000 Cdn = $129,900,000 US
Severstal’s offer net of Surplus Current Asset value = $129,900,000 US - $3,000,000 US = $126,900,000 US
NONE OF THIS DATA HAS BEEN ESTIMATED. IT’S ALL REAL DATA THAT’S OUT THERE. ANYONE CAN DO THE MATH FOR THEMSELVES. THESE NUMBERS TELL A COMPLETELY DIFFERENT STORY FROM ANYTHING THEIR SO-CALLED INDEPENDENT PEOPLE HAVE PRODUCED! DON’T GIVE AWAY THE COMPANY FOR PEANUTS.
IMO, it’s amazing what the Canadian authorities are letting them get away with.
IN MY VIEW, THE CANADIAN SYSTEM IS A COMPLETE DISGRACE.