Evidence (IMO) of shortfall in promo efforts
We know for a fact that Severstal’s efforts to aquire HRG’s minority shares go at least as far back as March’09.
From HRG’s news release dated March 30’09: “Severstal and a Special Committee comprised of independent directors of High River have discussed, on an arm's length basis, the possibility of Severstal acquiring the remaining outstanding common shares of High River”
High River achieved materially improved financial and operational results in Q1’09:
*PRODUCTION OUNCES - improved by 72% (69,118 Q1’09 vs 40,248 Q1’08)
*CASH COST PER OZ - improved by 26% (US$414 Q1’09 vs US$557 Q1’08)
*REVENUES - improved by 98% (C$89.1 Q1’09 vs C$45 Q1’08)
*NET INCOME - improved by C$3.2M (C$.9 Q1’09 vs C$-2.3 Q1’08)
*NET INCOME BEFORE FOREIGN CURRENCY EXCHANGE - improved by C$24.5M (C$19.8 Q1’09 vs C$-4.5 Q1’08)
*CASH FLOW FROM OPERATIONS - improved by C$30.0M (C$29.7 Q1’09 vs C$-0.3 Q1’08)
In addition:
*DEBT - improved by C$60.1M or 33% (C$122.9 currently vs C$183.0 Q1’08 or US$106.5 currently vs US$158.6 Q1’08)
*ACCOUNTS PAYABLE - improved by C$10.9M or 32% (C$23.1 April’09 vs C$34.0 Q1’08 or US$20.0 Apr. 30’09 vs US$29.5 Q1’08)
Promotion of High River Gold – Previous HRG Management in 2008 vs Severstal controlled Management in 2009:
1) CORPORATE PRESENTATION (on HRG’s website) - is still dated February 2009. It is June 22, 2009 today. It has been 4 months since the last update. HRG’s results have improved materially within those 4 months, but HRG has not reflected these improved results in the presentation. As an investor, a company’s Corporate Presentation is the first place I look for info in the process of performing research on a company. I also believe that this is typical for many investors.
HRG employs a full-time VP of Investor Relations. As such, staffing should not be an issue to avoid this essential promotional requirement.
2) AFRICA MINING CONGRESS (February)
Attended by previous HRG management in 2008
https://www.minellc.com/amc08_sponsors.php
HRG is listed on the program schedule for the AMC event in 2009, but not listed on HRG’s site as a 2009 HRG event. It's possible that HRG attended this in 2009, but it is not clear. The info is not consistent between the AMC and HRG.
https://www.minellc.com/pdf/amc09_program.pdf
https://www.hrg.ca/s/ConferenceSchedule.asp
3) PDAC (Toronto - March) – attended by HRG in both 2008 and 2009
4) EUROPEAN GOLD FORUM (Zurich - April)
Attended by previous HRG management in 2008
https://www.denvergold.org/files/public/ProgramEGF08.pdf
HRG excluded from the program list in 2009
https://www.denvergold.org/files/public/EGF09Program.pdf
5) NEW YORK HARD ASSETS INVESTMENT CONFERENCE (May)
Attended by previous HRG management in 2008 (per HRG’s website)
https://www.hrg.ca/s/ConferenceSchedule.asp
HRG excluded from the program list in 2009
https://hardassetsny.com/Pages/ProgramAgenda.aspx
6) WORLD RESOURCE INVESTMENT CONFERENCE (Vancouver – June)
Attended by previous HRG management in 2008
https://www.cambridgehouse.ca/ch_june2008.html
HRG excluded from the list of exhibitors in 2009
https://www.cambridgehouse.ca/ch_june2009.html#Exhibitors
7) DENVER GOLD FORUM (Denver – September)
Attended by previous HRG management in 2008
https://www.denvergold.org/files/public/FinalProgram.pdf
Denver Gold Forum is currently excluded from HRG’s 2009 Conference Schedule
https://www.hrg.ca/s/ConferenceSchedule.asp
8) THE SILVER SUMMIT (September)
Attended by previous HRG management in 2008 (per HRG’s Conference Schedule on website)
For 2009, HRG currently excluded from both the The Silver Summit list of exhibitors and from HRG’s website
https://www.thesilversummit.com/exhibitors
https://www.hrg.ca/s/ConferenceSchedule.asp