High River Gold Mines Ltd HRIVF

Paradigm shift coming in HRG valuation

[Critical_Mass]

The main thing I think people should remember who looked through Cormark's analysis is that HRG is being compared to other seriously distressed companies.  Certainly this was the case in the past, however a lot has changed in the last few months according to Cormark's own analysis and others I have seen on this board.  This will not be the case much longer, thereby rendering this independant valuation meaningless as they will need a new benchmark to compare HRG to.  Hopefully other 300k oz+ Tier 2 gold producers which HRG once briefly made it into in analysis' I looked at, before the problems it encountered last year.

Using Cormark's own estimates HRG only needs around 14 million in new financing to meet there obligations at Today's gold prices.  The rest could be paid off with cash flow.  This was not including the most recent financing I believe.  So basically we should be in the clear barring any unforseen events.  I agree that isn't totally impossible with the mining problems to date.  However, they shouldn't be able to dilute us again, except maybe at 64c where they have warrents.  With strong cash flow, management must be inept to be unable to find new debt finaning to cover this shortfall with the cash flow HRG is generating now.

What a joke they want us to sell at 22c when Cormark value's HRG NAV in the 1.40s at today's gold price. And that is with them putting only minimal value on Bissa and Prognoz and I think also putting an older value on marketable securities.

In several quaters this company will emerge stronger then every from its debt spiral and be generating piles of free cash flow to fund Bissa and Prognoz.  No wonder they want to take it over now.

Patience everyone, we will see this stock trading well over a dollar again in the near future barring any further sabatoge by the BOD.