High River Gold Mines Ltd HRIVF

RE: Update, HRG's Strategic Invmts = $40.5M

[discern]

So let's play with some numbers

    Debt at the end of June 30, 2009 was 144M

    Current Production of 75000 Oz/Qtr

    Profit of $550/Oz (=  $950/oz - avg production cost of $400/oz)

    Cash flow per quarter = 75000*550

        = approx. 40M/ Qtr


Debt Outstanding for Sept 30th should be

    144M - 40.5M (in shares of Detour etc.) - 40M

        = 63.5M

Debt Outstanding after Dec. 30th should be

    63.5 - 40M

    = 23.5M

If Price of Gold stays where it is now (most likely will go up)
and production remains similar to now.

HRG = DEBT free for Valentine's Day

HRG = 135M profit in 2010