High River Gold Mines Ltd HRIVF

RE: RE: Gold north of 1030 CAD

[Honkeybill]

    so over one year, that's a 50M increase in the net cash position above the numbers we have already been kicking around........factoring in the holdings in DGC (sp should increase by close to 50% if the POG holds at 1100 or higher) will add another 15+mill to the net cash postition.

    We're looking at possible dividend payments this time next year.........perhaps that's Severstaals end goal......get the cash HRG is going to generate flowing to them via dividends.

    Production.........check these numbers too.........no debt by 4th quarter in 2010 (certainly achievable) and gross profit (before tax) on 80K ounces would be 44M....(assuming 1100oz and extraction costs of 550oz).......if tax and future exploration ate a bit more than half........it would leave close to .30 a share sitting there in cash.

    They couldn't steal the company but they could very well drain all the cash from it. I could live with that.

    
    You wrote back in August that HRG is trading at 2.3 times it's operating cash flow (annualized) and our peer group is trading at an average of 15 times the cash flow. In the 4th Q of 2010, based on the assumptions I made above, what will the operating cash flow be.........and at 15 times, what should the sp of HRG be?

    Thanks