High River Gold Mines Ltd HRIVF

HRG and POG

[cjsell]

The rise the the POG has not in absolute terms helped HRG, since HRG reports in Canadian dollars we are almost at par now, since gold dore is discounted by say 3-4%.  Once gold dore is produced the timing of sale is within 10 days max, but we do not know when/if conversions are made.  But on the other hand debt is in US funds, so we have some interesting financial statement presentations coming, and this scares me.  PWC will not offer any opinion unitl year end, so write off of Prognoz balance sheet stuff is still not clear.  Remember our new CFO is NOT a CA/CPA.  Plus the fact that HRG has dumped some major expenses, salaries, travel, trade shows etc, budgets to the bone.  But I wonder what kind of "corporate" expenses are being charged via inter company "nudge nudge wink wink" this will also come out.  Bottom line is Severstal can do what ever they want, and that's why the stock price is not rising to where it should be.  I would like to know what Sprott is up to..... 

But we do know the POG used in Severstals forecasts is probably $300 per oz short, or $22 million per quarter.  I hope they are not "using" that garbage report forecast from Paradigm.

Severstal did mention that more capital needed to be invested in fixing the "drive train" and other mechanical problems.  Anyone know what amount of $$ are needed?  20 million, 50 million? 

Comments?

CJ