REMEMBER $31 million profit in Q3Bottom line folks, Severstal can't hide the good news that will keep on coming. Do not lose sight of the fact that HRG is VIABLE, PROFITABLE, CASH FLOW POSITIVE, and will only get stronger, and the share price will keep rising. Loss YTD in Q3 was ($46,767,000) million and FY2009 loss was (9,800,000) million, therefore
Q4 was $36,967,000 million in profit. In fact if you back out the W/O (Prognoz) HRG actually made north of $46,000,000 in profit FY2009. Cash flow looks much better, debt paid way down, cash cost per oz steady and should drop as the mills are fixed, lower grades can be processed profitably thus acutally increasing reserves, cash costs are in line with other gold companies, no further silly accounting write-offs. Q1 FY 2010 will be great, as POG should average $1,100 CDN oz
Something strange though, our JV partner in Progonz is not listed as Evergreen, it's now Arinvest LLC,
The good news will keep on coming as long as the POG stays above and average of $1,000, in my opinion. Glad I bought additional shares over the past 2 months.
CJ
Transactions with Severstal Note the second Ball MillDuring the year, Standard Bank assigned its loans to Severstal, the major shareholder of High River. In December, High River repaid Severstal $30,534,000 for principal and accrued interest in settlement of these loans.
In connection with a tender offer and private placement completed in 2009 (note 15 (b)), Severstal loaned Buryatzoloto $5.9 million which was repaid in 2009 using the proceeds of the private placement completed in June 2009.
During 2009, Buryatzoloto paid Severstal US$116,000 (2008 – nil) in management fees. Berezitovy has signed a contract to purchase a second ball mill valued at 43 million Roubles (approximately $1,500,000) from a subsidiary of Severstal.
During 2009, officers of the Company who are employees of Severstal have received $36,000 (2008 – nil) as consulting fees from the Company.