High River Gold Mines Ltd HRIVF

And another thought.....

[cjsell]

The only good thing I can say to Severstal is that they saved HRG.  Having said that, everything Severstal has done has been for themselves.  If you are a stockholder in HRG and can come to the AGM, then do so.  Quit bitching on this board and ask management the tough questions and demand answers.

Back in the first half of 2008 HRG's stock price was $3.40 and with 353 million shares means a market cap of  say 1.2 billion, and yet we sit at HALF of that market cap.  When you compare HRG to ANY other gold company producing 300,000 oz+ one would have to conclude there is something seriously wrong.  Not wrong with HRG but wrong with Severstal.  It's Severstal which is turning off investors.  So we should be at least at $1.60 without breaking a sweat, but probably should be closer to $3.00  Demand to know why Severstal is keeping news hidden!  Demand to know why wording on news releases is so poor!  Demand to know why no guidance has been issued.  Demand to know why the 150,000,000 shares were offered for only $57 million, only to be bought back (by Morshadov) for $112 million. Demand to know the status with Royal Gold (because Mordashov wants the 80 million free now).  Demand to know where the new reserves for BISSA are, and why they are late,  Demand to know why Prognoz was written down.  Demand to know what the plans are for Prognoz are.  HRG is owed $18 million from the other 50% JV partner, so why make such a NR for $18 million, yet we do not know the status of the mining operation which is a far bigger dollar amount. Demand to know why KPMG were not fired for being late on YE statements, or was it a delay tactic by Severstal?

Look at Severstal's stock price, down almost 30% off it's 2010 highs, and will continue to fall.  Severstal has lost over a billion so far this year (800 million in asset writedowns) and not looking good for the back half either.  Debt is graded as junk status.  Can sell assets because Mordashov over paid, and can't get out.  His easy way out is to float an IPO and sell 20% of it.  The more I think about it, the more I think the market will reject that notion because he needs to own HRG outright.  And that my friends he cannot do right now. 

Do not forget, this same BOD thought Severstal's offer of .22 cents as a good offer. So don't be rude, But let's not be rude.....just not shy.

CJ