High River Gold Mines Ltd HRIVF

Update on HRG from a "friend"

[discern]

Royal Gold our very good friend (because they are making a killing off of HRG) released their annual report.  Here is the information that is pertinent to HRG


Taparko -- At the current gold price, the Company expects that the $35 million cap on the 15% (TB-GSR1) royalty could be met during our first fiscal quarter of 2011. As of June 30, 2010, Royal Gold has recognized approximately $30.6 million in royalty revenue associated with the TB-GSR1 royalty and a total of $50.0 million in aggregate from the Taparko royalties. When the cap is reached, both the TB-GSR1 royalty and the sliding-scale (TB-GSR2) royalty (currently paying at a rate of 10%) will cease and a 2.0% (TB-GSR3) perpetual royalty, applicable to gold production from defined portions of the Taparko-Bouroum project area, will take effect. 
In other words, in 2011, the profit of the Taparko-Bouroum (Somita) mine will increase by 25% or roughly at 120M oz/year * 1200/oz * 0.25 = an additional $36 million in 2011 than in 2010. (
.06/sh)
Secondly by combing through the number we can determine approximately the production of Taparko-Bouroum in the 2Q.
Royal Gold said production was 117.5Moz from July 1, 2009 to june 30, 2010.
In 2009 HRG reported production of 99536 (total for 2009)
Production for 1Q (2009) was  22408 and 2Q (2009) was 20139
Therefore, production for 2H (2009) was 99536 - 22408 - 20139 = 56989oz
Production for 1Q 2010 was reported as 30426
Therefore, 2Q production at Taparko-Bouroum was 117.5Moz - 56989 - 30426 = ~30100oz
These numbers may change slightly because I used total oz produced as opposed to attributable oz.  Production would increase if the attributable oz figure was used by up to 5000oz.