GREY:HRIVF - Post by User
Post by
goldpriceon Sep 26, 2010 9:31pm
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Post# 17494545
HRG Valuaton
HRG ValuatonIn recent posts I have not seen an HRG valuation based on the recent purchase of Red Back Mining by Kinross.
Kinross paid $3.3 Billion for Red Back with its 465K oz of annual gold production.
That's $7100 per oz. of gold production
(note: Kinross would argue that they were really after Red Back's reserves - but to keep this easy, this comparison is on production)
Severstal's Powerpoint presentation projects HRG gold production of 367k oz. in 2010. So, at $7100 per oz. times 367 k oz of gold production in 2010, HRG is worth $2.61 Billion or on a per share basis with 840 Million shares, equals $3.10 per share.
This is at the higher end of a range of recent valuations that generally fall between $2.50 and $3.00 per share.
Of course, if Prognoz is for real, this should go a lot higher.
Stan Peck