RE: New HRG reportSo how much should High River Gold be worth on these new resource estimates?
A quote:
How much might this resource base be worth in time? Well, Novagold’s CEO recently noted that Red Back Mining was acquired by Kinross (KGC) for around $1000 per ounce of measured and indicated reserves. Now, we have to grant that Red Back is producing over 400k ounces of gold in 2010, but the expected cost structure of both Red Back and Novagold is similar (just under $400/oz). see https://seekingalpha.com/article/247842-why-a-takeout-of-novagold-could-exceed-23-share
So if Red Back Mining in West Africa was valued at about $1000 per ounce for measured and indicated because they also offered significant production, shouldn't HRG be valued at least $500/ounce for its african assets because it is in production and has significant resrouces?
So without Russia, HRG has 3.4M oz in its two African assets alone, with the ability to increase these resources further.
So Bissa and Tarpouka should be at least 1.7B alone.
I honestly don't know why HRG didn't increase in value today. I assume some people sold the news. I also see that although this info was released, it wasn't released widely. I expect that the news releases for HRG will begin to be picked up by more news outlets.
If someone has any in with HRG or Philip Baum (Nord Gold) tell them they better have their marketers JP Morgan and Troika to provide market coverage and release a valuation on HRG soon. Otherwise there is no compelling reason to purchase Nord Gold.