High River Gold Mines Ltd HRIVF

RE: RE: RE: New "target" $1.50

[bart_dc]

the old target by Uralsib in December when they initiated coverage was 1.4
so they upped their target 7%.


don't have the new report yet.


URALSIB Research: Gold Mining – Golden Moment
2010-12-02 07:55:56.202 GMT
Golden Moment
Russian gold miners set to benefit
Gold price has room for further growth. We reiterate our positive outlook on
gold and the gold mining industry due to an increasing global shift to gold as a
safe haven. Although the active phase of the global financial crisis is over,
investors are still concerned about the fate of the dollar as a major reserve
currency and increasing inflationary risks, and are looking for an ultimate
store of value, which gold is. We believe that this process is far from over and
that the gold price has not yet reached its peak. Gold-price growth will be
intensified further by the limited gold supply from mines and active buying by
emerging market central banks, as well as by sustainably strong investment
demand and recovering jewellery demand from China and India. We expect an
average gold price of $1,450/oz in 2011 and $1,500/oz in 2012.
Our top sector picks: the three Ps. Among Russian gold stocks, we have Buy
recommendations on Polyus Gold (PLZL LI – Buy, $86/share target price or
$43/ADR), as the name is set to benefit from rising output and improving costs
next year; Petropavlovsk (POG LN – Buy, $22/share target), which disappointed
this year, but has a more achievable and less risky production plan for 2011
compared to the challenging 2010; and Polymetal which we upgraded from Hold to a
Buy (PMTL LI – Buy, $20/share target), given its growth momentum in 2011E and
strong silver prices. We remain cautious and have a Hold recommendation on
Highland Gold (HGM LI – Hold, $3.2/share target) due to its uncertain
long-term prospects, while we have withdrawn our recommendation and target price
for KazakhGold, as its share price currently has nothing to do with its
fundamentals, but rather with the ongoing shareholder conflict. We initiated
coverage on High River Gold (HRG CN) with $1.4/share target price and Hold
rating due to the expected absence of output growth.