GREY:HRIVF - Post by User
Post by
prouditalianon Feb 13, 2011 10:19am
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Post# 18124956
HRG is not undervalued
HRG is not undervaluedThe ipo failed at the bottom range, so if they try again it will be done maximum at 3 bil likely at 2.5.
Severstal's gold production gained 30% last quarter, and likely HRG production dropped as the old mines dropped from q to q last quarter.
Reality is HRG is no longer 50% of production, will likely be closer to 40%, and reserves are under 40%, so HRG worth max 40% of Nordgold. Also production will fall going forward.
Its nice to dream about Nordgold going at 5 bil, but the next offer will have to be much lower and the market understands this.
At these levels, thats is where we are sitting so not undervalued.
Also Prognoz uncertainty out there. Dream all you want, but HRG is NOT a bargain at these levels.