High River Gold Mines Ltd HRIVF

value of Prognoz

[bart_dc]

https://johnhelmer.net/?p=3511
below an excerpt from a John Helmer article of June 2010


This was so good, HRG tried to buy the 50% of Prognoz it didn’t own. The holders of this half stake have been identified by sources close to them as managers of Buryatzoloto who did not move on to HRG, when it acquired the mine; they are unconnected to Mordashov or Severstal. The offer was to give them HRG shares amounting to 9.9% of the capital, and for HRG to accept $16 million in debt for prospecting and exploration works that had accumulated unpaid. The shares were worth C$223 million at the time. Converting these currencies, the offer was worth US$232 million as of July 31, 2008.


High River wanted to pay 232 million US$ for 50% of Prognoz while silver was still below 20 US$.


With today's price of silver the value should very very conservatively put be at the very least 250 million US$ or 0.30 per share
In the recent analyst reports that have a price target for HRG of about 1.80, no real value for Prognoz
is accounted for. So if we add up the value of Prognoz to the price targets we get 2.10 instead.


Enough said.