High River Gold Mines Ltd HRIVF

Quarterly Breakdown

[Critical_Mass]

Not sure about everyone here, but I found it harder then normal to break out the 4q numbers.

Anyway, it was added to RBC DI financial breakdown for clients, and probably at other brokers as well  now.

We earned 29m in the 4th quarter on record revenue or 125 M.  Comparing to q1=98, q2=115, and q3=102 in the previous 3 quarters. 
That works out to 3c a share.

As stated previously the cost of revenue went up to 66m from 42, 43, and 42 in the last 3 quarters.  Some of this for sure is related to the one off installation of a new Ball Mill at Berezitovy.  

Moving over to Cash flow.
We had 49m in cash flow from operations.
And 28m overall cash flow for the quarter.

The largest differences accounting for this difference is increased Capital Expenditures. I.e. the new Ball Mill and other related equipment.  (One time expense) 23m for the quarter
And 8m spent in other investing cash flows.   (I'm not sure what that is) 

Anyway, I think we are setting up very nicely for 2011.  We have continued strong cash flow and earnings.   Money in the bank.  We should have increased production levels from Somita, and Berezitovy, next year, and the old mines show no sign of reduced production yet.  Although marginally higher costs due to lower g/ton in the feed.  Although still pretty good. 

So with Bissa, we should have a pretty good growth gold profile moving in 2012 imo.
With recent increases in reserves there, I would not be shocked at all of annual production there of over 150k/oz
vs approximately 100k in the original feasibility study.  With Bissa online, we should be ramping up towards 450-500k/oz in 2012.

And as I write this gold is yet again hitting new highs, and continuing to trend upwards.$1451.  And this says nothing of Prognoz, which hopefully can be on track soon.

This is crazy to me we are only at 1.13.  
The only thing that makes sense it the complete lack of sellers and abysmal volume in light of the current lack of interest.

Time will change that though.  The fundamentals are with us.