RE: RE: RE: LSE "NORD" Since we know that Nord is trading at 7.8USD/share, the current market cap is essentially 2.8BUSD (or CAD)
However, to calculate what HRG should be worth, I would suggest the following:
I assume that we believe HRG = 1/2 Nordgold
Where it gets tricky is that this 2.8BUSD does not constitute the full Nordgold production.
Why? Because the 2.8B USD does not include the additional 1/4 of HRG shares owned by minority shareholders.
Furthermore, Nordgold has $200M in debt which would be removed from market cap, but since HRG does not have debt then
HRG = (2.8B + 0.2B (debt)) / 1.75
HRG = $1.71 B or $2.14/share
I would argue that the $200M on HRG's balance sheet shout be included in this calculation which would add an additional
.14/share
Nordgold last night expected an increase in market cap by 40% for Nordgold over the next year.
This would increase HRG to $3.00share