High River Gold Mines Ltd HRIVF

RE: RE: RE: RE: LSE "NORD"

[WolfgangE]

Yes I agree this is really confusing.  But when i looked at the HRG valuation I used GBX as stated in the Nordgold Trading Graph on the Share Info page of Nordgolds' website.  Yet on the title page it says US $ 7.80 per share.

From the LSE quotes on NORD it was also given in US $ thus my presentation on attempting to value HRG were based wrongly on BTX instead of US $.  I think the latest quote on HRG by Discern1 gives a fair represenation of around 2.14 $ considering that only 75% of HRG are to be counted in the cap of Nordgold + the non HRG holdings, all in all 2x the cap of HRG (approx.)  Yes and then there is the 200 M $ debt of NORD vs no debt for HRG quite the opposite NORD owes HRG some 70M $ (or something like that).  Thus all "fudged in" that would be at least 2.14 for HRG plus extras by yearend from increased production and eventually even more as Bissa (Burkina Faso) and Gross (Russsia) will come on stream in 2013.  So a 3.00 valuation for HRG by yearend seems reasonable to me. However the increased valuation of NORD will be reflected in their share price going up on the LSE from 7.80 at present to say 9 to 10 $ by yearend providing Au staye at around 1600 $+.

At first glance it looks easy Nordgold = 2x HRG   But on closer scrutiny it gets quiite complex.

My 2c worth,  Wolf E

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