Can someone determine this for me please. I wish to see if someone can determine the following information.
What GROWTH in 2013 will be directly attributed to HRG when compared to non-HRG's assets/growth within the Nordgold company as a whole.
This question is important as leading indicators of expansion within Nordgold's growth will dictate if HRG is heavily underweighted in the Nordgold overall present picture. Let me explain. With Bissa in 2013, Nordgold will grow significantly. But that growth is directly attributed to HRG's property, and therefore we may be 75% of their growth in the coming 24 months. Furthermore, at what per ounce cost is BISSA growth versus other non HRG growth in the Nordgold empire? Then consider all of HRG as compared to Nord in that future scenario.
Maybe we only grow Nordgold 70%, but we do so with lower costs per ounce...and therefore we are really 80% of the profit growth.
These metrics are KEY to knowing how important HRG is. I'd like to use these to develop some items to consider when looking at what HRG is worth compared to Nordgold. This is because some of you are stating that we should be worth 50% of Nordgold's price. I disagree strongly. You cannot simplify that statement.
It has to do with GROWTH, AND - Profitability of that growth when compared to growth from non-HRG properties in the Nordgold portfolio - and you need to weight where their other properties are located and consider discounted values based on political uncertainty in that country.
I look forward to some data and discussion.