High River Gold Mines Ltd HRIVF

News on Dividend

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RBC daily ": Nord Gold is still associated with" Severstal "multimillion-dollar loans.
JSC "Severstal" completes the selection of its gold mining business into an independent company, reported today the newspaper "RBC daily". Even though the owner was soon 89% stake in Nord Gold will Mordashov, gold miner himself completely abandon the "parent" is not able to care: its debt to the "Severstal" and her "daughters" of nearly $ 380 million, however, these loans will soon be replaced by bank loans, which finally provide the Nord Gold sufficient independence.

Net income Nord Gold in 2011. increased compared to 2010. almost twice and reached 252 million dollars, according to a report under IFRS. Revenue increased by 57% - up to $ 1.18 billion, EBITDA grew by 55% - up to $ 574 million, an EBITDA margin of 48.6%. "Overall, the company has shown good results, although surprising they did not: performance coincided with the preliminary data," - said Dmitry Smolin of "Uralsib".

The company is already planning its first stand-alone dividend. According investprospektu Nord Gold, directed to the payment to shareholders, it will be 25% of net profit, ie up to 2011.dividends may be directed $ 63 million, of which $ 56 million will get Alexei Mordashov.

In November of 2011. "Severstal" has decided to allocate the gold mining business from its portfolio and convert Nord Gold as an independent company. In January of 2012. Nord Gold finished sharing 10.6% of its shares owned by small investors, the GDR and brought the package to the London Stock Exchange. Exchange 89.4% more shares outstanding in the firm Rayglow Limited, controlled by Mordashov, the company is going in February.

However, boasting complete independence from the former parent company, Nord Gold can not yet. At the end of 2011. its short-term debt before the "Severstal 'accounted for 185.8 million to $ 77.3 million more, and 72.4 million dollars owed to Nord Gold structures of" Severstal "-" Alcon "and the Holding Company for Mining (including long-and short-term loans .) Interest rates on loans to "Severstal" and her "daughters", ranging from 7 to 8% per annum.

"We will work with the" Severstal "in the mode of business dialogue and market conditions in all respects, including debt," - commented in Nord Gold. But to refinance this debt the company will try in the near future. "Severstal" wants to replace the debt of bank loans, including to reduce its receivables. Already negotiations on this matter, "- said General Director of Nord Gold Nikolay Zelensky." These loans market, and we look forward to their return in the near future "- reaffirmed in the" Severstal ".

JSC "Severstal" - a vertically integrated steel and mining company c assets in Russia and the United States, as well as Ukraine, Latvia, Poland, Italy, Liberia, and Brazil. The company's shares are traded on the Russian MICEX trading floor, the GDRs on the London Stock Exchange. In 2010. revenue amounted to $ 13,573,000, EBITDA reached 3.263 million dollars, were produced 14.7 million tons of steel