High River Gold Mines Ltd HRIVF

Once again: Nord vs HRG Valuation

[WolfgangE]

After some rather sobering thoughts and looking back for over a year now I came to the conclusion that most of the minority holders of HRG, including myself,  were and/or are still dreaming if they expect to get even 2.50 to 3 $ for HRG.  At present the value I calculated based on Cap of HRG is 1/2 the cap of NORD, thus 1.09 B $ vs 2.42 B$ or expressed in s respective share prices of 6.75$ NORD (with 359M shares) vs 1.44 $ for HRG (with 840 M shares out).  Thus the lowballing is only 1.29 vs 1.44 for HRG translating into approx. 9% valued below what it should be based on the NORD valuation.

I am fully aware that NORD too is vastly undervalued and that perhaps the relationship between HRG and NORD should not be 1:2 but perhaps more like 1.5 to 2 or something in between which would increase the HRG valuation (on paper at least).  Still the holders of HRG that expect 3 $ for their share are daydreaming!  The situatin has fundamentally not changed in 1 1/2 y now and I am getting tired of it.  We all know that both are ubdervalued and should be trading at about twice or 3x the present valuation, but that's the Russian factor, taken down even further by the totally crooked chief mafiosi Mordashov of altogether causing a discount of about 50% or perhaps even 70%.  Until their attitude remains what it has been so far there is no substantial change in valuation to be anticipated.  Only proper promotopn of BOTH NORD and HRG plus a dividend payout of say 0.10 $ per quarter per share for NORD and around 0.025 $ per quarter for HRG could change that.  This would still leave sufficient funds to run the operations plus exploration plus Bissa and Gross development. until sucjh time that there are substantial changes made to that end I cannot see any improvements here.  

I am waiting for the yearend result for HRG at the end of March and if nothing worthwhile transpires I am selling.  In light of this situation I am just waiting for a "high" of HRG say around 1.40 and then I am unloading and get into something more promising. Unless of course I can be convinced otherwise.

Comments, please!

My 2 cents worth,  Wolf E