NORDGOLD FMV $8.58? Then HRG is $3.00 EASY If NORDGOLD has FMV of $8.58....Then HRG should be way north of $3.00 So come on Mordy, wake up....you will not make it with a low-ball of $1.40
HRG needs these guys as our experts as well. Please commission them to carry out the independent valuation of HRG.
CJ
Analysts FG BCS began financial analysis papers Nordgold
Quote.rbc.ru 23.08.2012 14:36 Quote.rbc.ru 23.08.2012 14:36
We are starting a financial analysis of securities Nordgold, emerging gold producer. We note the high potential for production growth and improving profitability Nordgold that could put the company in line with the major players in the sector in the medium term. Moreover, we expect the company to solve the problem of low free float, which puts pressure on the quotation of its shares. Nordgold We believe the best opportunity to enter the gold mining segment in the face of rising prices for the metal. Our analysis shows that the fair value of the company is U.S. $ 8.58. / GDR (107% upside) , corresponding recommendation to "buy" - analysts said FG BCS.
. "Despite our conservative outlook on gold prices in the second half of 2012 and 2013., We expect moderate growth in demand for gold on expectations of a new round of QE in the U.S., and increased purchases by central banks in developing countries. Additionally, a steady rise in the future cash costs of international mining companies have to keep the price of gold is at a comfortable level. We expect to maintain high profitability of companies in the sector, as the cash costs well below the long-term price of gold ($ 1,000. / oz). Nordgold looks quite attractive in view of potential output growth, lower cash costs . company has geographically diversified asset base, which allowed the company to increase the production of gold four times in 2008 to 2011. term in three years thanks to the measures to improve operations, actively funding and commissioning two mines Nordgold can increase production to one million ounces per year (+ 35% compared with 2011.), which would put the company in line with the major players in the sector. This cash costs, is expected to drop to less than $ 700. / oz by 2016. According to our estimates, the inventory level Nordgold (12, 7,000,000 ounces) ensures the continuation of production to 2031g., and a moderate amount of resources (29.5 million ounces) creates attractive opportunities for the future. low free float Nordgold - just 10.1% - was one of the causes of the weak dynamics of the company. Yet less than the offer made ??to minority shareholders HRG (75% owned Nordgold) buyback / exchange offer is expected to solve this problem. As a result, free float will increase by at least 4.1 percentage points to 14.2% for the end of 2012., and at best case scenario - up to 22.9%. Nordgold We believe an attractive opportunity to enter the gold mining segment due to its high potential to increase production, a good indicator of profitability at unreasonably low multiples of (2012e EV / EBITDA - 3,6 x). Our fair value is 8.58 dollars Nordgold. / GDR, which corresponds to 2012e EV / EBITDA 6,5 x (along with its peers.) In addition, our assessment of upside potential is 107% ", - concluded the experts.