RE: RE: RE: RE: RE: RE: HRG on BNN right now- LINK Sent the following to the general inquiries email and the close email. CJ, i borrowed your calculation structure. Hope you don't mind.
I appreciate the coverage of High River Gold (HRG.TO) yesterday on the close. However, the calculations were entirely misrepresented. Andrew McCreath suggested that taking a share swap for HRG was a better deal than the $1.40 cash offer. He suggested that the share swap at .285 = $2.10 based on Nord Gold's close price yesterday in London. His math is entirely incorrect and has led investors the wrong way.
If CAD$ and USD$ are considered to be at about parity, see the following calculations:
100,000 HRG shares = 28,500 Nord shares post swap
100,000 HRG shares X $1.40 = $140,000 CASH DEAL
28,500 Nord shares X $4.70 = $133,950 PAPER DEAL
There is never any exchange rate into pounds, so i have no idea how Andrew arrived at $2.10/share post swap. The share swap is a money losing deal even when you don't consider the extreme difficulty and cost of trading shares in London from Canada.
Not only is the cash deal the better option, but i feel that not enough research has been done into the activist investor resistance to the current offer. This is not the first time that Severstal/Nord has attempted to take HRG private and failed. Minority investors have seen the value of their shares suppressed for years due to Nord's management and lack of promotion of HRG. Chris Charlwood has led minority investors in the resistance effort for years and i think interviewing him on BNN would be beneficial for your viewers in being able to hear the efforts he has gone to in trying to get Nord Gold to treat High River shareholders fairly.
I appreciate your consideration for more in depth coverage of High River Gold for the sake of your Canadian investors who have been oppressed by their majority shareholder from Russia. HRG holds the value in it to be worth at least double to triple its current share price and i'm sure BNN will be able to see that value when they prepare a more thorough research of the company.
Thank you