High River Gold Mines Ltd HRIVF

Now, Cash/Inv.= $182M, Debt = $94M?

[production05]

Debt = $121M less $27M Severstal pymt = $94M remaining (approx.)


Cash (send of Q3): $39M

Expected Cash Flow Q4: $44M (likely greater)

Remaining Cash from Troika investment: $30M

Strategic Holdings: $69M

Total Cash, Q4 CF, Balance of Troika Cash and Strategic Holdings = $182M

Only $23M is required for Buryatzoloto exploration (per MD&A).

Clearly, IMO, the 150,000,000 dilution was not required (TSX, OSC, unreal).  You get them Ownerwiser.

What's stopping them from eliminating all or the majority of the remaining $94M in debt right this very second, and trading debt free?  Unreal.

I'm sure we all have our ideas.

[ThyFish]

I believe the recent write downs and unattractive debt with Royal gives Severstal and our BOD the justification for another low ball offer.  On top of that they have diluted the hell out of this and the recent placement is at a 30% discount to current SP.................what an absolute joke!!Correct me if I'm wrong but without the recent write downs, couldn't we have paid off the

[Honkeybill]

The write-downs are a reduction in the market value of an asset the corporation owns, that the company shows publicly on the financial statements they release. They don"t actually part with any cash when they write an asset down.It's like this.......you bought a car 2 years ago for 40 grand.......now you go to the bank for a loan and when they ask you what your assets are, they look at

[ThyFish]

Thanks for clarifing Honkey Bill, I didn't quite get the write down but think I do now.  So even though the write down only seems to be a paper loss, it was not needed and could have done a lot more for HRG posted as a profit.  And the private placement was still at a 30% discount to SP and a much bigger discount to value.