High River Gold Mines Ltd HRIVF

Q2 will be very interesting

[Honkeybill]

Q1's results won't be staggering......they will reflect the shut down and drop in production.  I can't see much upward pressure on the sp.

    Q2 however, will be a different story. Our 3 million shares in Detour will be worth around 100 million if Detour climbs to just over 30 bucks......and I can see that happening (maybe even higher)........they are on the cusp of releasing the pre-feasability study and their AGM is the end of May. 
    Also, our royalty commitment to Royal Gold (to which our DGC shares are pledged) is almost complete (the big part of the royalty commitment anyway)......it ends at 35 million dollars and we paid Royal just under 25 mill as of 31 Mar 2010. In the quarter ending Mar 31, we paid them 8 mill...........gold stays above 1200 oz from now till Jun 30 and we will have paid them close to another 10 mill.......hitting the 35 mill cumulative amount we owe.

    Imagine that...........at the end of Q2 we have an asset we hold gain close to 30 mill in value ( and also become free to use).......with more debt paid down, gold produced sold at a higher price.............August might be a very nice month for HRG shareholders.

    Interesting times.............can't wait to see how the Trioka situation plays out........either way........this will be over a buck sometime during the summer, if not before.

[prouditalian]

Honkey, can you explain what the completion test means in regards to the Royal Gold commitment? I let go of about 250,000 shares higher and have some cash.

[Honkeybill]

    Hey Proud.........I'm not well versed in this but my understanding is we had to pledge the DGC shares because we couldn't fulfill our royalty obligation to Royal due to produciton problems.    Now production is on track and if we go 90 days wihtout a hitch, Royal will release the DGC shares. That's my understanding but I could be wrong.......

[katchum]

I think Q2 will be good, especially because oil has been going down and the euro is down really hard, while gold is going up. It doesn't take a rocket scientist to see this.Then we have the recent bailout of Greece and the problems in USA. Rock'nroller, you can go back to your shell and hibernate with your shorts. 

[espressostretto]

It will be the first year since 2006 (?) and 2002 before that (?) that we are looking at printing a positive EPS and therefore positive P/E ratio...hopefully this puts us on many more radars.