High River Gold Mines Ltd HRIVF

Gold segment Severstal Q1

[ccharlwood]

From Severstal Q1 report

GOLD

Nordgold, the gold segment within Severstal, continued to demonstrate growth and strong results. The gold price reached new record level in Q1 2011. Revenue increased by 80.7% to $244 million (Q1 2010: $135 million).

Nordgold produced 174.2 koz in Q1 2011, a y-o-y increase of 59.5% driven by de-bottlenecking initiatives at Berezitovy and Taparko. There was also a contribution from the consolidation of Crew Gold. Gold output fell by 10% q-o-q due to bad weather factors.

Total cash costs per ounce of gold in Q1 2011 were $603/oz and are expected to remain in the range of $600-$650/oz for the full year 2011.

Q1 2011 EBITDA increased by 101.5% to $135.1 million (Q1 2010: $67.0 million). EBITDA margin reached 55.3%.

Capex in Q1 2011 increased to $38.9 million (Q1 2010: $22.3 million), including $17.4 million spent on exploration.

In January 2011, the Group acquired an additional 6.6% stake in Crew Gold Corporation for a total consideration of US$ 32.9 million, increasing its ownership interest up to 100%.

Nordgold continues to advance organic growth at existing operations while making good progress in exploration, including the two major development projects: Bissa in Burkina Faso and Gross in Russia. 

[ThyFish]

Thanks Chris.  Well this looks like it could be great news for HRG on the revenue increase and Bissa development.  Now if the BOD would promote HRG with the same enthusiasm as they do for Nord Gold we could be off to the races.  ThyFish

[katchum]

I'm not so concerned about revenue, but when gold prices go lower, and the production cost being so high. The margins could become so small that bad things could happen.

[hrgagogo]

So when  can we expect HRGs Q1 results?  Do you expect that Severstal will wait the full month to June 15?

[ThyFish]

hrgagogo, I would assume as always that they will take the full time period to release results but I don't know for certain.Katchum, Gold going down from where and when?  Gold has skyrocketed over the last 2 years even with huge increases in the last 6 months, so gold retracing a little to $1475 or even much lower doesn't concern me in the least.  Margins are thin?? Says who

[katchum]

It's this Soros guy that's making me nervous, selling 95% of his gold trust. And then there is the debt ceiling that nobody wants to raise except Geithner.

[bart_dc]

Katchum,you have to look a little bit further to see why the cash costs for certain mines are so high.It's all about the throughput of ore. If a mine produces below design capacity then the depreciation of fixed costs of the plant is done over a low(er) amount of production.For Berezitovy the cost will go down significantly starting of Q1 because throughput is being restored after ball mill

[December3]

Let me make one thing perfectly clear, here........................................I really appreciate the efforts of Chris to keep us informed and to try to hold the focus especially with the delayed quarterly results stemming from a regulatory change ( new accounting standards) and subsequent regulatory allowed "deadline extension."I has got to be as rewarding as herding cats, so his