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Bullboard - Stock Discussion Forum High River Gold Mines Ltd HRIVF

GREY:HRIVF - Post Discussion

High River Gold Mines Ltd > So Incredibly Undervalued
View:
Post by TheRock07 on Jan 25, 2012 3:45pm

So Incredibly Undervalued

HRG is perhaps the most undervalued gold producer on the bourses.

For its production ( about 375,000 oz /year ), it has a market cap of just $2500 per oz versus the peer average of about $9000 per oz for intermediate producers.

 

It has a great balance sheet with over $200 million in cash and plenty of gold in its inventory, sufficient to continue to boost gold production rates.

It also has 50 % of the Prognoz silver deposit. perhaps the richest in the world by grade.

 

It will have earned
.20 per share and cash flowed
.40 per share at the current POG.

 

This would place its fair value from gold production alone, on peer valuation multiples, of about $4 per share.

 

It has no stock promotion program.................its corporate presentation is 2 years old.........but at some point, its major shareholders will make their move and the share price will then move upwards very quickly.

 

Very low risk at these prices and triple upside........................

Comment by 1marketmaker on Jan 25, 2012 4:48pm
Incredible.  It is conceivable that someone offers Nord a price, just so they can say no.   Good idea actually. 
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