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Bullboard - Stock Discussion Forum High River Gold Mines Ltd HRIVF

GREY:HRIVF - Post Discussion

High River Gold Mines Ltd > Nord - new MS coverage
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Post by ccharlwood on Feb 20, 2012 8:11pm

Nord - new MS coverage

The Morgan Stanley report on Nord Gold (linked below) indirectly shows that in 2013 HRG will make up approx. 51% of EBITDA and 48% of production at a cash cost of $646/oz vs. Nord’s other properties at $816/oz. This will put HRG’s profit and cash flow at significantly higher than 50% of Nord’s total.

In terms of resources, the report says that Nord looks to convert 7-8M of ‘ inferred resources’ to ‘measured and indicated’ in the near future – a new resource report is coming out in April. Currently, if you include the gold equivalent of Prognoz and the potential 3.63M oz increase in Buryatzoloto’s inferred resources (already revealed in Nord’s recent prospectus), HRG makes up 39% of Nord’s total resources. However, we will not see the full picture until Q3 when Buryatzoloto’s numbers are JORC compliant. We also won’t see the full potential of the Prognoz silver property until a new feasibility study is completed (no timeline indicated). I suspect there is no rush to point out the true value of Prognoz until Nord has either taken over or established a working plan with the other 50% owner. The point being we won’t see HRG’s true contribution to Nord’s resource base until both Buryatzoloto and Prognoz are fully exposed. Also, reports are that the life of the Buryatzoloto mines may be more like 20-30 years rather than a few years. I expect, with full exposure, HRG will make up at least 50% of Nord’s total resource base.

Also, note that Nord's market cap is is $2.5B vs. RandGold's $6.7B - with similar production and probably similar resources after April's update.

https://freepdfhosting.com/840ff8f729.pdf

Chris Charlwood

HRG shareholder

Rainerc7@gmail.com

604-718-2668

Comment by missouriminer on Feb 20, 2012 9:03pm
Thx for the link Chris
Comment by jakethesnake2 on Feb 20, 2012 9:34pm
Thank you for your usual great contribution to the BB
Comment by 1marketmaker on Feb 20, 2012 10:15pm
" I expect, with full exposure, HRG will make up at least 50% of Nord’s total resource base." YES - with only 39% of its per ounce totoal costs and therefore with 70% of its profits and 80% of its ACTUAL planned future, with 84% of its future potential.   HRG is worth 70% of Nord in future profits, growth etc - even using discounted future cash flow when you take Prognoz ...more  
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