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« Sri Lanka Boosting Gold Reserves | Main | Why Gold Has a LONG Way to Go »
Thursday
Nov052009

High River Gold (HRG) Undervalued?

HRG Logo 31 July 2009.JPG


In this mornings mail bag we have this update from Chris Charlwood regarding the valuation of High River Gold (HRG) as follows:

Alfa Banks states that the attached 8 pg. report may have inaccuracies. For instance, to me, the debt looks high and share count low. However, the important part is that Alfa says HRG is trading at 1/3 of what it should be and, therefore, valued at $865M or $1.17/share (based on their share count). They use a 7 times multiple. This share value is much lower than our peer average comparison of $2.95/share (19.3 multiple), but at least it shows a significant improvement to current price. Also, it shows that HRG makes up 55-60% of Severstal's overall gold production.

To read the article in full please click here.

Have a good one and stay calm.

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Reader Comments (3)

I added a bit more a few weeks ago. Are you guys adding to your position based on these reports that have come out on HRG? Is anyone?

November 6, 2009 | Unregistered CommenterGAry

Until recently the situation was a little too hazy for us to put more cash into it, however things are looking up.

Dont be put off by our trepidation.

November 6, 2009 | Unregistered CommenterGold Prices

I still think gold is the only way to fly in this turbulent atmosphere. After all, like the ad says, "Never been worth Zero."

November 10, 2009 | Unregistered Commenterhow to file bankruptcy

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