Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Bud Conrad: Beyond the Point of No Return | Main | What If Doug Casey Is Right? »
Saturday
May152010

High River Gold Mines Limited: Q1 $27M profit, Olma Target $1.82.

HRG Logo 31 July 2009.jpg

Chris Charlwood has very kindly sent us this missive updating us on the current state of play over at High River Gold Mines Limited (HRG) which we hope that you find interesting and informative.

 
Olma Investment Company has increased its target price of High River Gold to $1.82 based on the Q1 2010 results – a 117% increase from today’s share price. Production problems (seen to be as one time) caused production to drop to 77.8K oz  from 94.6k oz in Q4. However, the company was able to retain much of its previous quarter’s profit ($27.3M versus $31.6M in Q4) due to cost controls. HRG has reduced its debt down to $62.6M and is expected to pass the tests with Royal Gold to release its third party investments as collateral. Olma shows the company as having a negative net debt (surplus) of  $19.9M.
 
Things to look forward to?
1.    Royal Gold to release 3rd party investments of $78.4M (current values).
2.    Bissa Feasability study completion with multi million oz potential.
3.    Drilling program to extend mine life at Irokinda and Zun-Holba.
4.    From Q1 MD&A; “The new mill at Berezitovy should enable increased production in the second half of 2010. Further operational improvements planned for Taparko may result in higher production in the second half of 2010.”
5.    Q2 gold prices looking to be $1185/oz avg. compared to $1109/oz avg. in Q1.
6.    Severstal Gold possibly announcing an IPO with market cap. in the $4.2B range. With HRG making up 63% of total production in Q1 (77.8k oz vs.123k oz), on a production basis only, this would value HRG at $2.65B or $3.31/share.
 
HRG has a very committed minority shareholder base with very little selling. However, HRG needs new investors buying shares to move the price up significantly. We are hoping that Severstal/HRG management will begin to promote the HRG story by pursuing research coverage from investment banks, presenting at mining and investment shows and hiring an Investor Relations firms.
 
Sources
 
HRG Q1 2010 results
http://finance.yahoo.com/news/High-River-Gold-Reports-First-ccn-816689089.html?x=0&.v=1
 
Olma Investment report
http://freepdfhosting.com/a74bb86fa9.pdf         
 
Third party Investments
http://freepdfhosting.com/e367e467a0.pdf
 
 
Chris Charlwood
Retail Investor
Rainerc7@gmail.com
604-718-2668

So there we have it, as usual we are still holding on to this stock.

Keep smiling its all falling into place for gold and silver bugs.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09.

On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days.

Accumulated Profits from Investing $1000 in each OPTIONTRADE signal 14 May 2010.jpg

Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per tradeClick here to sign up or find out more.


Silver-prices.net have been rather fortunate to close both the $15.00 and the $16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>