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High River Gold (HRG.TO) trading at 4 times cash flow.

HRG posted $114M in revenues, $49M in cash flow, $39M in profit and 87k ounces of production for Q2. At $.91/share, HRG is trading at a very low market cap of $765M. With its third party restricted shares (soon to be released), HRG has over $225M in cash and equivalents or $.27/share. Its debt stands at $31.5M.
Recently, Severstal exercised over 40M HRG warrants 3 years before expiry and now holds 70.4%. Olma Investment Company put a new target price on HRG at $1.93. They get to this target price by discounting the values of Buryatzoloto by 50% and Prognoz by 25%. Hopefully, these discounts will be reduced or eliminated in future once the drill programs are completed in early 2011 for Buryatzoloto and once the Prognoz silver property goes through its bankruptcy procedure (7 month process). The completion of the Bissa (West Africa) feasability study, due at year end, should also help increase the target price with its 1.7M oz potential. 

Gold prices are predicted to increase through the fall and Severstal Gold is rumoured to do an IPO late year - both potentially applying upwards pressure on HRG's share price.
 
Olma Investment Report on HRG Q2
 
HRG Q2 results
 
Severstal warrant exercise
 
HRG Third Party Investments
 
Chris Charlwood
Retail Investor
RainerC7@gmail.com
604-718-2668


Disclosure: Long High River Gold