current pps .55...the only thing is the shares os will make you upchuk...lol

It wasn't too long ago that Canadian miner High River Gold Mines Ltd. was facing a liquidity crisis right in the midst of a global financial crisis. The company was eventually bailed out through two investments from Russian metals giant OAO Severstal (which took a majority stake), and the balance sheet was recently fortified with a $57-million investment from Russia's Troika Dialog Group.

High River demonstrated improved operating and financial results in the third quarter of 2009, according to analyst Vladimir Detinich of Russian brokerage Olma Investment Company. Based on those numbers and the completion of the Troika investment, he wrote that the company is now debt free on a net basis. As a result, he removed a 35% discount he applied to his valuation of High River.

That means his target price is $2.48 a share, implying a whopping return of 396% from its current level of just 50¢.

"We believe High River Gold has now become a secure asset which carries substantial investment attractiveness," Mr. Detinich wrote in a note to clients.

He noted that High River's Q3 cash costs fell 7% quarter-over-quarter to US$570 an ounce, while direct mining costs per ounce fell 25%. That was due to two main factors: a rise in the utilization rate, and a decline in the Russian rouble. The lower costs support his belief that High River's high costs in 2008 were due to the launch of two new mines, Taparko-Bouroum and Berezitovy.

"As the utilization rate at these mines increased, the total cash cost reduced due to overhead cost dilution, thus, improving profitability," he wrote.

Peter Koven