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Gold/Mining/Energy : Crystallex (KRY)
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To: charred who wrote (7647)3/31/1998 8:25:00 PM
From: Jerry Springer  Read Replies (2) of 10836
 
Charred,
KRY would spend much less cap X to build a mill than PDG. PDG has figured 600 million bucks. Guess what? It would have taken them between 6-10 years to simply recover their investment! That's not too smart. You don't just build a mill, turn on a switch, and pump out 450,000 ounces of gold per year.

KRY would and will spend about a third of PDG's investment, recover their investment much earlier, increase the mine life and thereby employ more local Venezuelans for a longer period of time. As the investment gets recovered, the mill will be expanded to increase recovery. This is smart.

PDG had basically written a blank check to their engineering firm for $600 million. 10% of that is markup for equipment costs by the engineering firm. KRY will buy a practically new mill from gold producers going south due to the unfavorable market conditions for cents on the dollar.

Here's another point of interest. PDG's slated inventory purchases included 50 brand new 25 ton 2-wheel drive loaders to truck ore to the mill. KRY used to use the same equipment at Albino, but they have now changed to six-wheel drive loaders. Why? Because it rains so damn much down there that the 2-wheel drive loaders would sit idle for four months per year. It's real hard to produce 450,000 ounces per year when you can't get the ore to the mill.

I could go on and on.

Take it from a guy who has done his homework.

Jerry Springer
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