Fluvio: I was able to get through to Dick Marshall at Crystallex this morning. I didn't bother asking him about LC4&6, as there is nothing new really. I did discuss Albino with him. The 30 day waiting period after application for deep veta rights for Albino expired the end of February. There has been no objection voiced by anyone. Therefore, the rights should be granted and published soon. Currently, the mill is processing 400 dry tons a day of lower-grade saprolite. They want to keep the mill running pending granting of the deep rights. This ore is about 3 grams/ton. Once deep rights are granted, they will expand the capacity of the mill further and sink a shaft into the richer panel. Underground mining will begin. The immediate target is to produce 57k oz by the end of this year. By the end of 99, Albino will be producing the 150k oz that I quoted earlier. Once the mill is expanded, they will likely process ore from several locations. Now 150k oz at about 290/oz is a gross revenue of $43.5 mil. Their cost is supposed to be about $200/oz (I believe it is less), yielding a revenue stream of 13.5 mil. With currently 45 mil shares fully diluted, this yields a per share earnings of .30US. At todays price of $5.50US, this is a PE of 18 (my previous estimate was incorrect). This is from the Albino alone. They own other promising properties in Venezuela and elsewhere. And they might even own the Best One!
Bottom line: This is not going to be a dollar stock, as the shorters would have you believe. Before all of the hoopla on LC4&6, this stock traded about $2.50 US. If it returns to that level, I personally will be eager to buy additional shares. I have sold half of my position in this stock at a profit, so I am not going to loose sleep over the machinations of Asencio and crew.
Lee |
