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Gold/Mining/Energy : Crystallex (KRY) -- Ignore unavailable to you. Want to Upgrade?

To: tanoose who wrote (10101)	9/29/1999 9:37:00 AM
From: richard badauskas	Read Replies (3) \| Respond to of 10836

I bought this stock yesterday at $1.00. Why? The San Gregorio Mine has settled down to a production rate of around 20,500 ozs. per qtr. with and cash costs near $200 and 5 years of reserves with plenty of upside potential for exploration now underway. EPS on an annualized basis is US$0.16 and cashflow is US$0.35. Albino I is looking at going into production next year boosting annual production from around 80,000 ozs p.a. to 150,000 ozs. p.a. from rich underground ore. KRY has a collection of high quality greenstone belt exploration plays in South America along with a diamond JV with SouthernEra. From all of this KRY plans to be producing 250,000 ozs. p.a. within the next few years. We also still have the litigation issues with Las Christinas to be resolved. The Chief judge who recently ruled in favor of PDG in one of the disputes has resigned as the new government is attempting to put a broom thru' a corrupt judiciary. Looking at all of this with gold above US$300 we can value a high grow production company at 20 times earnings at $3.20 or 8 times cash flow at US$2.80. IF gold continues to rise above $300 the earnings and cashflow will scream upwards increasing the valuation based on cashflow and EPS. Exploration results, plenty of cash in the kitty and speculation about the legal issues will add to the volatility.