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

To: charred who wrote (10106)	10/3/1999 10:12:00 AM
From: John Dally	Read Replies (1) \| Respond to of 10836

Hi charred, I get the impression that you are still arguing that KRY isn't worth $5 per share. I think that argument was settled 2 years ago, and you were right! The question today, is whether KRY is worth more than $11/16 per share or $29 million. I don't know anything about gold mining, but I can read a financial statement. When I started looking at gold mining cos 2 months ago, I noticed that most of the 3rd tier and some of the 2nd tier were struggling to survive. KRY's financials, on the other hand, were improving dramatically: crystallex.com Working capital went from C$1.7 million in December 1998 to C$8.4 million in June 1999 and shareholder's equity went from C$67.8 million in December 1998 to C$71.1 in June 1999, a 5% increase at a time when many comparable cos seemed headed for bankruptcy. More important, the company produced significant earnings and cash flow for Q1 & Q2 of 1999. (Richard has already covered this.) At what P/E ratio would you value KRY? What are the names of some of those other companies that you feel are superior investments? Thanks in advance for your comments, John.

To: charred who wrote (10106)	10/11/1999 10:21:00 AM
From: richard badauskas	Read Replies (1) \| Respond to of 10836

I stand corrected, Albino is projected to produce about 20,000 ozs. per annum in 2000. The other 50,000 ozs. per annum is projected to come from other concessions. My guess is that the production from Albino is very "do-able" based on current gold around US$300-330 per oz. If the second quarter produced cashflow of C$0.13 per share/C$4.8M, the third qtr. should be a little lower and the fourth a little higher, so we may average out with similar cashflow numbers to the excellent second quarter numbers for the last half of 1999. With about C$5.7M in the kitty and with an additional C$8M of cashflow for the last half year, after expenses we have at least C$10-12M of cash in the kitty. I assume some of this money will pay down debt and we have ample cash to build prduction into 2000. This type of cash flow is more than ample to build infrastructure and buy/finance additional milling plant. The higher gold price should see a lot of extra activity on KRY properties. Disclaimer-I own shares and have a biased attitude. I also think it a big plus that the shareholder class action suit was dismissed by the U.S. Courts last week. I cannot hazard a guess on the Las Christinas litigation, I was at one time an attorney, have read a lot of the background material on the Las Christinas litigation and am completely baffled as to where this is all going. The one interesting point is that PDG has stopped work at Las Christinas, I get the impression that it will be impossible to finance this project until all of the legal issues between the parties are finnally dismissed or settled. I think it is a legal ploy on the part of PDG to claim that this very large project is "uneconomic". IF the situation heads into some sort of settlement the "uneconomic" pronouncement would reduce the value of any type of settlement terms between the parties. I am NOT holding my breath on this one as it could drag on for some time. From a strategic point of view I think that PDG may consider such a course, they have a very large hedge position sold forward for many years. IT may be the case that they will need production from Las Christinas to cover some of their hedges several years downstream, especially if gold prices continue to rise. No doubt, the price of KRY will be affected by such speculation in the future. Considering the very low price of KRY I assume that this will be a positive in terms of the shareprice and IF KRY somehow manages to win this case we will see a massive explosion in market cap. to the upside BUT I place no value on this possiblity.