Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: charred who wrote (10136)	10/28/1999 8:37:00 AM
From: Syncrude	Read Replies (1) \| Respond to of 10836

charred, Milling equipment can be dismantled and sold, and this frequently happens. Same as for drilling equipment. Any mining analyst will include equipment and place a separate value on it, as well as a value for development potential. You have a strange way to value things, but, as usual, you do it to fit your pre-conceived views! In any case, as long as Crystallex does not develop San Gregorio, no value will acrrue to shareholders. The acquisition was value-neutral to the Company, ie. the purchase price was close to market value of assets acquired, considering the debt incurred. Too bad they have been sitting on it! Another example of your lack of balance is when you say there is no development potential. Why would you say this when the area is already producing and not all targets had been drilled by the previous owner? It remains to be seen if MO has enough confidence in the company to actually risk money and buy a significant amount of shares. I doubt he will....

To: charred who wrote (10136)	10/30/1999 6:58:00 PM
From: John Dally	Read Replies (3) \| Respond to of 10836

Hi charred, Here's how I'd look at the SG acquisition: The purchase actually cost $23 million: $16 m debt, $7 m cash, and $6 m came from the sale of unnecessary stuff. I'll stick with your assumption of 420,000 oz. If indeed the property were to be exhausted at the 420,000th oz, then assuming POG @ $300 /oz and cash production cost @ $200 /oz, one could use the last 160,000 oz of deposit to pay off the loan. (I've left out the 3% p.a. interest expense. Also, I'm assuming you'd run the equipment into the ground at that point, so your total cost of production would equal the cash cost.) What did they pay for the remaining gold? $7,000,000 / 260,000 oz = $27 /oz. What's the deposit worth to KRY @ POG $300? $100 CF/oz * 260,000 oz = $26,000,000. Interesting . . . that's KRY's market cap! Question: Does anyone think that PDG might buy KRY to settle the controversy? Best regards, John.