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

To: charred who wrote (10169)	10/31/1999 1:48:00 PM
From: Syncrude	Read Replies (1) \| Respond to of 10836

charred, There you go again! 1 step forward, three steps backward. After a number of such posts, you have fallen way way behind. Do you bother to re-read your posts before pressing the SUBMIT RESPONSE button? If you did, you might be able to spare us from those posts (and they are becoming too frequent) where you mix apples and oranges and beer bottle caps! LOL PS. Glad to see you admitting that Crystallex has done an excellent job with San Gregorio...

To: charred who wrote (10169)	10/31/1999 1:53:00 PM
From: Valuepro	Read Replies (1) \| Respond to of 10836

Charred, "About the potential reserves, the intersections were located 50 meters below the open pit. Cash costs per ounce mined at the moment are $200US. In an open cut, the deeper you go, the more you have to move back the pit walls. This means that the waste to ore strip ratio will increase which will make each ounce of gold more expensive to mine." Why do you ignore the results of drilling outside the pit and along strike? Because it hasn't been proved up yet, and added to reserves? Of course, that's the answer. SG has no more potential that the proven reserves. So, let's go out and bad mouth the company because management holds no shares (publically), and because they are stealing from shareholders, and certainly care nothing about their options which are worthless. Right? VP

To: charred who wrote (10169)	10/31/1999 9:47:00 PM
From: John Dally	Read Replies (1) \| Respond to of 10836

Hi Jeff, Thanks for your reply on the potential reserves. It appears that they need to keep searching! On another topic, I was looking at the original news release for the SG acquisition: crystallex.com It's interesting that at the time, the POG was $295 and the 1998 cash cost was $245, allowing for $50 /oz in cash flow. If one multiplies the $50 / oz by the 420,000 oz of reserves stated, one comes up with $21 million: Pretty close to the $23 million KRY paid. (OK, I know that's obvious.) Now by lowering the cost of production by $45 / oz, KRY has added value of $45 x 420,000 = $19 million to the mine (as long as the POG averages the $195 / oz it was at the time of the acquisition). Another way of looking at it, in their earnings reports, they mention that approximately 40% of reserves (roughly 160,000 oz) are sold forward with a price floor of $310. By locking in cash flow of over $100 /oz, that comes to just over $16 million, equal to their SG acquisition loan. (The fact that the interest rate is 3% indicates that the loan is related to gold, as well.) So, 160,000 oz sold forward covers the $16 million loan, which leaves 260,000 oz with cash cost of $200 / oz for which they paid $7 million. Thanks again for your input, John