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

To: Syncrude who wrote (10170)	10/31/1999 8:47:00 PM
From: John Dally	Respond to of 10836

>>When I use $50USD (could be higher, could be lower) it is in the context of gold-in-the-ground and is a rough valuation estimate. It is not a cash-flow driven one, as I think that the CURRENT mine-life is too short to use cash flow as a fair valuation estimate. << Hi Syncrude, It's when a mine is at the end of its life that it's easy to value the mine through cash-flow. At what price can I sell the gold? How much gold can I economically extract? What will that cost me in cash? In the end, it's money in the pocket that counts. I also think that I now understand why charred gives no value to plant and equipment at the end of a mine's life: You just run the equipment into the ground spending as little as possible on maintenance and repairs. It's more economical to "use it up" than to keep it in tip-top shape and move it. Best regards, John.