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

To: Pierre J. LeBel who wrote (4482)	1/25/1998 5:17:00 PM
From: the Chief	Respond to of 10836

Actually you can't state a "standard" like that Pierre. Gold in the ground is valued on two things; an agreed "POG average value" and, the cash cost to the buyer to extract it. An example, if POG average is $300 and 4&6 property costs $150 total cash cost to extract then you might get $100 per ounce in the ground. Leaving a profit per ounce (in this example of $50 per ounce for the buyer) Example B, POG average is $300 and Romarco property in Nevada, total cash costs of $70 (seventy) to extract then you might get as much as $180 per ounce in the ground ( leaving $50 per ounce for the buyer). So there is not a magic way to calculate what a buyer will pay. Agreement must be met between the seller and buyer as to a "mean value" for POG. Then through a BFS (Bankable feasability study) or PFS (pre feasability study) the value to extract is established (cash cost). Once those two are established the buyer wants a superior RR (rate of return) for investment and bids as low as possible per ounce. The seller wants to rip him off for as much of that RR as he can so tries to get the largest price per ounce. notice how I slipped in a plug for my stock, Romarco (R on the TSE) the Chief