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

To: flightlessbird who wrote (5760)	2/25/1998 8:48:00 PM
From: RH	Respond to of 10836

Some other points to consider: I believe that evidence was published showing that the "other" company was made aware by their own lawyers that the awarding of the mining rights was uncertain to say the least. For the "other" company to proceed anyway was an obvious gamble. The only lawsuit that they ought to worry about is the class action that might follow from their own shareholders. If they truly were being hard done by, don't you think the other company would have been making a lot more noise and threats against the VEN gov't? Actions speak louder than words and they've been unceremoniously booted out and it doesn't appear to have caused too many tears. As for future mining in VEN, of course current producers may be affected. Particularly all of the illegal ones that are raping the Imacta and poisoning the environment in this very important area. Hmmm, wonder why Paris has been named to head up Minavenca (sp)? Just maybe....This is the opportunity the gov't needs to clean up the awarding of mining rights and turn the corner. Rather than hindering developments, the message that will be sent to the world of mining will be that the new laws are straight forward, the old days of corruption and mining destruction are not acceptable, and only above board plays will be welcome. Short sighted ones, ask yourself this question (rhetorical--don't bother answering): Why is Fung here instead of elsewhere? Why is Paris here instead of elsewhere? Why this powerhouse board? Why no hype or pumping from company? Why restriction on employee trading? You guys have no answers and no facts. As I've said before, I'm not here to convince you of anything, so let's just wait to see this thing play out. RH

To: flightlessbird who wrote (5760)	2/25/1998 9:00:00 PM
From: charred	Read Replies (2) \| Respond to of 10836

Flightlessbird: If KRY wins, they would have to drill the entire deposit over again. I don't believe Placer will give them data. This would cause a delay in the construction for 2 years. This is only a idea. Why don't you have a small short position for protection? Maybe 10 or 15% of your position. What do you think?

To: flightlessbird who wrote (5760)	2/26/1998 12:15:00 AM
From: woody	Read Replies (2) \| Respond to of 10836

U$25 PRICE IS NOT SPECULATION BUT DREAMLAND...WAKE UP. AT U$25 THERE IS A MARKET CAP OF 850 MILLION U$ FOR THIS STOCK. THATS $1.2 BILLION CANADIAN DOLLARS. OK LETS DREAM! AT 10 TIMES CASH FLOW THIS $25 STOCK WOULD BE VALUED AT 10 TIMES TRAILING CASH FLOW OR CASH FLOW OF $2.50. A CONSERVATIVE VALUATION APPROACH. THIS WOULD BE $85 MILLION IN CASH FLOW. THIS WOULD BE MEANING THAT KRY WOULD HAVE A PRODUCTION RATE OF 566,667 OZ OF U$300 GOLD WITH CASH COST OF $150 (REMEMBER WE ARE DREAMING)OZ. WE WOULD BE PROPERLY VALUED U$ 25. OK, OUT OF DREAMLAND!. WE ARE AT LEAST 2 - 3 YEARS - LEGAL, CONSTRUCTION, DRILLING, WHATEVER - AWAY FROM PRODUCTION SO THERES A DISCOUNT TO THE VALUATION. THE CURRENT DATA IS AT 450,000 OZ PRODUCTION WITH HIGHER THAN $150 COST IF I RECALL ITS AROUND $215 BUT LET'S USE $195 AT THAT PRODUCTION WE HAVE A CASH FLOW OF U$1.38 ( $105 * 450,000 OZ / 34 MILLION SHARES OUT ) AND AT 10 TIMES CASH FLOW WITHOUT A DISCOUNT THE STOCK IS VALUED AT U$13.80 OR $20 CDN. IF WE EVEN BRING A JOINT VENTURE, A FURTHER LEGAL DISPUTE, ENVIRONMENTAL CONCERNS OR PROJECT RELATED DEBT FINANCING INTO THE DEAL WE MUST ADD FURTHER DISCOUNTS. THE GOVERNMENT OF COURSE WILL HAVE A PART. THE STOCK WOULD PEAK AT U$10.00 OR A MARKET CAP OF $500 MILLION CDN$. HEY LETS THINK ABOUT IT. AT THE PEAK OF THE GOLD MARKET AREQUIPA WAS TAKEN OUT FOR $1 BILLION DOLLARS WITH WHAT WAS SUPPOSED TO BE A 9.2 MILLION OZ DEPOSIT OF ECONOMICALLY MINEABLE GOLD. THE PRECIOUS METALS INDEX HAS FALLEN 50% SINCE THEN SO A FAIR VALUE WOULD BE $500 MILLION OR $15 CDN. THAT'S THE TOP REASONABLE VALUATION. THE NEXT QUESTION IS WHAT IS KRY WORTH UNDER ANY OTHER CIRCUMSTANCE BUT NIRVANA. WHAT IF THEY LOSE THIS COURT DECISION ? WHAT WILL THIS STOCK BE WORTH ? CERTAINLY LESS THAN CURRENT MARKET OF U$7.25