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

To: Ally who wrote (8305)	4/19/1998 2:02:00 PM
From: E. Charters	Read Replies (2) \| Respond to of 10836

MEM manoeuverings. Unlikely. They are trying to promote foreign ownership in a bad climate. They will probably want to take it gracefully. One investor is the same as another. I can see them riding their decisions out and letting it go through he courts. To unceremoniously give Dome and CVG the boot after making the resolutions would have been difficult. Stock value. Are you ready? Lets say they can produce at 200 dollars per ounce. That is 100 dollars American, profit. There are TWENTY THREE MILLION probable ounces in the deposit and LC 6 is UNEXPLORED. (Dome directors have said so!) SO: That is 115 million profit per year for 20 years. At 60 million shares out (They have 38 million fully diluted now) that is at least 1 dollar per share after tax profit per year. At 15 times earnings they can easily attain 15 US per share or 20 dollars Canadian. That is practically a worst case scenario. Try 23 million time 50 American dollars. Divide that by an assumed 60 million shares. We get 19 dollars American! If they need 450 million to build the mine, then 24 million shares at 19 dollars should do it. Improve the Gold market to 350 dollars and you get an even better picture, nesspah? If you aver that the reserves are only 60% of that, which I doubt, then you have 60% of that figure or 12 dollars US. This is 17 CDN. SO: IT WILL BE A LOT BETTER THAN THAT. Historically no Canadian Gold producer has sold for less than 85 dollars US a share! Right now Dome is selling for $130 a share US! The 50 dollar figure is a very conservative US evaluators technique. The US is not in the recent past historically a big gold producing nation although it is now. The Canadian experience might hew closer to reality. echarter@vianet.on.ca The Canadian Mining Newsletter